Here's Why ETFs Run Circles Around Mutual Funds
When State Street introduced the SPDR S&P 500 ETF in 1993, the company introduced the U.S. to exchange-traded funds (ETFs). Almost 30 years later, assets in ETFs are growing at a rapid pace with no signs of slowing down.
According to data from the Investment Company Institute (ICI), there were about $6.5 trillion in ETF assets through the end of June 2021. That's more than six times as much as there were 10 years ago when there were about $1 trillion in ETF assets. On an annualized basis, ETF assets have grown by about 22% per year since the end of 2011.
Mutual fund assets currently stand at $21.5 trillion as of June 30, up from about $8.9 trillion at the end of 2011, according to ICI data. That's an annualized growth rate of about 9.7% over that period.
Source Fool.com
