The 2016 Trends in Investing Survey
Earlier this month, the Financial Planning Association®, Journal of Financial Planning, and FPA Research and Practice InstituteTM released a report on the 2016 Trends in Investing. Most notably, the report shares that Exchange Traded Funds or ETFs are the preferred investment vehicle among advisers for the second year in a row. As Practitioner Editor of the Journal of Financial Planning and having over 30 years of experience in the profession, Dave Yeske spoke with Michelle Zhou, contributor for FinancialPlanning.com, about the results:
“‘Index funds including ETFs have really become dominant in the industry,’ says Dave Yeske. Yeske added that in addition to those reasons and the general shift toward passive management, the dramatic growth in the variety of ETFs is also a chief contributor to their enduring popularity. ‘ETFs track every kind of index now… which leads to greater exposure and a rising propensity for advisers to be more creative in their management approach.'” So what can we expect in the future? As Zhou writes, “Yeske believes ETFs will not be easily outdone by other products. He says that most other investment vehicles introduced in the past that reached the same level of popularity as today’s ETFs were mere fads. ‘Other things will come along, but they won’t surpass ETFs,'”