The E*Trade Funds has filed a proxy with the Securities and Exchange Commission to merge its E-Commerce Index Fund into its Technology Fund. The change, which shrinks the Menlo Park, Calif. firm's lineup to six funds, was fueled by 'changing industry conditions and investor needs,' according to the proxy.

'What E*Trade is doing is not dissimilar to what other fund groups have done where they have created a sub-sector of technology and found that they haven't enough legs to stand on,' said Geoff Bobroff, a East Greenwich, R.I.-based industry consultant.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.