The case for replacing your traditional actively managed mutual fund with an exchange traded fund (ETF) keeps getting stronger. Here are a few stats.
Mutual funds may go the way of the dinosaurs at the rate they are sinking. As their performance continues to pale in comparison to mnay comparable ETFs, the case for building a portfolio with the latter gets stronger. [Will ETFs Replace Stock Picking?]
Here are some statistics that you may find interesting, brought to us by Russell Kinnel for Morningstar. For the full list, hop on over to the original story.
- Large-growth funds have seen $113 billion in net outflows since 2001. This year is already the worst year for large-growth flows, with $29 billion in net outflows. The last decade has been a brutal one for large growth funds.
- There were 650 funds with Growth in their names that actually shrunk over the past decade.
- 54% of funds with the word Plus in their names have underperformed over the past five years.
- The best 15-year returns are found in a bond fund: GMO Emerging Country Debt III (GMCDX), which has a 17.5% annualized 15-year return. [Why Actively Managed ETFs May Replace Mutual Funds.]
- It’s not all bad: there are 18 funds on pace for their 12th consecutive year of ouperformance against their peers. But only two all-equity funds are part of this rare group.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.