Individual investors' appetite for exchange traded funds is growing stronger.
In fact, more than 80% of 1,000 U.S. investors surveyed by Charles Schwab agreed that ETFs are "here to stay," and over 40% said they plan in invest in more ETFs during the course of the next year.
The survey also showed that more than half of those who have employer-sponsored retirement accounts, such as 401(k)s, would like to have ETFs as investment options.
In particular, those surveyed said they're most interested in buying ETFs that allow them to gain exposure to certain sectors, particularly, energy, health care and technology, as well as international markets.
ETFs were initially pitched to institutional investors when they hit the shelves about 20 years ago, but a growing number of individual investors have been jumping on the bandwagon since ETFs are often cheaper and more tax friendly than traditional mutual funds, and allow investors to easily diversity their portfolio, said Michael Iachini, head of ETF research at Charles Schwab Investment Advisory.