The news of BlackRock shutting down one of  its exchange traded funds is just a normal part of a maturing and consolidating ETF business. But it does bring into focus what happens for investors when a provider shuts down a fund.

BlackRock iShares is the largest ETF provider by assets under management. There are currently 290 ETFs in the line-up and soon it will consist of 289, as the provider is shutting down their first ETF since 2002, reports Aaron Levitt for Investorplace.

The iShares Diversified Alternatives Trust (NYSEArca: ALT) is an active ETF that held managed futures, and it simply was not attracting enough investor interest. [iShares Plans First ETF Closure Since 2002]

The ETF industry has been undergoing an evolution of sorts, as the weak or niche ETFs, those that have failed to attract enough assets under management, are closing down. In 2012, 94 ETFs closed up shop, the most ever recorded. In the long run, ETF closures are natural and helpful to investors, as underperforming funds get picked up and successful strategies survive. [Which ETFs Are More at Risk for Closures?]