TORONTO, ONTARIO--(Marketwired - Feb. 13, 2017) - While Canadian ETF usage is expected to grow in 2017, according to a survey from BlackRock Canada1, Millennials and Gen X investors are leading the charge for future ETF adoption. The "BlackRock ETF Pulse Survey" revealed that Millennials (85 per cent) and Gen X (76 per cent) are more likely to allocate new investments to ETFs than their older counterparts (44 per cent), citing the ability to diversify and reduce rick, low cost and choice as some the top reasons for why they started investing in ETFs.
While one third of Canadians currently own ETFs, despite the appetite, knowledge gaps still persist. Age can be a distinguishing factor when it comes to where investors look for information. The survey revealed that Millennials and Gen X are much more likely to go to financial websites for information (38 per cent and 41 per cent) compared to Boomers (30 per cent) and Silvers (21 per cent). In contrast, seeking advice from an advisor appears to increase with an investor's age, with nearly a majority of Silvers (49 per cent) turning to a professional financial advisor, stockbroker or accountant to learn about ETFs, this is in contrast to 46 per cent of Boomers, 35 per cent of Gen Xers and only 28 per cent of Millennials.
"It's encouraging to see our next generation of investors taking an active and engaged approach to their financial futures, and we believe that ETFs will be at the forefront of this charge," said Warren Collier, Head of iShares, BlackRock Canada. "Our hope is to extend beyond this group, to help empower all Canadians to better understand their investment options and achieve their investment objectives."
The Emerging Investor: Profile of an ETF-Owner
When it comes investing behavior, the survey offered insights into some of the distinctions between ETF-owners and non-owners in Canada. Specifically, it found that ETF owners are on average, younger than non-owners. These ETF-owners are less likely than non-owners to use an advisor (68 per cent vs. 79 per cent) and on average are more optimistic about the Canadian economy.
The findings also point to ETF-owners being a more engaged, proactive and confident group. ETF-owners are much more likely to be invested in the markets - with an average of just 19 per cent of their portfolios held in cash, non-owners tend to hold much more cash (35 per cent), and more satisfied with their portfolio allocations.
"This new type of investor tends to be younger, tech-savvy, and more confident about their finances when it comes to ETFs, meaning that we're looking for new ways to ensure we're meeting the needs of this growing base of emerging investors," said Collier. "While we're seeing that Canadians are keen for more information on ETFs, we want to help more investors understand the important role that ETFs can play in building better portfolios for the future."
Learn more about the "BlackRock ETF Pulse Survey" here.
1 BlackRock Asset Management Canada Limited.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At December 31, 2016, BlackRock's AUM was US$5.1 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of December 31, 2016, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com/ca / Twitter: @BlackRockCA / Blog: www.blackrockblog.com/can
iShares® is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than US$1 trillion in assets under management as of December 31, 2016, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm1.
1 Based on US$5.147 trillion in AUM as of 12/31/16
About the Survey
The BlackRock Canada 2016 ETF Pulse Survey is a Canadian study into the role of ETFs among Canadian investors, executed by Market Strategies International, an independent research company.
Over 400 respondents interviewed were a nationally representative online sample of household financial savings/investment decision makers, age 21-75, with minimum investable assets of $100K and aware of ETFs. All respondents were interviewed using an online survey. This study was sponsored by BlackRock Asset Management Canada Limited and its affiliates.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
© 2017 BlackRock Asset Management Canada Limited. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission. iSC-2651-0217