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Hoots : How many ETFs have been closed so far? I am thinking about investing my money in an ETF as they seem to be a relatively safe way to invest money over a long term (~20 years). However, I don't like the "seem to be". Are - freshhoot.com

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How many ETFs have been closed so far?
I am thinking about investing my money in an ETF as they seem to be a relatively safe way to invest money over a long term (~20 years).

However, I don't like the "seem to be". Are there numbers on how many ETFs have been closed? How much money did investors lose? (Maybe grouped by type of ETF / by the index they tracked?)


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There are several reasons why ETFs close:

The issuer is in financial difficulty
Assets under management are low
The securities that comprise the ETF perform poorly

The ETF may liquidate or delist. If it liquidates, you'll receive cash distributions equal to the NAV less the liquidation cost. If it delists without liquidating the portfolio, it will trade trade OTC where it's likely to be far less liquid with much wider B/A spreads.


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