Everyone is talking about solar. Whether you believe that solar energy will somehow displace an oil-driven economy or not (I don't), some of these stocks like First Solar (NASDAQ: FSLR) and JA Solar (NASDAQ: JASO) have seen big gains over the past few years.

The success of solar companies has not been lost on ETF firms with their constant new products hitting the market. A smaller ETF firm called Claymore Securities looks to be first to the market with a solar ETF, the Claymore/MAC Global Solar Energy Index ETF, with an aptly-named ticker, (NYSE: TAN).

Here's Claymore's website for the recently launched ETF. From the firm's website, the index defines a company engaged in solar energy as falling into two main categories:

1. Solar photovoltaic power, which involves the conversion of sunlight into electricity through the photovoltaic process; and

2. Thermal solar power, which involves using energy from the sun to heat fluids for purposes of water or space heating or to produce electricity.

With the explosion in the exchange traded fund market, it was inevitable that we would get news that some ETFs were closing down. Following a recommendation and approval from their board of directors, Claymore filed with the SEC on Friday to close 11 of their 37 ETFs. See Zac Bissonnette's analysis of why he thinks total market index funds are the way to go.

There are two main questions skeptics have with all the ETFs on the market.

• How many U.S. large cap ETFs can there be?
• How many investors are interested in some of the minutiae ETFs that exist.

For example one of the funds that Claymore is closing is the Claymore/Clear Global Vaccine Index (AMEX: JNR). How many investors feel it necessary to have as part of their asset allocation, exposure to a global vaccine index? Have we heard investors pounding down the door asking for such an index?

I am a big believer in ETFs, and I think they will continue to grow and provide investors with a low-cost way to invest, and in many cases a more profitable way to invest as well. But as frequently happens, things go a bit too far. Look for Claymore's announcement to be the first of many as we get a bout of consolidation and closings in the ETF industry.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no positions in any stock mentioned as of 2/3/08

Claymore Securities Inc. has announced plans to shut down 11 of its 37 exchange-traded funds. According to the Wall Street Journal (subscription required), "The board of directors for the Claymore funds voted on the move this week following a recommendation from the firm's ETF business group amid lagging investor interest for the products."

According to Claymore's press release, the funds being closed include Claymore/BIR Leaders 50 ETF, Claymore/BIR Leaders Mid-Cap Value ETF, Claymore/BIR Leaders Small-Cap Core ETF, Claymore/Robeco Boston Partners Large-Cap Value ETF, Claymore/LGA Green ETF, Claymore/KLD Sudan Free Large-Cap Core ETF, Claymore/Clear Mid-Cap Growth Index ETF, Claymore/Zacks Growth & Income Index ETF, Claymore/IndexIQ Small-Cap Value ETF, Claymore/Robeco Developed World Equity ETF and the Claymore/Clear Global Vaccine Index ETF.

This may be an early sign of a coming shakeout in the fast-growing ETF industry. A lot of ETFs that have been created don't serve any real purpose and their small-size can make the expense ratios hefty -- the single most important factor to look at when considering any fund.

There's a huge selection of ETFs to choose from but, for most investors, total market index funds are the cheapest, least complicated option -- and that makes them the best choice.