ETFs are attracting more supporters as 57% of investors said they have replaced an active mutual fund with an ETF, a 39% increase from 2020, according to a survey by TrackInsight.
The ETF industry continued its growth trajectory amid the pandemic, with assets surging to $7.6trn last year and product launches showing no sign of slowing down. While many investors use ETFs as an alternative to direct investing (51%), the majority of investors that participated in the TrackInsight Global ETF Survey 2021 are shifting from mutual funds (passive or active) to ETFs. Notably, 57% report using ETFs to replace actively-managed mutual funds. Most investors cited low costs (84%) as the main driver of their investments in ETFs, with diversification (77%) and liquidity (68%) ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes