Exchange traded funds (ETFs) have been praised for their low expense ratios and general affordability for investors of all types. The strong growth the industry has seen in recent months underscore the point.
Trends indicate a broadening realization that the lower expenses of running and owning exchange traded funds give investors an edge in performance that’s hard to overcome over the long term.
Conrad de Aenlle for The New York Times reports many investment professional and asset managers are certain that the inflows into ETFs are here to stay. [How to Compare the Costs of ETFs vs. Mutual Funds.]
This is a dynamic time for ETFs and the industry growth. The migration of assets will continue, affecting performance, costs and the types of products available. This also works in investors’ favor because the ever-challenging task of bringing the best product to market with the lowest expense ratio will be a “survival of the fittest.” [How Variety is Spicing Up the Industry.]
ETF assets in March surged to a new record: $819.8 billion. The number of funds available is also at an all-time high of 971. [March ETF Numbers.]
For more stories about ETFs, visit our ETF 101 category.
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.