That being said, SSgA and other providers still believe there are some obstacles in the way. Even experienced advisors might find them confusing because of the wide array of choices now available. There are nearly 700 ETFs on the market now, and more are launched weekly.
While that may be true, the world of mutual funds is infinitely bigger. On top of that, ETFs are much easier to understand and use, thanks to the transparency they offer. Mutual funds simply don’t have that. So while there may be close to 700 funds, it’s easier than ever for investors to do the research necessary to make wise and informed choices.
Of the advisors who took part in the survey, 43% said they felt the greatest potential growth area for ETFs is in 401(k) plans, which right now is largely the domain of mutual funds. Congress is currently looking closely at fee disclosure and retirement plans, something that will make the argument for ETFs in those plans even stronger.
Eventually, trustees of 401(k) plans will feel the heat and begin incorporating them, and it will be a great day for investors.