ETF investors: The divide between retail and institutional

• More complicated ETF strategies (e.g., single-stock, leveraged/inverse, niche thematic) show higher retail ownership.
• Top retail ETF categories include alternative, gold, thematic, and single stock strategies.
• Top institutional ETF categories include fixed income, core equity, and multi-sector commodities.
• Approximately 60% of all ETFs are owned by institutions, but this includes trading institutions whose short-term activities (like Jane Street's SLV acquisition) differ from long-term allocations.

The discussion highlights a growing dichotomy in ETF investing, where retail investors are increasingly gravitating towards more complex strategies like single-stock, leveraged/inverse, and niche thematic ETFs. Conversely, institutional investors, including large investment advisors and broker-dealers, are predominantly sticking to or reverting to more simplistic strategies such as fixed income, core equity, and multi-sector commodities. This trend suggests a divergence in risk appetite and investment approach between the two investor groups.