The Most Overused Word in ETF Marketing
Innovation is the biggest cliche in ETF marketing.
This was reinforced for me yesterday after reading about the liquidation of 8 Global X ETFs. Having never checked out the Global X Web site, I went there and immediately encountered this:
We’ve been working with an emerging ETF provider on how to best position their product lineup, so I went back and reviewed notes on 6 other firms. Five of them prominently include innovation in their marketing messages:
- As an innovator in exchange-traded funds…
- …providing access to an innovative array of opportunities…
- …provides innovative ways to enhance return potential…
- …our track record of consistently creating innovative investment vehicles…
- [firm] is an innovator in its field…
The definition of a cliche is something that has lost originality and impact through overuse. I believe that innovation has reached the point of having almost zero resonance with prospects and clients. It is a concept that everyone uses and tries to own, and therefore it has no power. Even when it might be factually true.
Now don’t get me started on solutions…