analysts report that investors are flocking towards ETFs at the expense of more expensive mutual funds.
to ETF Trends
, the recent note by Morgan Stanley analysts
report that "ETFs have taken 57 percent of total mutual fund flows
into US long-term asset YTD, and we expect further penetration in
fixed income and international markets."
Analysts added that they "also think ETFs will be the first to see any
cyclical pick-up in flows, though pricing pressure could squeeze out
all but the truly scaled firms or those with a product
Larger ETF providers such as Vanguard [profile
], BlackRock [profile
] and Charles Schwab [profile
are taking steps to cut ETF costs as the fee war escalates.
Global ETF growth has compounded at about 25% after the financial
crisis, according to Morgan Stanley. At roughly 6% of global mutual
funds the analysts see “significant further growth potential” for the
To read more about this asset management rout, go to the full story on the ETFTrends website
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