Are new products damaging to the ETF market?

Helen Fowler examines whether the development of alternative products undermines the appeal of ETFs.

It is the hallmark of many businesses that as they mature, so-called ‘alternative’ ideas become absorbed into the mainstream. Whether the same will hold true of the ETF market, where innovative products are frequently appearing, remains to be seen. In the last year alternative funds have come to market. These range from active funds run by investment managers to products based on hedge funds, real estate and private equity. Inverse and leveraged products have also grown in popularity. BlackRock is among those managers seeking permission in the US to sell active ETFs. To put this in pe...