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ETFs are likely to displace mutual funds within the next 15 years, says financial advisor Ric...

ETFs are likely to displace mutual funds within the next 15 years, says financial advisor Ric Edelman, preaching to the choir at IU's Inside ETFs conference. Mutual funds are a "pencil and paper" business model in a high-tech world, he says, reminding ETFs are still a very young investment vehicle, with just a 3% rate of U.S. ownership.
Comments (7)
  • chopchop0
    , contributor
    Comments (3541) | Send Message
     
    Hopefully more and more 401(k)s will start to get in on the ETF trend. It's ridiculous to pay higher expense ratios for the underperformance of many actively-managed mutual funds out there (as opposed to an index ETF)
    12 Feb 2013, 03:38 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Once we cross the DOW all-time highs, I am selling my 401k mutual funds and moving them all to ETFs

     

    The only mutual fund I will keep is PTTRX
    13 Feb 2013, 01:21 AM Reply Like
  • bbro
    , contributor
    Comments (9852) | Send Message
     
    Among mutual fund owners..only 6% have etfs....

     

    http://bit.ly/Wdi06x
    12 Feb 2013, 05:04 PM Reply Like
  • Daniel Caycedo
    , contributor
    Comments (52) | Send Message
     
    I think this is a silly statement, very bold as well. A lot of people simply do not have time/care to even follow the market enough to invest in ETF's. Until recently I did not know how to trade even the simplest ETF's. With mutual funds people need only do their due diligence once, to find their preferred fund. The Mutual fund theoretically takes the worry away from the individual investor. It also gives them someone to blame if their investments turn sour as many people don't like the pressure of investing their own money.
    12 Feb 2013, 09:54 PM Reply Like
  • chopchop0
    , contributor
    Comments (3541) | Send Message
     
    worry? The only worry the average investor should have is how badly their mutual fund is likely to underperform an index ETF (and how much they'll have to pay to have the privilege of doing so).
    12 Feb 2013, 09:56 PM Reply Like
  • Daniel Caycedo
    , contributor
    Comments (52) | Send Message
     
    The Mutual funds sell investors on the respected fund's people and the fact that they know how to best handle the investor's money. ETF's sell based on what securities or bonds they follow (demanding more prior knowledge from the individual investor). Investors with little knowledge of markets and finance would feel much safer investing in an individual that they talked to and planned out retirement goals and such with than taking the responsibility on themselves and educating themselves on trading ETF's, which in itself requires some knowledge of the working of the markets and how to trade.
    12 Feb 2013, 10:31 PM Reply Like
  • Mercury Value
    , contributor
    Comments (565) | Send Message
     
    i feel like there will always be a place for the elite fund managers, the don yacktmans (yacktmen? hmm..) of the world, because truth be told there *are* people out there who bring beautiful brains to the profession and can indeed provide a better place to park cash than the indexes and etfs. but the days when underperformers can charge 2% and stay in business are fast receding. and that is a wonderful thing. perhaps the customers are finally on their way to financing their yachts.
    13 Feb 2013, 12:04 AM Reply Like
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