The exchange-traded fund (ETF) market is witnessing a shift as a new generation of ETFs emerges. These new ETFs, sometimes described as 'financial turduckens,' are being created more out of possibility than necessity, according to analysts. While traditional ETFs are known for their low costs and ease of trading, the new entrants are becoming pricier. The average fee for new ETFs in 2024 has risen to 61 basis points, compared to the average asset-weighted ETF fee of 17 basis points. This trend is attributed to the increasing popularity of ultra-low cost passive ETFs, which has paradoxically led to more expensive new products. The rise of active ETFs is also highlighting the potential for dwindling fees in the market.