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The ETF shakeout leaves three winners

|About: BlackRock, Inc. (BLK)|By: , SA News Editor

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.

BlackRock (NYSE:BLK),  privately-held Vanguard, and State Street (NYSE:STT) control 81% of all ETF assets under management.

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.

For more on developments in the ETF industry, see the most recent BlackRock earnings call transcript, State Street earnings call transcript, and WisdomTree earnings call transcript.

After taking a beating in the last year, WisdomTree (NASDAQ:WETF) has a Neutral average rating from sell-side analysts and a Bearish Seeking Alpha Quant Rating.

Previously: Index funds' big three attracts scrutiny - Bloomberg Businesweek

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