Exchange traded funds (ETFs) still remain tops with investors, even during a market downturn. But stock mutual fund investors have been pulling out record amounts of money.

The fund industry makes its revenue through fees, based upon the percentage of assets under management. Sam Mamudi for The Wall Street Journal says that analysts that cover the industry were busy last week reducing earnings estimates for money managers and cutting price targets for stocks of fund companies.

As of one week ago Friday, the market decline had lost $2 trillion in assets from U.S. and international stock mutual funds since Sept. 1, almost 36% of total assets under management, according to TrimTabs Investment Research.

The strengthening U.S. dollar is another notch against the fund firms. Since many fund firms bring in business from overseas, even is the same level of assets are sold, they translate into smaller dollar revenue.

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.