In a world where the cost of everything seems to be rising painfully, here's a little good news for investors: A growing number of mutual funds are converting to exchange-traded funds (ETFs) and cutting their fees.
More than 60 mutual funds, managing a combined $55 billion, have turned themselves into ETFs in the two years since this trend started, according to data provided by FactSet Research Systems. Recently converted ETFs include Dimensional U.S. Core Equity 2 (DFAC), which has more than $20 billion in assets; JPMorgan International Research Enhanced Equity (JIRE), with more than $5 billion; and Fidelity Disruptive Automation (FBOT), with more than $100 million.
On average, the converted ETFs are charging investors fees that are almost a quarter of a percentage point less than they charged as mutual funds, according to FactSet. An investor with $10,000 in a typical newly converted fund is saving $24 a year. And most of the conversions are structured to be tax-free for most investors.
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