While we still have unpredictable swings in the market each day, and the implications of the government’s rescue package are uncertain, there is one trend that has become reliable – – the continued growth of ETF market share gains against mutual funds. The latest industry statistics are out from the Investment Company Institute, and as the graph below shows, the share of all ETFs as a percentage of non-money market mutual fund assets is up to 7.4%:
Perhaps even more ominous for the mutual fund industry is that net redemptions from mutual funds accelerated while there was actually net growth in ETF originations.
