Bogleheads On Investing Podcast Episode 80, Jeff Ptak, CFA, major trends in the mutual fund and ETF industry, host Rick Ferri
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Mar 27, 2025 Jeff Ptak, a managing director at Morningstar Research Services, discusses the shifting landscape of the mutual fund and ETF industries. He highlights the remarkable growth of actively managed ETFs and the declining popularity of traditional mutual funds. The conversation delves into the complexities of thematic ETFs, revealing their investor appeal despite performance fluctuations. Ptak also addresses the risks associated with leveraged ETFs and emphasizes the importance of strategic portfolio management to combat investor inertia.
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Fund Industry Dichotomy
- The fund industry is experiencing a dichotomy with indexing and ETFs growing, while active management and traditional open-end funds shrink.
- Active mutual funds have been particularly affected by this shift.
ETF Conversions
- Hundreds of mutual funds have converted to ETFs, but mainly smaller funds or those not tied to retirement accounts.
- Larger fund families have either converted entirely or launched new active ETFs.
Thematic Funds' Trajectory
- Thematic funds, while initially popular, have seen decreased growth due to market downturns and investor difficulty.
- Despite this, they still hold substantial assets, attracting continued activity.