Future Challenges for ETFs Following Record Growth

Reported 2 days ago

U.S. exchange-traded funds (ETFs) experienced a record $1.1 trillion in inflows in 2024, nearly doubling the previous year's figures. However, analysts warn that 2025 may bring challenges, including market saturation and high closure rates for non-performing funds. There is concern that innovation may not meet investor interest, leading to an increased number of ETFs being shut down as asset managers adapt to a crowded market. Despite the challenges, the ETF industry saw a global asset increase to $14 trillion, with a significant rise in new ETFs launched in 2024.

Source: YAHOO

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