
S&P: Institutional ETFs become the new normal

Exchange-traded funds (ETFs) have evolved from a tactical trading tool into a core portfolio management instrument for institutional investors, with adoption continuing to accelerate across North America, according to S&P Global. Once primarily used for short-term portfolio functions such as liquidity management, manager transitions and portfolio completion, ETFs are increasingly being deployed as long-term strategic investments as institutions shift towards passive investment strategies. Research conducted by Crisil Coalition Greenwich on behalf of S&P Dow Jones Indices surveyed 150 institutions across the United States and Canada, finding that ETFs have become a mainstream component of institutional portfolios. More than half of North American institutions now use ETFs, with 54% reporting exposure to the investment vehicle. Adoption is highest among U.S. institutions, where 56% use ETFs. The largest institutions by assets under management are among the most active users, with more than half of funds managing between $1 billion and $10 billion using ETFs, while nearly two-thirds of institutions with more than $10 billion in assets have adopted them. Insurance companies, endowments and foundations are among the stro







