25% of retail investors “never heard of ETFs”

ETFUK retail investors who have never invested in ETFs cite less understanding of ETFs as the biggest barrier to investment, a HANetf survey reveals.

Around two-thirds of retail investors said they do not understand how ETFs work as opposed to other investment products, and around a quarter said they had never heard of ETFs.

Still, there is a potential demand for ETFs. Around 56% said they would be happy to learn more about investment strategies from experts, and one in 10 investors who have never invested in ETFs said they would consider doing so in future.

Despite the “amazing” adoption rate of ETFs since their invention 30 years ago, there is still a long way to go to improve further adoption rates and increase knowledge about ETFs, said Tom Bailey, head of ETF research at HANetf.

HANetf commissioned the independent research agency Viewsbank to interview 1,097 adults aged 18-plus in the UK, including 532 who currently own or trade shares between December 16th and 19th, 2022.

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