11.14.25

Advisors Eyeing More ETFs, Alts Exposure Need Wholesaler Support

by: Leo Almazora

New research from Cerulli Associates found that financial advisors are increasingly relying on wholesalers and product specialists as they shift portfolios away from mutual funds toward exchange-traded funds (ETFs), separate accounts and alternative investments. Advisors expect ETF allocations to rise and mutual fund exposure to fall by 2027, with a modest increase in illiquid alts. As product menus grow more complex, 58% of advisors say consulting wholesalers is essential before allocating client assets, and 44% view product specialists as critical for understanding new strategies and regulations. The report highlights a gap between what wholesalers think advisors value and what advisors actually prioritize, urging better alignment and communication.

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