As exchange-traded funds continue to grow in scope and popularity, investment experts warn that some products, such as leveraged and inverse ETFs, may be too dangerous for all but the most experienced hands.

"People get lazy and they think an ETF is an ETF," said Paul Schatz, president and CEO of the Woodbridge, Conn.-based registered investment advisor Heritage Capital LLC. "There are inherent problems with every product, and some products have way too much firepower for the average person to use."

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.