Financial advisors are increasingly favoring sector ETFs over mutual funds, with ETF allocations expected to surpass mutual fund allocations by 2027. This shift is driven by a decline in corporate dividends, replaced by share buybacks, prompting advisors to seek income through sector funds like utilities. Global ETF inflows reached $2 trillion in 2025 and continue to accelerate, leading to an upward revision of ETF asset forecasts to $63.49 trillion by 2035. Sector ETFs also offer targeted exposure to growth themes such as AI-related technology investments.

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Barclays raises 2026 S&P 500 target to 7,800 on stronger earnings outlook despite inflation and rate concerns

Barclays increased its year-end 2026 S&P 500 target to 7,800 from 7,650, driven by a stronger earnings outlook for U.S. companies. The bank raised its 2026 earnings-per-share estimate to $337, expecting about 21% annual growth from 2025. Despite trim...

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Advisors shift from mutual funds to sector ETFs as ETF inflows hit record $2T in 2025

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Barclays raises 2026 S&P 500 target to 7,800 on stronger earnings outlook despite inflation and rate concerns

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Advisors shift from mutual funds to sector ETFs as ETF inflows hit record $2T in 2025

More News (XLU)

Barclays raises 2026 S&P 500 target to 7,800 on stronger earnings outlook despite inflation and rate concerns

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