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