Are ETFs the New CDOs?

Exchange-traded funds, publicly traded instruments usually linked to an equity index or commodity, have been one of the hottest financial fashions for years now. ETF volumes have soared by 40 percent annually over the past decade to reach some $1.2 trillion worldwide, eight times the growth rate of mutual funds. Commodity ETFs are a small part of this pie, about $150 billion, but one of the fastest growing as the dominant method for Main Street and Wall Street investors alike try to cash in on rising materials prices.