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ETF Universe Shrinks for First Time With Niche Funds Dying Off

  • So far 83 ETFs have delisted in 2020 amid market volatility
  • Firms shy away from new funds amid volatility, crowded market
     
Photographer: Yuriko Nakao/Bloomberg

After years of rapid growth, the exchange-traded fund universe is shrinking.

So far in 2020, the number of ETFs trading in the U.S. has shrunk by 15, a drop of less than 1%, according to data compiled by Bloomberg. While it’s just a tiny decline, if the trend holds for 2020, it would mark the first year ever to see a contraction.