Meanwhile, mutual fund investors yanked $4.7 billion from stock funds over the past week, their 12th straight week of cash redemptions.
Many are growing cautious on speculation over the Federal Reserve’s next interest rate hike in the months ahead. For instance, Janus Capital Group Inc investor Bill Gross warned on Thursday the historic returns that investors have reaped for over four decades are over. His former employer, PIMCO, also warned that the unconventional monetary policies might not sustain growth.
Nevertheless, mutual fund providers have not ignored the shift in investment sentiment. If you cant beat them, join them. Some have already expanded their product lines with ETF options of their own, like Franklin Templeton, which recently launched its first group of passive index-based ETFs.
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