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Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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ETFs Find a Place With Retired Investors

Retired investors are growing more likely to invest in ETFs. Learn more about the trend.

| BY Adriana Reyneri

Growing investor confidence and the recommendations of a financial advisor are increasing the likelihood that retired investors will invest in exchange-traded funds, or ETFs, over the next 12 months.

Roughly one-fourth (23 percent) of retired investors polled in our monthly survey for February indicate they’ll invest in ETFs in the coming year. That’s up from 8 percent of retirees surveyed in August. The group also expressed an increased interest in investing in individual stocks, 47 percent in February vs. 36 percent in August.

Learn about some of the potential tax advantages of ETF investing.

Mutual funds appear to have lost some of their appeal, but they still remain the preferred equity investment of retirees. Roughly half (51 percent) of retired investors surveyed in February indicate they’ll invest in mutual funds over the next 12 months, down from 57 percent of those polled in August.

The shifting preference from mutual funds to ETFs is likely influenced by the advice retired investors are receiving from their financial advisors.  More than 40 percent of retirees surveyed in February indicate that their financial advisor has discussed the role ETFs can play in their portfolio – roughly double the 22 percent of retirees who learned about ETFs from an advisor.

Affluent investors indicate that working with a financial advisor increases their knowledge, provides them access to a wider range of investment opportunities and improves their returns.

One-in-five retirees surveyed in February indicated their advisor has recommended an ETF product to them, up from 16 percent in August.

Retirees express a growing awareness of features associated with ETFs. A larger share perceive ETFs as a lower cost investment option (56 percent in February vs. 38 percent in August) and offering diversification (67 percent in February vs. 54 percent in August). They’re also more likely to view ETFs as a relatively liquid investment.