ETFs: Survival of the Fittest
Both ASO and GRN command very little trading volume, but investors should not expect to see GRN disappearing anytime soon. The iPath line of ETNs spawned from the same family as the highly popular iShares line. iShares has long been home to popular products such as iShares S&P 500 Index (IVV) and iShares Russell Midcap Index (IWR), which pay for themselves and their less-successful peers.
While the closing of ETFs may be a pain for shareholders, the Darwinian result has helped take poor performing products off the market. Upstart ETF issuers have to be lean and mean, delivering products that customers want and taking aim at ETF standards offered by other fund groups.
The industry is experiencing a fundamental shift, however, highlighted by the recent BlackRock (BLK) acquisition of iShares. The players at the top of the ETF industry are getting bigger and asset managers like Schwab (SCHW) will soon be offering their own line of products. Here's to hoping that consumers will continue to demand excellence and that the viability of funds will keep the ETF universe from becoming bloated.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV