More than one-third (37%) of financial advisers say that ETFs will be a key to bringing in new business, said Tim Meyer, ETF business manager at Rydex Investments, speaking in New York today. However, financial advisers need to get more comfortable with using ETFs with their clients, he commented.

The ETF market is growing rapidly; over 160 ETFs have been launched so far this year, with 400 planned ETFs yet to be introduced. However, the popularity of the products has outpaced investor education about the investments. Therefore, Meyer said it is necessary to step up the education offered to advisers and investors.

Rydex’s ETF Essentials program hopes to fill in these gaps in the marketplace, Meyer explained. The program is a comprehensive educational initiative the firm hopes will help bridge the gap between ETF proliferation and investor awareness about exchange traded funds. The program is very detailed and takes a “building-block” approach to educating investors, offering learning “tracks” that give investors as much or as little information as they are looking for on a given topic.

The first section in the series deals with trading characteristics of ETFs, Meyer said. Other areas of focus include structural characteristics, product characteristics, and a sales and marketing section specifically to explain to the financial adviser how to use ETFs in his practice. ETF Essentials appeals to a variety of learning patterns and styles and delivers information via the Web, printed collateral such as brochures, PowerPoints, and podcasts.

Rydex currently has more than $5.6 billion in ETF assets under management and offers 25 exchange traded products with broad market, sector, style, and currency exposure. More information is available at www.rydexinvestments.com.