Cybersecurity
ETF Graveyard Grows as Leveraged Funds Fall Victim to Calm
- September is set to break monthly record for ETF closures
- Half of this month’s delistings are leveraged or inverse funds
This article is for subscribers only.
Add another item to the list of things low volatility is doing to the market: record amounts of ETF closures.
By the end of September, 42 exchange-traded funds are set to close, the most ever in a single month, according to data compiled by Bloomberg. Of those, 21 are leveraged or inverse funds, which tend to attract investors when prices are volatile but can fall out of favor when stocks are as calm as they have been all year.