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2011 ETF Inflows Twice That Of Mutual Funds

TedTed
edited January 2012 in Fund Discussions
FYI: In my opinion, ETF's with greater flexability and lower cost will replace mutual funds in total assets within the next five years.
Regards,
Ted

Comments

  • Reply to @Ted: "ETF's with greater flexability and lower cost will replace mutual funds in total assets within the next five years."

    Are ETFs available for 401(K) and 403(b) accounts? We have asked our company retirement administrators and the answer is NO for the foreseeable future. We already have a number of Institutional Plus shares of Vanguard index funds with ER at 0.02%.
  • Mediocre active managers should be worried. Perhaps this is why American Funds currently lists the total assets of its Capital World Growth & Income Fund (CWGIX) as 68.2 billion (referenced as “Fiscal Year 2011”), while Lipper gives the total assets for CWGIX as of 12/31/2011 as 44.5 billion.
  • msf
    edited January 2012
    Reply to @Anonymous:
    Are you suggesting that this fund lost 35% of its assets in one month (its fiscal year ends Nov 30th)? Sorry, doesn't pass the laugh test.

    Understand the difference between the fund (which does not have a ticker) and a share class (which does). American Funds makes crystal clear what its AUM figure represents: "Assets shown are for combined share classes." (From AF fund page(s).)

    Lipper reports:
    CWGIX: $44.528B
    CWGBX: $ 1.756B
    CWGCX: $ 4.537B
    CWGFX: $ 3.187B
    WGIFX: $ 1.380B
    CWIAX: $2.010B
    CWIBX: $ 0.129B
    CWICX: $ 0.520B
    CWIEX: $ 0.088B
    CWIFX: $ 0.066B
    RWIAX: $ 0.072B
    RWIBX: $1.102B
    RWICX: $2.128B
    RWIEX: $1.910B
    RWIFX: $1.253B
    RWIGX: Lipper fails to report

    Add them all up, and compare them with the AUM for the fund.

    For the record, CWGIX lost 0.59% in value in Dec 2011 (vs. a loss of 0.95% for EAFE, per M*). The other share classes lost similar amounts (differences due to different expenses, e.g. CWGBX lost 0.65%). That would account for about $400M drop from the $68.2B on Nov 30th to Dec 31st. Any additional gain or loss would have been due to investors adding to, or withdrawing from, one or more of the share classes of the fund during December.
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