One thing is for sure: ETFs are here to stay, and it’s time to embrace them.
More research is revealing that for the first time since open end mutual funds were born, launches were outnumbered by other investment vehicles. In 2007, ETFs, variable annuities and closed-end funds (CEFs) accounted for 52.8% of new products, while mutual funds were 47.2%, reports Kevin Burke for Ignites. Just eight years ago, in 2000, mutual funds were 70.2% of new launches.
Make no mistake – mutual funds are still dominant, but these other investment vehicles pose a viable threat to that dominance. Mutual fund providers have some thinking to do, because it won’t be possible to ignore ETFs forever.