Asset Managers Shift Portfolios Into Low-Cost ETFs

The investment management industry is shifting basic portfolio strategies from mutual funds into lower-cost, tax-efficient ETFs, driven by rising fee pressure, consolidation and AI-led efficiency, experts say. Moody's (December 2025) and Oliver Wyman warn that firms lacking scale or private-market access will face profitability headwinds, while ETF assets hit a record $13.4 trillion in January, reshaping industry economics and fee structures.
Scoring Rationale
Credible, industry-wide analysis offering actionable strategy guidance, limited novelty as it largely confirms known ETF and AI cost trends.
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Sources
- Read OriginalWhy ETFs Are Reshaping Investment Managementai-cio.com


