’Absolute Tsunami’ of 7,000 ETFs Expected to Flood Market Within Weeks

The SEC is poised to approve a rule change that will unleash a wave of new ETF products, with experts predicting up to 7,000 new funds entering the market. This includes 3,000 ETF conversions of existing mutual funds from 53 asset managers, creating what industry specialists describe as an "enormous burden" for investors to evaluate.

While most new ETFs will focus on traditional strategies like large-cap growth funds, the sheer volume represents a transformational shift in asset management. "This is an absolute tsunami of product," said ETF specialist Nadig during a recent podcast appearance, noting 400 new ETFs have already launched this year—ranging from single-stock funds to innovative income-generating structures.

The ETF boom builds on strong fundamentals: daily liquidity, tax efficiency, and relatively low costs continue attracting record inflows. Vanguard’s S&P 500 ETF (VOO) is on track to surpass its own annual inflow record set just last year, with over $400 billion pouring into ETF products year-to-date.