New Byron Stafford research examines demographic and behavioral trends of ETF usage.
(1888PressRelease) September 06, 2019 - Byron Stafford, a professional Asset Manager who provides institutional and individual investors with a broad array of equity and fixed income products designed to meet long-term goals, today announced that has released a new research identified distinctive behavioral trends amongst exchange-traded fund (ETF) investors, concluding that age and investment experience are the foremost drivers of ETF usage. Early ETF adoption among self-directed investors, published by Byron Stafford Division for Investor Research, examined the behavior of more than five million retail investor households and revealed that older, more established investors with relatively complex portfolios tend to use ETFs to supplement other investments. At the other end of the spectrum, ETFs serve as the primary investment vehicle for millennials and new investors.
Byron Stafford researchers also found that portfolio complexity, tenure, and wealth are contributing factors motivating ETF investment behavior. In particular, the paper identifies a correlation between number of investments and ETF usage—individuals with more holdings have a significantly higher likelihood of owning ETFs.
“Given ETFs’ dominance of the current investing conversation, we wanted to examine the influences driving their adoption and application,” said Stanley Chan Hon, President and Chief Investment Officer. “There are two prevailing dynamics amongst ETF investors: they either employ complex portfolio strategies—indicating investing comfort and acumen—or they are younger and less experienced—suggestive of a willingness to try new investment approaches and a view of ETFs as a diversified investment vehicle.”
While ETF growth over the last decade has been largely driven by financial advisors, the paper also suggests that individual investors are increasingly adopting ETFs. The number of Byron Stafford households using ETFs more than doubled over the last five years—11% purchased ETFs in 2018, compared to 5% in 2013. Compared to other investors, ETF enthusiasts have smaller account balances, fewer holdings, and a higher equity allocation.
About Byron Stafford
Byron Stafford is a professional Asset Manager who provides institutional and individual investors with a broad array of equity and fixed income products designed to meet long-term goals. Our clients currently entrust the firm with billions in an investment philosophy designed to deliver superior, risk-adjusted returns via both separately managed account and mutual fund platforms. Byron Stafford was built on the cornerstones of intelligence, experience and conviction that it is believed clients expect from their investment managers. Byron Stafford is as committed to providing clients superior performance today as the day it was founded. It is that unwavering dedication that helps ensure the firm will be around for at least five decades to come.
New Byron Stafford research examines demographic and behavioral trends of ETF usage. 
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