This year 31 ETF portfolios were included in the Lipper-Refinitiv ‘deathlist’ as of 31 October.
After a surge in launches in recent years research suggests this year has seen a cull of smaller ETFs.
The firm’s research found that:
• 31 ETF portfolios were shuttered this year as of 31 October
• 358 ETF portfolios more than 3 years old were unable to attract more than €100m (£90m) in assets under management
• 88 ETF portfolios were unable to gather more than €10m (£9m) in assets under management over the past three years
• Assets under management in European ETFs increased only slightly during 2020 to €874.3bn (£787bn)
Detlef Glow, Lipper head of EMEA Research at Refinitiv, said the number of ETF closures this year was a surprise.
He said: “As overall assets under management and flow patterns for the year looked quite healthy, it is not be expected that the industry is in a consolidation mode. Therefore, it is a surprise that 2020 may mark the year with the highest number of ETF closures since the inception of the European ETF industry in 2000.
“Even as some market observers may see a wider consolidation ahead for the European ETF industry and would consider the high number of ETF closures as a clear sign for this, I would not interpret the numbers in that way.
“From my point of view, the high number of ETF closures in Europe goes in line with high launching activity. Since not all of the new products end up meeting investor expectations, they are closed after a period of time.”