BLOG. 4 min read
ETFs have become a cornerstone for both asset managers and financial advisors, with the number of ETF product offerings on the rise in recent years. Last year, the average asset manager had seven ETFs on their focus-product list. Yet when it comes to discussions between asset managers’ salespeople and financial advisors, ETFs are discussed in fewer than half of interactions.
Most advisors already use ETF products (passive, active, or both) to some degree. Around 93% of financial advisors say they do not have barriers to using active ETFs; 74% of whom (69% of all advisors) already use active ETFs. And while half of advisors say they would like to meet with an asset manager’s ETF specialist, only 11% feel they need a specialist involved before making product decisions.
Sales strategy adjustments show asset managers are responding to market forces in terms of ETFs. Increasing ETF production is a top initiative for 40% of asset managers in 2025. One in five asset managers stated that progress towards an ETF goal was one of their top five KPIs to measuring wholesaler success.
However, in an Advisor Insights survey that we conducted this year in association with Horsesmouth, we found that ETFs aren’t frequently discussed. When we asked advisors, “About how often do ETFs come up in a discussion with an asset manager salesperson (in-person, virtual, phone, email, etc.)?” 87% of respondents said ETFs were discussed half the time or less frequently, with 31% saying ETFs were discussed “rarely or never.”
While it sounds like there is a disconnect between the fact that there is so much interest around ETFs but they are not a dominant theme in sales conversations, that is not necessarily the case. Sales teams are approaching meetings with advisors in a more consultative posture. Rather than pitching a mutual fund or ETF or separately managed account, they first explain the benefits of the strategy before delving into possible vehicles for the strategy. Advisors do not see these conversations as ETF focused because they aren’t. They focus on the advisor’s challenges and strategies to address those challenges.
In short, despite the buzz around ETFs, ETFs do not need to be the focus of conversations salespeople are having with advisors. That said, salespeople must be prepared to have conversations about ETFs when the need arises and they must also be prepared with the types of materials and support advisors expect. More than half (55%) of advisors want support from their primary salesperson in basic ETF education (how they work, how they trade, creation/redemption, etc.), client-ready materials on ETF basics, comparison tools for different ETFs and/or information on what vehicles a strategy is available in (ETF, mutual fund, SMA, etc).
To effectively sell mutual funds and ETFs, or any other product offered, salespeople must identify and acknowledge the challenges advisors face and preferences. Technologies like the unified managed account, or UMA, make it easier for advisors to combine mutual funds and ETFs in a single account. This means salespeople also must have a good enough understanding of the advisor’s business to easily explain the impact of various vehicles.
They need to understand the nuances of vehicles in technical terms, but also in terms of tax efficiency, costs and trading characteristics. They need to know what tools or educational content their firm can provide. If the salesperson does not have this knowledge, they must have specialists readily available to aid these discussions when they organically occur.
For more insights into distribution trends and advisor behavior, learn about SS&C's Distribution Solutions suite of services.
Sources:
- SS&C’s Research, Analytics, & Consulting Productivity Insights National Sales Team Survey, 2024
- SS&C’s Research, Analytics, & Consulting Advisor Insights ETF Survey in association with Horsesmouth, 2025
- SS&C’s Research, Analytics, & Consulting Productivity Insights Headcount Survey, 2025
