Record ETF Launches Contrast With Closures at a Top Issuer
ETFGI reported a record 1,397 new ETFs launched worldwide through May 2026, with Leverage Shares leading the count. Themes ETF Trust is closing 13 Leverage Shares U.S. funds after they failed to gather enough assets. Active ETFs accounted for 741 launches, and the article notes that liquidation payouts can be taxable for investors.
ETFGI counted 1,397 worldwide launches in the first five months of 2026, exceeding the prior same-period high of 1,063 set in 2025 and far above 656 in 2022. After 208 closures, the net addition was 1,189 products. Leverage Shares ranked first with 94 launches, ahead of iShares at 48 and Global X at 41.
Active strategies made up 741 of the new funds, versus 423 equity and 91 fixed-income products. The U.S. recorded 505 listings, Asia Pacific excluding Japan 377, and Europe 267. Separately, Themes ETF Trust is closing 13 U.S. Leverage Shares single-stock funds that use derivatives for 2X daily exposure; trading was scheduled to end October 19, 2026, with liquidation on October 22.
The proliferation of new ETFs may give investors more choices, but it could also make selection harder for retirement savers and retail investors. Closures of niche leveraged funds may force holders to sell at uncertain times, and liquidation payouts could create taxable events in taxable accounts. Advisers and brokers may need to spend more time explaining product durability and tax consequences, while issuers face pressure to prove that new funds can attract lasting assets.