It's-a Me, Mario! And ETFs are About to Get a Whole Lotta Bigger!

Mamma Mia So Many ETFs!

It's a me Mario! And I hear the Mushroom Kingdom is about to be flooded... not with water but with ETFs! Apparently the SEC those guys who keep the coins safe are letting mutual funds make ETF versions of themselves. Dave Nadig a smart guy who knows his way around a Piranha Plant says we're going from about 4,000 ETFs to over 7,000 in a month! That's more than the Goombas I've stomped in my entire career! 'Here we go!' with all these new options.

The Gold Coins and the Goombas

This year alone 400 new ETFs have popped up like mushrooms after a good rain. Some are great some are... well like finding a Poison Mushroom. Nadig says we gotta do our homework. It's a true! We don't want to end up like Luigi lost in a haunted mansion. There are 53 mutual fund companies lining up ready to unleash their ETF armies. 'Okey Dokey!' but it sounds like even he thinks it might be too much to swallow.

Why Everyone Loves a the ETFs

Now why are these ETFs so popular? They're like the Super Star of the investment world! You can trade them every day they don't cost a too much and they're good with taxes. It's like getting a free 1 Up! This year over $400 billion has flowed into these things! 'Wahoo!' But remember even the most powerful Fire Flower can't protect you from everything.

Boring is Beautiful (Sometimes)

Nadig says a lot of these new ETFs will be pretty boring like watching paint dry in Peach's castle. But that's okay! They're like the steady reliable Toad of the investment world. They won't get you a fancy castle overnight but they'll help you get there eventually. He says 'Most of these products that are just share classes are gonna be pretty boring'. Always good to keep a clear head on your shoulders!

Beware the Bowser Bonds!

Here's where we gotta watch out for Bowser! Some of these new fangled ETFs are risky business like trying to jump over a bottomless pit. Take private credit ETFs for example. Nadig says one of them PRIV isn't doing so hot. It's like a Bob omb that fizzles out before it explodes. He even says some investors view it as 'just another expensive bond fond.' 'It's a me!' is not going to put my hard earned coins there that's for sure!

The End Game: Is This the Right Castle?

So what's the moral of the story? Do your homework! Make sure you know what you're getting into. And remember not everything should be an ETF. Sometimes it's better to stick with the classics like a good old fashioned Super Mario game. Nadig says it's 'really a mismatch problem with trying to take illiquid vehicles and put them in millisecond trading vehicles.' 'Thank you so much for playing my game!'