News | 08.05.20
Traders Ditching Mutual Funds Stoke ETF Assets to a Record
Assets in US exchange-traded funds have climbed to a record as investors abandon mutual funds for securities they perceive as cheaper and easier to trade. Holdings across all categories reached $4.66 trillion Tuesday, according to data compiled by Bloomberg. The assets are back to a record at a time when the market value of S&P 500 constituents, at $27.25 trillion, is still about 3 percent away from the high it hit in February. The funds have recorded $248 billion in net inflows in 2020, up approximately 5 percent from this time last year, the Bloomberg data show. ETF assets have more than doubled since 2016. Mutual funds that track popular indexes had $34 billion in outflows in the first half of the year, the first-ever drawdown for a semi-annual period, losing to ETFs by the widest margin ever, according to Bloomberg Intelligence.
Read the full article on Bloomberg.