SkyBridge Capital founder Anthony Scaramucci said mutual funds, the engine behind trillions of dollars in American retirement savings, are becoming a relic as ETFs increasingly take their place.

A Pointed Word Game

In a podcast interview posted Tuesday, Scaramucci spoke with Wall Street Journal editor Justin Baer and author of the new book “House of Fidelity” on his show “Open Book.”

During their conversation, Scaramucci ran Baer through a rapid word association game, pressing him for instant reactions rather than measured analysis, and when he threw out “mutual funds,” the product category that built Fidelity‘s business during the Peter Lynch era of the 1980s, Scaramucci did not hesitate.

He called it a “relic” and said it belonged in the “museum of natural history”.

Fidelity is one of the most powerful financial institutions in America, but the story of the family behind it has largely remained hidden. @Justinbaer joins me to reveal how the Johnson dynasty built a $13 trillion empire, and how Abigail Johnson had the courage to reinvent it… pic.twitter.com/zQFbifli0A

— Anthony Scaramucci (@Scaramucci) August 11, 2026

Baer Pushes Back

Baer said the mutual fund business was dying, but added that it could still compete for investor dollars if regulators eventually level the playing field on taxes between mutual funds and exchange-traded funds (ETFs).

He said that investors still have legitimate reasons to stick with certain actively managed mutual fund strategies.

The Case for ETFs

Scaramucci said ETFs are taking over and are helping keep the active management industry alive.

He argued that even though ETF assets remain far smaller than those held by large pension funds, the number of new products entering the market is healthy and the structure works well for investors.

The ETF industry has at least another decade of growth ahead, Scaramucci said, adding that artificial intelligence-run ETFs will eventually outperform every human manager.

The Numbers Back the Claim

U.S.-listed ETFs pulled in more than $1 trillion during the first half of 2026, the earliest the industry has ever crossed that milestone, pushing total ETF assets to a record $15.8 trillion.

That marks the fastest pace on record, putting the industry on track to finish 35% to 40% ahead of last year, according to J.P. Morgan Asset Management.

The firm projects total U.S. ETF assets could reach $25 trillion by 2030, with active ETFs already accounting for a third of all inflows this year and setting new flow records across both equity and fixed income.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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