Comments on: Just Too Many ETFs out There: Claymore to Close 11 Funds that Nobody Wants http://www.thesunsfinancialdiary.com/investing/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sunhttp://www.thesunsfinancialdiary.com/investing/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38895 Sun Wed, 06 Feb 2008 04:54:39 +0000 http://www.thesunsfinancialdiary.com/investing/etf/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38895 It seems that ETF is now a lucrative business and everybody wants a piece of it. Since ETFs until now all track some kind of indices, financial firms so far have been very creative in creating new indices so that new ETFs can be launched. Think about it, if there is a Vaccine index, why can't there be a Wine index or Beer index? More indices are going to be introduced and more ETFs will follow. And sure more funds will not survive.I just heard today that actively managed ETFs will soon be on the table. I wonder how much the active ETF will cost. It seems that ETF is now a lucrative business and everybody wants a piece of it. Since ETFs until now all track some kind of indices, financial firms so far have been very creative in creating new indices so that new ETFs can be launched. Think about it, if there is a Vaccine index, why can’t there be a Wine index or Beer index? More indices are going to be introduced and more ETFs will follow. And sure more funds will not survive.

I just heard today that actively managed ETFs will soon be on the table. I wonder how much the active ETF will cost.

]]> By: CiaranFromChancehttp://www.thesunsfinancialdiary.com/investing/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38883 CiaranFromChance Wed, 06 Feb 2008 04:18:13 +0000 http://www.thesunsfinancialdiary.com/investing/etf/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38883 I think we'll be seeing more and more of this. Going forward new ETF's will only survive if they are covering new or emerging markets and are new to the marketplace.ETF's track indexes (for the most part) and the first so called 'pioneers' to the marketplace stake their claim, much like the GoldRush 150 years ago. That will be Vanguard, Barclays, StateStreet, etc.Actively managed funds, hedge funds will always come out with new offerings and some will survive because it's about absolute performance, ETF's are all about relative performance, its a commoditized business, that comes down cost for the most part.If you like cola and launch a new brand and try and compete against Coke or Pepsi, how can you? No chance. You can only compete if you bring something new and exciting to the marketplace, a Vitamin Water.More of this to come for sure... I think we’ll be seeing more and more of this. Going forward new ETF’s will only survive if they are covering new or emerging markets and are new to the marketplace.

ETF’s track indexes (for the most part) and the first so called ‘pioneers’ to the marketplace stake their claim, much like the GoldRush 150 years ago. That will be Vanguard, Barclays, StateStreet, etc.

Actively managed funds, hedge funds will always come out with new offerings and some will survive because it’s about absolute performance, ETF’s are all about relative performance, its a commoditized business, that comes down cost for the most part.

If you like cola and launch a new brand and try and compete against Coke or Pepsi, how can you? No chance. You can only compete if you bring something new and exciting to the marketplace, a Vitamin Water.

More of this to come for sure…

]]> By: Jeremyhttp://www.thesunsfinancialdiary.com/investing/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38860 Jeremy Wed, 06 Feb 2008 02:42:59 +0000 http://www.thesunsfinancialdiary.com/investing/etf/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38860 Jonathan, I'm guessing by what was said in the post that people who still hold assets in the funds as of Feb. 28th will just have their positions liquidated. This is quite a raw deal if people just recently invested in these funds and will have to take a loss thanks to the market lately.Kind of reminds me of the whole mortgage mess. For decades we had just simple straightforward mortgages, and things chugged along just fine. Then along come all sorts of exotic loans to entice more people into the market, and look what happened. Same thing with a lot of the ETFs being created. They have abandoned their roots, attracted more investors, and now people are going to get screwed. Jonathan, I’m guessing by what was said in the post that people who still hold assets in the funds as of Feb. 28th will just have their positions liquidated. This is quite a raw deal if people just recently invested in these funds and will have to take a loss thanks to the market lately.

Kind of reminds me of the whole mortgage mess. For decades we had just simple straightforward mortgages, and things chugged along just fine. Then along come all sorts of exotic loans to entice more people into the market, and look what happened. Same thing with a lot of the ETFs being created. They have abandoned their roots, attracted more investors, and now people are going to get screwed.

]]> By: Jonathanhttp://www.thesunsfinancialdiary.com/investing/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38854 Jonathan Wed, 06 Feb 2008 02:21:52 +0000 http://www.thesunsfinancialdiary.com/investing/etf/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38854 This is actually kind of funny, Global Vaccine ETF? I wonder what happens if you hold these ETFs - do you just get cashed out at NAV one day? This is actually kind of funny, Global Vaccine ETF? I wonder what happens if you hold these ETFs – do you just get cashed out at NAV one day?

]]> By: The Dividend Guyhttp://www.thesunsfinancialdiary.com/investing/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38795 The Dividend Guy Tue, 05 Feb 2008 22:27:42 +0000 http://www.thesunsfinancialdiary.com/investing/etf/just-too-many-etfs-out-there-claymore-to-close-11-funds-that-nobody-wants/#comment-38795 One of the biggest benefit of index funds is the simplicity. The index fund companies have done a disservice to investors by creating all these niche funds. Keep things simple and invest in broad asset classes. Just my two cents. One of the biggest benefit of index funds is the simplicity. The index fund companies have done a disservice to investors by creating all these niche funds. Keep things simple and invest in broad asset classes.
Just my two cents.

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