Larger Institutions Drawn to Smart Beta ETFs

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Larger Institutions Drawn to Smart Beta ETFs

Despite the vast array of product offerings and investment solutions available in the institutional market, institutional investors managing less than $1 billion in assets continue to favor two product categories—individual securities and open-end mutual funds—while organizations managing at least $1 billion in assets report higher allocations to separate accounts, commingled funds and limited/private partnerships, evidence of the wider variety of investment strategies these institutions employ. However, one category that has enjoyed substantial growth of late is that of ETFs. In fact, 37% of institutions now use ETFs, up from just 26% two years ago. Continue reading