Interest In ETFs Surging

Interest in exchange traded funds (ETFs) has been escalating, and with general markets expanding, companies have not hesitated in launching new funds. Reports from fund researcher Morningstar Inc. show around 245 of the 460 ETFs they follow have been launched since early 2006. Ian Salisbury of The Wall Street Journal adds that at least 288 more ETFs are pending before the SEC. Although numbers of ETFs have already launched this year alone, the pipeline for new offerings is surging with international ETFs, sector funds, and securities which track commodities like natural gas. Fixed income is another hot sector right now. Funds that appeared on the market as of early 2006 hold around $18 billion total, with around $74 million per fund.