Yet ETF flows are painting a different picture than what’s happening in traditional mutual funds. For example, stock mutual funds have seen net outflows of $122.5 billion year to date, according to the Investment Company Institute.
“It’s helpful to think about ETFs as the recipient of ‘net new’ assets when they first come into a non-qualified retirement plan account,” Josh Brown, the Reformed Broker, postulated. “This is what the younger class of investors are doing as they approach portfolio construction. Mutual fund flow data, in essence, becomes more of a lens with which to view the activity of the retiring Boomers and the previous generation.”
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Max Chen contributed to this article.