Mutual Funds

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Exchange traded funds have been lauded for their efficiency and tax benefits but that there are still some exceptions to the rule. ETFs are typically seen as more tax efficient than mutual funds due to their structure. Mutual fund managers may buy or sell components to take a profit or meet redemptions from shareholders, which […]

Municipal bond mutual funds gathered USD 2.8 billion in the four-week period ending Oct. 28, 2015, according to the Investment Company Institute, while muni bond ETFs added USD 593 million of inflows in October, according to SSGA.  Despite this low number, at the recent S&P Dow Jones Indices Municipal and Global Bond Forum, various panelists […]

The $2.2 trillion exchange traded fund industry has been slowly eating away at the mutual fund industry’s market share. While the relatively new investment vehicle is making inroads into the financial industry, there are still many detractors censuring the products. Peter S. Kraus, chief executive of AllianceBernstein, has issued a warning on ETFs that have […]

AlphaMark Advisors is the latest fund manager to turn to the exchange traded fund space, launching an actively managed small-cap ETF that was converted from a mutual fund. The recently launched AlphaMark Actively Managed Small Cap ETF (NasdaqGM: SMCP), which has $23.7 million in assets under management, fills a hole in the AlphaMark fund line […]

The exchange traded fund industry has been slowly gaining presence in the investment industry, and old mutual funds are finally beginning to jump on the ETF bandwagon lest they get left behind. “With $2 trillion in assets and investors indicating plans to expand their ETF usage in the intermediate term, we expect additional firms to […]

Actively managed mutual funds have been getting pummeled over the past few months, adding to the investment case for passively managed index-based investments and exchange traded funds as a better way to track the markets. According to a J.P. Morgan U.S. equity strategy note, 67% of mutual funds underperformed their benchmarks in the third quarter, […]

In recent years, passive management has had an increasingly strong foothold, with a sharp rise in assets under management (AUM). According to PricewaterhouseCoopers Asset Management’s 2020 report, the AUM of global passive investments stood at USD 7.3 trillion as of 2012, and they are expected to grow to USD 22.7 trillion by 2020. The active […]

Expanding on the success of its hedge fund replication strategies, Index IQ has come out with a new exchange traded fund that tries to track the best global tactical asset allocation mutual funds. According to a press release, the IQ Leaders GTAA Tracker ETF (NYSEArca: QGTA) began trading Wednesday. The new fund has a 0.45% […]

As investors dip into the financial markets to pick out the best fit, many will choose investment options from the fund market, comparing traditional open-end mutual funds to the relatively new exchange traded funds. Potential investors should understand the benefits and weigh the drawbacks as they fill out a diversified investment portfolio. For starters, the […]

In the wake of the mini flash crash during the height of the recent market volatility, the Securities and Exchange Commission is taking a closer look at safeguards to help obviate another wild swing in exchange traded funds. The SEC will vote on proposed rules requiring mutual funds and ETFs to better handle periods of […]

Some investors argue that actively managed funds are better capable of navigating through the fixed-income market. However, passive index-based bond exchange traded funds may do just as well, if not better, as active strategies. “In the first eight months of 2015, investors added $37 billion into fixed income ETFs compared to the $85 billion for […]

The majority of actively managed large-cap managers are underperforming the benchmark S&P 500, adding fuel to the benefits of passively managed, index-based exchange traded funds. As of June 30, 2015, the SPIVA, or S&P Indices Versus Active, U.S. Scorecard data reveals that 65.3% of large-cap managers underperformed the benchmark S&P 500 index over the past […]

During the late summer market swing, many investors were selling and buying funds to adjust their equity exposure. The change up, though, revealed that investors are ditching mutual funds and are increasingly turning to exchange traded funds to capture market moves. On August 24, the S&P 500 Index plunged 3.9%, one of the worst days […]

OppenheimerFunds announced its acquisition of VTL Associates, an independent investment firm known for its RevenueShares exchange traded funds, joining a growing group of mutual fund providers expanding their investment suite with ETFs. According to a press release, OppenheimerFunds acquired VTL on Wednesday. VTL has been in talks to woo a suitable buyer, so the acquisition […]

Among the growing group of mutual fund providers eyeing the exchange traded fund space, Legg Mason is planning four new smart-beta, index-based ETFs. According to a recent Securities and Exchange Commission filing, the money manager is working on the Legg Mason Developed ex-US Diversified Core ETF, Legg Mason Emerging Markets Diversified Core ETF, Legg Mason […]

Recently, a few colleagues and I were reminiscing about an ad that Gus Sauter, Vanguard’s retired chief investment officer, had hanging in his office for years. It depicted a monkey at a computer managing a portfolio. The ad’s message? Indexing is so simple a monkey could do it—the implication is, of course, that sophisticated investors […]

Many investors have added exchange traded funds to their investment portfolios for a number of reasons, such as the tax benefits of the ETF structure. ETFs, like mutual funds, hold a basket of securities and reflect the performance of their underlying holdings. However, when mutual fund managers rebalance their portfolios, they accrue capital gains that […]

As more investors shift assets into exchange traded funds, active managers are crafting their own ETF strategies to get a slice of the growing demand. Active money managers are launching their own ETFs as demand from institutional investors, retail investors and financial advisors grow. For instance, T. Rowe Price Group, Legg Mason, Principal Globlal Investors […]

ETF Trends editor Tom Lydon appeared on CNBC Friday to discuss the volatility in the Chinese yuan and growth in the ETF industry. Watch the video below to see the full interview. To view past video interviews, visit our video section.

As the exchange traded fund industry grows, more financial advisors are beginning to utilize the investment vehicle to gain market exposure. Reflecting financial advisors’ shift toward low-cost and passive index-based strategies, the number of advisors who reported selling ETFs is at an all time high, according to Cogent Wealth Reports. Specifically, 76% of advisors are […]

Exchange traded funds are becoming the go-to investment vehicle to gain market exposure, which has led to increased correlation in the equities market, higher trading costs in individual securities and diminished demand for stock analysis. According to an academic paper, titled “Is There a Dark Side to Exchange Traded Funds (ETFs)? An Information Perspective,” the […]

Franklin Templeton could be expanding its exchange traded fund lineup with smart-beta index offerings instead of adding more actively managed ETFs. According to Franklin chief executive Gregory Johnson, the money manager will pause its active ETF expansion to observer how Eaton Vance’s non-transparent NextShares exchange traded managed funds will do, reports Jackie Noblett for Ignites. […]

Retail investors are putting more money into exchange traded funds than mutual funds, with big securities firms pointing to rapid growth among smart-beta offerings. According to Broadridge Financial Solutions, assets in ETFs at retail financial-services companies, which help individual investors and financial advisors, increased by $265 billion, or 14%, year-over-year through June, reports Daisy Maxey […]

The upstart exchange traded fund industry has been slowly chiseling away at mutual funds’ market share. However, traditional fund providers are taking action, creating ETF teams of their own as a precursor for potential future launches. J.P. Morgan Asset Management, Principal Funds, Legg Mason and Goldman Sachs Asset Management have hired leaders and experts in […]

When building out an investment portfolio, investors have many options at hand, including stocks, mutual funds and exchange traded funds. While many are familiar with stocks and mutual funds, ETFs are relatively new to the investment world. To start off, open-end mutual funds are backed by a group of investors who pool their money and […]

Legg Mason Inc. has moved closer toward the exchange traded fund arena, filing with the Securities and Exchange Commission to build index-based stock and bond ETFs. According to a recent SEC filing, Legg Mason is applying for an exemptive relief to create ETFs that reflect the performance of an underlying index. “The Initial Fund will […]

Many active strategies have fallen short of their benchmarks and passive exchange traded funds over the years as simple and concise indexing rules help keep index-based strategies on track. Over the past five years, only 21% of active mutual funds have outperformed their benchmarks, reports Julie Verhage for Bloomberg. Consequently, investors have funneled billions into […]

Exchange traded funds are gaining the upper hand among financial advisors who are looking for better investment alternatives to traditional, open-end mutual funds. According to a recent Financial Planning Association survey of advisors, 81% of respondents use or recommend ETFs with their clients, whereas 78% of advisors surveyed use or recommend mutual funds. [What an […]

Many have capitalized on dividend mutual funds’ reinvestment benefits, but with dividend exchange traded funds rising in popularity, investors are beginning to grow their portfolios with ETF dividend reinvestment plans. Mutual funds are losing a key advantage to ETFs, writes Sarah Max for Time, pointing to the rising popularity in dividend-focused ETFs that have pushed […]