ETF Closures Claim 40 Funds During First Quarter
Leveraged products and thematic funds were most vulnerable, as Tradr, Global X and Amplify closed multiple offerings.
The first quarter of 2025 saw 40 exchange-traded funds shut down across various sectors, according to data from etf.com's ETF Closures Tool.
Performance varied widely among the closed funds, with many ETFs delivering positive returns before their final trading days. The Tradr 2X Long Triple Q Weekly ETF (QQQW) stood out with an 8.9% year-to-date gain prior to its Feb. 21 closure, according to etf.com data.
The steady stream of ETF closures reflects the competitive landscape in the ETF industry, where providers must constantly innovate or risk losing market share to larger, more established products with lower fees and better liquidity.
The closures came across various fund categories and strategies.
The ETF Closures Tool allows users to search recent ETF closures either by year or by entering a custom date range. It's the quick and easy way to keep tabs on what's working and what's not in the ETF industry. You can also export the results to continue your ETF research on your own. Give it a try today by clicking right here.
Crypto Funds Among Worst Performers
ARK's cryptocurrency strategy ETFs joined the liquidation list just days before quarter-end, showing steep losses before closing. The ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) fell 20.6% year-to-date before its March 27 liquidation, while the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) dropped 11.6%, according to etf.com data.
Despite strong returns, many liquidated funds couldn't attract sufficient assets under management to remain viable. The Tradr 2X Long SPY Monthly ETF (SPYM) delivered a 7.1% year-to-date return before its liquidation.
The leveraged ETF category also saw high closure rates, with multiple Tradr funds shuttering on Feb. 21 despite several showing positive year-to-date performance.
JPMorgan's Sustainable Infrastructure ETF (BLLD) posted nearly 5% returns before its March 21 liquidation.
Thematic ETFs also faced challenges, with the Amplify Thematic All-Stars ETF (MVPS) and the Amplify U.S. Alternative Harvest ETF (MJUS) among those liquidated.
Many niche products failed to gain traction, including several ESG-focused offerings like the Global X Nasdaq 100 ESG Covered Call ETF (QYLE) and the Global X S&P 500 ESG Covered Call ETF (XYLE).
The largest negative performer among liquidated funds was ARKY's 20.6% decline, followed by the Tradr 1.5X Long TSLA Weekly ETF (TSLW) which suffered an 18.9% loss before closure, highlighting the risks associated with both cryptocurrency and leveraged strategies in volatile markets.
If you're ready to dive into the data for yourself, give the ETF Closures Tool a try today.
