Mutual funds are transitioning into ETFs due to changing investor preferences, with Cohen & Steers and Baillie Gifford leading the charge, following Impax’s recent ETF debut. A record 60 mutual funds converted to ETFs in 2025, as ETFs attract more assets compared to mutual funds, especially in defined-contribution plans.

Cohen & Steers is converting its Future of Energy Fund to an ETF, citing strong performance with returns of 17% in 2025 and 16% year to date. Baillie Gifford is also transitioning three mutual funds to ETFs, reflecting the industry trend towards ETFs over mutual funds for better asset distribution and growth potential.

ETFs are becoming the go-to choice for fund companies as they attract more assets than mutual funds, especially in employer-sponsored retirement plans. The shift to ETFs allows fund companies to tap into a growing market segment and capitalize on the momentum of ETFs over mutual funds in recent years.

Read more at Yahoo Finance: ETF Conversions from Mutual Funds Hit Record Highs