ETFs, driven by efficient markets theory, paradoxically create a major market anomaly by artificially inflating indices without regard for fundamentals. This situation creates an imbalance where some stocks are kept on artificial life support while promising small-caps are neglected by the market.

ETFs offer a convenient solution to diversify your portfolio with low costs, particularly suitable for gold and bonds, but their growing popularity raises questions about their impact on the market. While the majority of investors focus on major indices, this trend could disadvantage small and mid-caps, calling into question the future effectiveness of this investment strategy.