ETF’s Are Becoming A Huge Threat To Mutual Funds
“Exchange-traded funds are poised to take a bite out of traditional mutual funds and are expected to grow from just over half a trillion dollars to $1 trillion before 2011, according to a soon-to-be-released report,” David Hoffman Reports From Investment News.
Between March 2001 and March 2008, total ETF assets grew at a compounded annual rate of 44%, according to the report, by Cary Stier, a managing partner in U.S. asset management services for Deloitte & Touche LLP. “At that pace, it was expected that they would likely exceed $1 trillion before the end of 2009,” the report, “Exchange-Traded Funds: Challenging the Dominance of Mutual Funds?” noted. “However, given current volatile market conditions, at a conservative growth rate of 20% compounded annually, total ETF assets will exceed $1 trillion in mid- 2011.”
“Despite the dominance of mutual funds — which had a little more than $10 trillion in assets at the end of July, according to the Investment Management Institute — ETFs are a threat to mutual funds,” Hoffman Reports.
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
CLICK HERE to get your Free E-Book, “Why It’s Curtains for the Euro”
GET A FREE TREND ANALYSIS FOR ANY ETF HERE!
Most Comments