MutualFundWire.com: Have ETFs Entered a New Phase?
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Monday, December 3, 2012

Have ETFs Entered a New Phase?


The gold rush in exchange-traded funds may finally be over, writes Wall Street Journal reporter Tom Lauricella.

In a WSJ article that ran as part of the newspaper's monthly investing in funds special report, Lauricella has this to write on the subject:
Hundreds of ETFs are languishing with meager interest from investors. Price wars are pinching profits. And with more than 1,400 exchange-traded offerings already in the market, there are few niches left open for new entrants.
Lauricella also notes that "against this backdrop, 99 ETFs and related exchange-traded offerings have hung up a 'going out of a business' sign thus far in 2012, according to Thomson Reuters Corp.'s Lipper unit. That's the most closures for a single year in the nearly two-decade-long history of ETFs. It's also more closures than in the past three years combined."

For more on Lauricella's views on the subject, check out his article in the Wall Street Journal.


Printed from: MFWire.com/story.asp?s=42225

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