According to the Investment Company Factbook, asset-weighted turnover in mutual funds was 52%. Supposing that mutual funds spend 5% of trading activity on ETFs, Weinberg believes that on any given day, mutual funds may have 2.6% of its asset-weighted turnover in ETFs. Given cash equitization, Weinberg estimates that 1.3% of mutual fund assets are in ETFs.
With ITG’s data, Weinberg calculates that the $9 trillion in mutual funds at the end of 2011 could have held $117 billion in ETFs at any given time. However, on the month and quarterly reports, 1031 U.S. mutual funds stated that they only held $27.2 billion in ETFs between January and May.
For more information on mutual funds and ETFs, visit our mutual funds category.
Max Chen contributed to this article.