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Trillions

Why These ETFs Died During a Bull Market

Oct 24, 2024
Vildana Hajric, a Bloomberg cross-asset reporter, joins Todd Rosenbluth from VettaFi and ETF analyst Athanasios Seraphagus to dissect the surprising surge in ETF closures during a bullish market. They explore the shutdown of niche funds like those in cannabis and travel, emphasizing market saturation and innovation needs. The panel discusses failures of thematic ETFs post-pandemic and examines why even strong commodities, like gold, saw their ETFs struggle. Their insights reveal a complex landscape full of unexpected twists and evolving investor interests.
34:45

Podcast summary created with Snipd AI

Quick takeaways

  • This year's significant ETF liquidations reflect the struggle of funds to attract investors despite overall market gains, highlighting disparities in performance.
  • The closure of thematic ETFs and oversaturated markets underscores the importance of differentiation and a strong value proposition for survival.

Deep dives

The ETF Graveyard Overview

This year has seen a significant number of ETF liquidations, with around 150 closures marking it as the third largest year for such events. This trend highlights the disparity between ETF launches and liquidations, indicating that while the market has largely thrived, many funds are struggling to attract investors. The performance of various asset classes, including stocks, bonds, and commodities like gold and Bitcoin, suggests that only those ETFs that can stand out are likely to sustain their presence in the market. Consequently, funds that fail to meet investor expectations or those that operate in oversaturated segments are often the first to be eliminated.

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