Exchange Traded Funds (ETFs) are on the rise across all retail and institutional channels, passing the $2 trillion mark, according to new data from Broadridge Financial Solutions.
In 2014, ETF assets increased by 17 percent to reach $2.08 trillion, while overall fund assets under management increased by 12 percent.
The data reveals trends in the distribution of long-term mutual funds in the investments industry, and shows that independent broker-dealers (IBDs) and investment advisors are continuing to out-pace wirehouses.
It also found that investors are moving towards independent advice models, with an increased use of passive products among financial intermediaries, particularly registered investment advisors (RIAs).
There was 19 percent growth of passive products across third-party distribution channels, ahead of 12 percent growth in actively managed products.
For ETFs, the leading distribution channel was RIAs, which accounted for $413 billion in assets in 2014. RIAs also had the most ETF assets under management, with 20 percent of the total ETF assets recorded.
For long-term mutual funds, IBDs were the leading distribution channel, more than doubling assets from $200 billion to $413 billion in 2014.
The data, from Broadridge’s Fund Distribution Intelligence tool, also revealed that total third party distribution of long-term mutual funds and ETF assets increased to $9.54 trillion.
The IBD channel was ahead in terms of long-term mutual funds and ETF assets under management, with $2.33 trillion. That was followed by RIAs with $1.74 trillion, wirehouses with $1.68 trillion, and private banks, which reached $1.4 trillion.
The Fund Distribution Intelligence tool compiles sales and asset data in the industry, offering a view to more than $9 trillion in long-term mutual fund data and ETF assets across more than 900 distributers.
The intelligence is designed to help firms to make strategic decisions about distribution, product development, sales and marketing, as well as helping them to allocate resources effectively and increase growth. Data is updated monthly and can be analysed by various categories such as channel and location.
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