ETFs Are Like Politics. The Radical Gets Normalized.

As a new political era dawns, the phrase “this is not normal” has become a popular rallying cry. Critics everywhere warn against the “normalization” of radical ideologies or the disruptive behavior of the new U.S. president.

But talking about what’s “normal” in politics is always fraught with bias and subjectivity. So let’s tackle the concept by talking about something totally different: exchange-traded funds, or ETFs. Many readers probably know that ETFs are funds made up of underlying securities or commodities that trade on an exchange all day long, just like a stock. In addition to the ease of buying and selling, they typically carry lower fees than mutual funds. They also happen to be one of the most disruptive technologies in the world. There's been a huge move among investors from typical, actively managed funds into ETFs, a trend that fills a good chunk of the financial industry with dread.