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ETF launch pace tops 1,000 as leveraged products surge
From the start of August, 144 new ETF tickers debuted, while 217 ETFs had closed through late August as issuers prune subscale leveraged and inverse funds.
ETF launches are accelerating rapidly in the US, according to ETF Trends. With just over half the year complete, product development is already outpacing last year’s record pace, driven by a wave of new funds that pushed total ETF launches to more than 1,000.
Since the start of August, 144 new ETF tickers have launched, and the outlet reports that 17 ETFs have already crossed the $1 billion mark in total assets under management. Nearly four out of five ETFs are actively managed, and leveraged ETFs are gaining share, accounting for roughly 25% of August launches.
Leveraged and inverse funds also represented about 31% of all US launches in the first half, versus 22% a year earlier. At the same time, closures have risen, with more than 217 ETFs closed through late August, nearly double the 119 liquidations at the same point last year.
ETF Trends adds that many shutdowns have come from highly competitive single-stock, leveraged, and inverse categories, where over 73 specialized strategies shut down after failing to gain meaningful traction. Even with this cleanup, net growth is still tracking for an all-time high, while activity in themes like physical AI infrastructure, next-generation aerospace and defense, and active floating-rate credit continues to expand.