Mutual Funds Bleed $432 Billion as ETF Conversions Grow (1)

Mutual funds are bleeding assets anew, just as their ETF cousins break fresh records. Now, firms from Lazard to Aberdeen Group Plc. are pushing to convert traditional funds into exchange-traded ones, even as regulators look poised to bless a structure that would allow both to coexist in peace.

The number of mutual funds being converted into ETFs in 2025 has already topped 30, on pace for the most in data going back to 2021, according to figures compiled by State Street, which counted conversions still in process.

It comes even as the asset-management industry awaits a groundbreaking regulatory change that ...