ETFs present a fresh alternative that combines the well-known benefits of indexing with real-time pricing and the more manageable investment minimums of an individual stock.
The surge toward ETFs doesn’t seem to be slowing down. More than $311 billion flowed into ETFs industry-wide in 2018
With the increased expansion of the ETF market, there are more options and more companies to choose from—than ever before.
The ETF Space is Putting Pressure on the Mutual Fund Industry
As with any industry, this heightened competition presents more opportunities for investors to save money on expense ratios and commissions. Or, more simply put, while the number of ETFs (and the companies that offer them) is going up, costs are coming down.
As mutual funds start to come down to try to compete more effectively with ETFs, most predict that you will see more competitive fees. Which is a great thing for investors. The trends are very positive in terms of fees and access to product.
Furthermore, industry leaders are noting the shift from passive ETFs to active ETFs. Advisors who previously shied away from passive ETFs are starting to invest in active ETFs; As investors seek specific outcomes through active management but within an ETF wrapper.