Too Many ETFs?

In 2005, 100 exchange-traded funds premiered in the U.S. With an entire quarter left in 2006, that figure has already been matched, and most observers expect it to be eclipsed by the end of the year.

"I wouldn't be surprised if more ETFs are launched this year," says Marta Norton, a fund analyst with Morningstar. "We've certainly been at a tremendous pace.

"I think there is a lot of anticipation from investors, and I think companies are alluding to the fact that they will be pushing out more ETFs," Norton adds.

She declined to say how many products she expects will be rolled out during the next three months, but some industry followers estimate that 100 new ETFs could hit the market between now and the end of the year. ...