FYI: The exchange-traded fund Opens a New Window. industry has grown explosively in the past quarter-century. From its modest beginnings in the early 1990s, the SPDR S&P 500 ETF (NYSEMKT: SPY) has gone from $0 to $250 billion in assets under management, bringing the benefits of index investing to millions of investors. Now thousands of ETFs are available, allowing investors to get exposure to just about any financial market across the globe, any niche sector or industry, and any type of asset. Now more than $5 trillion is invested globally using ETFs, and the number is still rising.
However, there are signs of fatigue in the ETF industry. Even though top-performing ETFs Opens a New Window. have continued to draw assets, it's becoming harder for new funds to make their way into the fray. With so much competition, new ETFs face financial challenges that few are able to overcome. Increasingly, ETF managers are pulling the plug on their new funds more quickly, aiming to avoid prolonged losses on failed concepts. For some, that's a signal that the ETF market might finally be hitting its peak.
Regards,
Ted
https://www.foxbusiness.com/markets/has-the-etf-market-peaked
