This week, up to 18 new exchange-traded funds might be introduced to the US market, more than double the mean weekly total of 8.5 so far in 2023.
As per the data from CFRA Research, the total ETF launches would reach 57 due to the sudden influx of new offerings, setting a record for this year and easily surpassing the 53 that entered the market in September 2022.
The products contain five new ETFs from Capital Group, a collection of eight from Brookstone Asset Management, and two from Dimensional Fund Advisors. Dimensional, which had been cautious of ETFs until very recently, Since 2020, it has been turning some of its actively managed mutual funds into ETFs and introducing new products.
“The number of launches has been picking up significantly of late,” said Bryan Armour, director of passive strategies research at Morningstar. “There has also been a shift of investor interest in the direction of actively managed ETFs that we’re seeing reflected” in the new launches from both Capital Group and Dimensional.
According to CFRA data, new ETF launches peaked at 481 in 2021 before declining slightly to 433 last year. Without including the expected debuts this week, 323 new ETFs have been introduced thus far this year.
