The ETF industry is facing a redundancy problem with too many similar options, leading to a lack of differentiation and potential correlation issues among funds. While the abundance of products offers choice, it may blur lines for investors seeking distinct opportunities in a market where many ETFs act alike.

One example is the Global X AI Semiconductor & Quantum ETF (CHPX), which launched recently and has attracted over $9 million in assets. The fund focuses on leading companies in the semiconductor and AI space, such as Broadcom, Nvidia, and Intel, with a weighting scheme based on Free Float Market Capitalization.

Despite the success of certain ETFs, the challenge lies in offering unique value propositions to stand out in a crowded market. As investors seek differentiation and innovation, the industry faces the task of providing more diverse options beyond the current homogeneity.

Read more at Yahoo Finance: Which AI ETF Should You Buy? Perhaps None of Them.