Exchange traded fund (ETF) industry growth is in the midst of a rapid expansion phase, and record trading volumes are taking total assets under management to new highs. What does it mean for you, and how can you sort out the flood of new products?

Record trading volumes were experienced this summer, and providers are now busy working to bring even more new products to the table.

Daniel Harrison for Index Universe explains that the number of IPOs for indivdual companies is at a low right now, so providers are bringing new exchange traded products to the table more quickly than ever. Analysts are calling for a $3 trillion growth spurt over the next three years as a number of new providers are entering the industry and new products are launching.

The market is getting larger, and this is a good thing for investors in terms of competition, but  it will require a little extra vigilance and gut-checking when it comes to researching a product and deciding if it is a fit for a certain portfolio. Not all ETFs are right for all investors.

To deal with all these new choices, you may want to read up on a few things:

For more stories about ETF industry growth, visit our ETF 101 category.

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.