Unloved ETF

AAA

DEFINITION of 'Unloved ETF'

An exchange-traded fund that has at least six months of trading history and where its last twenty trading sessions account for its lowest total dollar amount traded. Unloved ETFs may face shut down if they fail to attract enough investor interest to keep the funds competitive with other, more attractive funds.

INVESTOPEDIA EXPLAINS 'Unloved ETF'

Low investor interest in certain exchange-traded funds has ultimately led to these funds' closures. Often, these ETFs are based on ideas that are not appealing to a wide variety of investors, and, as a result, fail to gain any substantial market share. If a company decides to close one of its ETF offerings, investors can either wait for liquidation, at which point the fund firm closes the investors' accounts without charging a brokerage commission; or investors may choose to sell the ETF immediately. Some analysts advise selecting ETFs with at least $25 million in assets and sufficient investor interest.

RELATED TERMS
  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments ...
  3. Intelligent ETF

    An exchange-traded fund (ETF) that employs an active investment ...
  4. Average Daily Trading Volume - ...

    The average amount of individual securities traded in a day or ...
  5. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
  6. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
RELATED FAQS
  1. What are the differences between an MLP exchange traded fund (ETF) and an MLP exchange ...

    The main difference between a master limited partnership (MLP), exchange-traded fund (ETF) and an MLP exchange-traded note ... Read Full Answer >>
  2. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Investors use corporate bonds for a variety of reasons. These bonds can offer dependable income, safety, diversity, marketability ... Read Full Answer >>
  3. Which sectors have similar pros and cons to the drugs sector?

    In financial terms, the drug sector has a high level of risk and growth. It must gather a lot of up-front investment to drive ... Read Full Answer >>
  4. What is the best ETF for trading mid-cap stocks?

    Mid-cap stocks are those from companies with a market capitalization of between $2 billion and $10 billion. Exchange-traded ... Read Full Answer >>
  5. Which ETFs that track the insurance sector are most popular?

    The most popular ETFs that track the insurance sector are the SPDR S&P Insurance ETF (KIE), iShares US Insurance ETF ... Read Full Answer >>
  6. How can I profit from a decline of stock prices in the insurance sector?

    Some of the methods of profiting from a decline in the insurance sector are shorting insurance stocks, shorting insurance ... Read Full Answer >>
Related Articles
  1. Mutual Funds & ETFs

    5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.
  2. Mutual Funds & ETFs

    4 Ways To Use ETFs In Your Portfolio

    To take full advantage of these vehicles, you need to know how they can fulfill certain strategies.
  3. Mutual Funds & ETFs

    Did ETFs Cause The Flash Crash?

    On May 6, 2010, the DJIA plunged 998.5 points in twenty minutes. Find out more about what happened that day.
  4. Options & Futures

    The Benefits Of ETF Investing

    Exchange-traded funds provide unique opportunities for investors. Find out how.
  5. Mutual Funds & ETFs

    Dollar-Cost Averaging With ETFs

    If you are investing small amounts regularly into an exchange-traded fund, be sure to do it right.
  6. Mutual Funds & ETFs

    Introduction To Exchange-Traded Funds

    Get into ETFs and enjoy the benefits of a mutual fund with the flexibility of a stock.
  7. Mutual Funds & ETFs

    Why You May Want To Be (And Stay) In Bonds

    Bonds are complicated, and it’s easy to feel intimidated or confused. Fortunately, you don’t need to be a numbers geek to be an informed investor.
  8. Chart Advisor

    Commodity Traders are Watching These 3 Charts

    As we head towards the summer months, many commodity traders are looking to diversify their holdings and to protect themselves against inflation.
  9. Chart Advisor

    The Stock Market's Uptrend Is Set To Continue

    The most common debate amongst traders is when the prolonged uptrend across the financial markets will come to an end.
  10. Mutual Funds & ETFs

    How To Short The U.S. Bond Market

    The U.S. bond market has enjoyed a strong bull run over the past few years as the Federal Reserve has lowered interest rates to historic low levels.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center