Another recent report looks favorably upon ETF asset growth and suggests that mutual fund representation in portfolios is set to slide. The WSJ reported Thursday that a Cogent Research report conducted in April suggested by way of a survey of 1,500 brokers and advisors that clients' projected holdings of mutual funds will decrease. Conversely, the projected allocation to ETFs is expected to rise. Advisors and brokers who responded to the survey expected to reduce client's holdings of mutual funds to an average of 27% in 2011, while noting that by 2011 and average of 14% of clients' portfolios will be allocated to ETFs. Current statistics for mutual fund/ETF allocation rest at an average of 30%/8%, according to the report.

The latest Cogent report follows in the footsteps of a report issued by the Cambridge-based research firm last May. The earlier report noted the concerns among investors regarding the mutual fund business-- namely, lack of transparency, excessive trading and lack of clearly articulated tax and risk policies (see the MFWire, 5/06/09). 

Edited by: Meredith Mazzilli


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