ETFs could face obstacles in 2025 after bumper year
Live Mint* ETFs took in record $1.1 trillion in inflows in 2024 * Arena is increasingly crowded * Morningstar analyst sees possible record number of ETFs closing down in 2025 By Suzanne McGee Jan 2 - U.S. exchange-traded funds could face more obstacles to their runaway growth in 2025 after a bumper year saw the products take in a record $1.1 trillion in inflows in 2024. "There has been so much product development, and a lot of ETFs won't survive to reach profitability simply because they don't have anything that's unique enough and appealing enough to pull in assets," Armour said. The number of new ETFs launched, including a dozen spot bitcoin products, reached 714 by the last full week of the year, said Matthew Bartolini, head of SPDR Americas Research at State Street Global Advisors. "We'll be venturing into that market in the first quarter of 2025 with a buffered ETF product," said Brendan McCarthy, global head of ETF distribution and capital markets at Goldman Sachs Capital Management.