“Build them and they will come” seems to be the motto of many ETF issuers. And it has proven true. ETFs and ETNs have amassed over $600 billion in assets. The past quarter has seen approximately 30 new ETFs/ETNs unveiled every month.
Currently there are over 450 ETFs and ETNs with prospectuses filed at the SEC, despite a rocky stock market. It does, however, seem that some companies appear to be betting on quantity rather than quality to attract new assets.
XShares Advisors, which recently had to close seven ETFs due to insufficient assets, is trying its luck again with some 50 filings pending. One ETF in the XShares’ series is called StateShares, which offers investors state-specific exposure (i.e. StateShares California 50).
Rydex and ProShares combined have over 200 registrations pending. These range from double levered to inverse, currency to commodity, sector to broad market, and some in between.