Bloomberg Law
March 31, 2023, 3:55 PM

Gen Z, Memes and NFTs Kicked to the Curb in Fad-ETF Purge (1)

Peyton Forte
Bloomberg Editorial

From meme stocks to crypto-themed products, exchange-traded fund closures are mounting in what were once some of the trendiest areas of the $6.8 trillion industry.

Thematic ETFs that launched to target the buzziest market themes of the past two years are closing at a rapid pace, as rising interest rates hammer performance and send investors in search of safer options. These niche strategies are now increasingly looking like fads, and many have assets of less than $30 million and negative returns since inception, criteria Bloomberg Intelligence says puts them at greater risk of shutting down.

Many feature technology names with ...

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