Exchange-traded funds continued to grow in popularity, despite last year's poor market performance, as investors continue to look for ways to cut management fees.
According to
A recent survey by
"If you're a traditional fund manager and your strength is active management expertise, then you can consider developing an actively managed ETF that provides a low-cost and flexible vehicle to deliver your talent," Loren Fox, senior research analyst at
ETF assets rose 77% from 2005 to 2008, while mutual funds rose 9%. ETFs now account for 40% of the market share of all index funds. ETFs have an estimated $725 billion in assets worldwide.
The 13 actively managed ETFs launched in the U.S. in 2008 had $240 million in assets as of December.