There's a shakeout happening in the ETF industry, says the WSJ. Investors are flocking to large ETFs with ultra-low management fees. Smaller ETFs are folding.
In the five years to August, 20 ETFs accounted for 44% of the industry's total asset growth, and 18 of those funds were managed by BlackRock or Vanguard, according to CFRA.
During that period, 24% of ETFs shut down, and an additional 30% suffered from declining assets under management.
There are over 2,100 ETFs. There's debate in the ETF industry about whether the market is over-saturated.
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