In any industry, there are going to be success stories and not-so-success stories. Recent closures in the exchange traded fund (ETF) industry highlight the challenges that small providers, in particular, face.
While the ETF industry is growing in general, it’s not growth across the board.
Ari I. Weinberg for The Wall Street Journal reports that there’s a trend at work that’s offsetting some of that growth. Smaller entrants into the ETF space are finding it tough to lure investor money, leading them to close up shop. [ETF Closures Are Not Affecting Industry Growth.]
Year-to-date, 129 new ETFs have launched. Some of them already have more than $100 million in assets. Over the same period, though, 37 funds have shuttered. [5 Things That Make An ETF Right For You.]