Frank70

Why Have Most Investment Advisers Been Slow to Adopt ETFs?

Old codger RIA's who grew up on stock-picking eventually accepted no-load mutual funds as part of their strategies to mix in with individual stocks. ETF's are next.

RIA's need to sell the fact that individual products like ETF's are the ingredients and the RIA is the one who makes the stew. Making the stew gets you a fee. There is differentiation when you mix in some individual stocks, with some well-chosen mutual funds & some ETF's. A client will see that unique mix and be willing to pay -- while sticking a client 100% into a global asset allocation ETF will not work for the advisor in terms of a fee.