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Professionals shifting to ETFs from mutual funds.

June 6, 2011, 6:00 PM
Professionals shifting to ETFs from mutual funds.

Exchange traded funds (ETFs) have made a big impact on the investment arena in the past few years, pulling assets from mutual funds and other investment vehicles too. Regular investors are using ETFs, however I believe professional investors have probably shifted more assets to ETFs than regular investors have. I also believe this trend will continue.

Tom Lauricella at the Wall Street Journal penned a piece showing the relative fortunes of stock ETFs versus stock mutual funds [emphasis added]:

Since March 2009, when U.S. stock markets hit their lows, investors have pumped $57 billion into ETFs holding U.S. stocks. U.S.-stock mutual funds over the same period have suffered withdrawals of $66 billion, according to Morningstar Inc.

In all, investors today around the globe have a total of $1.4 trillion invested in some 3,500 exchange-traded portfolios, according to BlackRock Inc.

This Week Will Tell If The Bear is Really Coming Out of Hibernation

Last week’s selloff did less damage than it may have felt like. The drop stopped in the area of 3 crossing uptrend lines, ranging in length from short term to long term. Here’s what would tell us whether the uptrend is still in force, or signal that something evil this way comes. I have added 8 new stocks to the swing trade chart pick list, including 2 shorts.

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