In the firm’s tenth annual Global ETF Investor Survey, respondents reported that 39% of investors were planning to increase exposure to active ETFs, with 43% maintaining the same level of investment.
This trend was especially pronounced in Greater China, with 48% of respondents planning to increase investment in active ETFs, compared to 38% in the UK and 32% in Europe.
The survey also found that as market volatility continued to increase, 76% planned to increase or maintain investments in buffer or market neutral strategies.
Examining sector breakdowns, fixed income was the most popular allocation option, with 55% of investors planning to increase exposure, 22% maintaining current levels and 16% decreasing exposure.
This is compared to equities, with 52% increasing exposure, 31% maintaining levels and 16% decreasing exposure, and commodities, with only 25% planning to boost exposure, while 39% aim to maintain current levels and 17% wish decrease their investment.
Thematics are also expected to see increased investment, with 46% reporting they would increase exposure to the sector, compared to 36% who will maintain levels and 8% who will decrease investment. This was especially prominent in Greater China, with 64% planning to increase investment in thematics, compared to just 38% in the US and Europe.
Internet and technology was the most selected theme when considering future exposure (70%), compared to robotics and AI (56%) and digital assets and cryptocurrency (48%).
Meanwhile, a majority of UK investors (52%) said they plan to add ESG investments over the next year, more than any European country except Spain (60%). Greater China took the top spot, with 62% planning to invest.
When analysing ESG ETFs, European investors trusted their own analysis over third party ratings, with 67% of investors using in-house proprietary ESG ratings criteria compared to 28% that rely on third-party ratings.
Examining regional differences, US investors prioritised fees and the ETF issuer as the most important factors when selecting an ETF, while Europeans preferred tax efficiency and trading spreads, and investors from Greater China selected index methodology and trading volumes.
In total, 81% of UK investors cited tax efficiency as the most important factor when selecting an ETF.
Chinese investors were also much more likely to say they preferred to engage with ETF sponsors than other regions, either through in-person and digital meetings, or digital content and events.
Generally, investors prioritised the ETF issuer over the index issuer, with 36% saying the index brand matters less than the ETF brand, and 16% saying that the index brand does not matter at all. This compared to 40% who said both were equally important, and 10% who said the index brand was more important than the ETF brand.
