David vs. Goliath: Small ETF Shops Struggle to Stay Afloat

Small ETF issuers are struggling to gather assets as they face numerous hurdles, including distribution and marketing challenges. Funds from small shops might “make a legit go of it,” wrote Neil Bathon, managing partner at FUSE Research. But he predicts that around 85% of those funds will fail. “Most of the investment strategies are unlikely to find a home in a client’s portfolio based on traditional asset allocation concepts and others offer nothing particularly new or special in terms of differentiation from existing scale offerings,” Bathon said.

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Article published on August 17, 2023