Fund providers have shut down 217 exchange-traded funds so far this year, nearly double the number at this point last year, even as the industry churns out new funds at a record pace. The closures are in part a consequence of the explosive growth of the ETF industry, with asset managers launching funds that sometimes fail to attract enough assets or otherwise gain traction. Investors have flocked to ETFs in recent years because of their low costs, the ability to trade them easily like stocks, and the proliferation of funds offering exposure to everything from memory chips to the burgeoning space economy.
Paul R. La Monica is a Senior Markets Analysis Writer at Barron's. He specializes in finance, trading, and investment strategies, with a keen focus on stocks, bonds, and alternative investments, often intertwining insights from the sports and pop culture realms. La Monica's work has been featured in numerous outlets, including KITV4 Island News, CNN, and MarketWatch.
