Most importantly for us to consider an ETF to be a Niche ETF it needs to meet at least 4 of the 5 Niche ETFs Fundamental Factors.
For our purposes, we do NOT considered these types of exchange traded products to be a Niche ETF:
- Inverse/leveraged/hedge funds = ALTERNATIVE
- Bond funds = FIXED INCOME
- Sector only funds = THEMATIC
- Market-cap weighted funds = THEMATIC
- Commodities and REITS = SPECIALTY MARKETS
- Momentum-based funds = TECHNICAL
- Non-indexed Funds = ACTIVELY MANAGED
- Standard Indexes, Sectors, Weightings = BROAD BASED
These are the general guiding principles. There are exceptions. If an ETF is offering a truly innovative approach to an existing theme, we may consider it a Niche ETF and track it as long as it stays within our criteria.