ETF Global – ETP Liquidation Watch

Background:  Unlike some other investment instruments, a key risk when investing in ETPs is “Liquidation Risk” – the risk of an ETP being liquidated by its sponsor.  ETP liquidation can occur for a variety of reasons and this risk has become more pervasive as ETP sponsors have flooded the market with ETPs aimed at the perceived appetite of investors.  Unfortunately, the market has often failed to absorb the supply of new ETPs (see Annual ETP Closings table below).

“Liquidation” Watch:  As part of ETF Global’s overall risk assessment for individual ETPs, ETFG identifies those ETPs that may be in jeopardy of termination in the foreseeable future.  ETFG considers three primary factors to be the most indicative of a potential ETP liquidation:

• Current Assets Under Management of less than $5 million
• Age - Excludes all ETPs in existence less than 2 years
• Negative, Trailing Twelve Month (ttm) Performance

ETFG Liquidation Watch - December 2022
Criteria #1		Criteria #2		Criteria #3
Assets Under Management < $5M		ETP Age > 2 Years		Negative Fund Performance (ttm)
250 ETPs		2,178 ETPs		1,511 ETPs
		All 3 Criteria
		71 ETPs

For questions or inquiries regarding the ETF Global Liquidation Watch List or our Liquidation Watch Alerts, please call our research support desk at (412) 407-4444 or e-mail our research support team at research@etfg.com

ETFG Liquidation Watch List and History

Number of Products on Liquidation Watch - Monthly