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Asset Preservation Advisors




City:Atlanta

State: GA



BIOGRAPHY:
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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Investors Want to Move Funds from Mutuals to ETFs: Spectrem Perspective

Sixty-four percent of mutual fund owners said they would move assets into ETFs.

| BY Kent McDill

Sixty-four percent of investors say they want to move assets from mutual funds into exchange traded funds (ETFs), a Spectrem Group  Perspective report said.

The Perspective looked at investors’ plans for ETFs, which are seen as an alternative investment to mutual funds. The study group was separated by age, wealth, and investment aggressiveness.

Twenty-eight percent of the study group owned ETFs, while 84 percent owned mutual funds. Forty-five percent of investors who considered themselves very knowledgeable investors owned ETFs, while only 13 percent of those who considered themselves not very knowledgeable owned ETFs.

 Respondents answered only questions that applied to them and their investment ownership.

Sixty-four percent of investors who own mutual funds said they were likely to move some of those funds into ETFs. That number jumped to 72 percent for the Mass Affluent ($100,000 to $999,999 net worth not including primary residence), and 78 percent for those investors between the ages of 55-64.

On the other end of the spectrum, only 50 percent of conservative investors said they would move assets from mutual funds to ETFs.

 Among those investors with ETFs, 35 percent said they were likely to move assets from ETFs to mutual funds, and that number jumped to 62 percent of ETF owners that were conservative investors.

Over the next 12 months, 21 percent of the total study group said they were likely to invest in ETFs, and 53 percent said they were likely to invest in mutual funds. Fifty-one percent said they would invest in stocks and 20 percent said they were not going to invest in any of the three choices.

But 32 percent of the Ultra High Net Worth (with $5 million to $25 million net worth NIPR), said they were likely to invest in ETFs. Sixty-seven percent of that group said they were likely to invest in stocks.

Asked what reasons there would be to redeem ETFs, 55 percent of the study group said underperformance of the fund would cause them to get out. Forty-one percent said they would redeem ETFs because of a more attractive ETF to invest in, and 45 percent of investors 65 years of age and older said they would redeem ETFs on the recommendation of their financial advisor.



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.