Investors fail to make most of ETFs' features.

Investment Adviser, June, 2009

Byline: James Kenny

Investors are failing to make the most of ETFs' advanced features despite the soaring popularity of the vehicle, according to the EDHEC Risk and Asset Management Research Centre.

EDHEC surveyed more than 360 high-net-worth and institutional investors and found that the use of ETFs for all asset classes continued apace.

ETFs for all asset classes have gained popularity over the past three years, with use in the equity universe increasing from 45 per cent to 95 per cent, while ETFs in government bond investments have seen the biggest increase, with the number of respondents who reported using them up from 40 per cent to 80 per cent.

Despite the growing interest in ETFs, very few investors are using the...

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