From Blockbuster ETF Launches To Closures

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Cinthia Murphy, Managing Editor, ETF.com

It’s not every day we see a blockbuster ETF launch. Last week, we not only saw a brand-new fund become an $850 million ETF overnight, we also saw that feat take place in an ETF segment that isn’t known for blockbusters: ESG ETFs.

Broadly defined as ETFs that take into account environmental, social and governance aspects of a company, ESG ETFs remain a small segment of the ETF market, representing only about 0.2% of all ETF assets. It’s a slice of the market that’s growing, but not by leaps and bounds.

Last week, DWS Group rolled out its latest socially responsible ETF, the Xtrackers MSCI USA ESG Leaders Equity ETF (USSG), in a launch that was immediately followed by inflows of some $850 million. The massive creation made USSG the biggest ETF launch in 15 years.

USSG is one of four funds in DWS’ ESG ETF lineup, but it’s the most successful of them in terms of assets thus far. They include the Xtrackers MSCI ACWI ex U.S.A. ESG Leaders Equity ETF (ACSG), the Xtrackers MSCI EAFE ESG Leaders Equity ETF (EASG) and the Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (EMSG).

Closures Picking Up Pace

The flip side of a successful ETF launch is the decision to shutter a fund. So far, 2019 has been a strong year for ETF closures.

March has already seen nine ETFs shut down, and there are plenty more in the books from various issuers, including J.P. Morgan and VanEck.

By mid-April, given the current closure schedule, 39 ETFs will have been taken off the shelves in 2019.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , ETFs , ETPs
Referenced Symbols: USSG

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