ETFs have come a long way since the launch of State Street S&P 500 Trust ETF (SPY) in 1993. ETF is here to stay and in my opinion, it is just a matter of time before the mutual fund structure becomes completely obsolete. I am not saying that mutual funds will be completely eradicated from the face of Earth, instead what I am saying is that the next generation of investors will be talking about ETFs, not mutual funds.

To me, ETFs represent a more efficient investment vehicle than the legacy structure, i.e. the mutual fund structure.

For more information on the differences between ETFs and mutual funds, see: ETF Vs Mutual Fund: What it means for your investment portfolio?

As much as ETF is going to dominate in the investment communities for the next couple of decades, one can’t help but wonder what is the next financial innovation that will