Bloated array of ETFs results in liquidations
Sunday, June 8th, 2008Exchange-traded funds have proven to be very popular with do-it-yourself investors and financial advisers since their introduction in 1993. But their popularity has led to the market being swamped with them, and as a result, some investors have seen their funds liquidated.- advertisement -
ETFs present a cornucopia of investment choices in low-cost trading vehicles that trade like a stock. But, similar to mutual funds, each ETF represents a variety of companies, thereby mitigating some of the risk associated with single-stock investments. As investors have scooped them up in their portfolios, issuers have introduced more and more ETFs to the market.