ETF Closures: How to Manage and Avoid Them
April 06, 2017 at 08:00 AM EDT
The growth and widespread proliferation of exchange-traded funds (ETFs) has transformed the global financial services industry, giving investors easy access to international markets and diverse sectors. However, the side effect of such rapid growth has been higher turnover in the ETF market. Whereas some ETFs succeed, others fail, leading to their eventual liquidation. Although the process of creation and closure represents the ebb and flow of a healthy market, investors are better off avoiding the duds at all costs.