ETF Applications

1. Tactical Adjustments

   Over- or underweight certain styles, regions, or countries on the basis of short term views. 72% of Institutions use ETFs for this purpose.

2. Core Allocation

   Build a long-term strategic holding in a portfolio.  68% of Institutions use ETFs for this purpose.

3. Rebalancing

   Manage portfolio risk in between rebalancing cycles. 60% of Institutions use ETFs for this purpose.

4. Portfolio Completion

   Fill in gaps in a strategic asset allocation. 57% of Institutions use ETFs for this purpose.

5. International Diversification

   Gain efficient access to foreign markets. 56% of Institutions use ETFs for this purpose.

6. Liquidity Management

   Maintain exposure in a liquid investment vehicle to meet cash flow needs. 54% of Institutions use ETFs for this purpose.

7. Transition Management

   Facilitate manager transitions with ETFs. 44% of Institutions use ETFs for this purpose.

8. Risk Management / Overlay Management

   Mitigate market exposure while refining a long-term view. 42% of Institutions use ETFs for this purpose.

9. Interim Beta

   Maintain market exposure while refining a long-term view. 37% of Institutions use ETFs for this purpose.

10. Cash Equitization

    Put long-term cash positions to work with ETFs to minimize cash drag. 37% of Institutions use ETFs for this purpose.