NEW YORK (MainStreet) -- October marked the sixth straight month that investors withdrew money from mutual funds, and experts say that's because exchange-traded funds (ETFs) earn out more money than mutual funds over time.
"Mutual funds are going out of style to be forever replaced by exchange traded funds," said Brock Moseley, founding partner of Miracle Mile Advisors in Los Angeles.
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The total net assets of ETFs reached $1.8 trillion in June 2014, according to the Investment Company Institute, compared with $595 billion in outflows from domestic equity mutual funds.
"Mutual funds have ceded ground, because ETFs trade every second of the trading day whereas mutual funds only trade daily, so there's more liquidity with ETFs than mutual funds," said Duncan Rolph, managing director with Miracle Mile Advisors.