Bursting of Pandemic-Stock Bubble Fuels Big Wave of ETF Closures

  • Many funds focusing on buzzy themes shuttered this year
  • Issuers still continued to launch hundreds of new products
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The notoriously saturated $7.7 trillion ETF industry is this year poised for the second-highest number of closures, as the pandemic-era day trading boom fizzles out.

As of the first week of December, exchange-traded-fund issuers had liquidated or delisted 234 products in 2023. That compares with 159 closures last year and just 72 in 2021.