04.02.26

Average ETF Lifespan Collapses

by: Katie Greifeld

The exchange-traded fund (ETF) market is becoming increasingly competitive, leading issuers to shut down underperforming funds more quickly than in previous years. In 2026 thus far, the average lifespan of a liquidated ETF has dropped to about one year and nine months, down sharply from over three years in 2025 and nearly five years in 2024. This trend reflects a surge in new product launches within the $19 trillion industry, making it harder for funds to attract assets. As a result, firms are adopting stricter performance timelines, often closing ETFs within 12 to 18 months if they fail to scale. Distribution and reaching key asset milestones have become critical, as asset managers prioritize efficiency and reallocate resources away from unsuccessful strategies.

Read the full article on Bloomberg