There has been a global falloff in the ETF industry, with inflows down some 30% in the first half, according to recent data compiled by consulting firm ETFGI.
The U.S. is aligning with that trend, with first-half flows lagging last year’s record-breaking first half. Despite those inflows being the second highest on record for the first half after last year’s first six months, ETFGI data shows ETF assets decreased 14.3% during that time period compared to the end of 2021.
Further, the week ending Friday, July 22 was the first week of the year noteworthy for no new ETF launches in the U.S. market.
The year started off strong, with an average of 10 funds launching each week, up until the start of Russia’s invasion of Ukraine in February. But even the week after the invasion, one ETF launched, and the pace picked up somewhat by the following week, with eight new ETFs hitting the market.
Source: FactSet and ETF.com; data covers the first 28 weeks of 2022, as of July 22.
Since then, the average number of funds launched each week has been seven.
Prior to Russia’s invasion, no week had seen fewer than six ETF launches. And after the invasion, there have been six weeks with fewer than six launches.
Year to date, there have been 219 ETF launches. By July 22, 2021, there were 238, and June and July of that year were particularly prolific in terms of new ETFs.
Contact Heather Bell at [email protected]