ETF Global

ETF Global – ETP Liquidation Watch

Background:  Unlike some other investment instruments, a key risk when investing in ETPs is “Liquidation Risk” – the risk of an ETP being liquidated by its sponsor.  ETP liquidation can occur for a variety of reasons and this risk has become more pervasive as ETP sponsors have flooded the market with ETPs aimed at the perceived appetite of investors.  Unfortunately, the market has often failed to absorb the supply of new ETPs (see Annual ETP Closings table below).

Annual ETP Closings
(12/1/22)

Year

 2022 

 2021 

 2020 

 2019 

 2018 

 2017 

 2016 

 2015 

 2014 

 2013 

 2012 

 2011 

 2010 

 2009 

 2008 

 Closings 

132

97

275

124

152 

136

128

97

80

67 

94

30

49

56

58

                     * Funds added upon closing announcement

“Liquidation” Watch:  As part of ETF Global’s overall risk assessment for individual ETPs, ETFG identifies those ETPs that may be in jeopardy of termination in the foreseeable future.  ETFG considers three primary factors to be the most indicative of a potential ETP liquidation:

ETFG Liquidation Watch - December 2022

Criteria #1

 

Criteria #2

 

Criteria #3

Assets Under Management < $5M

 

       ETP Age > 2 Years

 

Negative Fund Performance (ttm)

250 ETPs

 

2,178 ETPs

 

1,511 ETPs

 

 

Down  
 

Right

All 3 Criteria

Left

 

 

 

71 ETPs

 

 

For questions or inquiries regarding the ETF Global Liquidation Watch List or our Liquidation Watch Alerts, please call our research support desk at (412) 407-4444 or e-mail our research support team at research@etfg.com

ETFG Liquidation Watch List and History

Number of Products on Liquidation Watch - Monthly

Year

 January 

 February 

March

April

May

June

July

August

 September 

 October 

 November 

 December

2022

38

39 

50

55

72

72

88

78

81

92

87

71

2021

97

94

82 

42

25

42

20 

20 

21

29

35

34

2020

49

76 

108 

 177

161 

 149

 157

141 

 108

 120

133 

92

2019

94

93 

87 

83

74 

85 

73 

76

78 

82 

59 

60

2018

55

61

56 

65 

53

53 

60 

69 

64 

66 

86 

89

2017

59

 49

48 

54 

67 

65 

73 

64 

68 

61 

61

62

2016

99

108

110

100

102

98

102

91

65

56

75

61

2015

99

92

85

88

91

100

97

104

103

114

103

89

2014

89

91

98

80

74

68

50

59

68

88

100

95

2013

39

37

45

43

64

71

73

73

67

56

66

72

  

2022

 

202120202019
201820172016
201520142013