Buyers of exchange‑traded funds are in a speculative mood, and so are issuers. The category is booming worldwide, especially in the U.S., where 728 funds were launched in the first half of 2026, according to CFRA Research. Those numbers are on track to eclipse 2025’s full‑year record.

A mix of tax breaks, tech advances, tighter regulation and investors chasing the next big thing fuels the flurry. However, many new offerings are thin on fundamentals, created more for appearance than for substance. Investors often skip the math, while fund houses know most launches cost more than they will ever earn.

Some sponsors register dozens—or even hundreds—of ETFs with minimal assets, exploiting the low cost of listing. The result is a crowded marketplace where “fishy” products proliferate, and only a fraction truly delivers value.

Despite the hype, the ETF boom reflects broader market dynamics and regulatory shifts that continue to shape the asset‑management landscape.