In any industry, there are going to be success stories and
not-so-success stories. Recent closures in the exchange traded fund
) industry highlight the challenges that small providers, in
While the ETF industry is growing in general, it's not growth
across the board.
Ari I. Weinberg for
The Wall Street Journal
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.
In 2008 and 2009, sponsors closed 50 and 51 ETFs,
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
Tisha Guerrero contributed to this article.