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Why You Shouldn’t Worry About ETF Closures
September 04, 2012 at 09:00 AM EDT
The ETF space has been a hot spot for growth in the investment landscape over the past decade. Exchange-traded products have come a long way since 1995 when merely two funds in total were in existence. Today, investors can choose from an extensive lineup of nearly 1,500 offerings, showcasing how self-directed investors and professional money managers have bolstered demand for these financial instruments. However, the ever-expanding product roster has also lead to waves of ETF closures, causing some to worry that the growth of the industry will be overwhelmed by a string of liquidations [see also Free Report: How To Pick The Right ETF Every Time]. In short, that’s just nonsense. As with any financial instrument, with innovation also comes complexity, and ETFs are no exception. Similar to how mutual funds saw a meteoric rise in popularity in the 1980s and ’90s followed by waves of contraction, the ETF industry too must mature. Simply put, ETF closures are a natural part [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
The ETF space has been a hot spot for growth in the investment landscape over the past decade. Exchange-traded products have come a long way since 1995 when merely two funds in total were in existence. Today, investors can choose from an extensive lineup of nearly 1,500 offerings, showcasing how self-directed investors and professional money managers have bolstered demand for these financial instruments. However, the ever-expanding product roster has also lead to waves of ETF closures, causing some to worry that the growth of the industry will be overwhelmed by a string of liquidations [see also Free Report: How To Pick The Right ETF Every Time]. In short, that’s just nonsense. As with any financial instrument, with innovation also comes complexity, and ETFs are no exception. Similar to how mutual funds saw a meteoric rise in popularity in the 1980s and ’90s followed by waves of contraction, the ETF industry too must mature. Simply put, ETF closures are a natural part [...]
