• Based on our Advisor Top Trends for 2023 survey, there is a clear correlation between an advisor’s age and their active/passive strategy preferences for ETFs, mutual funds, and separate accounts.
• The younger the advisors, the more inclined they are to use a passive ETF. This ranges from a high of approximately 70% for advisors age 45 and younger to a low of 64% for advisors age 60 and older.
• The inverse is the case for active strategies. The older the advisor, the more willing they are to use active mutual funds, decreasing from 50% for the oldest age group to 37% for those age 45 and younger. Also, 29% of the oldest advisors prefer an active separate account compared to 20% for the youngest group.

Advisor Preferred Vehicle by Active/Passive Strategy

Source: FUSE Advisor Top Trends for 2023, April 2023