According to Trackinsight’s fourth Global ETF survey, 56% of respondents planned to increase their allocation to equity ETFs, while 40% will increase their fixed income exposure. Almost a fifth (19%) of respondents stated they planned to increase their exposure by 20% or more.
The survey found this demand had been accelerated by the increasing popularity of active ETFs, with demand surging higher than ever, especially in the Americas.
In the Americas, nearly 80% said they would be more likely to invest in an active strategy if packaged as an ETF rather than a mutual fund.
The Americas and EMEA were split over the use of ETFs, with 60% of respondents in the Americas said they considered ETFs for active investing, compared to 30% in EMEA, where investors said they primarily saw ETFs as a replacement for direct investing.
By sector, 24% of respondents said they had more than 60% of their portfolios invested in equity ETFs, a slight decrease from 2022, while about 5% said they had more than 60% of their portfolios in fixed income ETFs and commodities ETFs.
Thematics are also a powerful driver in the growth of ETFs, with over 40% of respondents planning to increase their allocation to them over the next few years. The survey noted that for the first time, diversification was chosen as the most popular reason to consider thematic investing, followed closely by strategic allocation.
ESG investing was another tailwind for ETFs, with 30% planning to invest more into ESG ETFs in the coming years, driven primarily by Europe-based investors, but respondents raised concerns about greenwashing issues.
The survey added that “strong interest” in cryptocurrency products was a notable feature this year, even in the US, where spot ETPs have not been authorised. Despite this, over 75% of respondents said they had no exposure to crypto.
“The momentum in the ETF market shows no sign of letting up, and this survey provides an important view of the trends fuelling this growth,” said Travis Spence, head of EMEA ETF distribution at JP Morgan Asset Management.
“Zooming in even further, an active ETF revolution is underway, with nearly 70% of global ETF buyers predominantly using active ETFs for equity, fixed income and thematic exposures.
“It is critical that we understand the drivers of value and investor perspectives as we move forward on this journey.”
