At a glance
- Shifts in investor demand and product differentiation registered 61%, and market volatility and macroeconomic uncertainty registered 35%.
- ISS Market Intelligence data cited by InvestmentNews showed 159 active ETF liquidations and mergers through September, above the 127 recorded in all of 2025.
- For advisors building model portfolios, the survey's closure triggers are a due-diligence screen: 88% of issuers cited a lack of assets and 69% weak demand from key distribution partners; 38% named an ineffective strategy.
65% of ETF issuers say balancing new product launches against closing or merging funds is a leading concern, according to a Cerulli Associates survey reported by InvestmentNews. Shifts in investor demand and product differentiation registered 61%, and market volatility and macroeconomic uncertainty registered 35%.
ISS Market Intelligence data cited by InvestmentNews showed 159 active ETF liquidations and mergers through September, above the 127 recorded in all of 2025. Cerulli counted 733 ETF launches and 145 closures in the first half of 2026, both near recent records. Single-stock funds accounted for 77 of those exits.
For advisors building model portfolios, the survey's closure triggers are a due-diligence screen: 88% of issuers cited a lack of assets and 69% weak demand from key distribution partners; 38% named an ineffective strategy. Cerulli concluded that a fund can be shut for lacking a credible path to assets and platform support even when the strategy itself holds up.
Lack of assets drives most ETF closures
Share of ETF issuers citing each factor in closure and merger decisions
- Lack of assets88%
- Weak demand from distributors69%
- Ineffective strategy38%
- No first-mover advantage13%
Show as table
| Item | Value (%) |
|---|---|
| Lack of assets | 88% |
| Weak demand from distributors | 69% |
| Ineffective strategy | 38% |
| No first-mover advantage | 13% |
Reported by the Products & portfolios desk from InvestmentNews, Cerulli Associates and ISS Market Intelligence. Published . Corrections