Times are different for Fidelity as exchange traded funds (ETFs) have gained popularity. Fidelity’s performance has lagged, and now the Magellan Fund is re-opening after 10 years of being closed to new investors.

Jennifer Levitz for the Wall Street Journal reports that while the $45 billion fund has been beating the overall benchmark for awhile, it’s taken a hit from investor selling. Morningstar data shows that the fund has gained 11%, better than 80% of its peers.

It looks like many of the outflows are from retirees cashing in on their nest eggs. Around 85% of assets cashed in are from 401(k) or retirement plans. There is also the future pressure to offer ETFs in 401(k) retirement plans. It looks as if Fidelity will now market the Magellan Fund to appeal to a younger crowd, typically a group that’s more open to investment risk.

Tags: 401(k), Retirement, UNG