Institutional investors in the U.S. and Canada have nearly doubled their usage of exchange-traded funds (ETFs) over the past five years, with a compound annual growth rate of 14.4%, significantly outpacing the broader institutional market. This trend is driven by the growing variety of ETFs available and their increasing adoption for both investment strategies and operational efficiency.
Institutional investors have nearly doubled their usage of ETFs over the past five years, with holdings growing at a 14.4% compound annual growth rate, suggesting a strong trend towards increased institutional adoption. This presents an opportunity for you to consider expanding ETF allocations in your portfolio, particularly focusing on active ETFs, which are gaining traction for their operational efficiency and access to niche markets like emerging markets and crypto.