The only reasons an investor would switch from one ETF investment to a similar ETF product would be to take into account the stylistic construction in the different ETFs, including holdings and sector weightings, along with trade specific details like implicit and explicit costs. [Legg Mason, Fund Firms Mull ETF Entry]
Also, when choosing ETFs, investors want to lean toward funds that are liquid with low spreads and tracking error. It also makes sense to favor ETFs with a comfortable amount of assets under management, usually between $50 million and $100 million, at least.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.