Advisor Use of Structured Notes is Poised for Growth Despite Concerns Over Liquidity

August 31, 2023 — Boston

This issue of The Cerulli Edge—U.S. Monthly Product Trends analyzes product trends as of July 2023, including mutual funds and exchange-traded funds (ETFs), and explores advisors’ use of structured notes as an alternative allocation.

Highlights from this research:

  • A lack of liquidity is cited by advisors as a top challenge to investing in alternative investments, followed by the complexity of products making the due diligence process more difficult. Despite an elevated rate environment, just under one-third (30%) of advisors who reported allocating or planning to allocate to alternative investments either currently use or plan to start using structured notes in their practice. An additional 26% of financial advisors previously have used structured notes but report they are not using them currently.
  • Total mutual fund assets climbed above $18 trillion for the first time since April 2022. While overall assets increased, net flows for mutual funds were negative in July, as $34 billion in net outflows from active mutual funds overpowered $8 billion in net inflows to passive mutual funds. Net outflows for mutual funds total $205 billion in 2023.
  • ETF assets grew 3.7% in July, reaching nearly $7.6 trillion. ETFs continued their streak of monthly net inflows, gathering $56 billion during July to total $271 billion YTD and posting an organic growth rate of 4.2%. U.S. equity funds led inflows to ETFs in July with $26 billion, while taxable bonds took second place with $14 billion.

Looking for More Information?

Let's Connect

Looking for More Information?

For additional information regarding this material or to get in touch with our press team, please submit the below form.

Note to editors

These findings and more are from The Cerulli Edge—U.S. Monthly Product Trends, August 2023 Issue.

We use cookies to improve your site experience, distinguish you from other users and support the marketing of our services. These cookies may store your personal information. By continuing to use our website, you agree to the storing of cookies on your device. For more information, please visit our Privacy Notice.