Financial Planning‘s Donald Jay Korn takes a look back at how ETFs have fared through the 2008 bear market.
In the article, ETFs After the Fall, Korn concludes that ETFs pose a stronger threat than ever to the mutual fund industry. Specific types of ETFs that have attracted investment this year include Fixed Income, Commodity, Currency and Inverse/Leveraged.
Bond ETFs in particular have received more focus as their low expense ratios mesh better with lower interest rates than the high fees charged by mutual fund managers. Another opportunity for ETFs to grow is in the 401(k) market where new disclosure rules will highlight the high cost of using mutual funds to fund retirement plans.