This year’s pace of new product launches from issuers of exchange traded funds is decent, though not breathtaking and that could be a sign that sponsors are becoming more selective about the concepts that make it from the drawing board to launch.
A somewhat slow start to 2014 does not mean issuers will not pick up the pace later this year and with increased customization of ETFs for specific clients, investors can bet on more funds coming to market as this year moves along. “Part of the reason that new players are still finding opportunities is the big-sky nature of the ETF space. Imagination and demand are seemingly the only limits for ETFs. Each year about 150 new ETFs debut,” reports Paul Whitfield for Investor’s Business Daily.
Some of the new ETFs that have already established impressive followings include funds that debuted late last year. The ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL) comes to mind. NOBL debuted in early October 2013 and was able to gain $100 million in assets by late February. [Dividend Aristocrats ETF Tops $100M in AUM]
NOBL is part of an ongoing effort ProShares to bolster its lineup of non-leveraged ETFs, an effort that includes the March launch of the ProShares DJ Brookfield Global Infrastructure ETF (NYSEArca: TOLZ).
There is an appetite for global infrastructure ETFs as highlighted by the FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA). NFRA also debuted last October and already has north of $151 million in assets under management. [Go Global With Infrastructure ETFs]