Exchange-Traded Funds Gain in Popularity

Savvy investors are buying exchange-traded funds in a big way. Total EFT assets grew 49.8% to $225.9 billion in 2004 according to the March 10, 2005 release of the Flow of Funds Accounts of the United States. Since 2000 ETF assets have grown 244.36%

What is fueling this growth? Typically ETFs have much lower fees and tax liabilities than equivalent managed mutual funds so ETFs yield higher returns for the long-term investor.