AdvizorPro: RIAs Slowed ETF Turnover Last Year

You tin find archetypal nonfiction present WealthManagement. Subscribe to our escaped regular WealthManagement newsletters.

ETF usage among RIAs has entered a much mature phase, according to the 2026 RIA ETF Trends Report from AdvizorPro. While the mean fig of caller ETF additions per steadfast roseate betwixt the 4th fourth of 2024 and the 4th fourth of 2025, turnover successful the funds RIAs utilized was little than the twelvemonth prior. RIAs person besides shifted their absorption from hazard absorption erstwhile selecting caller funds to a much balanced premix of ETFs that incorporated growth, thematic and macro strategies. 

Over the people of past year, RIAs tracked by AdvizorPro raised their mean ETF number to 88.3—representing a 13.7% summation from the twelvemonth prior. A ample bulk of RIAs (71.4%) accrued their ETF holdings, portion astir a 5th (20.5%) slashed the fig of ETFs successful their portfolios. Another 8.1% kept their ETF holdings astatine year-end 2024 levels.

AdvizorPro recovered a slowing turnover complaint among ETFs held successful RIAs’ portfolios astatine 36.3% compared to astir fractional of each ETFs turning implicit successful 2024. The wide inclination past twelvemonth was intelligibly toward adding caller ETFs, with 41.9% of funds added to RIA portfolios vs. 18.1% of existing funds being dropped.

However, Michael Magnan, laminitis and CEO of AdvizorPro, noted that, successful his view, a much mature ETF marketplace volition apt pb to a slowdown successful caller ETF adoption. “I don’t spot immoderate signs that it is going to instrumentality a crook for the negative, but I bash deliberation that arsenic the marketplace matures, we are going to commencement seeing a spot of a slowdown successful nett caller adoption, and it’s going to get much competitory for ETF managers to presumption themselves arsenic the champion enactment wrong a fixed sleeve,” Magnan said.

While the database of apical ETF issuers remains mostly the same, including State Street Global Advisors, iShares, Vanguard and Invesco, the apical 4 mislaid immoderate marketplace stock implicit 2025, portion different mainstays, specified arsenic Schwab, registered astir nary growth. For example, iShares experienced a 7.7% diminution successful the fig of RIA firms holding its ETFs—more than immoderate different issuer included successful AdvizorPro’s apical list. State Street saw a 6.4% drop. The fig of RIAs holding Schwab ETFs roseate by conscionable 0.1%. 

At the aforesaid time, Dimensional experienced 6.7% maturation successful RIAs holding its ETFs, with JPMorgan Chase coming successful a distant 2nd astatine 2.0% and VanEck 3rd astatine 0.9%. According to AdvizorPro researchers, the information suggest that “adoption momentum successful the RIA transmission is progressively tied to merchandise specialization alternatively than marque size alone.”