Asset Managers Shift Portfolios Into Low-Cost ETFs

The investment management industry is shifting basic portfolio strategies from mutual funds into lower-cost, tax-efficient ETFs, driven by rising fee pressure, consolidation and AI-led efficiency, experts say. Moody's (December 2025) and Oliver Wyman warn that firms lacking scale or private-market access will face profitability headwinds, while ETF assets hit a record $13.4 trillion in January, reshaping industry economics and fee structures.