The peak of the mutual-fund-to-ETF conversion wave may already be behind us, according to new research from the folks at a fundster-supporting consulting firm near Boston.

Michael Page Fuse Research Network Research Associate

Last week, Michael Page, research associate at Fuse Research Network, revealed that, by the Needham, Massachusetts-based team's count, only 9 mutual funds converted into ETFs between January and April 2025, which is a third of the year. That compares with 57 for all of 2024, which translates into 4.75 conversions per month (and thus 19 conversions per four-month period).

However, that still puts 2025 almost on pace so far to match MF-to-ETF conversions in 2023 (36 in total, so 12 per four-month period) and well head of 2022 (20 in total, so 6.67 per four-month period) and 2021 (18 in total, so 6 per four-month period). And Page notes several more planned 2025 MF-to-ETF conversions (including Franklin's planned transformation of 10 Putnam muni bond funds) have already been publicly revealed.

All told, as of April 30, 2025, since Guiness Atkinson conducted the first MF-to-ETF conversion in 2021, Page reveals that there have been 140 MF-to-ETF conversions in total (139 of which are active funds, Page notes). Those ETFs held about $142 billion in combined AUM on April 30, 2025, and they brought in $9.7 billion in net inflows in the first four months of 2025.

"Active converted ETFs account for 14.5% of the total active ETF market [by AUM], down from 15.1% in Q4 2024 and 17.9% in Q4 2023. YTD net flows for active converted ETFs are 8.4% of AUM, trailing the broader active ETF market's 11.8%," Page states. "Although AUM growth and net flows lag the broader ETF market, mutual fund-to-ETF conversions remain robust."

Page offers words of caution for fundsters considering future MF-to-ETF conversions.

"While conversion can be a useful strategy for asset managers looking to enhance an offering or enter the ETF market, converting an underperforming mutual fund — especially one with low AUM — generally yields limited benefits and can even be detrimental," Page writes to MFWire. 

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