Commentators have been arguing that the ETF market is consolidating for years. But evidence suggests this view is wrong. Some issuers have been bought out; some funds have closed. But AUM and net sales are going up. And more issuers join each year.
What are the drawbacks of income ETFs?
The benefits of dividend ETFs are obvious: cost and simplicity. But what are the drawbacks? One, tracker funds don't examine where dividends come from (i.e. how much do they take from profits?). Two, they skew towards certain companies and undermine diversity. In the UK, for example, something near 16% of ETF dividend investment is made up of BP and Shell.
Hate malls? Love this.
Investors who hate shopping malls will soon have their big chance, with new ETFs betting long ecommerce and short bricks and mortar retail soon coming to the market. Withs shops overextended and Amazon rising and rising, it seems a one-way bet.