The mutual fund industry continued to thrive in 2006 despite rumors about exchange traded funds (ETFs) taking over possible investments. For 2006, lifecycle funds continued to grow, mergers took place and a few of the largest fund companies made their fair share and then some. Gregg Greenberg with TheStreet.com clarifies that ETF assets under management represent about 3.5% of total mutual fund assets. The ETFs that follow traditional indexes could compete with index mutual funds but the majority of the highly specialized ETFs just don’t have the mass market appeal – yet.
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