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GM. I don't know about you but AI is super helpful to get you from zero to 1 on a completely new subject. For instance, how many ETPs fail? (Don't ask why I got curious this morning).
Data from sources like ETFGI and Morningstar show a dynamic market where new launches regularly outnumber closures, though a significant portion of all ETPs will eventually shut down.
First half of 2025 (Global):
Launches: 1,308
Closures: 266
2024 (Global):
Launches: 1,988
Closures: 622
2024 (US):
Launches: 707 to 747 (records vary slightly)
Closures: 179 to 189
2023 (Global):
Closures: 865
2023 (US):
Launches: 520 to 543
Closures: 244 to 246
Why ETPs close
ETP closures are a normal part of the industry cycle and can happen for several reasons:
Low assets under management (AUM): Many closed ETPs fail to attract enough investor capital to remain profitable for the issuing firm. Some analysts estimate that ETPs with less than $25 million in assets are at risk of being shut down.
Underperformance: An ETP that consistently delivers poor returns will struggle to compete with more successful alternatives.
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