An ETF explosion has taken over the financial market as exchange-traded funds enjoy the lion’s share of investment dollars globally--even as investors continue flocking to passive funds and shunning actively managed mutual funds.
The sheer growth numbers have industry punters licking their chops.
From just a handful of offerings a couple of decades ago, we're now bombarded with a cornucopia of everything ETF: 136 providers in the United States now offer 2,062 ETFs to investors backed by an impressive $4 trillion in assets under management (AUM).
According to the latest update by independent ETF research firm ETFGI, assets invested in the global ETFs and ETPs (exchange-traded products) space clocked in at $5.78 trillion by the end of September 2019, reflecting new inflows of $350.25 billion over the preceding 12-month period.
The ETF industry is now $2.5 trillion bigger than the mutual fund industry.
Yet, as Deborah Fuhr, founder of ETFGI, has told CNBC’s ETF Edge, these are simply the early innings, with the burgeoning industry set to scale to even higher heights thanks to the SEC recently creating a more level playing field after watering down its arduous exemptive relief rule.
Unfortunately, the same cannot be said about energy ETFs.
Investing in Mainstream Energy ETFs
With the energy sector going through another of those notorious bust cycles, exchange-traded funds in the…