ETF Launches Outpace Terminations in 2025
Exchange-traded fund (ETF) product launches surpassed fund discontinuations in 2025, rising to nearly 5,000 strategies by the end of last year, reports Cerulli Associates.
The number of strategies has almost doubled over the past years. There were 2,692 ETFs in the marketplace in 2021, with 797 strategies launched that year.
That figure has since risen steadily. In 2025, there were 953 ETFs launched.
“The overall ETF ecosystem remains strong, with product development backed by tremendous flows to the structure and uptake across categories,” says Kevin Lyons, senior analyst at Cerulli. “In fact, 2025 marked the third straight year with a record number of new ETF launches. At the same time, the rapid buildout of a range of in-demand solutions creates the risk of a closure wave.”
Movement will only continue to grow, Cerulli predicts. Over 80% of ETF issuers plan to launch a minimum of one active ETF in 2026, and 94% are either currently developing (87%) or planning to develop (7%) transparent active ETF solutions.
As this widens, more providers are willing to close funds that prove ineffective and reallocate resources to new strategies. According to Cerulli, ETFs that closed were likely to have less than $50 million in assets under management (AUM), with over 85% of terminations occurring in smaller products.
These funds were terminated after not receiving adequate advisor or end-investor interest, and “lacked a clear catalyst for future growth,” the firm reported.
Nearly one-third of subscale ETFs were driven by outcome, levered, and option income strategies.
In the future, 94% of ETF issuers plan to close two or fewer transparency active ETFs this year, and all respondents are preparing to close two or fewer passive cap-weighted ETFs to make room for incoming developments.
Eighty-seven percent of ETF issuers plan to launch at least one transparent active ETF, 39% are preparing to introduce six or more products, and 30% will launch at least one passive cap-weighted product.
“This data demonstrates a continued emphasis on product development,” Lyons said. “ETF issuers’ focus is on launching more products rather than closing existing ones.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.