A recurring theme on this blog is the fact that the exchange traded
) market is booming. The latest proof came in the form of a major
milestone for the industry: it has surpassed the 1,000-product
Investors can now choose from more than 1,000 exchange traded
products (ETPs). To be clear, this number includes both exchange
traded notes (ETNs)
ETFs. The 1,000 mark for ETFs only isn't far off, though; as of the
end of April, there were 905 ETFs available (and 93 ETNs).
The introduction of
iShares MSCI Indonesia (NYSEArca:
), iShares MSCI Ireland (NYSEArca:
iShares MSCI USA (NYSEArca:
pushed the total count to 1,001. [
More About the New ETFs.
Some of the reasons contributing to the rapid growth of the
industry in recent months include:
- Fed-up investors. Not content with high fees and little to no
transparency, ETFs are proving to be a refreshing change from the
old school mutual fund model. [
5 Reasons ETFs Are Better Than Mutual Funds.
- Better markets. There have been hiccups, but overall, the
U.S. economy is improving and slowly but surely, investors are
returning to participate.
- Easy peasy. ETFs are just easy to use. They give lots of
exposure in one small trade. There are no early redemption fees
or investment minimums. Anyone can use them.
Not to get greedy here, but there's another milestone quickly
approaching: the $1 trillion asset mark. ETFs have $835 billion in
assets; ETNs have $11 billion. If the rally continues and investors
continue to either discover or deploy available cash into ETFs,
it's a milestone that stands to be reached this year. [
How to Put Available Cash to Work.
The 1,000-ETF mark may not stand for long, since several ETFs
are going to close later this month. But the ETF industry has been
resilient and it'll be back into four digits before you can
Sumin Kim contributed to this article.