Help wealthy clients make investment decisions

More than half of affluent investors prefer combining active and passive investment strategies in their portfolios, finds a John Hancock Investments survey. And while many of these clients are interested in ETFs, they have limited knowledge and want to learn more.

“ETFs, particularly strategic-beta ETFs, have become more widely accepted in recent years, yet our research reveals an opportunity for advisors to better educate investors about their benefits,” notes Karen McCafferty, head of marketing for John Hancock Investments.

In fact, 40% of investors who have discussed ETFs with their advisors initiated the conversation themselves.

Investors also cite strong performance, diversification, and low cost as key priorities when selecting investments. Here are some articles to help affluent clients.

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Additional findings from the survey include:

• 31% say they’re somewhat familiar with ETFs, while 37% were not very familiar or not at all familiar;
• 50% do not hold any ETFs in their investment portfolios, 32% say they do hold ETFs, and 18% didn’t know;
• of those who do own ETFs, many invest in those based on U.S. equities (40%), including the S&P 500 Index; and
• 91% say their most important investment goal was ensuring a comfortable retirement.

NOTE: Research was conducted through an online survey of 1,000 U.S. investors, with a household income of $100,000 or more and investable assets of at least $250,000.