Latest ETF news
Visit our ETF hub to learn more and explore in-depth data and comparison tools.
In recent years, an increasing number of asset management companies have turned to influencers to increase brand awareness and promote their funds. Fund managers contract influencers who have large followings and endorse companies and products on their platforms.
For example, Invesco recently worked with retired WNBA legend Candace Parker, who in an April Instagram post compared her development as a basketball player to the process of launching an investing career.
“When you’re young and you’re trying to understand your game, you try to stick to the basics. So you try to win the game, you take the safe move, and I think that’s the start of your investing career,” says Parker. he said.
Invesco partnered with Parker this year to promote Invesco’s $247 billion flagship product, Invesco QQQetf, said Matthew Heath, chief marketing officer for the Americas and EMEA.
This article was previously published in Ignites, a magazine owned by FT Group.
Invesco has also collaborated with other influencers to strengthen its brand.
“Bring innovation into your kitchen with these 5 recipes I created in collaboration with @InvescoUS for @InvescoUS’s Recipe for Innovation series,” Marcus Samuelsson wrote in a mid-April Instagram post. Ta.
The celebrity chef’s Instagram account is followed by around 700,000 people.
Invesco’s Innovation Recipe Series, which powers the QQQ Fund, features other celebrity chefs such as Kristen Kish and Kwame Onwuachi.
As part of the campaign, chefs were challenged to create a total of 25 unique dishes inspired by the 25 companies featured in QQQ products.
BlackRock is also experimenting with an influencer incentive program to promote the iShares product line, according to a disclosure on its website.
According to the disclosure, the company “regularly” invites social media influencers to events, rewards them with gifts and entertainment rather than cash compensation, and “potentially incentivizes them” to create content favorable to BlackRock. ”.
The group claims it does not expect incentives per individual to exceed $1,000 in any 12-month period.
The company declined to comment on its incentive program.
New York-based ETF provider CraneShares has been leveraging online influencers to drive its strategy since the early days of the COVID-19 pandemic, and conference marketing opportunities remain a reality. Joseph Dubé, the manager’s head of marketing and media, said the company was closed.
“Influencers are probably one of the most effective strategies,” he said. “We’re going to spend money. We’d rather do a podcast with influencers than run an ad on CNBC.”
CraneShares had about $7.8 billion in assets under management invested across its ETFs as of March 31, according to data from Morningstar Direct.
Some of CraneShares’ most effective campaigns include the popular podcast Animal Spirits, run by Ben Carlson, director of institutional wealth management at Ritholtz Wealth Management, and Michael Batnick, a partner at Ritholtz. That included a partnership with, Dube said.
“[Influencers] You’ve developed an audience that trusts the person, so it feels like they’re hearing about this news from a friend. For us, this is one of the best ways to convey the brand’s message,” he said.
Dube said KraneShares has also worked with Adriano Starinieri, who runs a passive income investing YouTube channel with 74,700 subscribers.
About 80% of U.S. companies use social media influencers as part of their marketing strategy, according to a November study published in the marketing research publication Journal of Marketing.
The same study found that the median rate of return for investment firms using influencer marketing tactics was about 160% of the cost of hiring them.
Thane Gould, senior compliance leader at investment management consultancy Vigilant, said using influencers as a marketing tool will become more popular among asset managers, although it’s still in its relative infancy as a way to attract potential clients.
“I think it’s just the beginning. It will grow among larger companies that have the resources to fund major influencers and then migrate to smaller companies. It’s not going to go away, it’s only going to increase,” Gould said.
Latest ETF news
Visit our ETF hub to learn more and explore in-depth data and comparison tools to help you understand everything from performance to ESG ratings.
The potential for engagement is particularly pronounced among younger generations, who are far more open to using social media channels to inform financial decisions.
A 2023 study by Forbes and market research firm Prolific found that approximately 79 percent of consumers between the ages of 18 and 41 access financial advice through social media.
According to Obero’s report, budgets for influencer marketing strategies are also increasing, with approximately 20.9% of marketers expected to invest between $1,000 and $10,000 on influencers, and a further 22.8% who expect to spend $10,000 on influencers. The investment ranges from $50,000 to $500,000.
“Many companies are starting to incorporate influencers into their social media strategies, but with limited success,” said Avery Stonestreet, director of marketing and digital strategy at Vident. explained that there are also some compliance issues.
For example, VanEck was fined $1.8 million by the Securities and Exchange Commission in February for failing to disclose to its board of directors its licensing agreement with social media influencer Dave Portnoy and his company Barstool Sports. was fined.
VanEck declined to comment on its influencer engagement strategy.
*Ignites is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available here. ignites.com.