Barron's: "The ETF Universe Shrinks for the First Time Ever"

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Barron's: "The ETF Universe Shrinks for the First Time Ever"

Excerpt from Barron’s quoting DataTrek:

…. “While 77 new ETFs have launched in 2020, 123 others have delisted, according to DataTrek Morning Briefing. That’s taking place against a background of decent demand: Inflows total $108 billion so far this year.

Just 18 funds represent 100% of the aggregate inflows so far this year, according to DataTrek. The flows are going into defensive investments: 47% into U.S. large-cap equities; 25% into high-quality fixed income; 18% into commodities, largely gold; and 10% into other…

…This is “defensive posturing,” wrote DataTrek co-founders Nicholas Colas and Jessica Rabe. “The stress to the financial system this year has effectively increased asset concentrations in the ETF ecosystem. In this respect, the Covid crisis is different from the Financial Crisis and its aftermath, when the number of ETFs grew by 10% a year from 2008 to 2011″….

Read the full article here on Barron’s!