Episode summary
The ETF Graveyard: This Has Been a Record Year for Closures | Trillions
Trillions
· · 22 min · Hosts: Eric Balchunas, Joel Weber · Guests: Andre Yapp, Todd Sohn
Summary
The episode tours the ETF Graveyard, where about 250 funds have already been liquidated in 2026 and the year is on pace to set a new record for closures. The hosts and guests focus on why so many products die early, with leveraged ETFs accounting for a large share of the casualties and thematic funds in ESG, crypto, cannabis and the metaverse also showing weak survival rates. They note that some closures were surprising because the funds had decent assets or respectable returns, but not enough investor demand to justify keeping them alive.
A recurring theme is that ETF innovation does not guarantee longevity. Todd and Andre argue that sector-based bond products, engineered-beta sector funds, and low-volatility strategies all struggled when the market did not want their particular twist. Eric frames the year’s closures as a sign that issuers often keep experimenting, even when the odds of success are low.
The episode also identifies possible future resurrected ideas, including hotel exposure, pricing-power or monopoly-style equity themes, and even 2x agricultural commodity funds. The broader message is that ETF launches keep proliferating, but the graveyard keeps growing too.
Key takeaways
- Andre says 2026 is tracking toward a record year for ETF closures, with 245 already tied for third place and two months left.
- Eric says leveraged ETFs make up about 93 of the 245 closures so far this year, making leverage the biggest failing theme.
- Todd says bond-sector ETFs like the BondBloxx high-yield sector suite were interesting but did not catch on, despite being a useful way to dissect credit markets.
- Eric says the low-volatility complex has been hurt by buffer ETFs, because investors can now get downside protection without merely owning the least volatile stocks.
- Andre says Goldman’s acquisition of Innovator led to only three buffer ETF closures, showing the overlap was limited and the targeting was good.
Notable quotes
“Roughly speaking, there's been 8,000 ETFs launched and 2500 have closed now”
“we're on track to actually break the record to be the largest year for closures uh in 2026”
“Leverage is responsible for about 10 of them every month”
How the episode opens
Bloomberg Audio Studios podcasts, radio news. I think you'll see more calling of those lineups, but more piling into tech because that's where the assets are going, right? There's a 2x Starbucks. I I'm drinking a pumpkin spice coffee right now. I don't need 2x of that. Welcome to Trillian. I'm Joel Weapon.
And I'm Eric Balunis. — Eric, it's Halloween season, which means one of our ongoing episodes is ETF Graveyard dedicated to funds that have closed this calendar year. — Yeah. And the graveyard is getting big. — Really? — Really big. Yeah. Just for those
I guess there's a lot of ETFs, so that means the graveyard's got to get big, too.
Roughly speaking, there's been 8,000 ETFs launched and 2500 have closed now. So the graveyard is 2500 big. Basically one of every three or every four ETFs is going to die and now they're dying younger.
And so it's good to look through here. A what is caught our attention? Are there any that we felt should have made it and didn't?
Are there any trends that we see? It's just interesting and and are any that we'll try to get dug up and resurrected Lazarus style?
We have seen that and done episodes about it. All right. — And I found one of those, by the way. So anyway, yeah, I like I like I like doing this. I like grave digging, Joel. — See see what gyms lie in that their cemetery. Joining us for our trip through the cemetery, Todd S, chief ETF strategist with Baird Strategicus, as well as Andre Yap, a senior ETF research associate with Bloomberg Intelligence. This time I'm trying
ETF Graveyard. — Todd Andre, welcome back to Trillions. — Thanks for having me.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- etf closures
- fund launches
- leveraged etfs
- esg metaverse cannabis etfs
- lazarus list
Companies and tickers mentioned
- Bloomberg Intelligence
- Baird Strategas
Watch the episode
Watch “The ETF Graveyard: This Has Been a Record Year for Closures | Trillions” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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