In an article in Barron’s this weekend, it was suggested that the ETF market is getting too crowded. Roger Nusbaum, from Seeking Alpha has his own opinions on the subject which are worth considering too.
Here’s my take; with over 8000 mutual funds available today, what’s wrong with having 400-500 exchange traded funds. They’re cost effective, transparent, most are well diversified and represent well thought out indexes. Barron’s should spend more time asking why there are so many poor performing (and expensive) mutual funds rather than discouraging a growing ETF market place.
But that’s just my take. Have a happy 4th of July!
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.