ETFs Dominate Investment Landscape: New Data Reveals Shift in Investor Behavior

A recent survey by Charles Schwab reveals a significant structural shift in how U.S. investors allocate their capital. The survey indicates that exchange-traded funds (ETFs) have emerged as the leading investment vehicle, attracting a considerable portion of investor funds away from traditional approaches like stocks and mutual funds. 62% of ETF investors reported funding their new ETF purchases using sales of individual stocks, while 52% accessed funds from existing mutual fund holdings. This shift represents a notable reallocation of capital towards low-cost, flexible ETFs that offer convenient diversification and ease of access.