Northern Trust Will Convert Mutual Funds into ETFs

The firm filed regulatory paperwork to shift $33 billion in mutual fund assets into exchange-traded funds by 2027.

Updated on Sept. 25, 2026 in Investing

Isometric editorial illustration of a brass compass atop a stack of geometric financial weight blocks, symbolizing asset conversion. — Northern Trust Asset Management filed to convert $33 billion in mutual fund assets into exchange-traded funds by the first quarter of 2027. AI Illustration. Upload story photo >

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

Northern Trust Asset Management has officially filed regulatory paperwork to convert six of its mutual funds into exchange-traded funds. This transition will involve approximately $33 billion in assets and is expected to be completed in the first quarter of 2027.

Why it matters

Asset managers are increasingly pivoting to the ETF structure because it offers investors greater trade ease, lower costs, and enhanced tax efficiency. This move allows the firm to leverage its existing track records to better compete in the rapidly expanding ETF market.

The six funds oversee roughly $33 billion in total assets, which would grow Northern Trust's ETF platform to approximately $60 billion. This follows a 2026 industry trend where ETFs captured over $1.4 trillion in inflows.

The players

Northern Trust Asset Management

This is a global investment management firm that provides a wide range of asset management services to institutional and individual investors.

Dimensional Fund Advisors

This is a prominent investment firm known for its systematic, research-based approach to factor-based investing.

JPMorgan Asset Management

This is a major global financial institution that offers comprehensive investment management services across various asset classes.

The details

The conversion process involves re-packaging established mutual fund strategies into the more popular ETF wrapper to attract investor capital. Northern Trust filed the necessary regulatory documentation on September 18, 2026, to facilitate this strategic shift.

In 2021, Dimensional Fund Advisors converted $28.8 billion into ETFs.
JPMorgan Asset Management announced similar conversions during 2025.
During 2026, active and passive mutual funds experienced significant net outflows.
Northern Trust filed regulatory paperwork for the conversion on September 18, 2026.
The six mutual funds are scheduled to become ETFs in the first quarter of 2027.

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Market Dynamics

This conversion follows the pattern established by the 2026 mutual fund net outflow trend, where investors pulled hundreds of billions from traditional funds in favor of ETFs. By shifting assets into the $16 trillion ETF industry, the firm is realigning its strategy to capture the dominant flows of modern capital markets.

Retail investors holding these mutual funds will likely gain access to intraday trading and potential tax efficiencies once the conversion to ETFs is complete. This shift may also lower long-term management costs for those maintaining positions in the converted strategies.

The takeaway

The mass migration of assets from mutual funds to ETFs reflects a fundamental shift in how institutional investors manage costs and tax exposure. Investors should monitor their portfolios for upcoming changes to fund structures that may impact their liquidity and tax filing requirements.