A recent survey by Greenwich Associates shows growing institutional interest in using ETFs for tactical purposes.
A report released Tuesday by the money manager consultant, titled “ETFs Gain Foothold in Institutional Market,” showed the 43 plan sponsors and 27 money managers surveyed March 8-16 citing “tactical adjustments” to gain temporary market exposures and transitions from one external manager to another as the two biggest reasons they use ETFs.
The March survey followed up Greenwich's latest annual study of the U.S. investment management market, which showed 14% of U.S. pension funds, endowments and foundations surveyed reporting that they used ETFs. While still a minority, those institutional investors account for almost half of overall ETF assets in the U.S., according to Greenwich.
BlackRock was the ETF provider institutional investors turned to most often, with 89% saying they used that company's funds, according to the March survey. However, the bulk of institutions employ more than one provider, with 60% using ETFs offered by SSgA and 51% using Vanguard ETFs.
