Core Viewpoint - The ETF market is experiencing redundancy and a lack of differentiation, leading to increased correlation among similar ETFs, which complicates investment decisions [1][3][4]. Group 1: Market Dynamics - There is an oversupply of ETFs, similar to the mutual fund industry 30 years ago, resulting in a situation where investors struggle to find distinct options [1][4]. - Many ETFs within the same category tend to move in sync due to high correlation, making it challenging for investors to identify which products may perform better [3][4]. Group 2: Investor Behavior - Investors often select ETFs based on their investment ideas, such as focusing on biotech stocks, but the abundance of similar ETFs complicates this process [2][3]. - The proliferation of ETFs may lead to a scenario where the distinction between effective and ineffective products becomes blurred, impacting investment strategies [4][5]. Group 3: Cost and Innovation - ETFs are generally less expensive to establish and manage, benefiting from industry innovation over the past decade, which may influence investor preferences [5].