So Many Niche ETFs, So Few Investors Who Care

Exchange-traded funds have been on a tear for the past two years as providers went on a land grab to stake a claim in as many unique investment ideas as possible.

But some people think there could be a long-overdue shakeout in 2008 as more and more new products compete for investor attention -- and an increasingly limited pool of seed capital.

ETFs are baskets of securities that track indices. They trade on an exchange like stocks.

So far in 2007, 283 new funds have launched according to Morningstar, an 83% surge over last year, when 155 funds hit the market. And the 155 launches in 2006 were themselves a 75% increase over 2005. ...