Today, April 26, 2017, for the first time ever, you have 2,000 U.S.-listed exchange-traded funds (“ETFs”) and exchange-traded notes (“ETNs”) from which to choose. This is a celebration of a significant achievement, much like the 1,000 ETF listings milestone that was reached on May 7, 2010, just shy of seven years ago.
In all, there have been 2,710 ETFs and ETNs brought to market, and the “2,000 launches” threshold was surpassed in July 2015. Unfortunately, not all of them survived, and 710 are no longer available. To date, the industry survival rate stands at 73.8%. Conversely, the mortality rate is now 26.2%—it is tough out there.
The 2,000 products listed and available for purchase today consist of 1,808 ETFs and 192 ETNs. Last Thursday, the ETF industry got its own ETF with the introduction of the ETF Industry Exposure & Financial Services ETF (TETF). It would have been fitting if it was the one to achieve the 2,000 ETFs milestone, but it can still party like it’s 1999.
Today’s launch of the Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI) claims the honor of being the ETF to cross the 2,000 listings boundary, but no one will likely remember this accomplishment when the next threshold is reached. Industry growth rates have slowed in recent years, showing signs of maturity. While asset growth continues to put up impressive numbers, the growth in listings has produced an annualized growth rate of only 7.5% the past five years. At that pace, it will be late in the year 2022 before the 3,000 listings milestone is reached, all the more reason to celebrate 2,000 ETF listings today.
Disclosure: Author has no positions in any of the securities, companies, or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) is received from, or on behalf of, any of the companies or ETF sponsors mentioned.