What it means for investors
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Asset managers are debuting more of their mutual fund strategies as exchange-traded funds, a move that seeks to capitalize on ETF popularity in recent years and also benefits many retail investors, according to market experts.
Money managers have taken a few approaches.
Many have converted specific mutual funds to ETFs. Fifty-six mutual funds were converted to ETFs in 2024, a number that has increased steadily from 15 in 2021, according to Morningstar data. Another 40 have done so this year.
Others have opened an ETF “clone” of a specific mutual fund, which allows investors to choose from the mutual fund or ETF version of an investment strategy.
