EUROPE - Exchange traded funds tracking commodities and hedge fund indices are the best placed to receive new inflows this year, a survey by db x-trackers revealed.
Over half of respondents (54%) indicated commodities as the area with the highest potential for increased use, while 46% bet on hedge fund replication through ETFs.
Sixty-four per cent of the professionals surveyed responded that only between 1-25% of all their clients are currently using ETFs, with 88% of investment professionals saying they will increase use.
Manooj Mistry, head of db x-trackers UK, said: "With a majority of respondents noting that less than 25% of their clients are currently using ETFs, this feedback confirms there is room for growth in utilising the products across European investment portfolios."
Other findings show synthetic replication is favoured over full replication with 49% leaning towards synthetic versus 44%.
Results are based on responses by 361 pension trustees, consultants, financial advisors, fund managers and others from European countries.
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