Record ETF Closures, Healthy Launch Levels

With 2017 drawing to a close, it makes sense to take a tally of the ETFs that have made it to market this year.

With today’s launches, the total for 2017 will be 275, which is an impressive number, but nothing earth-shattering. It’s more than last year’s 247 launches and less than the 284 ETFs that rolled out in 2015. But none of that topped the more than 300 ETFs that launched in 2011, still the record year.

The largest fund that made its debut this year is the iShares Core MSCI International Developed Markets ETF (IDEV), which launched in March and currently has $923 million in assets under management. That’s not surprising, as investors were turning to international equities, as those markets were outperforming U.S. equities.

However, it’s closures that is the more interesting story, with the number hitting yet another record on the heels of last year’s 128 closures. This year, 136 funds have shut down or delisted, which ultimately is a sign of health in a corner of the investment industry that is still rapidly expanding in terms of products and assets under management.

Interestingly, at least 20 of the funds that shut down this year were currency-hedged vehicles. And the final two closures of the year, the Guggenheim BulletShares 2017 Corporate Bond ETF (BSCH) and theGuggenheim BulletShares 2017 High Yield Corporate Bone ETF (BSJH), occurred today and were essentially scheduled from the time the funds were launched. 

Contact Heather Bell at [email protected]