ETFs more popular among US institutional investors than their European peers

The US is also likely to see a further increase in ETF investment by institutional investors, according to research by Fundamental Media 

Key points: 

• The use of ETFs is much higher among US institutional investors compared to their European counterparts. 

• Institutional investors in the US rely heavily on asset managers as a key source of information. Only colleagues/peers are relied on more as an information source. 

• Podcasts and newsletters are widely used with most respondents listening to podcasts and reading newsletters on a weekly basis or more frequently. 

At 71%, the use of ETFs is much higher among US institutional investors compared to their European counterparts, research by Fundamental Media found. 

Furthermore, 21% of respondents plan to increase their investment in ETFs over the next 12 months, while only 2% plans a decrease.  

From May to August 2024, we surveyed 53 institutional investors in the US about their investment views, communication preferences, media consumption and satisfaction with asset managers. The US report is part of our institutional investors research, which also includes reports on Germany, Switzerland, the UK, France and the Netherlands. 

Institutional investors in the US rely heavily on asset managers as a key source of information. Only colleagues/peers are relied on more as an information source. Consultants are still being used by 40% of institutional investors, but their use and the reliance on them when looking for information about investment strategies and managers has decreased since 2019. 

Communication support from asset managers is appreciated across a variety of areas and topics, with information on investment strategies, market trends and asset allocation being the most appreciated. 

Respondents prefer clear, concise and tailored communication, and less frequent but high-quality updates. Transparency and honesty are critical, as even small half-truths can severely impact trust. Institutional investors appreciate learning opportunities like seminars and webinars, offering industry-specific insights and tools without a sales-first approach. 

Media consumption 

When it comes to media consumption, the majority of US institutional investors still read print publications, which are mostly received at the office. Only 24% of respondents do not read any print media. 

Podcasts and newsletters are widely used with most respondents listening to podcasts and reading newsletters on a weekly basis or more frequently. A large variety of publishers and podcast providers were mentioned, suggesting a high engagement of this audience with both media channels. 

LinkedIn is by far the most used social media platform for business purposes, especially to read and watch content from asset managers.