Individual Investors Say They're Using ETFs More, Survey Says

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Key Takeaways

  • A caller State Street study said 45% of individual investors reported utilizing ETFs successful April, up from 2 years earlier.
  • Those who don’t put successful ETFs mention not knowing nan taxation benefits, pricing, and quality betwixt them and communal funds
  • Individual and organization investors are mostly bullish connected nan marketplace for nan second half of nan year

More individual investors usage exchange-traded costs now than 2 years ago, according to caller research, though they stay much celebrated pinch institutions.

Forty-five percent of U.S. individual investors reported utilizing ETFs successful April, according to a caller study from State Street Global Advisors, up from 40% successful 2022. More than two-thirds of organization investors utilized them, nan study said.

While investors mostly for illustration ETFs for reasons including diversification and expenses, galore respondents to nan study said aspects of really they activity — including their taxation efficiencies, pricing and nan quality betwixt them and mutual funds — were difficult to understand, according to nan survey.

The S&P 500 has mostly risen this year, and astir half of individual investors successful nan State Street study said they're assured that it won't reverse direction—44% judge that nan benchmark scale will emergence to decorativeness nan year, while 31% thought it would stay flat. 

Institutional investors are likewise bullish astir nan market, pinch 49% predicting that nan marketplace will emergence and only 11% believing it will decline.

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