Exchange traded funds (ETFs) are among the fastest-growing segments of the financial industry, yet not everyone is sold.
In a recent study in Europe, 80% of retail investors said they would prefer to learn more about the funds before they buy, Will Jackson for Fund Strategy reports. That should be easy enough: news organizations, bloggers, conference organizers and even the ETF providers themselves have stepped up to the plate with heaps of education. Among the concerns the investors cited was counterparty risk and the time it takes to do analysis. [Why Young ETF Investors Are Skeptics.]
If you’re seeking more education on ETFs, you can get started here.
Even as the industry grows, the room for new ETF entrants is still there. Chris Newlands for The Financial Times reports that statistics point to the fact that rivals to the now BlackRock-owned giant have had some success but, iShares still controls more than two-fifths of the global market. [Successful ETF Investing: Luck Or Strategy?]
ETF providers have upped the ante in recent months, slashing fees, waiving commissions and offering new products similar to existing ones, but at a far lower price. The end result could be an ETF landscape that may ultimately look much different a few years from now. [5 Ways To Cut the Cost of ETF Investing.]
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.