Thanks to $177 billion in net inflows, the U.S. ETF market grew to $2.4 trillion in assets as of the end of October. Richard Messina, senior vice president at E*Trade, says the trend from actively managed funds to passive vehicles like ETFs is showing no sign of stopping. According to E*Trade's research, two of out five investors believe ETFs are better suited for short-term trading than long-term investing. Meanwhile, only about one in four investors believe ETFs are entirely or mostly better-suited for long-term investing over short-term trading. Three out of five investors feel ETFs are either somewhat long-term or somewhat short-term vehicles. Finally, investors have been slow to move money from actively-managed bond funds to bond ETFs compared to the equity side. Messina said that is changing now that "more fixed income ETFs are available to the public."

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