Citi Analysts See ETFs Gobbling $21 Trillion of Mutual Funds
- Growth of actively managed strategies favors ETF wrapper
- ETFs have taken in $387 billion in 2021, beating mutual funds
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The $21 trillion U.S. mutual-fund industry could consist mostly of ETFs within the next 10 years, according to Citigroup Inc.
Investors have favored exchange-traded funds, lured by the industry’s ultra-low fees and tax advantages. That trend remains in motion in 2021. ETFs have absorbed $387 billion since the end of December, while mutual funds have taken in $87 billion, according to Investment Company Institute and Bloomberg Intelligence data.