Active ETF launches outnumber closures, Cerulli finds

Cerulli Associates reports that the number of exchange-traded funds rose from 2,692 in 2021 to nearly 5,000 by the end of 2025. Active ETFs accounted for 953 of the new strategies introduced in 2025, representing 84% of that year’s launches.

The 953 active ETFs introduced in 2025 exceeded the 797 launches recorded in 2021 and more than tripled the 308 active strategies launched in 2021, Cerulli found. The research firm also reported that 83% of ETF issuers plan to launch at least one active ETF in 2026.

On product development for transparent active ETFs, 94% of issuers are either developing (87%) or plan to develop (7%) such solutions. Nearly two in five issuers, 39%, intend to launch six or more transparent active ETFs, while 30% plan to add at least one passive cap-weighted product.

Cerulli’s data show closures have been concentrated in small, low-asset funds. Since 2021, more than 85% of ETF shutdowns involved products with assets under management below $50 million; that share rose to 92% in 2025. Defined outcome, leveraged and option income strategies account for nearly one-third of those subscale closures.

The firm reported providers have closed offerings that did not attract advisers and end investors and reallocated staff and capital to new products. In the survey, 94% of ETF issuers said they plan to close two or fewer transparent active ETFs this year, and all respondents expect to shutter two or fewer passive cap-weighted funds.

Kevin Lyons, senior analyst at Cerulli, noted: “The overall ETF ecosystem remains strong, with product development backed by tremendous flows to the structure and uptake across categories. In fact, 2025 marked the third straight year with a record number of new ETF launches.”

Cerulli also cited regulatory and industry changes that have made transparent active ETF structures more attractive to asset managers. The firm’s findings document continued product development alongside steady turnover of smaller strategies that have not reached scale.