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Asked what the most appealing characteristics of ETFs were, the top five reasons given, ranked in order:
1) Low Cost
2) Liquidity
3) Intraday Trading
4) Tax Efficiency
5) Investment Style Purity
When asked what they thought the greatest disadvantage to ETFs were, 69 percent of the survey respondents cited the "unknown or untested indexes and/or portfolio methodologies" or the "overwhelming number of ETF choices."
Additional revelations from this ETF study / survey included:
- A majority of financial advisors (76 percent) identified themselves as light-to-moderate users, indicating that less than 50 percent of their portfolios utilize ETFs
- 4 percent report they do not use the instruments at all.
- Nearly 60 percent of respondents knew what exchange traded notes (ETNs)
- 29 percent said they plan to increase their use of ETNs in the future
- Only 31 percent of advisors are currently using inverse ETFs - these allow investors to bet against a market index.
- Nearly 40 percent reported they plan to increase their use of inverse ETFs in the future
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