Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
"Since 2021, 145 mutual funds have converted to ETFs, yet there are trade-offs. Most institutional retirement plans aren’t set up to allow ETF trading, so mutual funds that are offered in 401(k) plans can’t easily convert. Moreover, although there are certain 'semitransparent' ETF structures that allow active managers to conceal their portfolios, investors prefer full transparency. That means showing one’s investment cards every day."
"Unlike mutual funds, ETFs can’t close to new investors—even if managers invest in illiquid securities and have limited capacity. For this reason, some ETF conversions appear problematic."
