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:

  1. Inverse/leveraged/hedge funds = ALTERNATIVE
  2. Bond funds = FIXED INCOME
  3. Sector only funds = THEMATIC
  4. Market-cap weighted funds = THEMATIC
  5. Commodities and REITS = SPECIALTY MARKETS
  6. Momentum-based funds = TECHNICAL
  7. Non-indexed Funds = ACTIVELY MANAGED
  8. 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.