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Money Skips Mutual Funds, Parties with ETFs Instead

Reading time: 2 min • Apr 17, 2025, 09:12 PM (UTC)

Key Points

  • Mutual funds are struggling amid aggressive Fed rate hikes, ...

If mutual funds were hoping for a hot investment spring in 2025, they're getting a cold shower instead. The Federal Reserve's aggressive interest rate hikes have turned these once-popular investment vehicles into the financial equivalent of last season's fashion trends.

Rate Hikes: The Party Pooper

March 2025 saw a measly $24 billion trickle into long-term mutual funds - the lowest since April 2024. Growth stocks, particularly those high-flying tech darlings, have taken such a beating that even their mothers wouldn't recognize them. The Morningstar US Growth Index has plummeted 18% since ...

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