RIAs Add ETFs in Q2 as New Funds Face Higher Hurdles

Data from AdvizorPro’s Q2 2026 RIA ETF Trends Report show U.S. registered investment advisers increased ETF use in the second quarter. The average number of unique ETFs held per firm rose to 92.9 from 88.4. Across a matched cohort of 5,398 firms, advisers added 66,233 ETF positions and removed 41,489, producing a net increase of 24,744 positions. Just over 63% of firms increased their ETF counts while 18.2% reduced them. More than 90% of holdings carried over from Q1 to Q2.

Fewer new ETFs gained placement on RIA shelves in Q2. Only 41 ETFs appeared in RIA portfolios for the first time, down from 140 in Q1. Leveraged equity ETFs accounted for the largest share of newcomers; inverse and single-stock vehicles also featured among new entries.

Industry participants pointed to several barriers for new funds. Grant Engelbart, vice president and investment strategist at Carson Wealth, noted that some advisory firms require a fund to reach a minimum asset level before they will buy it. He added that niche strategies often need extra vetting and that actively managed ETFs typically require longer due diligence.

Smaller issuers recorded notable increases in RIA reach. EntrepreneurShares’ presence rose from 90 firms to 194, a 115.6% increase. Baron Capital’s RIA reach grew 83.3%, ProcureAM increased 72.4%, and Tema expanded 52.9%. The report flags specific factors behind some gains: EntrepreneurShares’ Private-Public Crossover ETF held a sizable stake in SpaceX around the company’s June IPO, and an iShares active ETF saw growth after being seeded through its issuer’s model-portfolio business.

Baron’s example highlights issuer history and product continuity. The firm launched its ETF arm in 2025 but converted two mutual funds and introduced five active ETFs, drawing on more than four decades of active management experience. Market participants said that familiarity with an issuer’s existing strategies can influence adviser willingness to add new tickers.

AdvizorPro’s data also show adoption patterns by strategy and issuer size. Among ETFs in the highest fee decile, the strongest adoption in Q2 came from long-short equity, market-neutral approaches, business development company wrappers, closed-end fund strategies and option-overlay income products. All ten of the largest issuers by RIA reach added firms in Q2.

Market participants told AdvizorPro that issuers seeking RIA traction need a clear portfolio role for the fund and institutional credibility behind the ticker before advisers add it to client allocations.