August ETF Debuts Outpace Closures as Industry Expands
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A total of 37 new ETFs entered the market in August, following July’s 69 debuts. This activity brings the total number of ETF launches in 2024 to 381, highlighting the industry’s ongoing expansion.
ETF closures remained relatively low. Only nine funds shuttered, down from 15 in July. The year-to-date closures now stand at 134, according to etf.com closure data.
The difference in debuts and closures reflects the growing adoption of ETFs among financial advisors. A recent Cerulli Associates survey found that 90% of advisors are now using ETFs in some capacity, with emerging markets and alternative ETFs poised for further growth.
Click chart for full list of openings:
ETF Launches Target Diverse Investor Needs
Among the launches last month was the Schwab Ultra-Short Income ETF (SCUS), which debuted on Aug. 13. This marks Schwab Asset Management’s first actively managed fixed income ETF, targeting investors seeing income with lower risk. With an expense ratio of 0.14%, SCUS is priced below the industry average for actively managed ETFs in the ultrashort bond category.
Read More: Schwab Debuts First Active Fixed Income ETF (SCUS)
The cryptocurrency theme continued to attract attention, with Defiance introducing two new products: the Defiance Daily Target 1.5X Short MSTR ETF (SMST) and the Defiance Daily Target 1.75X Long MSTR ETF (MSTX). These funds offer investors leveraged exposure to MicroStrategy, a company known for its significant bitcoin holdings.
Read More: Defiance Debuts Short MicroStrategy ETF, New Tech ETFs & Defiance Debuts Leveraged 1.75x MicroStrategy ETF
In the fixed income space, Rockefeller Asset Management entered the ETF market with three new municipal bond funds, including the Rockefeller New York Municipal Bond ETF (RMNY) and the Rockefeller California Municipal Bond ETF (RMCA). These funds cater to investors seeking tax-advantaged income from specific state municipal bonds.
Read More: Vanguard Expands Active Muni Bond ETF Lineup
The closure list in August included several iShares products, among them, the iShares USD Bond Factor ETF (USBF) and the iShares Gold Strategy ETF (IAUF). BlackRock, the parent company of iShares, announced these closures as part of its ongoing assessment of its fund lineup.
The BlackRock Future Climate and Sustainable Economy ETF (BECO) was also among the closures, reflecting the evolving landscape of ESG-focused funds.
Read More: BlackRock Shutters 8 ETFs Including BECO ESG Fund