• December 27, 2010

There is a growth opportunity for investment companies that sell exchange traded funds (ETFs) for one simple reason -- most potential retail investors have never heard of them.

The latest research from Mintel Comperemedia reveals that more than six in 10 investors say they don't invest in ETFs simply because they "don't know what they are," and that number was the same for the higher income households that are most likely to be investors.

Even investors who currently own ETFs don't feel entirely comfortable with their level of knowledge about the products. Mintel's data shows that only about half (54%) of ETF owners feel they are "very knowledgeable" when it comes to ETF investing.

It seems owners of both mutual funds and individual stocks are even more confused, with only 17% of existing investors in each of these categories reporting they feel comfortable with investing in ETF products.--Tanya Irwin