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  4. Global ETF Study 2020
  5. ETF Allocations

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ETF allocations

Professional buyers expect their ETF allocations to continue to increase, with passive, growth-oriented strategies the most popular.

ETF allocations over time

Q1. Approximately what percentage of your clients’ portfolios is allocated to equity ETFs, fixed income ETFs, alternative ETFs, multi-asset ETFs or other types of ETF? Has this allocation changed over the last three years and how will it change over the next two to three years?

 

Key Take Outs


Allocations to ETFs are set to increase, with respondents expecting to allocate 39% of their portfolios to ETFs over the next two to three years, compared to 22% three years ago.
 


Equity ETFs will remain the largest allocation in portfolios, with exposure to equity ETFs set to grow faster than other ETF asset classes over the next two to three years.
 


US respondents have the highest allocations to ETFs, while the strongest increase in allocations over the last three years has been in EMEA.
 

 

ETF investment objectives

Q2. What are the key investment objectives when using ETFs? (Multiple answers were allowed)

Key Take Outs


Cost control, liquidity and ease of trading are the top three reasons why respondents to the survey use ETFs.
 


Cost control is the main investment objective for US and EMEA investors, while liquidity is most important for Asia Pacific respondents, and ease of trading is the main objective for Latin American respondents.
 


Diversification is also a key consideration, particularly in the US and Latin America, while few investors currently use ETFs to meet sustainable investing targets.
 

 

Preferred ETF investment strategies

Q3. What do you consider to be your preferred investment strategy/approach when using ETFs? (Scale 1-5, “don’t know” option not shown)

Key Take Outs


Passive ETF strategies are most popular with the survey’s respondents, who also overwhelmingly use ETFs to provide capital growth.
 


Active ETF strategies are most popular in the Asia Pacific region, while US respondents are most likely to use ETFs for hedging.
 


In contrast to Asia Pacific, Latin America and EMEA, where ETFs are mainly used as long-term investment strategies, US investors prefer to take a short-term approach.
 

Full report

Download the full report to see all the data and analysis from this year's survey.

Download the full report

ETF trading and investing

Investors enjoy the low costs and trading flexibility of ETFs, but view liquidity as a risk. Market volume is the leading trading consideration.

Key findings - part 2

This is a marketing communication and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.
 

This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000.

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