ETF Prime: Advisors Bullish On Markets Despite Three-Year Rally

ETF Trends | December 27, 2025 at 04:57 AM UTC

Bullish 77% Confidence Unanimous Agreement

Key Points

53% of advisor clients hold zero crypto exposure, with those who do invest citing speculative growth (50%) and FOMO (22%) rather than technology conviction (0%)
International markets gained renewed advisor interest at 21% following strong 2025 performance, particularly China's 30%+ gains
The 3-7 year duration range emerged as advisors' preferred bond positioning amid expectations of declining short-term rates but persistent long-term inflation concerns

AI Summary

ETF Prime: Advisors Maintain Market Optimism Following Three-Year Bull Run

VettaFi's investment strategist Cinthia Murphy revealed key findings from a comprehensive advisor survey conducted between mid-November and late December, highlighting sustained bullishness despite the extended rally.

Interest Rate Outlook

75% of advisors anticipate lower rates by year-end 2026, with only 7% expecting increases. The three- to seven-year duration range emerged as the preferred positioning, as advisors expect short-term rate declines while inflation concerns maintain pressure on long-term rates.

Asset Allocation Plans for 2026

- Large-cap U.S. equities lead allocation plans at 30%
- Small-cap U.S. and international equities tied at 21% each
- International markets gained credibility after strong 2025 performance, with China surging over 30%

Cryptocurrency Exposure

Survey data reveals limited crypto adoption among advisor clients:
- 53% hold zero crypto exposure
- 38% maintain 1-10% allocation
- Primary motivations: speculative growth (50%), diversification (28%), FOMO (22%)
- Notably, 0% cited belief in underlying blockchain technology

The disconnect between industry blockchain discussions and actual advisor-client conversations underscores crypto's current role as primarily a speculative vehicle rather than a technology investment.

Brittany Christiansen from Tidal Financial Group, which manages over 350 ETFs across 90 issuers, also contributed insights on the evolving ETF landscape. The findings suggest advisors remain constructive on traditional equity markets while cautiously exploring alternative assets, with international equities gaining renewed interest following recent outperformance.

Model Analysis Breakdown

Model	Sentiment	Confidence
GPT-5.2	Bullish	72%
Reasoning: Advisor survey data indicates continued appetite for risk assets in 2026, with large-cap U.S. equities the top planned allocation and growing interest in small-cap and international equities. Expectations for lower rates by end-2026 are generally supportive for equity valuations and duration exposure.
Claude Opus 4.5	Bullish	75%
Reasoning: The article reports strong bullish sentiment among advisors despite a three-year rally, with 75% expecting lower rates and plans to add exposure to multiple equity asset classes including U.S. large caps (30%), small caps (21%), and international equities (21%).
Gemini 2.5 Pro	Bullish	85%
Reasoning: The analysis is based on a survey of financial advisors who are overwhelmingly optimistic, with 75% expecting lower interest rates and a strong intention to increase allocations to risk-on assets like U.S. and international equities.
Consensus	Bullish	77%

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Article Details

News ID: 3452006
Source: ETF Trends
Analyzed: 5 hours ago

Sentiment Confidence

Average Confidence 77%

Moderate confidence