ETF Trend Has Staying Power

January 02, 2007 at 1:34 am by Tom Lydon      Bookmark and Share

3578435333 As 2006 wraps up, there are 92 exchange traded funds (ETFs) in the pipeline after 144 were launched this year. There will be no slow down for 2007, with the SEC figuring out how to speed up regulatory approval and a bevy of new companies wanting to establish themselves. ETFs are a basket of stocks that invest in an index and keep expenses low, and providers are doing all they can to make their mark in the industry.

Commodity ETFs will keep going strong, as will foreign investments, especially in real-estate. The fixed-income and bond market have plenty of room to grow, and as John Spence of MarketWatch states we should look for ETFs to make inroads within the 401-K retirement-plan business. 2006 was only the beginning of the ETF trend.

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