As of Aug. 5, 2016 has seen 41 ETFs shut down. However, with announcements of closures made over the last few weeks, that number rises to more than 70 funds that will have shut down by the end of August.
That means 2016 is shaping up to be a perfectly run-of-the-mill year when it comes to fund shutdowns. In 2015, roughly 100 ETFs were closed, versus about 90 in 2014. Barring a massive wave of closures in the final months of the year, 2016 should fall right around that range.
Of the funds that have shut down so far this year, seven fall into the alternatives category and represented volatility or hedge fund strategies. That’s probably the largest group in terms of 2016 closures, but one of the smallest asset classes in terms of the overall ETF universe. Alternative ETFs only make up about 3% of the total ETFs currently trading, but they represent 17% of 2016 year-to-date closures.
Of course, with the announcement of 30 closures from State Street Global Advisors, ProShares and UBS—among other pending closures—those dynamics will change a bit. The SSgA closures cover mostly fixed-income and international equities, while the ProShares announcement covered a selection of leveraged and inverse funds. The UBS closures mainly focus on its Etracs ETN family and cover a handful of different strategies and asset classes.
According to ETF.com data, another 508 ETFs have a high risk of closing. The largest of those funds is the $30 million IQ Leaders GTAA Tracker ETF (QGTA).
Contact Heather Bell at [email protected].