Wrappers / Structures

US institutions relying more on ETFs, Greenwich says

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Exchange traded funds are becoming more popular among institutional investors as tools in cash equitisation, transition management, rebalancing and obtaining hard-to-achieve exposures, according to Greenwich Associates.

Usage of ETFs among US pension funds, endowments and foundations has grown to about 14%, according to Greenwich's most recent annual study of the US investment management market. The survey results show that plan sponsors most commonly use ETFs for two purposes: making tactical adjustments to portfolios and gaining temporary market exposure for assets while transitioning from one external manager to another.

One study participant representing a university endowment said that in