The volatile markets may be taking the edge off the desire of advisors to broaden their clients’ portfolios. The annual Rydex/SGI AdvisorBenchmarking survey said that 46 percent of advisors at RIA firms in the poll expected to increase their use of alternative investments over the next three years—a respectable margin to be sure, but the figure was down from 61 percent a year earlier. Likewise, more than half the advisors said they expect to increase their use of ETFs over the next three years, down from 71 percent in 2010.
The online poll of advisors at more than 300 RIAs was taken between April through June, well before the market spasms later in the summer. Seventeen percent said they were spending more time on client portfolios this year, up from 10 percent a year earlier.
Advisors aren’t diving into social media either. Fifty-three percent said they don’t plan to use social media, apparently because of regulatory concerns. Forty-seven percent said they were unsure how to manage compliance questions, while 27 percent said they lacked the staff to monitor and manage an online presence.