E*Trade is pulling the plug on its mutual fund management business, a company spokeswoman confirmed to The MFWire. The New York-based firm is liquidating four index funds, which collectively have $450 million of assets, and a $40 million actively managed fund.

"We're exiting the fund management business," the spokeswoman told The MFWire. "The fund family has not gained the traction needed to maximize economies of scale."

She added that the decision to liquidate the funds "was not related at all to performance."

The company plans to liquidate the E*Trade S&P 500 Index, Russell 2000 Index, Technology Index, and International Index funds and the actively managed E*Trade Kobren Growth fund.

The decision affects all but one E*Trade fund, E*Trade Delphi Value.

"We're exploring alternatives," the spokeswoman said. 

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