July 15, 2008 at 1:00 am by Tom Lydon
As time flies on, so does the number of exchange traded funds (ETFs) being introduced to the industry. Last year there was a new launch almost daily, taking the number to around 700, with $600 billion in assets.
Although the general economy has slowed, the ETF world has simply gone about its business. The first half of 2008 showed us 120 new ETFs and exchange traded notes (ETNs) alone, according to Lipper, reports Rob Wherry for SmartMoney.
The latest round of liquidations has taken place alongside this growth. Adelante, XTF and Claymore have all closed the door on certain funds. This trend should continue as the competition for more dollars increase and trading volume becomes more important to investors. The growth can be accredited to major launches from PowerShares, Northern Trust, Rydex and iPath.
But the industry shouldn’t let closings get it down – it’s only natural that in an area of hundreds of products, some won’t take hold as well as others. The ETF industry remains a juggernaut.
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