Real Assets or Active ETFs? Where RIAs Allocate

The report, which draws from 13F filings and AdvizorPro's holdings dataset covering 5,304 consistently reporting firms, suggests that advisors have moved past the experimental phase of ETF adoption. The choices that RIAs made in the first quarter reflect a more deliberate posture. They hedged inflation with real assets, built in geopolitical protection through defense strategies, and locked in access to active managers newly available in ETF form.

The raw numbers support that picture. The average number of ETFs per RIA rose from 85.9 to 89.7 in a single quarter, according to the report. Half of all RIAs added net ETF positions during Q1, compared with fewer than 29% that trimmed. One in five held their lineup flat.

Portfolio turnover told the same story. RIAs added 62,302 ETF positions and dropped 41,858 across the 5,304 firms tracked, a net gain of more than 20,000 slots, according to AdvizorPro. Adds ran at 13.7% of prior holdings against a drop rate of 9.2%. New positions were opening faster than existing ones were closing.

Real Assets Lead RIA Category Growth

If one theme defined the quarter, it was real assets. Equity energy, natural resources, and commodities broad basket categories combined for 528 net new RIA allocators, more than any other grouping, according to the report.

At the fund level, the gains were concentrated in a handful of ETFs, according to AdvizorPro. The USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI) grew its RIA allocator base by 62.7%, and the Sprott Critical Materials ETF (SETM) added 61.5% more RIA holders. The Global X Copper Miners ETF (COPX) expanded by 44.5%, and the VanEck Oil Services ETF (OIH) gained 44.4%.

Defense-related industrials also drew new money, as advisors responded to heightened geopolitical uncertainty. The Global X Defense Tech ETF (SHLD), a defense-focused industrials fund, added 93 net new RIA relationships in the quarter. The Invesco Aerospace & Defense ETF (PPA) added 44, and the SPDR S&P Aerospace & Defense ETF (XAR) gained 69. Together, those three funds brought in more than 200 net new RIA relationships.

Active Managers Break Through in the RIA Channel

The quarter's most striking data point belongs to Akre Capital Management. Its Akre Focus ETF (AKRE) grew from 140 to 404 RIA relationships in a single quarter, a 188.6% increase, according to AdvizorPro. The fund is less than a year old.

That growth reflects a broader shift. Asset managers that built their reputations running mutual funds and separate accounts are now launching ETFs. The ETF structure gives RIAs access to those same active strategies in a more liquid, often lower-cost vehicle. For advisors, that changes what is available on the shelf.

The report describes AKRE's surge as a case study in pent-up demand. Akre Capital had loyal followers before the ETF launched. Once the strategy became available in fund form, advisors moved quickly. That growth was concentrated in the $1 billion to $100 billion mid-market RIA segment, which AdvizorPro identifies as the primary adoption engine for nearly every high-growth fund in its dataset.

Other active issuers saw similar momentum. Cohen & Steers, a manager known for real estate and infrastructure strategies, grew its RIA allocator count by 35.3%. MFS Investment Management and First Eagle Investments each expanded by more than 33%, according to AdvizorPro. All three are active managers that have brought existing strategies into the ETF wrapper in recent years.

Advisors Pay a Premium for Downside Protection

RIAs also showed willingness to absorb higher fees for strategies built around risk management. The Convergence Long/Short Equity ETF (CLSE), from active ETF issuer Convergence Investment Partners, led the high-fee gainers list with 25.5% growth in RIA allocators during Q1, according to the report. The AGF U.S. Market Neutral Anti-Beta Fund (BTAL), an equity market neutral fund from Canadian asset manager AGF, added 7% more RIA relationships.

AdvizorPro noted that the composition of the high-fee gainers list shifted from 2025, when defined outcome and buffered products led. This quarter, long-short equity, credit-hedged income, and infrastructure strategies account for more of the premium-fee adoption.

Infrastructure Capital Advisors, a boutique ETF issuer focused on income and infrastructure strategies, placed two funds on the list. Its preferred stock fund, the Virtus InfraCap U.S. Preferred Stock ETF (PFFA), gained 9.5% more RIA allocators, and the InfraCap MLP ETF (AMZA) added 6.5%, according to AdvizorPro.

CLSE moved from 55 RIA relationships to 69 in the quarter, the strongest gain on the high-fee list. That growth came despite the fund carrying an above-market expense ratio.

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