SOURCE: Russell Investments

Russell Investments

September 29, 2015 09:52 ET

More Than Two Thirds of Financial Advisors Using ETFs Select Products Linked to Smart Beta; New FTSE Russell US Survey

SEATTLE, WA--(Marketwired - Sep 29, 2015) - FTSE Russell, the global index provider, today issued research findings showing that 68% of financial advisors using ETFs are incorporating smart beta investment products into their client portfolios.

According to FTSE Russell's first US retail financial advisor market survey -- Smart Beta: 2015 U.S. Survey Findings from Financial Advisors -- advisors utilizing smart beta products tend to be younger, have a higher share of AUM in ETFs and alternative investments, and have practices which extend beyond the core activities of investment selection, asset allocation and financial planning.

In addition, the survey found that registered investment advisors (RIAs) are more likely than regional, independent and wire house advisors to be aware of the term "smart beta." Notably, more than 70% of financial advisors who adopt smart beta utilize more than one product, with dividend, high quality, equal weight and fundamental the most popular products.

Rolf Agather, Managing Director of North America Research for FTSE Russell, said:
"Factor-based and alternatively-weighted indexes have transformed the investment landscape. It is clear that retail advisors are embracing investment products based on these indexes as a way of incorporating new ideas into their clients' portfolios. Our findings indicate that retail financial advisors view smart beta as an important portfolio tool for addressing investment challenges."

About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Leading asset owners, asset managers, ETF providers and investment banks use FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering.

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Views expressed by Rolf Agather are as of September 28, 2015 and are subject to change.

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