Have ETFs Reached a Saturation Point?

January 13, 2012

in ETF Roundup

I caught an article over a SeekingAlpha quoting the Financial Times in highlighting that perhaps the ETF market has become saturated.  I’ve been saying for some time that the new issues coming out seemingly weekly are becoming more inane and bizarre by the issue.  Much seems to be more about marketing and getting a trendy niche in your name than actually representing a true underlying sector (Social Media ETF? Nano ETF?  Please).  Also, using catchy ticker symbols to compete with similarly structured ETFs that may have lower fees isn’t doing investors any good (TAN, MOO, etc.).  Investors need to do their research and understand how well a “themed” ETF actually represents the sector they may assume it does based on a carefully selected name.  Curious on your thoughts on the state of ETFs for 2012.

With that off my chest, here’s a shoutout to some great blogs that hosted my content during the past few weeks.  Check out these carnivals for tons of investing articles from around the blogosphere:

Self-Directed Investing Carnival

Carnival of Passive Investing

Carnival of Wealth

Carnival of Financial Comraderie

Totally Money Carnival

 

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