{"id":844,"date":"2019-01-27T23:58:08","date_gmt":"2019-01-28T04:58:08","guid":{"rendered":"https:\/\/www.etfrc.com\/articles\/?p=844"},"modified":"2019-01-27T23:58:08","modified_gmt":"2019-01-28T04:58:08","slug":"save-mutual-fund-replacement-tool","status":"publish","type":"post","link":"https:\/\/www.etfrc.com\/articles\/index.php\/2019\/01\/27\/save-mutual-fund-replacement-tool\/","title":{"rendered":"Save with our Mutual Fund Replacement Tool"},"content":{"rendered":"

Change Isn’t Always Easy<\/span><\/h4>\n

Millions of investors know that ETFs are often cheaper and more tax-efficient than traditional mutual funds, among other advantages. This awareness has helped ETFs gain market share over the past decade and a half as investors gradually shifted assets out of mutual funds and into ETFs.<\/p>\n

There is plenty of room for that trend to continue. According to the Investment Company Institute, assets invested in U.S. equity ETFs exceeded $2.1 trillion as of November 2018. Yet that is still less than one-third of the $7.5 trillion invested in U.S. equity-focused mutual funds.<\/p>\n

While many investors understand why<\/em> they might want to switch from a mutual fund into an ETF, doing so can be easier said than done. We count over 2,400 mutual funds and 660 ETFs in the U.S. equity category. How does an investor know which ETFs are the most suitable replacements for an existing mutual fund portfolio?<\/p>\n

Finding Similar ETFs Based on Overlap<\/span><\/h4>\n

The Mutual Fund Replacement Tool helps investors save by utilizing similar low-cost ETFs instead<\/q>Our new Mutual Fund Replacement Tool is designed to help investors save money by utilizing similar low-cost ETFs instead. Through our partnership with Neural Finance<\/a>\u00a0we have obtained the holdings of U.S. equity mutual funds, as per each fund\u2019s quarterly disclosure filings. Our database then cross-references each mutual fund\u2019s holdings with our ETF holdings data to locate the 20 ETFS with the most overlap by weight. We then calculate potential savings from making the switch into any of these 20 ETFs (more on these calculations below).<\/p>\n

Start your search by going to the Mutual Fund Replacement Tool<\/a>. Enter the ticker symbol of a U.S. equity mutual fund and hit \u2018Find Replacements.\u2019 The tool will respond with information displayed across two tabs. The Description<\/em> tab has some basic information about the mutual fund, including its fee structure, top holdings and sector allocation. It also shows a figure called Coverage. This indicates the percentage of a fund\u2019s holdings by weight which we were able to match to a security in our database.<\/p>\n

The next tab is Similar ETFs<\/em> containing a list of the 20 ETFs with the most overlap by weight, and showing the potential savings to be had from each.<\/p>\n

<\/div>\n

Screenshots<\/span><\/strong><\/p>\n