Despite all of the fanfare over ETF growth, the low cost easily traded alternatives might decline this year, The Columbus Dispatch
writes. It is becoming more difficult for fund companies to start ETFs that are unique or low cost enough to stand out from other products on the market.
"Many aren't attracting enough cash to remain financially viable. Eighty-one ETFs were closed last year. Although that's fewer than the number that were launched, that total broke the previous record of 51 ETF liquidations, set in 2010."
The Columbus Dispatch interviewed Todd Rosenbluth, director of ETF research at S&P Capital IQ
, who said the number of ETFs available today is close to reaching a "tipping point."
Stay ahead of the news ... Sign up for our email alerts now