Absolutely Too Many ETFs

Getting known for my soapbox, Forbes asked me my opinion on the proliferation of Exchange Traded Funds. I responded, “If you happen NOT to be a quant fund, there are absolutely too many!” and the editor replied, “There’s a story there.”

So he ran it. Here’s the link.

I followed up with,

Do we really need all these U.S. large and mid cap trackers, or these leveraged, inverse and double inverse trackers?

How about the MZZ UltraShort Mid Cap 400 ProShare tracker stock?

I mean are we getting to the point where it's ok to walk into the Starbucks (SBUX) and order, "decaf grande half-soy, half-low fat, iced vanilla, double-shot, gingerbread cappuccino, extra dry, light ice, with one Sweet-n'-Low and one NutraSweet"?

A reader gave us that last quote as someone who has gone a little over the top, which is what I think of all these ETFs.

But, if you are a computer, hey, go for it.

Comments

[Panskeptic:]

Please Google "King Canute" and read how well the waves responded.

2007 Mar 22 11:31 PM

[Paul Meisel:]

Barnum said it best: "There's a sucker born every minute ... and two to take him."

2007 Mar 25 05:23 AM