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ETF Specialist

The Best and Worst New ETPs of 2019

We take a look at the most promising, and pitiful, new exchange-traded products that were added to the menu in the past year.

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As of Dec. 19, there were 238 new exchange-traded products (inclusive of exchange-traded funds and exchange-traded notes) launched in the U.S. market in 2019. This placed seventh in terms of the total number of new ETP launches in a calendar year and marks the slowest pace of new launch activity in five years. There are now 2,407 ETPs available to investors. Since SPDR S&P 500 ETF (SPY) was launched in 1993, 3,355 ETPs have been brought to market. This means that about 28% of them have since been closed.

Though there are plenty of choices on the ever-expanding menu, investors' tastes are basic. Of the 2,407 ETPs on offer, the top 100 as measured by assets under management accounted for 71% of the $4.4 trillion invested in ETPs at the middle of December. The top 100 are the Swiss Army knives in the ETP tool kit. They are efficient multipurpose tools that do a lot of different jobs for a lot of different types of investors.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.