The BlackRock ETF Pulse Survey

Who’s behind the growth of ETFs?

1 in 4 American investors are embracing the versatility and convenience of exchange traded funds (ETFs) to meet a variety of financial goals. Their popularity continues to grow: those who already use ETFs plan to use more of them, while those who haven’t used them yet expect
to start soon.

Who uses ETFs?

ETFs are playing an increasingly important role in investors' portfolios, with younger investors being the biggest adopters.

Millenials Stat
Millenials
GenX Stat
GenX
Boomers
Boomers Stat
Silvers
Silvers Stat

Attitudes and investing habits

ETF owners are more engaged, positive and long-term focused than non-ETF owners.

Experienced ETF's owners.

48% vs. 24%

Twice as many ETF owners describe themselves as “experienced investors”

Confident ETF owners.

78% vs. 62%

ETF owners are more confident that they have the right approach to meeting financial goals

How ETF owners view there investments.

42% vs. 23%

ETF owners tend to view ETFs as long-term investments, and hold their funds for 5 years on average

Active ETF owners.

17% vs. 29%

ETF owners tend to be more active in the market, and hold less cash in their portfolios

Why are they investing?

Investors look to ETFs for a variety of benefits and uses. Versatility and low cost are among the top attractions.

Low trading costs

Low trading costs

Low management fees

Low management fees

Diversification

Diversification

Potential risk reduction

Potential risk reduction

Lots of choices

Lots of choices

New ways to seek income

New ways to seek income

Buying ETFs >

Where do they go for information?

Investors are looking to professionals and online to find out more. Boomers (28%) and Silvers (31%) ask their financial professionals about ETFs, Millennials (46%) and Gen Xers (45%) are more likely to turn to digital media like financial websites, blogs and podcasts.

What holds people back?


A lack of information is the main reason more investors don’t use ETFs.

42%

of investors say they are unfamiliar with ETFs

30%

are unclear of how ETFs work

30%

are unsure of how to choose the best ETF

33%

believe their portfolios are diversified enough

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What will drive future growth?

Look for investments to increase

90% of current ETF owners intend to buy more in the next 12 months

of current ETF owners intend to buy more in the next 12 months

40% of non-ETF owners intend to buy their first ETF in the next 12 months

of non-ETF owners intend to buy their first ETF in the next 12 months

Younger people are more likely to allocate new investments to ETFs in the next year
Millenials Stat
Millenials
GenX Stat
GenX
Boomers
Boomers Stat
Silvers
Silvers Stat

How will they pay for it?

Cash

Cash

A majority (46%) of investors will use cash savings

Stocks

Stocks

22% will sell individual stocks

Ongoing Investments

Ongoing investments

21% will invest income on an ongoing basis

Where are the knowledge gaps?


Investors are curious about ETFs, but many are missing information about key benefits and breadth of choices.

34%

have knowledge of lower fees

26%

know about the potential for greater tax efficiency

21%

of investors know about bond or international ETFs

5%

have knowledge of smart beta

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