New ETFs Are Launching Fast. Proceed With Caution

New exchange-traded funds are sprouting up quickly. In 2025, more than 1,000 ETFs launched. The crop included promising funds as well as those taking on unnecessary risks. The field could expand soon to include hundreds of riskier ETFs. As investment choices evolve, how can everyday investors spot what’s a good fit for their portfolio? Dan Sotiroff is the associate director of US passive strategies research for Morningstar.

New ETFs with Sensible Investment Approaches Are Becoming Harder to Find

On this episode:

00:00:00 Welcome

00:01:11 How ETFs have evolved since the 1990s

00:02:38 New ETF trends and how providers compete

00:07:34 Risks and costs behind leveraged and inverse ETFs

00:11:04 Promising new ETFs worth a look

00:12:21 What to watch out for

00:13:13 Key takeaways for evaluating new ETFs

Watch more from Morningstar:

Why Playing It Safe in Retirement Can Backfire

Why Do Active Funds Lag Even With Winning Picks?

Target-Date Funds With Annuities Are Gaining Ground. Is That Good for Your Retirement Plan?

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