In 2023, the world of exchange-traded funds (ETFs), a type of investment fund, experienced a significant change. Many ETFs were closed down – a total of 234, which is much higher than in previous years. This change was largely due to the decrease in pandemic-era trading activities.
Interestingly, over 10% of the closed ETFs were thematic funds. These funds are special because they focus on specific themes like cryptocurrencies or the metaverse, and they were very popular among individual traders during the pandemic. Some of these funds also invested in companies that were creating COVID-19 vaccines, like Pfizer and Moderna.
The closure of these ETFs shows us that the investment market is always changing. It’s important for new ETFs to be carefully planned and offer something unique to stand out in the crowded market.
If you’re navigating these market changes and need guidance, reach out to Omni360. Our experts are here to help you understand these shifts and make informed investment decisions. Contact our Wealth Management & Investment Advisory team for any assistance you need