Guest Columnist Frank Polefrone

This clown Frank is not to be believed. Their data is wrong, it does not update, it is a fraud for which they are overcharging. It is time someone speaks up. Not to mention I showed him how to write on this topic, he stole my idea and now he writes a report on his own. Too bad, because their data is poor, and his heart is not into it.

As an asset manager, I will never pay him and Broadridge a cent of my money.

I’ve seen this data confirmed from other sources. RIA’s are surpassing Wirehouses in distribution of ETFs. This is due to the many benefits that ETF’s can provide to RIA’s, including: – liquidity – diversification – exposure to and mitigation of risk – access to a wide variety of assets – access to a variety of investment strategies beyond passive indices These and other topics were covered in an interesting panel discussion at the recent MMI Convention. You can read the entire article for free here: http://wmtoday.com/?p=4074

RIAs surpass wirehouses in ETF asset distribution and it'll mean change

Frank Polefrone: RIAs place emphasis on their discretionary role and will easily move in and out of products based on the performance of the funds.

Merrill Lynch

Morgan Stanley

Wells Fargo

Broadridge Financial Solutions

Access Data

Frank Polefrone

A look at the numbers shows that exchange traded funds are starting to move in lockstep with RIAs and vice-versa. RIAs invested $496 billion in ETFs in the 12-month period ended June 30, 2015 – that’s a $78 billion increase compared to the same period the year before. By comparison, the wirehouse channel added 20% fewer ETF assets, or $397 billion in the last year; granted, an amount that was $70 billion greater than its aggregate investment during the same 12-month period the year before, according to Broadridge Financial Solutions. RIAs that manage portfolios and make discretionary investment choices for their clients value ETFs because they provide advisors with easy access to market segments at a cheap price – an especially important factor for RIAs who are compensated on an asset-fee basis. Fee-based advisors appreciate ETFs’ tax efficiency, liquidity and broad exposure at low cost. Conversely, RIAs are a prized channel for ETF-makers like State Street, Invesco, PowerShares, Vanguard Group and BlackRock. ETFs are also a major ingredient in portfolios devised by robo-advisors -- essentially automated RIAs -- for the mass affluent who invest more than 90% of their assets using ETFs.

ETFs

Outsourced investments are one of the fastest-growing categories in the financial advisory world. Perched between
the asset custodian and the financial advisor, these (mostly) turnkey asset management programs can handle all or a 
portion of their investing, technology and fiduciary duties.

Advocates of using these TAMPs point to how it's better for the advisor because it frees up more time to spend with clients and prospects. It's also better for clients because the duties are being handled by specialized professionals who benefit from economies of scale.

Skeptics say that it adds a layer of cost and takes away an element of control from the advisors in executing according to a client's financial plan.

TAMPs

For providers of these products and others, getting to registered investment advisors requires more Mapquest, more local manners and more frequent flying than their Morgan, Merrill,, UBS and Wells Fargo cousins

RIAs surpass wirehouses in ETF asset distribution and it'll mean change

ROB

Craig Iskowitz

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