Investors have embraced the new model of low-cost, passive investing and are turning away from high-cost active funds.
As 2017 wrapped up, there were approximately $18 trillion invested in mutual funds and ETFS – an increase of $14.5 trillion in the last nine years.
While ETFs continue to gain in popularity, mutual funds are still the clear winner because they have been around longer and they remain the primary option of corporate retirement plans. ETFs currently account for only 19% of the total U.S. assets.
In their recent post, Morningstar shares several charts to support these findings. You can find the full article here.