Lipper identifies ETF “death list”

An analysis of the European exchange-traded fund (ETF) industry has uncovered 241 funds Lipper has described as being on a “death list”.

An estimated 14% of the ETFs registered for sale in Europe may be under review for profitability reasons by fund promoters, potentially placing them on the list, according to Detlef Glow, Lipper’s head of Europe Middle East & Africa research.

Glow explains: “Despite the number of sub-scale funds, with new ETF launches continuing there is currently no foreseeable trend towards consolidation in the ETF industry.”

The funds in question are over three years old but have less than €100m (£81m) in assets. Despite these fresh concerns, the ETF industry demonstrated a strong performance in the first quarter, following weak growth of 3.75% in 2011. (article continues below)

Assets under management rose by 8.7% in the first quarter of 2012, to €250 billion.