Unloved ETF

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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.

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  2. What are some popular ETFs that track the industrial sector?

    As of April 2015, some of the most popular and best performing exchange-traded funds (ETFs) that track the industrial sector ... Read Full Answer >>
  3. What is the difference between an ETF's net asset value (NAV) and its market price?

    An exchange-traded fund's market price is the price at which shares in the ETF can be bought or sold on the exchanges during ... Read Full Answer >>
  4. How can I calculate the tracking error of an ETF or indexed mutual fund?

    Calculate the tracking error of an indexed exchange-trade fund (ETF) or mutual fund by doing a standard deviation percentage ... Read Full Answer >>
  5. How do you calculate the excess return of an ETF or indexed mutual fund?

    For exchange-traded funds (ETFs), the excess return should be equal to the risk-adjusted (or beta) measure that exceeds the ... Read Full Answer >>
  6. Does an ETF pay out the full dividend that comes with the stocks held in that ETF?

    Exchange-traded funds (ETFs) pay out the full dividend that comes with the stocks held within the funds. To do this, most ... Read Full Answer >>
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