Home etftrends.com ETFs in U.S. Likely to Cross $10 Trillion By 2027

ETFs in U.S. Likely to Cross $10 Trillion By 2027

The popularity of exchange-traded funds remains undiminished nearly 35 years after their introduction. Now, U.S. ETFs appear on a course to reach $10 trillion in AUM by 2027, according to Natixis Investment Managers.

Initially launched in Canada in 1990, the exchange-traded fund (ETF) was first created to provide investors with access to index investing. Since then, the fund type exploded in the number of asset classes and strategy types it covers. From humble index beginnings, ETFs now offer investors exposure to spot bitcoin, carbon markets, call options strategies, and more.

Long appreciated for the tax efficiency they provide, ETFs also provide other portfolio benefits. Unlike their mutual fund counterparts, ETFs trade throughout the trading day. This creates flexibility for advisors and investors who don’t have to wait for the close to settle their trades. They also generally carry lower management fees than mutual funds and other fund types.

Image source: Natixis Investment Managers

U.S. ETFs held $8.4 trillion in AUM as of April 2024, Natixis reported. “Let’s put that $8.4T into context,” the authors wrote. “If you add up the value of every professional football, basketball, baseball, soccer, and hockey team in the U.S., assets in ETFs are nearly 20x that value.”

They continue to grow their market share. In 2015, ETFs comprised only 18% of all mutual fund assets, but as of this year, they currently account for 45%. What’s more, mutual fund-to-ETF conversions picked up steam this year.

Continue Reading »

newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFTrends.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.