Federated Hermes Survey Reveals Advisors' Top Business Concerns: AI Adoption, Aging Client Base, ETF Preference
According to the Federated Hermes 2026 RIA and Independent Advisor Survey, nearly half of financial advisors are most concerned with leveraging technology—particularly artificial intelligence (AI)—to better reach or engage clients. The survey highlights that while many see AI as an opportunity for efficiency gains and client engagement improvements, there is a clear need for education on its integration into advisory practices. The study also reveals demographic challenges among older advisors who are worried about attracting younger clients due to their aging clientele. Additionally, ETFs have surpassed mutual funds in average client portfolio assets for the first time, with 29% of assets allocated to ETFs versus 26% to mutual funds. Advisors expect this trend to continue as many plan to increase ETF allocations over the next year. Alternatives remain a small part of portfolios but are gaining interest among advisors, suggesting potential growth in adoption.
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Topics: AI_integration client_demographics independent_advisors RIA