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ETF demand is soaring — but investors are making these big mistakes, financial experts say

1. ETFs attracted $540 billion in H1 2025, exceeding last year's inflows. 2. 464 new ETFs were launched, potentially surpassing the 2024 record. 3. Investors must understand underlying assets to avoid risky ETF choices. 4. Frequent trading of ETFs may erode long-term returns significantly. 5. Past performance should not dictate future ETF decisions.

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FAQ

Why Bullish?

The significant inflow into ETFs reflects growing investor confidence, which can positively influence S&P 500.

How important is it?

Strong demand for ETFs leads to increased investment in index funds like the S&P 500.

Why Short Term?

The surge in ETF popularity and inflows suggest immediate market sentiment, which can quickly affect S&P 500.

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