A recent report reveals that exchange traded funds (ETFs) are indeed a threat to mutual funds.
Cerulli Associates’ research found that advisors are interested in ETFs for their lower fees and long-term-investment themes, reports David Hoffman of InvestmentNews.
Advisors use ETFs for core and satellite allocations and for active and passive portions of portfolios. The liquidity and access to commodities and other markets also gain favor for advisors.
We’ve also seen how some of the mutual fund problems have helped with ETFs’ success, as investors look for alternatives to mutual fund investing.
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.