New ETF Launches Far Exceed Closures

New exchange-traded fund (ETF) product launches continue to outpace fund closures. 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, according to the latest Cerulli Edge—U.S. Product Development Edition.1

Active ETFs have dominated the new product landscape, with 953 strategies launched in 2025, accounting for 84% 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% of ETF issuers intend to launch at least one active ETF in 2026, and 94% are either currently developing (87%) or plan to develop (7%) 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. Most ETF closures have involved subscale products with assets under management (AUM) less than $50 million—solutions that did not attract advisor and end-investor interest and lacked a clear catalyst for future growth. Since 2021, more than 85% of ETF closures have occurred in these smaller products, peaking at 92% 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% 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% of ETF issuers plan to launch at least one transparent active ETF, with 39% aiming to launch six or more, and 30% 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.

Source: Cerulli