Mutual Fund to ETF Converter
How It Works: The Mutual Fund to ETF Converter allows investors to identify ETF alternatives to traditional actively-managed mutual funds. This tool utilizes mutual fund benchmarks to determine the most comparable ETF alternative. For example, the primary ETF alternative to a mutual fund benchmarked against the Russell 2000 Index would be the Russell 2000 Index Fund (IWM).
In addition to "exact match" ETF alternatives, this tool will display ETFs linked to indexes that fall into the same ETFdb Category as the mutual fund's benchmark. For example, the secondary ETF alternatives to a mutual fund benchmarked against the Russell 2000 Index would be those in the Small Cap Blend Equities ETFdb Category.
If a mutual fund is benchmarked against a custom index comprised of multiple indexes, the Mutual Fund to ETF Converter will display ETF alternatives--including any "exact match" ETFs--for each of the indexes.
Limitations: Currently, the Mutual Fund to ETF Converter contains information on the largest U.S. 10,000 mutual funds. Additional mutual funds will be added at a later date.
The methodology utilized by this tool assumes that the mutual fund managers will select an appropriate benchmark. If, for example, the manager of an emerging markets mutual fund is benchmarked againsts the S&P 500, the suggested ETF alternatives would be those that seek to replicate the S&P 500.
