Why Just 8% of ETFs Raked in Half of Inflows This Year

If investors could collectively talk, they might sound a bit like birds: cheap, cheap, cheap. Exchange-traded funds with low fees — defined as having expense ratios of less than 0.10% — raked in nearly half of all inflows this year to date despite making up just 8% of all ETFs, according to CFRA Research. Cheap funds, which tend to track indexes, have consistently outperformed their active counterparts in recent years. Meanwhile, active funds have sometimes underperformed compared their benchmarks and may ...