Where is the fastest growth ahead for ETFs in RIA client portfolios?
Against that backdrop, Elise Terry, Head of US iShares at BlackRock, told WP how registered investment advisors are rethinking the role ETFs play in client portfolios, and where she sees the fastest growth ahead.
“ETFs used to be the foundation of the portfolio. Today, they’re becoming the entire house,” she said, noting that where ETFs were once used mainly for cheap market exposure and tactical bets, advisors can now build almost an entire portfolio inside the wrapper. “Active ETFs are now a bigger part of the landscape than index ETF launches, options-based ETFs are delivering more targeted outcomes, and liquid alternatives are becoming increasingly accessible.”
That has changed what advisors expect from the vehicle itself. “ETFs are no longer just about access, they’re increasingly about outcomes,” Terry said.
Owning the market on purpose
With markets more concentrated than in years past, Terry said the debate among advisors isn’t whether to hold the broad market, but how deliberately they do it, adding that index investing “remains as relevant as ever” even as advisors apply it with more precision.
On income, Terry said the conversation has moved past simply chasing yield.
