ETFs & Mutual Funds
Mutual Fund Conversions Hit Record in ETF Industry’s Epic Year
- Some 55 mutual funds made the switch this year: Morningstar
- ETFs hit $11 trillion in assets, $1 trillion inflows in 2024
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New exchange-traded funds riding buzzy investment themes are helping fuel record industry growth this year. Yet, it’s also shaping up to be a banner era for money managers revamping their tried-and-tested mutual funds into the tax-efficient product.
This year has seen a record number of mutual fund-to-ETF switches, according to data compiled by Morningstar Direct. As demand for the easy-to-trade ETF structure gains traction on Wall Street, 55 made the conversion — more than triple from 2021. Majority of the products that converted were fixed-income in nature, particularly from Stone Ridge’s LifeX suite. Other issuers include Morgan Stanley, TCW Group Inc. and BlackRock Inc.