Report shows advisors also shifting time toward client relationships and embracing AI tools.
Financial advisors are allocating the majority of total assets toward active strategies, according to a new report.
The survey of more than 1500 financial advisors reveals that they now allocate an average of 57% of total assets to actively managed investments, with that share expected to climb to 60% in the coming months.
The 2025 Cogent Syndicated Advisor Brandscape report from Escalent shows that this decisive move is driven by ETFs which accounted for a third of advisor AUM in 2025, up from 23.6% in 2023. Meanwhile, mutual fund allocations have fallen from 26.5% to just 19.7%, while individual securities make up 18.4% and is the only other category in double figures.
Among ETFs, active strategies now represent 29% of total ETF assets, up from 25% in 2023, and 80% of advisors are utilizing active ETFs.
“We’re seeing a notable shift in advisor sentiment, with heightened interest in actively managed investments, including US equities, US fixed income, and ETFs,” says Meredith Lloyd Rice, lead author and vice president in Escalent’s Cogent Syndicated division. “For years, mutual funds have led the way as ETFs slowly gained ground. Now, we’re seeing a sharp acceleration in active ETF allocations as advisors tout low costs, liquidity, transparency and access to a wider range of markets, sectors, and strategies.”
The Escalent report also highlights how advisor workflows are evolving with client-facing activities are on the rise.
Time spent on acquiring and maintaining client relationships has grown from 56% in 2023 to 59% this year, while time devoted to portfolio construction has dropped from 37% to 33%. Meanwhile, almost half of advisors now employ artificial intelligence in some capacity and remote work is gaining traction with two-thirds of advisors making at least occasional use of home office models.
All of this reflects a broader industry trend: advisors are increasingly prioritizing relationship-building and turning to asset managers for insights and support.
Traditional channels like external wholesaler meetings, emails, phone calls, and websites remain popular, but podcasts gained traction since last year, with advisors listening to and sharing content from leading asset manager podcasts with clients and peers.
“In an increasingly fractured and fast-moving environment, advisors are looking to providers for reliable information that can help them make sense of market dynamics and communicate more effectively with clients,” said Lloyd Rice. “There’s a clear opportunity for firms to build trust by sharing their perspectives on current events and translating those perspectives into actionable insight — whether that’s through traditional formats like email and websites, or newer platforms such as webinars, podcasts, and social media.”