Picking from the multitude of sector ETFs is a daunting task. In any given sector there may be as many as 50 different ETFs. There are at least 177 ETFs across all sectors.
Why are there so many ETFs? The answer is: because ETF providers are making lots of money selling them. The number of ETFs has little to do with serving investors’ best interests. Below are three red flags investors can use to avoid the worst ETFs: