Segment: Brokerage
Publication date: Friday, October 30, 2009
# Pages: (75 pages)

Abstract | Table of Contents

Given the increased popularity of ETFs, it is important for brokerage firms to provide their clients with research and educational resources. Centralizing content into a dedicated ETF Center gives clients the most convenient access to information they need to make smart investment decisions.

Fifty-five percent of e-Monitor offer ETF centers. While all but one self-directed firm offers an ETF Center, many full-service service firms do not. This division was not surprising – full-service firms generally focus more on the client-advisor relationship, as opposed to online resources.

We considered the following in evaluating each firm’s offerings:

• Accessibility
• Tools & Education
• Quote/Profile Information

ETF screeners, which help clients choose appropriate ETFs, were among the most valuable features we found in the ETF Centers we evaluated. All but one ETF Center includes a custom screener. Pre-defined screens for quick searching are also helpful; these were provided by 64% of firms. Comparison tools, which help clients to further narrow down their ETF choices, were offered by 55% of firms in this report.

ETF profile information is another important aspect of an ETF Center. Standard information in all ETF profiles includes portfolio holdings details, ETF option chains and interactive charts. Not as common, however, are ETF ratings – a valuable piece of information. Forty-six percent of firms provide Morningstar ratings. Only one firm provides Lipper ratings.

Other key findings of the report include the following:

• Half of the firms in this report make their ETF Centers publically available
• All but two firms provide at least basic ETF educational content
• 36% of firms highlight more advanced ETF topics
• 36% of firms provide links to view ETF prospectuses online

Subjects

Website Reviews/Company Reviews, Online tools, calculators, etc.

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