Many of the large bond ETFs have not been trading for more than 10 years, so it is difficult to compare them to mutual funds. The most important difference in the bond sector is that focused ETFs have lower fees, a characteristic that sets them apart. [Mutual Funds are Using ETFs as Cash Pit Stops]
One category that does shine for mutual funds is gold. Good relative performance in the gold category for mutual funds. Investors that pick the wrong funds, such as the gold miner ETFs, may find themselves below the category average.
Overall, ETFs are living up to the hype that they are taking up mutual funds’ assets. Except for gold and small-cap value, the numbers support the growth of these investment tools. [PIMCO Total Return ETF, Fund, Rake in the Cash]
Tisha Guerrero contributed to this article.