The ETF side of the mutual fund industry did not swing to outflows last month, even as the coronavirus crisis roiled global markets. Yet a lot of ETFs disappeared.
| Mohit Bajaj|
Director, ETF Trading Solutions
ETFs in the U.S. still managed to bring in $176 million in net inflows in March, ETF.com reports
. Combine that with January and February, and Q1 2020 still saw $71.9 billion in net ETFs inflows, up 50.4 percent from Q1 2019.
Despite that, Q1 2020 also saw 72 ETFs shut down, more than any quarter since Q3 2017, Bloomberg reports
. Citing WallaceBeth Capital
, the report describes "a reckoning for the myriad niche funds populating the nearly $4 trillion ETF market."
"With huge market movements, investors are going to flock to broad-based funds to hedge out risk, rather than smaller niche products," Mohit Bajaj
, director of ETFs at WallaceBeth, tells the publication. "It was hard enough when the market was at its peak to get market share, even harder when the S&P is down over 20%."
So, perhaps the rise of ETFs is continuing, but only as it gets more concentrated.
Neil Anderson, Managing Editor
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