Nearly every day, I get a notice touting the launch of some new ETF. And at this point, most of them represent some fringe aspect of the investment world. Small-cap stocks from one certain country in the Middle East, say, or a fund from Africa that deals with water infrastructure. Sometimes, they are sliced so thinly that there are just a handful of companies in the underlying index. Useful perhaps, but probably only for a limited audience.

But for the major ETF issuers, it does make some sense. The easy ETFs—the ones based on the S&P 500, for example—have been done. The low-hanging fruit is gone. But now, we may be on the cusp of a whole new area: fixed-income ETFs. This was the subject of an interesting report recently from research firm Aite Group.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access