Exchange traded funds (ETFs) have proliferated in the past year but some insiders feel this has gone from ETF evolution to ETF pollution. If surging stocks take a rest, some of the specialty ETFs may not have a future. John Spence of The Wall Street Journal reports advisors and analysts have singled out a few types of ETFs to be wary of. Those with smaller coffers (less than $50 million), thin trading volume, funds tracking similar areas of the market already dominated by others and far-reaching or thematic highly specific ETFs. These are all for instances. The surge of ETFs on the other hand is also proof of a strong and profitable ETF products.
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.