Doing otherwise is a little like assuming that just because the FDA approved a drug, it’s all right to go to town without considering how that drug fits into your life. What other drugs are you taking? What are the side effects of the drug you’re considering?
Second, since when is choice ever a bad thing? Providers can launch all they like but ultimately, investors will decide what works and what doesn’t. Funds that fail to pull in assets will be closed by responsible providers, while the successful ones will continue to grow. More choice keeps the spirit of competition alive and well in the market, while keeping costs in check.
Not every fund launched is going to be a success, but it’s up to the investors to do some research and make sure the ETF they’re eyeing has a place in their portfolio.