New ETFs Grow Up Fast

Kids today have it rough–at least in the ETF industry. Once upon a time, issuers looking to bring new funds to market had no problem rounding up interested investors; significant demand for new products was a virtual certainty as ETFs made their initial burst on to the scene and all asset values seemed to go up. After the first wave of ETFs covered the most popular stock and bond benchmarks, product development initiatives focused on more targeted products tapping into increasingly exotic regions and investment strategies. This trend produced some memorable failures, as anyone who remembers some of the ill-fated ETF ideas of recent years can attest [see ETF Hall of Shame: Nine Exchange-traded Debacles]. It has also led some to lament that the ETF industry had gone overboard in rolling out new products that didn’t make sense as investable assets. As we suspected long ago, reports of an ETF issuance [...] Click here to read the original article on ETFdb.com. Related Stories: Survey: ETFs Will Continue To Grow, Mutual Funds Will Continue To Dominate July ETF Roundup: Launches and Filings Ten Most Successful New ETFs Of 2010