ETFs Killed Off by Merciless Market at Double the Rate of Last Year
The pace of failures has more than doubled in the $7 trillion exchange-traded fund industry so far this year, as volatile markets and fierce competition put pressure on issuers.
Year to date, 62 exchange-traded funds have been liquidated or delisted, according to data compiled by Bloomberg. That’s more than double the number seen in that same span last year, when just 26 had closed by mid-April. And even more funds are on the chopping block. Last year’s blistering number of fund launches, made the industry ripe for consolidation.
“A number of the shuttered ETFs launched toward the tail end of the post-pandemic market boom and were essentially casualties of bad timing,” said Nate Geraci, president of The ETF Store, an advisory firm. “The list of closures is like a time capsule from that frothy period.”
Crypto-focused funds — along with other once trendy thematic ETFs — were projected to be among the casualties as digital-asset prices come off a harrowing 2022.