Northern Trust Will Convert Mutual Funds into ETFs

The firm is moving $33 billion in assets as investors increasingly pivot away from traditional mutual fund structures.

Updated on Sept. 25, 2026 in Investing

Isometric editorial illustration depicting a circular brass coin being reshaped into a sleek rectangular metal block, representing financial asset conversion. — Northern Trust has filed regulatory paperwork to convert six mutual funds into exchange-traded funds, migrating $33 billion in assets into the more flexible structure. AI Illustration. Upload story photo >

Live Poll

Is now a good time for you to shift your investments from mutual funds to ETFs?

Northern Trust recently filed regulatory paperwork to convert six mutual funds into exchange-traded funds by early 2027. This shift will migrate approximately $33 billion in assets into the firm's ETF platform.

Why it matters

The transition reflects a broad shift as investors favor ETFs for their potential tax efficiency, lower costs, and ease of trading compared to mutual funds. This strategy allows established asset managers to maintain their track records while modernizing their offerings to match current market trends.

Northern Trust plans to move $33 billion in assets to its ETF platform, which will grow to roughly $60 billion upon completion. This follows a 2026 industry trend where ETFs attracted $1.4 trillion in inflows while active mutual funds suffered $690.4 billion in net outflows.

The players

Northern Trust Asset Management

An asset management firm providing various investment vehicles and financial services to individuals and institutions.

Dimensional Fund Advisors

An investment management firm that previously converted $28.8 billion in assets into ETFs in 2021.

JPMorgan Asset Management

An investment manager that has previously utilized mutual fund-to-ETF conversions to update its product offerings.

The details

The conversion process involves re-packaging existing mutual fund strategies into the more flexible ETF wrapper, allowing investors to trade shares on exchanges throughout the day. By filing the regulatory paperwork, Northern Trust aims to retain its asset base by migrating to a vehicle that currently dominates the U.S. investment landscape. This is part of a wider industry movement where firms look to capture the liquidity and tax benefits that ETFs often provide to individual and institutional portfolios.

September 18, 2026: Northern Trust filed the regulatory paperwork for the conversions.
Q1 2027: The six mutual funds are scheduled to complete their transformation into ETFs.

Investing
Sept. 22
Mutual Fund and ETF Assets Hit Records in August 2026
Taxes
Sept. 28
Treasury Department Targeted Abusive Tax Strategies
Investing
Sept. 24
WisdomTree Will Delay 500 Digital ETF Launch

Money Landscape

Northern Trust's decision follows a pattern set by Dimensional Fund Advisors' 2021 conversion, highlighting the industry's pivot toward the ETF structure. This shift occurs as investors move away from traditional mutual funds, which saw significant outflows throughout 2026.

If you hold shares in the affected mutual funds, you should monitor communication from your broker regarding the upcoming structural change to your investment. Consult with a financial professional to determine if these new ETFs align with your long-term portfolio goals and tax strategy.

The takeaway

This conversion highlights the persistent preference for ETF structures over traditional mutual funds in the current market. Keep an eye on your investment statements for details regarding any changes to your specific fund holdings as the 2027 transition date approaches.