ETFs Build on Record Year With 46 November Debuts

ETF issuers introduced 46 new funds in November, slightly below the monthly average of 60 launches for 2024, according to a new report from CFRA. Products ranged from first-of-their-kind laddered bond funds to star manager offerings.

The expansion in ETF offerings reflects unprecedented industry growth and demand for new investment strategies. With State Street projecting $1.2 trillion in inflows by year-end and launches already surpassing 2023’s all-time high of 543 listings, issuers are aggressively expanding their lineups to capture investor interest across multiple categories.

“Strong inflows will certainly spur the launch of additional ETFs, particularly as investors rotate out of mutual funds and into ETFs,” Aniket Ullal, head of ETF research and data at CFRA, told etf.com.

With nearly 660 U.S. ETF launches already this year, “we see the evolution of ETFs towards more 'solution-oriented' products,” Ullal said. “These solutions could take the form of 'fund of funds' which combine existing ETFs,” he noted, saying that many products also aim to provide investors with more defined investment outcomes.

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Buffer ETFs, Laddered Bond ETFs Highlight Growth

Buffer ETFs have highlighted this trend with eight new launches in November, bringing the total number in this category to 328 with $58 billion in assets under management, according to CFRA data.

The month’s launches included the first set of laddered corporate bond ETFs, like the iShares iBonds 1-5 Year Corporate Ladder ETF (LDRC), which automates bond laddering exposure though equal-weighted holding of target-date bond funds, according to the CFRA report.

Notable debuts featured products from high-profile managers, according to CFRA, including the Fundstrat Granny Shots US Large Cap ETF (GRNY) managed by fund manager Tom Lee and the Atlas America Fund (USAF) advised by economist Nouriel Roubini.

“Historically, active fund management has been closely associated with 'star' managers,” Ullal said. “However, in the long run, performance will be king and a well-known manager will not be able to overcome weak performance.”

The November pace slowed from October’s 59 launches, while closures declined to seven ETFs from 16 in October, according to etf.com data.