ETF Store Insight

40 Billion Reasons Why Mutual Fund Companies Don’t Want You Investing in ETFs
February 7th, 2012 by ETF Store Staff

Listen to The ETF Store Show every Saturday at 4pm on KCMO Talk Radio 710AM as we cover everything you need to know about Exchange Traded Funds and the world of investing.

On our most recent radio show, we walked through an eye opening illustration that really reinforced why the mutual fund industry is fighting so hard to keep you invested in expensive mutual funds.  This nice little calculation concluded that if the remaining mutual fund investors were to convert to ETFs, the mutual fund industry would stand to lose approximately $40 billion.  And where would that $40 billion dollars go?  Into your pockets!  This $40 billion is real money that investors would be saving annually.  So, as you can see, the mutual fund companies have 40 billion reasons to make sure you keep investing in their pricey mutual funds instead of ETFs.

We also discussed a few other interesting ETF industry observations as well as answered some timely ETF questions from listeners on such things as international bond ETFs and taking advantage of the Facebook IPO through an ETF.

Listen to the full show here.