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ETF launches surge, piling more products on RIAs and advisors
In the 12 months through August, 1,508 U.S. ETFs launched, and a separate study found average RIA approved ETF lists rose from 88 to 93 tickers over time.
ETF product development is accelerating, with Yahoo Finance highlighting how the pace of U.S. ETF launches is outstripping advisors ability to evaluate, explain, and monitor each new fund. In the 12 months through August, 1,508 U.S. ETFs were launched, about 29 per week, turning “abundance” into more day-to-day homework for industry participants.
The piece also cites an AdvizorPro study of 5,400 RIAs showing the average approved or used ETF list expanded from 88 to 93 tickers. The author argues that adding several funds over a year can be hard to absorb because each new ticker represents a distinct product that someone must understand, communicate to clients, and oversee.
Yahoo Finance further notes that ETF demand is shifting beyond low-cost exposure, with the article pointing to FactSet research showing higher-fee funds gaining share in five of ten active segments. The argument presented is that investors and advisors are increasingly paying for a broader range of features, including active strategies, derivatives, income-oriented products, and alternative exposures.