Fund companies continue to launch exchange-traded funds at an incredible rate. However, not all succeed in attracting enough assets to make them efficient investment products, according to the Austin American-Statesman. Investors have to weed out the ETFs that are genuinely useful to their portfolio.Unless an ETF has a large asset base and is actively traded, many investors are better off buying a comparable index mutual fund. In the first six months of this year, 162 ETFs were launched.
The top 54 ETFs have significant assets of around $2.1 billion, but the smaller, less successful ETFs might start waning off if they can’t garner more assets.