More and more mutual fund managers are incorporating exchange traded funds into their actively managed mutual funds, but one fund company is using only ETFs! No stocks? They seem to be beating their benchmark, but is their management fee justified? Do the shareholders know what they are getting? Is this the wave of the future?
ETFs provide an excellent way to get quick, diversified exposure to a specific industry group or asset class. If those that are paid to pick stocks chose ETFs instead, it looks like ETFs might continue to gain popularity.
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.