Analysts note that the significant inflows of $1.1 trillion in 2024 were fueled by a bull market, innovative products, and investors' preference for low-cost ETFs.
Bryan Armour of Morningstar warns that the influx of new products may exceed investor interest, with many complex strategies failing to attract assets.
Cerulli Research found that 2023 marked the first year of declining ETF lifespans, suggesting many funds may not survive profitability expectations.
Matt Apkarian emphasizes the necessity for firms to act swiftly in closing non-performing funds and reallocating their resources for better efficiency.
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