The proliferation of ETF usage by institutional investors globally has widened with more frequent inclusion in multi-asset strategies.
Multi-asset managers – which, by definition, invest across asset classes in an effort to achieve particular outcomes such as growth, income, or risk mitigation – see ETFs as especially useful for their transparency (58%), trading flexibility (55%), liquidity (54%), and transaction cost efficiency (53%) according to 362 asset managers and hedge funds participating in a global survey conducted by Institutional Investor (“Managing Market Volatility in 2021”).