Record outflows from mutual funds have analysts wondering about the future of giants like American Funds, T. Rowe Price and Dimensional Fund Advisors. While mutual funds still hold more than three times the assets of exchange-traded funds, they registered a record $289 billion in outflows last year, according to Morningstar.
The company, not wanting to be outdone by an identical move in December by its competitor Vanguard, lowered its investment minimum for defined-contribution plans from $100 million to $5 million.
Overall, the retirement savings products bled $6.7 billion, marking the first such instance of negative net sales since Morningstar began tracking them in 1994, the ratings and research firm reported this week.
A fledgling operation is hoping to turn back the clock by introducing gold bonds that are purchased and repaid with actual gold, a common practice about 90 years ago before FDR’s Gold Reserve Act put the kibosh on all the fun.
Revenue sharing fees ultimately make retirement plans more expensive, and funds that include them are disproportionately favored on plan menus, a recent academic paper found.
There are now five companies offering downside protection through buffered ETFs, and two more firms with products in the filing stages
Only three of the most popular ETF launches last year were BlackRock products, and none were from Vanguard or State Street
Vanguard is on track to beat BlackRock in attracting ETF flows for the first time since 2013
Agency says advisers, brokers must apply ‘heightened scrutiny’ to sales of risky ETPs
The funds don't report their holdings daily, in an attempt to shield their strategies from front-running or replication by rivals
The conflicts of interest ranged from 12b-1 fees to cash sweep accounts to alternative investments
The settlement includes $4.4 million in restitutions to harmed customers over the sales of unsuitable VA, mutual fund and 529 products
Strong performance and low fees means the next leg of ETF growth might be just getting started
Vanguard Total Stock Market Index Fund includes both a mutual fund and an ETF
iShares Morningstar ETF suite will track Morningstar's new index family
More than half of advisers say they expect to increase usage, according to a new survey by Broadridge Financial
Net flows for the asset manager slowed in 2020 as rivals continued to roll out similar products and amid the rise of robo advice and almost-free trades
New rules that made launches easier and the SEC's approval of nontransparent funds have inspired 14 new firms to enter the market this year
The all-in-one products could also eventually include private equity, Cerulli Associates found
Equity ETFs attracted a record $81 billion as stocks rallied in November
