Although the U.S. stock market put up a solid performance in 2009 -- propelled by a massive rally off its March low -- apparently, investors aren't investing in mutual funds. According to research from Goldman Sachs
Something new and shiny
After the drubbing investors suffered in 2008, some repudiation by investors of mutual funds is probably normal; in a bear market, investors' attention is more focused on their results and whether professional money managers are providing them with any value. But there may be another phenomenon at work. From virtually nothing at the exit of the previous bear market (2000-2002), assets in stock exchange-traded funds (ETFs) now equate to 13% of stock mutual fund assets.
A real threat
While any report of the death of stock mutual funds is an exaggeration; there is no question that ETFs such as the industry heavyweight SPDR S&P 500
Beat 'em or join 'em
For money managers such as Legg Mason
Here are the 3 reasons you're being to set up to fail when you invest in mutual funds.
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You can follow Fool contributor Alex Dumortier on Twitter; he has no beneficial interest in any of the companies mentioned in this article. Charles Schwab is a Motley Fool Stock Advisor selection. The Fool owns shares of Legg Mason. Try any of our Foolish newsletters today, free for 30 days. Motley Fool has a disclosure policy.