05.22.26

RIAs Continued Adding ETFs in Q1, Prioritized Risk Management

by: Elaine Misonzhnik

Registered investment advisors (RIAs) continued increasing exchange-traded fund (ETF) allocations in the first quarter of 2026, with the average firm holding nearly 90 ETFs and more than half adding new funds, according to AdvizorPro. Advisors favored sectors tied to risk management and diversification, including energy, commodities, natural resources, defense, real estate and international equities, while specialty and active ETF issuers gained market share at the expense of larger firms like iShares and State Street. RIAs largely retained existing holdings while selectively adding targeted strategies, particularly long-short equity, hedged income and market-neutral funds. Mid- to large-sized RIAs drove much of the adoption, showing greater willingness to pay higher fees for complex products offering downside protection and income stability.

Read the full article on Wealth Management