New ETF Boom Defies Saturation Warnings in $7 Trillion Industry

Money-management firms launched new exchange-traded funds at a rapid pace last month, shaking off fears that the $7 trillion industry is already overrun with low-cost investment vehicles.

Sixty-nine new ETFs came to market last month, one of the busiest since at least 2016, data compiled by Bloomberg show. It was also the only month since September 2021 when there were more than 50 launches.

A number of the new ones centered on the fixed-income market, though the list also includes international and commodities-focused funds. Matthews and Capital Group each rolled out five ETFs, while Brookstone Capital Management added eight to its lineup.

“It’s just exhibiting the affinity investors have for ETFs and issuers coming to address those needs — from all across the capital markets spectrum too,” Todd Sohn, ETF and technical strategist at Strategas Securities, said of the raft of launches.

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