Sure, there are a lot of specialized ETFs. Thousands at this point. But consider just SPY, IVV, and VOO. Essentially identical underlying, very similar fees, correlated at basically 1.0. When each is introduced, why doesn’t that take away from the net fund flow (ie demand) of the others? Instead, you can see the opposite. As each highly correlated ETF is introduced, the overall volume among them increases. They act as complements, not substitutes, but are identical assets in almost every way. I’ve gotta be missing something basic. Help me out?
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