The Clap There were 422 new ETFs introduced to the market in 2022, despite a volatile bear market riddled by inflation.
What Market volatility has driven more investors to invest in ETFs, offering them a diversified security.
Inflows in 2021 encouraged asset managers to introduce more ETFs to the market as they grew more in popularity during unpredictable economic times.
This year, however, saw 40% less inflows compared to 2021, and almost double the closures of ETFs, from 72 in 2021 to 139 in 2022 so far.
So What Despite the abundance of ETFs, many analysts expect some of the more popular ETFs to shut down. The cryptocurrency ETFs, for example, have been seeing less inflows after an awful year for crypto.
Now What ETF closures are expected to increase in 2023, as many of the new ETFs in 2021 and 2022 have minimal assets, making them prime candidates for closure.