2006 Will Be The Year of the Exchange Traded Fund (ETF) | ETF Trends

Somebody once told me that if you don’t change you’ll be left in the tar pits with the rest of the mastodons. Investors, financial advisors and retirement plan sponsors are facing a tipping point regarding ETFs. The bottom line is that they make sense and they aren’t going away.

In 2006, two things will happen. First, financial advisors and individual investors who haven’t studied up on what an exchange traded fund is will do just that. Second, investors who don’t have ETFs in their portfolios will ask "Why?".

The growth in assets and numbers of ETFs continue to grow at a
staggering rate, but still represent only 4% of mutual fund assets. Here’s a great piece on the "Ins and Outs of ETFs".

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.