Deloitte LLP recently released an excellent report titled “Exchange-Traded Funds: Challenging the Dominance of Mutual Funds?”
For anyone interested in learning more about how ETFs work, how they compare to mutual funds, and why they’re exploding in popularity, this piece provides an easy to read, straightforward and independent overview.
In answering the title question of the report, Deloitte concludes with the following:
“ETFs are likely to increase their share of investment dollars and become the fastest-growing investment product as funds from declining mutual funds transition to ETFs. A research report suggests that ETFs are a threat to mutual funds because advisors, both strategic-asset allocators and ‘tactical-asset allocators, are increasingly using ETFs as part of investors’ portfolios.”
We couldn’t agree more with their assessment and invite others to review this independent report for insightful information on the entire ETF landscape.