SmartMoney: ETFs “pushing mutual funds out of the picture”

There is a great article posted today at about the gains ETFs are making against mutual funds.  The article describes the rapid growth of ETFs, the fact that some fund companies such as Vanguard are issuing their own ETFs in order to survive, and the benefits to an investor of owning ETFs instead of mutual funds – especially for the bond portion of a portfolio.

The article says there might be a place for actively managed funds in a portfolio (though most people know by now that most actively managed funds underperform their benchmarks over time) but it concludes that “trying to make a case for a mutual fund can be difficult.”