According to a study of 4,000 Americans who manage their own portfolios, many are allocating more of their investments to exchange-traded funds.
While equal proportions of self-directed and advised investors use ETFs, self-directed investors allocate 20% more of their portfolio to ETFs, according to a study from Cogent Research LLC, which recently collected data on brand awareness, product usage, provider loyalty, and customer experience across major ETF providers.
Usage of ETFs is expected to increase significantly in 2009 among current owners and non-owners alike, the data showed. On average, one out of every four (25%) current ETF owners plans to increase their ETF holdings. Among self-directed investors, the proportion of likely increased use rises to 35%, representing a 40% higher increased adoption rate.
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