Retail investors who use index funds are more satisfied with their investment performance over the past 12 months than investors who use non-index funds, according to a new FTSE Russell Wealth Survey. The survey found that 91% of surveyed index fund investors said they were satisfied with the gains they saw over the past 12 months versus 79% of investors who did not use index funds. Respondents indicated they use index funds for their performance over time (58%), in addition to portfolio diversification (51%), low fees (41%) and managing portfolio risk (36%).
According to Jason Meyer, head of asset owners, consultants and wealth with FTSE Russell, financial advisors should take this as a cue to put more effort into education and outreach surrounding the incorporation of index funds into clients’ portfolios. “The more someone understands a product the more apt they are to incorporate…
