New York — Investors funneled $375bn into exchange-traded funds in 2016, investment manager BlackRock said on Tuesday, a global record that came as investors looked to cut costs. The total, which is preliminary, compares with $348bn in 2015 and includes a record $286bn haul in the US, home to the funds’ biggest market. ETFs are a basket of stocks or other assets traded by individual investors and institutions. Fund managers from BlackRock to Vanguard and Schwab offer index ETFs that try to track, not beat, the market. They have sliced management fees on some funds to as little as $3 annually for every $10,000 managed. All three companies announced price cuts last year. Those low fees along with other cost savings and conveniences have helped the more than $3-trillion ETF business take assets from rival financial products, including actively managed funds that attempt to beat the market but may fall short of that goal. US-based active stock funds recorded $288bn in withdrawals in 201...
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