When it comes to exchange traded funds (ETFs), are there industry posers who are trying to disguise themselves?

Dan Dolan of the Select Sector SPDRs ETF family thinks so. Among the newer ETFs, a pure index tracker is hard to come by, and some of the newer products can only be "quasi" ETFs due to their border on active management. Dolan wants products to earn the right to be an ETF, not just call them that. Part of the reason Dolan is so adamant is that he sees the risk involved with these newer funds as cutting into the $600 billion industry, and undermining the benefits that got ETFs where they are today, reports  Hannah Glover on Ignites.

Many free market advocates say they want the investor to decide what works and what doesn’t, as assets and ETF popularity can speak for itself. Still, there is the fact that the fancier fund types do have expenses which cut into returns; they may not have the same tax benefits ETFs tout; and have a complicated structure, all of which is the opposite of an ETF. But at the end of the day, there may be different layers of definitions for an ETF.

Ultimately, the SEC will have to decide how to regulate the troubles, and as an investor you will have to decide what works for your needs and investment goals by doing your research.

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.