Q2 saw a surge in ETF closures due to underperformance, trimming underperforming and niche funds.

The second quarter saw a surge in ETF closures, with 61 funds shutting down compared to 40 in the first quarter. Asset managers trimmed underperforming and niche ETFs in a crowded market, with June alone witnessing 27 closures, the most in 2025. Companies axed products across sectors like commodities and clean energy.

Hartford Funds closed four ETFs, including RODE and HCOM, with positive returns ranging from 3% to 16.3%. iPath closed commodity ETNs like PGMFF and JJGTF, with PGMFF gaining 44.2% YTD. Clean energy and tech funds like RNEW and WBAT also shut down with varying returns.

Closures increased throughout the quarter, with 19 funds closing in April and 15 in May. Some funds performed well before closing, like ROIS with a 16.3% gain and FIG with a 16.2% gain. Others, like HDRO and URAX, struggled before closing, with drops of 25.4% and over 35% respectively.

Read more at Yahoo Finance: Q2 Sees Strong Surge in ETF Closures and Liquidations