US institutions see long-term appeal in ETFs

Institutional investors in the US are broadening their use of exchange-traded funds to include strategic investment opportunities

US institutional investors are broadening their use of exchange-traded funds and are beginning to view them as long-term strategic investment opportunities, a new report shows.

While in the past portfolio managers typically have used ETFs as short-term solutions, such as to make a tactical portfolio adjustment or transition from one asset manager to another, they are now becoming more widely considered as long term additions to portfolios.

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