Dimensional ETF Trust - Dimensional California Municipal Bond ETF Price & Performance (DFCA)

J.P. Morgan Asset Management is converting $7 billion in mutual fund assets into ETFs, aiming to become the sixth-largest ETF issuer. The trend reflects a broader shift, with $170 billion moved from mutual funds to ETFs since 2021, driven by performance continuity and advisor demand.1

The growing trend of mutual fund-to-ETF conversions may face a roadblock if the SEC approves ETF share classes for mutual funds. This change could allow funds to offer ETF benefits without full conversion, potentially altering the competitive landscape for asset managers.1

ETFs continue to outpace mutual funds, attracting $1.1 trillion in 2024 while mutual funds saw $579 billion in outflows. This shift is fueled by investor preference for the flexibility and lower costs of ETFs, prompting legacy fund managers to adapt through conversions.1