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."

More from Video

Is the Fed Still on its Rate Hiking Path?

Is the Fed Still on its Rate Hiking Path?

Volume is the Weapon of the Bulls, Reminds Wall St. Legend

Volume is the Weapon of the Bulls, Reminds Wall St. Legend

We Need More Women in the Middle Before They Can Rise to the Top

We Need More Women in the Middle Before They Can Rise to the Top

Everything You Need to Know About Closed-End Funds to Boost Your Portfolio

Everything You Need to Know About Closed-End Funds to Boost Your Portfolio

CBD: The Next Frontier of Cannabis?

CBD: The Next Frontier of Cannabis?