How Exchange-Traded Funds Continue to Amaze The Investing Public

摘要

Just when investors had gotten used to exchange-traded funds (ETFs) carving up every conceivable corner of the equity and fixed-income markets, these infinitely adaptable products muscled their way into a new asset class, refined some existing sectors, and gave investors more choices than ever before. ETF investors may, over the next 12 months, see what amounts to a second wave of innovative investment opportunities. Initiatives launched in 2004 — some more immediately successful than others — are beginning to propel the industry in new directions. U.S. investors got their first commodity-based ETF late last year when street-Tracks launched the first domestic ETF composed of physical gold (NYSE:GLD). It has already attracted more than $2 billion in assets, making this product one of the most successful ETF launches ever. Followed quickly in January 2005 by the Comex Gold Trust (AMEX: IAU), that product had, despite iShares' strong position in the ETF market, less than $15 million in assets in mid-February.