ETFs Lag Mutual Funds in Advisors’ Income Allocations
Advisors have increasingly been addressing clients’ cash-flow needs, favoring a curious vehicle that defies sales trends: Active mutual funds.
While cash and cash alternatives are the most commonly used (68%), active mutual funds are second (62%) and have increased in use by 9 percentage points over the past two years, according to survey data published this month by Nasdaq. Among more than 400 advisors who responded, the third most-used vehicle was passive ETFs (58%), followed by individual bonds (57%) and annuity contracts (55%). On average, advisors allocate 29% of assets under management to income-related investments.
“It’s become that ballast in a portfolio that advisors are looking for,” said Jillian DelSignore, head…
