ETFs Outpace Mutual Funds in 2008

2008 was a watershed year for the running battle for investment dollars between ETFs and mutual funds. While ETFs saw net inflows of $158 billion, actively managed equity mutual funds had their worst year in history suffering net outflows of $208 billion.

This is according to the story Amid gloom, ETFs’ future looks brighter by Sue Asci in InvestmentNews. Asci interviewed several money managers who point out that investors and advisors lost patience with the high fees and poor performance of actively managed mutual funds.

State Street recently reported that the SPDR S&P 500 (SPY) saw $39 billion of net cash flow in 2008 while SPDR Gold Shares (GLD) saw net cash flow of over $5 billion for the year.

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