Do We Really Need More ETFs?

Tadas Viskanta continued his Blogger Wisdom series by asking “What ETF, if it were launched tomorrow, would you invest in with little (or no) hesitation? Said another way what asset class or strategy is not currently effectively available in an ETF wrapper?”

Here was my answer: “Frankly, there isn’t one. We arguably have a bubble in ETFs, indexing in general, and even in smart beta.”

I seem to be echoing the sentiments of several of the other contributors:

Robin Powell: “I’m quite happy with my family’s portfolio as it is. It would be refreshing to have a day without another ETF launch!”

Tom Brakke: “I have no idea. There are too many already. The industry machine is at work cranking them out.”

Cullen Roche: “Nothing. The ETF market is becoming saturated. Most of the new strategies are gimmicky nonsense being sold to people who think they need something they don’t.”

Michael Batnick: “Nothing. I’m content.”

I have to say though, Phil Huber’s tongue-in-cheek reply might have been my favorite:

While it may seem like there is nothing new under the sun in ETF land, there is one glaring hole when it comes to product development and that is an ETF that capitalizes on the most consistently accurate contrarian indicator known to mankind – Dennis Gartman.

The Inverse Gartman ETF (Proposed Ticker: WRNG) would provide investors a transparent, rules-based way to take the opposite bet of whatever Gartman is bullish or bearish on that week on CNBC.


Great replies, as always. To see the full list, see Finance blogger wisdom: missing ETFs