advantage had shrunk to $5 billion, and equity mutual funds were seeing positive inflows for the first time since last April.
So what’s going on? One reason for the turnaround: In a volatile world, many investors prefer having an active manager shifting holdings and sidestepping the carnage in a particular sector or region. “Mutual funds are more nimble in navigating the investing landscape,” said Loren Fox, senior analyst for fund research firm Strategic Insight. “If you’re locked into a tight box with an ETF, and your box is going down the tubes, then low costs aren’t your first concern. It’s the fact that you’re losing a lot of money.”
See the full Reuters story: HERE