Question: Why are there so many ETFs? Answer: ETF providers tend to make lots of money on each ETF so they create more products to sell.
Why are there so many ETFs? ETF providers tend to make lots of money on each ETF so they create more products to sell. The large number of ETFs has little to do with serving your best interests. Below are three red flags you can use to avoid the worst ETFs:
Finding the best ETFs is an increasingly difficult task in a world with so many ETFs to choose from.
The Large Cap Blend style ranks first out of the twelve fund styles as detailed in my style rankings for ETFs and mutual funds. It gets my Neutral rating, which is based on aggregation of ratings of 39 ETFs and 1,046 mutual funds in the Large Cap Blend style as of October 12, 2012.