Industry Updates

European ETP closures more than double year-on-year

George Geddes

a sign from a string

The European ETP market has witnessed 212 closures so far this year, more than double the figure from the previous year with 100.

According to data from ETFGI, January, March and April in 2020 suffered more ETP closures than their 2019 counterparts.

January saw 43 ETP closures in 2020 but 25 in 2019, March saw 68 closures in 2020 and 16 in 2019 and April saw 81 closures in 2020 but only 21 in 2019.

February was the only month to have fewer closures this year with 20 versus 38 in 2019.

In tandem with ETP closures rising, ETP listings have also slowed down. There have only been 243 listed in the first four months of 2020 compared to 391 for the same period in 2019.

However, ETP launches still outweigh closures with a net difference of 31 more ETPs in 2020.

ETF launches in Europe slow to lowest level since 2017

The ETP closures include several products by WisdomTree. The firm closed multiple ETPs with leveraged exposures to the oil market for breaching performance rules when the oil price experienced extreme volatility.

In the US, closures significantly outweigh launches, according to Towards the end of April, the US ETF market had seen nearly 100 closures compared to 60 listings.

Some 40 of the ETF closures came from Invesco which closed the products in January, even before markets experienced the strong volatility in March.

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