I attended the Tiburon CEO Summit this past week. The numbers on mutual fund flows are staggering. 91% of net new money going into mutual funds goes into one of the following companies:

  • Fidelity
  • American Funds
  • Barclays
  • Vanguard
  • Dodge and Cox

ETFs continue to gain an increasing share of the net new money too with Barclays and State Street Global Advisors getting the lion’s share. Financial advisors continue to shift more of their client portfolios to ETFs.

When choosing what funds to invest in, Fund Action reports cost is the most
common determining factor for advisors. The majority of advisors said
they always use expense ratios to screen investment products. The study
also shows that use of exchange-trade funds is on the rise, with 44% of
advisors using ETFs, compared to 34% in 2003. Moreover, 72% of current
ETF users say they plan to increase their use of ETFs in the next 12 to
18 months.

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.