New ETF product launches continue to outpace fund closures, writes Cerulli Associates.
In 2021, there were 2,692 ETFs in the marketplace; by the end of 2025, that figure had risen to nearly 5,000 ETF strategies. Active ETFs have dominated the new product landscape, with 953 strategies launched in 2025, accounting for 84 per cent of all new ETFs last year. That total exceeds the 797 ETFs launched in 2021 and is more than triple the 308 active strategies introduced that year.
Looking ahead, 83 per cent of ETF issuers intend to launch at least one active ETF in 2026, and 94 per cent are either currently developing (87 per cent) or plan to develop (7 per cent) transparent active ETF solutions.
“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. “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.”
As providers invest more in developing new products, they are also quicker to shut down strategies that are not gathering traction, reallocating resources to introduce new offerings and maintain competitiveness, Cerulli reports.
Most ETF closures have involved subscale products with assets under management (AUM) less than USD50 million—solutions that did not attract adviser and end-investor interest and lacked a clear catalyst for future growth.
Since 2021, more than 85 per cent of ETF closures have occurred in these smaller products, peaking at 92 per cent in 2025. Cerulli notes that subscale product count is driven primarily by defined outcome, levered, and option income strategies, which together account for nearly one-third of all subscale ETFs.
“Although closures could increase due to new product development, it is unlikely to hamper the broader ETF industry,” says Lyons. Cerulli finds 94 per cent of ETF issuers plan to close two or fewer transparent active ETFs this year, while all respondents plan to close two or fewer passive cap-weighted ETFs. By contrast, 87 per cent of ETF issuers plan to launch at least one transparent active ETF, with 39 per cent aiming to launch six or more, and 30 per cent planning to introduce at least one passive cap-weighted product.
“This data demonstrates a continued emphasis on product development. ETF issuers’ focus is on launching more products rather than closing existing ones,” he concludes.
