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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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Interest in ETFs Has Tripled Among Millionaires

Millionaires are three times as likely to invest in ETFs compared to six months ago. Learn more about shifting preferences for ETFs, mutual funds and individual stocks.

| BY Adriana Reyneri

Interest in investing in exchange-traded funds, or ETFs, has increased three-fold among Millionaires over the past six months, according to a monthly survey conducted in February by Spectrem’s Millionaire Corner. Interest in investing in individual stocks also rose sharply, while the likelihood of investing in mutual funds – still the favorite among Millionaires - was essentially unchanged.

The share of Millionaires who say they’re likely to invest in ETFs rose from 10 percent in August 2012 to 30 percent in February, according to our research. Interest in investing in mutual funds rose dipped slightly from 58 percent to 56 percent over the same time period, while the likelihood of purchasing individual stocks rose from 34 percent in August to 54 percent last month.

The data reflects the rapidly growing popularity of ETFs, a pooled investment offering broad market exposure and the trading features of a stock. Assets in U.S.-listed ETFs hit a new record of $1.442 trillion following last Wednesday’s rally pushing the Dow Jones Industrial Average to 14,296.21, according to Index Universe. That’s up from $951 billion reported by the Investment Company Institute for September 2011.

Non-Millionaires appear slower to adopt ETFs. The share is up from 7 percent to 14 percent among individuals with investable assets of $500,000 up to $1 million, but remains essentially unchanged for less affluent investors. Among those with less than $100,000 less than 6 percent are likely to invest in ETFs in the next 12 months.

Learn about a new commission-free ETF trading platform offered by Schwab.

ETFs appeal to investors primarily because of their ability to efficiently diversity a portfolio, and because they are perceived as a lower cost investment options, according to our research. Close to half of Millionaires also like ETFs because they are easy to buy and sell. High net worth Millionaires may be more aware of the advantages posed by ETFs because they are more likely to discuss the products with a personal financial advisor. Sixty percent of Millionaires with investable assets of $5 million or more indicated they’ve discussed the role ETFs can plan in their portfolio. The same is true for 23 percent of individuals with less than $100,000 to invest.

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