FYI: Over the past decade, many experts have predicted that the open-end mutual-fund industry would crumble, an inevitable victim of exchange-traded funds. No less an authority than Morningstar Inc. MORN 1.49% two years ago dubbed mutual funds’ projected slide in assets under management as “flowmaggedon.”
Not so fast. Mutual funds in the U.S. remain a monolithic presence: They had $19.93 trillion in assets under management as of Aug. 31, versus $19.49 trillion a year earlier, suggesting that any shrinkage will come glacially.
In fact, more mutual funds were launched last year (345) than ETFs (247), according to the Investment Company Institute, a fund-advocacy group. And mutual-fund cash flows were a positive $10.4 billion through the first half of this year, versus a negative $30.1 billion in the 2018 first half, though the market’s tumult in August turned that flow negative.
Regards,
Ted
https://www.wsj.com/articles/etfs-get-all-the-buzz-but-mutual-funds-still-dominate-theres-a-reason-11570414020?mod=nwsrl_journal_reports_funds_etfs&cx_refModule=nwsrl
