Exchange-traded fund (ETF) closures have surged by 52% this year, with 243 ETFs shutting down compared to 159 in 2022. This comes as investors lose interest in thematic ETFs, including meme-focused funds, which have failed to attract significant inflows. While a record number of ETFs have launched this year, ETF issuers are discovering that not every fund idea gains traction with investors. Thematic ETFs, in particular, face challenges as they often rely on trendy fads that lose popularity over time.
Exchange-traded fund (ETF) closures have surged by 52% this year
ETF Newz Says:
Retail trading dynamics have also shifted as more regular work schedules have resumed. Additionally, investors in thematic ETFs often struggle to time their investments well, leading to subpar returns.