Today’s Chart of the Day comes from Morningstar Direct and shows the openings and closings of mutual funds vs. exchange traded funds (ETFs) since 2012.

In a nutshell, in 2012 there were 557 mutual funds opened and five closed. In 2022, there was a declining trend with only 180 mutual funds opened and 181 closed. When looking at ETFs in 2022, there was a whopping 406 opened.

Quite simply, investors are seeing the superiority that ETFs provide for greater tax efficiency, liquidity, transparency and lower costs.