As assets in exchange-traded funds top $325 billion and the number of ETFs climbs near 300, investors now have indexed-based choices that cover everything from the S&P 500 to foreign currencies. That has some people wondering if there aren't already too many options. Lower fees, better tax efficiency and the ability to trade at will have been cited for ETFs' popularity. Also, note that the big run for ETFs was right with the scandals of the 2003 of all the mutual fund companies.
We think the continue growth and demand for exchange-traded funds will continue though 2007. Enough with the growth, ETFs will hold to be in popular trend in investing. While we thinkg more smart investors will jump on the EFT band wagon, and understand that most mutual funds can not beat indexes. Due to this factor smart investors will come a running to ETFs. Again, though some old school investors will still not give in and try to fight back with traditional mutuals funds, but don't be fooled this upcoming year.