Exchange Traded Funds and the likelihood of closure

What is it about?

Exchange-traded funds close for different reasons. A poorly performing fund is likely to close early. Performance volatility will trigger ETFs closure. A small ETF from a large fund family is more likely to survive compared to a small ETF from a smaller fund family. Up to 2-years from the date of ETF inception, higher expense ratio will lead to early closure, but after 2-years, fund family is likely to persist with the fund.

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