Show notes
In this episode, we are joined by Shelly Antoniewicz, Chief Economist at the Investment Company Institute (ICI), for a data-rich exploration of the modern fund industry. Shelly walks us through the staggering scale of global regulated funds, how ETFs and mutual funds shape capital allocation, and why the rise of indexing may not be as disruptive as critics fear.
Highlighted moments
if you look at the U.S. equity market between index mutual funds and index ETFs, it's 19% of the U.S. stock market is in index. 11% is actively managed domestic equity mutual funds and ETFs. And then you've got another 70% out there that's all the other investors.
“the heightened regulatory environment has also had an impact. Mutual funds and ETFs have more rules and regulations to comply with than ever before, and honestly, compliance costs are tough for small and even mid-sized fund companies.”
“in 2000, so 25 years ago, equity mutual fund investors paid on an asset-weighted basis, 99 basis points for an equity mutual fund. Now, on an asset-weighted basis, it's 40 basis points. So 60% decline.”
Transcript
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