Exchange-Traded Funds For Dummies, 3rd Edition

Chapter 28

Ten Forecasts about the Future of ETFs and Personal Investing

IN THIS CHAPTER

Expecting slower growth of the ETF market

Anticipating more ETF products

Considering the economy

I try not to watch any of the investment shows on television. Stock “Expert” Number One gives their prediction of the future. Then “Expert” Number Two gives their (often contradictory) opinion. Viewers may be amused by the heated debate but never know what to do in the end.

I also usually try not to make predictions about the future, but I’ll ask you to please indulge me now. I can’t resist. It just seems like sooo much fun!

Here are my predictions, for whatever they are worth, about the world of ETFs.

ETF Assets Will Continue to Grow…for Better or Worse

Most people should be investing most of their money in index mutual funds or ETFs, and that has been happening. The initial popularity of ETFs was due largely to the interest of educated institutional investors and savvy individual investors, like you, who loved ETFs for their low-cost indexing and diversification power.

In the past few years, educated and savvy investors have continued to invest in ETFs, but there has also been a huge inflow ...