Mutual Fund Conversions Hit Record in ETF Industry’s Epic Year

New exchange-traded funds riding buzzy investment themes are helping fuel record industry growth this year. Yet, it’s also shaping up to be a banner era for money managers revamping their tried-and-tested mutual funds into the tax-efficient product.

This year has seen a record number of mutual fund-to-ETF switches, according to data compiled by Morningstar Direct. As demand for the easy-to-trade ETF structure gains traction on Wall Street, 55 made the conversion — more than triple from 2021. Majority of the products that converted were fixed-income in nature, particularly from Stone Ridge’s LifeX suite. Other issuers include Morgan Stanley, TCW ...