John Spence at Market Watch chimes in on asset growth of ETFs:
“It seems like there’s more ETFs in registration than
exist now,” said analyst Paul Mazzilli of Morgan Stanley. “All these
firms are throwing them up against the wall to see what sticks.”
With additional ETFs in registration
designed to track narrow industries such as aerospace and defense, and
slices of the health-care sector, investors should expect the trend
toward focused niche funds to continue, for better or worse, analysts
say.One fund that typifies the new generation focused on a niche category
was the top-performing ETF in the first quarter: PowerShares WilderHill
Clean Energy Portfolio (PBW) The $400 million fund, which tracks shares of 41 companies that
specialize in innovative energy sources, was up 31% through March 30,
according to Morningstar Inc.
designed to track narrow industries such as aerospace and defense, and
slices of the health-care sector, investors should expect the trend
toward focused niche funds to continue, for better or worse, analysts
say.One fund that typifies the new generation focused on a niche category
was the top-performing ETF in the first quarter: PowerShares WilderHill
Clean Energy Portfolio (PBW) The $400 million fund, which tracks shares of 41 companies that
specialize in innovative energy sources, was up 31% through March 30,
according to Morningstar Inc.
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.