As a category of options for individual investors, ETFs have become increasingly popular since the dawning of the new millennium.
An ETF, or Exchange Traded Fund, offers opportunity to be exposed to a vast array of segments of the marketplace, including uncommon and emerging. Part of their flashy appeal comes from availability at relatively minimal cost, i.e. management fees.
There is greater transparency than with traditional mutual funds, concerning both fees and underlying holdings. As much of financial reporting emphasizes, lower costs to the investor (other things being ‘equal’) translates to a higher compounded return over time for a given investment profile.
As with other categories of investments, such holdings are eligible for tax-preferred treatment, such as in TFSAs (Tax Free Savings Accounts) and RRSPs (Registered Retirement Savings Plans) in Canada.
While numerous ETFs provide index-type returns for common asset types, such as stocks, bonds, and balanced portfolios, with the ever-expanding spectrum of niche markets has come an expanding horizon of specialty ETFs.
For example, one Canadian provider offers ETFs focused on companies fitting themes of innovation, cyber-security, and even gender diversity.
You would think that, with such cutting age savvy, ETF marketers would be leaving few marketing stones unturned.
But, in a world of ever widening market niches, what about the following potential openings for ETFs…
- Recycling of non-recyclable materials
- Superhero endowment control centres
- Abandoned facilities restoration guilds
- Emotional baggage storage facilities and rental agencies
- Devices for the head providing both virtual reality and gravitational resistance
- Mirror image replacement technology
- Unclaimed mint quality memorabilia, produced for championship runner-up teams
- Static and outdated bricks and mortar locations
- Advocacy groups for entrepreneurial pitches
- Agencies specializing in esoteric collections
- Climate resistance qualified, road structure contractors
Perhaps ETFs should also be an acronym for Everything That Fits (somewhere).