Half of all actively managed ETFs are on a popular industry watch list of funds that have low trading volume and assets under management, which could make them more likely to close.
Ron Rowland at Invest With an Edge says his “ETF Deathwatch” list has risen 131% the past year. He said 10 new exchange traded products were launched the past month, while 24 joined the list.
“For the past year or more the list has been accelerating more rapidly,” Rowland said in a CNBC report Wednesday from Herb Greenberg.
“I started this because with all the new ETFs coming to market, I was having trouble keeping up with all of them,” Rowland said in the article. “There were too many coming to market too fast. Not all of them would survive.”
There are 1,486 listed ETFs, while 229 have been delisted in the history of the business, according to the story.
In the latest month, 23 products joined Rowland’s ETF Deathwatch list, taking the overall count to 377 – 273 ETFs and 104 exchange traded notes, or ETNs.
Many of the funds on the list are actively managed rather than index-tracking.