Passive investing rules. Mutual funds have become musty relics. Right?
Not yet. Not by a long shot.
Index funds tracking the S&P 500 have grown at warp speed. By the end of 2020 they held assets totaling $5.4 trillion. Yet significantly more, over $8 trillion, is invested in actively-managed funds benchmarked to the S&P 500. Investor hopes spring eternal.
As for old-fashioned mutual funds, the WSJ reports fund assets total some $21 trillion, far exceeding the $6.2 trillion in ETFs.
In time the old order will indeed give way to the new. Already, early adopters are bypassing ETFs and turning to non-fungible tokens and cryptocurrencies. Reminder: if clients want to wager on crypto, make sure they consult their astrologer.
Posts
No comments:
Post a Comment