Global X Shutting 18% of its ETFs as Closures Jump Industrywide

Eleven of the 19 funds being closed are China-focused.

Finance Reporter
Edited by: Ron Day

Global X Funds, which currently manages $41.6 billion in 108 ETFs, is slashing its product line by 18%, cutting China, cannabis and metaverse funds as closures leap industrywide. 

More than half of the 19 funds being culled focus on China and industries in that country including healthcare and real estate, according to a statement from FactSet. For example, one closure, the Global X MSCI China Communication Services ETF (CHIC), garnered $4.97 million in assets since its launch in 2009. China ETFs have lost ground over the past few years and many have experienced large outflows, data show. 

Others Global X decided to liquidate include the $34 million Global X MSCI Pakistan ETF (PAK) launched in 2015, the $2.51 million Global X Metaverse ETF (VR), and the $29.9 million Global X Cannabis ETF (POTX). 

While the ETF industry rose to hit $8 trillion in assets under management in 2023, the number of fund closures has jumped as many novel ETF themes such as memes and the metaverse failed to gain investments. According to data from Morningstar and Bloomberg Intelligence, ETF closures hit a 3-year high in 2023: 246 funds shuttered last year, up from 147 closing in 2022 and 72 in 2021. Yet with closures ramping up, so have launches. Issuers launched 529 new fund last year, which was up from 419 rolled out in 2022.

Global X Closures Not a Surprise 

“It's not a surprise to see the closure of these ETFs as most of them have been around for a while and have less than $10 million in assets under management, meaning that they've had ample time to gain traction with investors but have failed to do so,” explained analyst Sumit Roy. “These ETFs are likely unprofitable for Global X to manage so it makes sense that they're shutting them down.”

New York-based Global X’s largest fund is the Global X NASDAQ 100 Covered Call ETF (QYLD), which has $7.84 billion in assets.

“Ultimately, funds have to make money for issuers--or benefit them in some other way--for them to remain on the market,” said Roy.

Contact Lucy Brewster at [email protected].

Lucy Brewster is a finance reporter at covering asset managers, emerging technologies, and regulation. She hosts webinars and appears on Exchange Traded Fridays,’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.