Investors increasingly shunning active mutual funds for ETFs

Low costs more appealing, survey reports

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. Global ETF assets reach $7trn Most investors cited low costs (84%) as the main driver of their investments in ETFs, with diversifi...