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Advisors are faced with a large universe of ETFs that slice and dice the markets in what are often unusual ways. That universe shows no signs of contracting as more than 1,300 ETFs are currently in registration.
However, not all of them will come public in 2016; in fact many will never see the light of day.
Among the potential ETF products being considered for market are dozens that are dividend oriented. Several, including offerings from Columbia Management (Columbia Dividend Income) and Eaton Vance (Eaton Vance Global Dividend Income ETMF), will feature active management. As with traditional mutual funds, advisors will have to decide if managers can add value, or simply add cost.
Even when an ETF is based on an index, that's no guarantee that you will know all the rules for a stock's inclusion.
For example, ETF Series Solutions plans to launch the Zacks Sustainable Dividend ETF, which starts with a list of the 1,500 largest U.S. dividend payers. As the prospectus...