Mutual funds have been a standby of retirement plans for decades, helping to provide a less risky vehicle for people to grow their wealth.

The time is coming, however, when low-cost exchange-traded funds (ETFs) will be the standardrather than mutual funds, according to Meb Faber of Cambria Investment Management.

“It’s a one-way street,” Faber told Business Insider. “Mutual funds have so much baggage … and are still dominated by active managers, which usually means they charge more. Once you go from a high-fee, tax-inefficient structure to a very low-fee, tax-efficient structure, you don’t go back.”

Join the conversation about this story »

NOW WATCH: ‘Batman v Superman’ is a complete trainwreck, and director Zack Snyder is to blame