Why you may not be investing more in ETFs

Why not ETFs

This tweet by @nategeraci, @cerulli_assoc and @daniilatcerulli was one of those I found good enough to share and save here for future reference. It ranks what non-ETF users are currently looking for and waiting for before using ETFs.

The first and third ones are the most obvious: about half of non-ETF users surveyed said they wanted to better understand the benefits and mechanics of ETFs before choosing ETFs over mutual funds, and another 41% wanted to better understand how to put together balanced ETF portfolios.

The second is more specific to professional advisors that put together ETFs for clients. The US has a big lead in the transition to fee-based investment advice, and professional advisors have been the biggest buyers in the world’s largest ETF market (the US). It is widely agreed that one main reason ETFs have not taken off as much in Asia is because there are little to no commissions to be earned by commission-based advisors and brokers who sell them, and there are very few fee-based advisors here looking for the lowest-cost investment vehicle for clients.

Thanks again for posting the chart, @nategeraci, @cerulli_assoc and @daniilatcerulli, looking forward to more of your tweets!