September 03, 2008 at 6:00 am by Tom Lydon
A recent report reveals that exchange traded funds (ETFs) are indeed a threat to mutual funds.
Cerulli Associates’ research found that advisors are interested in ETFs for their lower fees and long-term-investment themes, reports David Hoffman of InvestmentNews.
Advisors use ETFs for core and satellite allocations and for active and passive portions of portfolios. The liquidity and access to commodities and other markets also gain favor for advisors.
We’ve also seen how some of the mutual fund problems have helped with ETFs’ success, as investors look for alternatives to mutual fund investing.
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