E*Trade: ETF Growth Showing No Signs of Slowing

Long term investors or short term trader, the trend from actively managed funds to passive vehicles like ETFs is showing no sign of stopping.
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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."