“Everyone is using ETF’s, from the retail investors, the investment professionals, to the day traders,” Mitchell Goldberg of ClientFirst Strategy, said. “ETF sponsors really tout diversification and unique slices of the market, such as trading volatility or tracking metals prices. They give investors a ‘go anywhere at any time’ ability.”
Additionally, ETFs are making greater inroads into 401(k) plans dominated by mutual fund names. More companies are beginning to shift towards ETF 401(k) plans ahead of the new Department of Labor’s fiduciary and fee disclosure rules. [ETFs Make Strides in 401(k) Plans]
In the actively managed ETF space, PIMCO has announced that it will offer an ETF similar to its flagship Total Return Bond fund. With this heavyweight committed to the actively managed ETF arena, others might follow suit. [Will PIMCO ETF Mark Beginning of the End for Mutual Funds?]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.