The SEC is now smiling on ETF share classes of mutual funds, but that doesn't seem to translate yet into widespread demand from fundsters' key distribution allies, according to new research from the folks at an industry consulting firm near Boston.

Yesterday (November 17), Mike Evans, partner and director of advisor research at Fuse Research Network, revealed new findings from the Needham, Massachusetts-based firm's Product Usage: the Advisor View report (which was released last Wednesday, November 12). The report is based on an October 2025 survey of more than 550 financial advisors.

"Advisor enthusiasm for ETF share classes remains measured," states Evans, who authored the report.

When comparing standalone ETFs to the ETFs-as-a-share-class structure, 37 percent of FAs said they have no preference at all, while 51 percent said they prefer the longstanding standalone ETF structure. Only 13 percent of FAs said they prefer ETF share classes of existing mutual funds.

"Most advisors continue to prioritize the transparency, liquidity, and simplicity of standalone ETFs," Evans tells MFWire via email. "Over time, as operational frameworks and distribution support evolve, we may see greater comfort and adoption." 

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