Greenwich Associates
ETF research

Find out why institutions around the world are turning to ETFs to solve investing challenges across asset classes.

New Greenwich Study: ETFs as "Active" Tools for Institutional Portfolios

The results of the 7th annual Greenwich Associates U.S. ETF Study point to continued growth as existing users broaden usage to take advantage of the versatility of ETFs and new investors adopt the funds for the first time.

Five Trends Driving ETF Demand*

  1. ETFs are being viewed as a new class of financial instrument
    52% of institutions that use derivatives have replaced an existing derivative position with an ETF in the past year.
  2. Institutions are using smart beta ETFs to address challenges in their portfolios
    The share of institutional ETF users investing in smart beta ETFs increased to 37% in 2016 from 31% in 2015.
  3. Demand for ETFs is being fueled by the growth in multi-asset funds
    52% of asset managers in the study use ETFs as part of multi-asset funds, up from 35% in 2015.
  4. Bond ETF adoption is closing the gap on equity ETFs
    In 2016, assets in U.S. domiciled bond ETFs grew by near 26% to $428 billion, outpacing the 18% growth in U.S. equity ETFs.
  5. Past impediments to institutional use are giving way
    Fewer institutions are expressing concerns about ETF liquidity and expenses.


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