Advisors Plan to Shift Client Money to International Active ETFs
What happened
A survey conducted by William Blair Investment Management found that 56% of 200 US-based Registered Investment Advisors expect to increase their allocations to international and emerging market active ETFs over the next 12 months. Nearly three in four respondents reported that investor portfolios are heavily concentrated in US equities, and 90% stated that international diversification is more important now than it was a year ago. Active ETFs allow portfolio managers to intentionally select securities, which William Blair Investment Management noted can help avoid blind spots found in passive index construction abroad.
From investmentnews.com
Why it matters
The findings indicate a growing unease among advisors regarding the concentration of client wealth in a single market. This shift suggests a strategic move by advisors to broaden client exposure internationally and utilize actively managed products to manage risk and capture specific market opportunities.
From investmentnews.com
Who's involved
- ChicagoLocation where William Blair Investment Management is based.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Northern TrustSpeculative
Northern Trust might see investment flow shift away from US domestic assets toward international and active ETFs.
- CitadelSpeculative
Citadel might face a change in the competitive landscape due to capital allocation shifts toward active and international strategies.
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The entities involved
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Chicago
city and county seat of Cook County, and largest city in State of Illinois, United States of America