The average number of ETFs in RIA portfolios continued to rise from the first to the second quarters of 2026, according to the most recent report from AdvizorPro. However, advisors changed which sectors they favored when adding new ETFs, from funds focused on real assets and defense to those tracking technology and infrastructure.
In the second quarter of the year, the average number of ETFs in the portfolios of 5,398 RIAs whose 13F filings AdvizorPro tracked in both quarters increased to 92.9, up from 88.4 in the previous quarter. The majority of RIAs in the firm’s database (63.4%) increased their ETF holdings, vs. 18.2% that cut back on theirs. Another 18.5% of RIAs showed no change in the number of ETFs in their portfolios.
“Advisors slowed new ETF adoption while ETF launches soared. Over 1,000 ETFs launched by mid-year, a record pace, but advisor adoption of new ETFs didn’t match that,” AdvizorPro CEO Michael Magnan, CEO of AdvizorPro wrote in emailed comments. “With shelves already packed after years of record launches, most new products are covering ground RIAs already have exposure to, so there’s less urgency to add something new. Advisors continue to add new ETFs to their portfolios, but the reality of due diligence, track records, and a large selection of ETFs makes the market more challenging for a growing number of ETFs.”
Similar to the patterns seen in the first quarter of the year, RIAs seemed focused on adding new funds in order to serve specific roles within their portfolios, rather than rotating in and out of their existing ETFs. The average ETF turnover rate stood at 11.6%, with 13.9% ETFs added since the first quarter and 8.7% ETFs dropped.
In absolute terms, RIAs in AdvizorPro’s database added 66,233 positions and dropped 41,489 positions during the quarter, leading to a larger net gain than was seen during the first quarter. At the same time, the figures show that RIAs overwhelmingly held on to their existing ETF positions, leading the researchers to conclude that “Incumbency remains an advantage. For challengers, winning a spot still takes a clear differentiation story.”
Which funds get preference
iShares, State Street Investment Management and Vanguard continued to hold on to their top positions as ETF issuers with the greatest market share among RIAs. In the second quarter, 4,991 unique RIAs held iShares ETF positions, 4,737 unique RIAs held State Street ETF positions, and 4,599 unique RIAs held Vanguard ETF positions. However, all of these issuers saw growth under 1.0% in those figures between the first and the second quarters.
The asset managers that saw the biggest increases in unique RIAs holding their ETFs included First Trust Advisors LP (up 3.5%), Dimensional (up 3.3%) and Schwab ETFs (up 2.7%).
At the same time, Invesco gained the most net RIA users during the quarter, with 95, followed by Schwab ETFs (85) and First Trust Advisors (79). In percentage terms, however, net RIA increases among the top 10 ETF issuers ranged from 0.1% to 3.5%. “Nobody is running away with it, but nobody gave ground either,” AdvizorPro noted.
On the flip side, the firm listed EntrepreneurShares, Baron Capital and ProcureAM as ETF issuers seeing the fastest RIA adoption. EntrepreneurShares saw a 115.6% increase in RIAs from the first to the second quarter of the year, to 194, driven by its large-growth ETF (XOVR). Baron Capital recorded an 83.3% increase to 99 RIAs, and ProcureAm recorded a 72.4% increase to 131 RIAs with its miscellaneous-sector ETF (UFO).
AdvizorPro noted that active managers, including Baron, Convergence and Lazar, posted significant increases in RIA users during the quarter, showing that advisors are valuing active management in the ETF space.
Other fast-growing funds included iShares’ foreign large blend ETF (CORO), with 167 new RIAs, representing 84.4% growth, and ProcureAM’s miscellaneous sector ETF (UFO), with 55 new RIAs, representing 72.4% growth.
When it came to ETF categories, infrastructure-focused funds posted double-digit growth in the second quarter, at 12.3%, with 1,215 RIAs added. Technology-focused ETFs saw a 6.8% increase in adoption, with 230 RIAs adding them. These preferences represented a change from the first quarter, when the energy and commodities category showed the greatest growth in adoption. In the second quarter, energy and commodities-focused ETFs lost 103 RIAs.
“AI was one of the clearest stories of the quarter. Advisors piled into semiconductors and chip stocks like SOXX and SMH, plus AI-specific funds like AIQ and QTUM, while pulling back from the commodities and crypto trade that led last quarter,” Magnan noted. “That same appetite showed up in infrastructure, where AI-and-power-focused funds picked up traction as advisors bet on the grid and data center capacity the AI buildout requires.”
Additional fast-growing ETF categories in the second quarter included focused region (up 6.7%) and short-term inflation protection bond (up 6.6%). Small-blend and small-growth-focused ETFs also ranked right behind technology and infrastructure in net RIAs added, at 118 and 106, respectively.
According to AdvizorPro, “The issuers seeing the best results are the ones offering a clear portfolio role, whether that is AI exposure, income engineering, or active security selection, rather than competing on scale alone.”
