ETF Closures Outstrip Launches

April 20, 2020

Closures were off to a strong start in 2020 after Invesco shut down more than 40 ETFs, but things got really crazy in March when global markets collapsed. We currently stand at nearly 100 ETF closures before we are even halfway through 2020.

Launches, in contrast, are closing in on 60. Such a situation, with launches trailing far behind closures, is unprecedented.

What is remarkable about the list of closures is the fact that 32 of the ETFs that closed this year are leveraged and inverse funds, and all of those shuttered in March, when wild market swings were magnified by the 3x and 2x exposures.

Fully half of the affected products are ETNs, and a quarter are directly related to the energy industry, which has been particularly hard hit.

Another good chunk of the completed closures (23) year to date were ETFs targeting international equities.

Among the launches, the majority (33) target U.S. equities, while 31, or more than half, are actively managed. Only one of those nearly 60 ETFs offers geared exposure.

It is clear there is a shift taking place in the ETF space, though how severe and enduring it is remains to be seen. 

More Closures Ahead

However, the closure storm doesn’t look like it’s letting up anytime soon. Other shutdowns have been announced that will complete later in the year, including 10 WisdomTree ETFs, some of which have fairly significant assets.

The funds are set to close on May 27 and are as follows:

JNMF has roughly $1 million in assets under management, but AXJL has more than $22 million. That said, JNMF launched two years ago, while AXJL rolled out more than a decade ago and has had plenty of time to gather assets.

It should be noted, however, that WisdomTree had more than $40 billion in assets under management at the start of the year. Currently, the firm has roughly $30 billion in AUM, meaning it lost a quarter of its assets. That’s the steepest asset decline among the top 10 issuers.

Contact Heather Bell at [email protected]

2020 ETF Closures

Close Date Fund Ticker
4/9/2020 Forensic Accounting LongShort ETF FLAG
4/9/2020 AdvisorShares Cornerstone Small Cap ETF SCAP
4/8/2020 VelocityShares 1X Long VSTOXX Futures ETN EVIX
4/8/2020 VelocityShares 1X Daily Inverse VSTOXX Futures ETN EXIV
4/8/2020 UBS ETRACS - ProShares Daily 3x Long Crude ETN WTIU
4/1/2020 ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index ETN BDCL
4/1/2020 ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index ETN Series B LBDC
3/31/2020 ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN DVYL
3/30/2020 iShares iBonds Mar 2020 Corporate ETF IBDC
3/27/2020 ProShares UltraPro Financial Select Sector FINU
3/27/2020 ProShares UltraPro Short Financial Select Sector FINZ
3/27/2020 Direxion Daily Total Bond Market Bear 1X Shares SAGG
3/27/2020 Direxion Daily MSCI Developed Markets Bear 3x Shares DPK
3/27/2020 Direxion Daily Russia Bear 3x Shares RUSS
3/27/2020 Direxion Daily Mid Cap Bear 3X Shares MIDZ
3/27/2020 ProShares UltraPro Nasdaq Biotechnology UBIO
3/27/2020 ProShares UltraPro Short Nasdaq Biotechnology ZBIO
3/27/2020 Direxion Daily Natural Gas Related Bear 3X Shares GASX
3/27/2020 Direxion Daily Natural Gas Related Bull 3X Shares GASL
3/27/2020 Direxion Daily Regional Banks Bear 3X Shares WDRW
3/27/2020 Reality Shares DIVCON Dividend Guard ETF GARD
3/27/2020 Direxion Daily MSCI European Financials Bull 2X Shares EUFL
3/27/2020 ProShares UltraPro 3x Short Crude Oil ETF OILD
3/27/2020 ProShares UltraPro 3x Crude Oil ETF OILU
3/27/2020 ProShares UltraPro Short Communication Services Select Sector ETF SCOM
3/27/2020 ProShares UltraPro Communication Services Select Sector ETF UCOM
3/26/2020 ETRACS Monthly Pay 2xLeveraged MSCI US REIT INDEX ETN LRET
3/26/2020 ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN CEFL
3/26/2020 ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN Series B CEFZ
3/25/2020 ETRACS Monthly Pay 2xLeveraged Diversified High Income ETN DVHL
3/25/2020 UBS ETRACS - ProShares Daily 3x Inverse Crude ETN WTID
3/24/2020 ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN MORL
3/24/2020 ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN LMLP
3/24/2020 ETRACS Monthly Pay 2xLeveraged U.S. High Dividend Low Volatility ETN HDLV
3/24/2020 ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN Series B  MRRL
3/23/2020 ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B MLPZ
3/20/2020 ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN HOML
3/20/2020 Columbia Sustainable Global Equity Income ETF ESGW
3/18/2020 ETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B MLPQ
3/18/2020 Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN AMJL
3/16/2020 Franklin Liberty International Opportunities ETF FLIO
3/12/2020 ETRACS Monthly Pay 2xLeveraged U.S. Small Cap High Dividend ETN SMHD
3/12/2020 The Organics ETF ORG
3/12/2020 The Obesity ETF SLIM
3/6/2020 iPath US Treasury Long Bond Bear ETN DLBS
2/14/2020 Invesco Shipping ETF SEA
2/14/2020 Invesco China Real Estate ETF TAO
2/14/2020 Invesco China Small Cap ETF HAO
2/14/2020 Invesco Frontier Markets ETF FRN
2/14/2020 Invesco CurrencyShares Chinese Renminbi Trust FXCH
2/14/2020 Invesco Insider Sentiment ETF NFO
2/14/2020 Invesco S&P Global Dividend Opportunities Index ETF LVL
2/14/2020 Invesco Dynamic Retail ETF PMR
2/14/2020 Invesco S&P Financials Revenue ETF RWW
2/14/2020 Invesco BRIC ETF EEB
2/14/2020 Invesco DWA NASDAQ Momentum ETF DWAQ
2/14/2020 Invesco LadderRite 0-5 Year Corporate Bond ETF LDRI
2/14/2020 Invesco MSCI Emerging Markets Equal Country Weight ETF EWEM
2/14/2020 Invesco S&P High Income Infrastructure ETF GHII
2/14/2020 Invesco CurrencyShares Singapore Dollar Trust FXSG
2/14/2020 Invesco CurrencyShares Swedish Krona Trust FXS
2/14/2020 Invesco DWA Tactical Sector Rotation ETF DWTR
2/14/2020 Invesco DWA Tactical Multi-Asset Income ETF DWIN
2/14/2020 Invesco ESG Revenue ETF ESGL
2/14/2020 Invesco Global ESG Revenue ETF ESGF
2/14/2020 Aberdeen Standard Bloomberg WTI Crude Oil Strategy K-1 Free ETF AOIL
2/14/2020 Invesco Emerging Markets Revenue ETF REEM
2/14/2020 Invesco International Revenue ETF REFA
2/14/2020 Invesco Global Revenue ETF RGLB
2/14/2020 Invesco Russell 1000 Low Volatility Factor ETF OVOL
2/14/2020 Invesco Russell 1000 Momentum Factor ETF OMOM
2/14/2020 Invesco Russell 1000 Quality Factor ETF OQAL
2/14/2020 Invesco Russell 1000 Size Factor ETF OSIZ
2/14/2020 Invesco Russell 1000 Value Factor ETF OVLU
2/14/2020 Invesco Russell 1000 Yield Factor ETF OYLD
2/14/2020 Invesco Multi-Factor Core Fixed Income ETF IMFC
2/14/2020 Invesco Multi-Factor Core Plus Fixed Income ETF IMFP
2/14/2020 Invesco Emerging Markets Debt Defensive ETF IEMD
2/14/2020 Invesco Corporate Income Defensive ETF IHYD
2/14/2020 Invesco Corporate Income Value ETF IHYV
2/14/2020 Invesco Emerging Markets Debt Value ETF IEMV
2/14/2020 Invesco Emerging Markets Ultra Dividend Revenue ETF REDV
2/14/2020 Invesco International Ultra Dividend Revenue ETF RIDV
2/14/2020 Invesco Multi-Factor Defensive Core Fixed Income ETF IMFD
2/14/2020 Invesco Multi-Factor Income ETF IMFI
2/13/2020 Invesco BLDRS Asia 50 ADR Index Fund ADRA
2/13/2020 Invesco BLDRS Developed Markets 100 ADR Index Fund ADRD
2/13/2020 Invesco BLDRS Europe Select ADR Index Fund ADRU
2/4/2020 IQ Enhanced Core Bond U.S. ETF AGGE
1/30/2020 Pickens Morningstar Renewable Energy Response ETF RENW
1/24/2020 Virtus Glovista Emerging Markets ETF EMEM
1/17/2020 WisdomTree Dynamic Bearish U.S. Equity Fund DYB
1/17/2020 WisdomTree Balanced Income Fund WBAL
1/17/2020 WisdomTree CBOE Russell 2000 PutWrite Strategy Fund RPUT
1/14/2020 J.P. Morgan Cushing 30 MLP Index ETN PPLN
1/6/2020 CSOP MSCI China A International Hedged ETF CNHX

 

 

 

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