In the wake of Claymore’s closing of 11 exchange traded funds (ETFs), many industry experts believe that’s not the last of it.

Morningstar believes that up to 23 funds could be shut down, reports  David Hoffman for InvestmentNews. Is this a warning sign?

Sonya Morris of Morningstar calls this a "shake-out" within the ETF industry. Because of the high volume of ETFs created and launched last year, and the fact that some are tied to the same indexes and niches, liquidations are bound to happen.

A good rule is if there is an ETF that has been out for a year or more and has less than $10 million in assets, it goes on the watch list, according to Matthew Hougan. Eleanor Laise for the Wall Street Journal says that this is a good lesson for investors to keep an eye on the staying power of certain ETFs.

Liquidations have a negative tax impact so this may give investors a cold shoulder toward ETFs, however, these types of closings are not unheard of. They happen in the mutual fund industry as well, and it is just part of the process.

If an ETF liquidation occurs, investors shouldn’t worry too much. How much pain is there really?  Especially if most of the assets are seed money from specialist firms.