Affluent Investors' Growing Appetite for Exchange Traded Funds (ETFs) Is Fueled by Alignment of Their Investment Goals with ETFs Offered by Full-Service Brokerage Companies Rather than Specialist Firms or by Commission Discounts

RHINEBECK, N.Y., March 2 /PRNewswire/ -- Phoenix Marketing International, one of the fastest-growing research companies in the U.S., announced today findings from its latest monthly survey among 924 brokerage and fund investors age 21+ with investable assets (excluding employer-sponsored plans) of at least $100K.

Conducted this past February, the Phoenix study shows that 20% of affluent investors currently own ETFs and that 7% are most likely to start investing in ETFs this month. Topping the list of firms under consideration by investors planning to add ETFs to their portfolio are Charles Schwab, E*Trade, Fidelity, Scottrade, TD Ameritrade, Vanguard, and Wells Fargo/Wachovia.

Over the next month 29% of current ETF investors plan to increase their portfolio allocation in these funds, 69% anticipate no allocation change, and 2% expect to unwind ETF positions. "Our research suggests that affluent investors desire to access ETFs through multiple firms, with one in four planning to open additional brokerage accounts for investing in ETFs," reports Kristina Terzieva, Phoenix Director of Syndicated Financial Services. In addition to the above mentioned brokerage companies, ETF investors are also considering Bank of America, Citibank, Edward Jones, ING/Sharebuilder, Merrill Lynch, T. Rowe Price, and UBS for new account relationships.

The Phoenix study evaluated 13 statements included in the online promotional materials of full-service and specialist brokerage companies as reasons to invest in ETFs. Each reason was evaluated based on how important and relevant it is to investors, given their financial and investing goals. Brokerage firms may be surprised to learn that qualified ETF commission discounts are unnecessary promotions for reaching a majority of investors. "Almost 64% of affluent investors who currently or intend to invest in ETFs place the highest importance and relevance on funds that complement their strategic versus technical investing style, that track large market indices, are offered through a full-service brokerage, and can be traded online," summarized Terzieva. "Waiving commissions for a limited number of ETFs, for only branded ETFs, or ETFs offered by a specialist broker have minimal impact insofar as reaching additional investors," noted Terzieva.

Also reported by the Phoenix study are detailed evaluations of Online, Print, and TV advertisements for 18 leading brands that include previously mentioned firms plus Ameriprise, Barclays, Janus, John Hancock, Oppenheimer, Putnam, and TIAA-Cref. A summary of study findings is available for purchase from Phoenix and a custom report can be produced for financial services firms seeking to measure their multi-media advertising effectiveness and its relative impact on brand health.

This release was issued through eReleases(TM).  For more information, visit http://www.ereleases.com.  

SOURCE Phoenix Marketing International