The number of ETF strategies is exploding, making it harder to discern worthwhile options. ETFs amassed $540 billion in assets in the first half of the year alone, with a potential reach of 9,000 in the US by next year. President Dave Nadig warns of the challenge to find valuable ETFs amidst the crowded market.

Major trends for ETF investors in 2026 include the rise of cheap funds and higher-fee products benefiting first-movers. Nadig predicts the fee wars may have bottomed out. Despite active ETF hype, most inflows this year went to non-traditional funds like synthetic income and options-based products.

While cheap funds dominate, sophisticated strategies can still offer value. A smaller group of expensive funds like YieldMax ETFs from JPMorgan and Toroso Investments yield significant revenue. Issuers like First Trust and Innovator are profiting from buffered and derivatives-based products. Active management-like fees are charged for these newer products.

The Daily Upside highlights the evolving ETF landscape and how issuers are attracting significant revenue. Nadig notes that expensive funds offer substantial profit potential, but cheaper options are still prevalent. JPMorgan and Toroso Investments dominate the synthetic income sector, showcasing the appeal of high-fee products.

Read more at Yahoo Finance: How ETF Issuers Are Attracting ‘Kid-in-a-Candy-Store Money’