In 2008 and 2009, sponsors closed 50 and 51 ETFs, respectively.
These closures are not a statement about ETFs, rather they are an example of the challenges that face providers. As the industry grows, it’s becoming more competitive. While this has been great for investors, allowing them to get the best product at the best price, providers are under more pressure than ever to both launch unique ideas and wield their marketing heft. [Your ETF Is Closing. Now What?]
Newcomers that have made the biggest splash in this current climate are often established names, such as PIMCO, ETF Securities and Charles Schwab.
Tisha Guerrero contributed to this article.