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. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
  2. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  4. Diversification

    A risk management technique that mixes a wide variety of investments ...
  5. Average Daily Trading Volume - ...

    The average amount of individual securities traded in a day or ...
  6. Intelligent ETF

    An exchange-traded fund (ETF) that employs an active investment ...
Related Articles
  1. 5 ETFs Flaws You Shouldn't Overlook
    Mutual Funds & ETFs

    5 ETFs Flaws You Shouldn't Overlook

  2. 4 Ways To Use ETFs In Your Portfolio
    Mutual Funds & ETFs

    4 Ways To Use ETFs In Your Portfolio

  3. Did ETFs Cause The Flash Crash?
    Mutual Funds & ETFs

    Did ETFs Cause The Flash Crash?

  4. The Benefits Of ETF Investing
    Options & Futures

    The Benefits Of ETF Investing

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center