Morningstar’s ETF expert, Scott Burns, sees a long-term shift to passive investing, but “managed solutions” packaging ETFs will also grow rapidly. 

The market plunge in 2008 was much harder to explain to investors in active-managed funds, says Burns, who directs ETF, Closed-End and Alternative Fund Research for Morningstar. As a result, many planners are switching to passive investments, especially exchange-traded funds. The move is part of an overall shift to fee-based planning practices, which he says, involve less hand-holding.

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