At $5 Trillion, the ETF Market Is Showing Signs of Saturation
- Funds launched in past three years command just 2.3% of assets
- Muted demand places focus on sales, distribution for issuers
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America’s exchange-traded funds are shutting down at a record pace and the production line is stuttering as issuers struggle to sell new products in the $5 trillion market.
More than 130 ETFs have been liquidated in 2020, already the most ever, while 178 funds have started trading -- roughly on course to match last year’s launches. That was the lowest number of debuts since 2014 and the second drop in a row.