While the use of ETFs continues to surge, their low expense ratios appear to be most prized by multi-millionaires. Spectrem Group, a Chicago-based consulting and research firm, just reported that 28% of investors own ETFs, but 47% of UHNW investors hold them. Those ultra-affluent investors, according to Spectrem, are worth $5 million to $25 million, not counting their main home.

Spectrem noted that 44% of ETF owners have made the purchase on the recommendation of a financial advisor. Still, not all advisors prefer ETFs. A Google search for “advisors hate ETFs” generated over 16 million results. One theme is that advisors can make more money by recommending mutual funds, which may have upfront loads and 12b-1 fees

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