The U.S. ETF industry added another reminder last week that not every fund launch becomes a lasting success.
Two issuers, Defiance ETFs and YieldMax ETFs, announced plans to liquidate a combined six ETFs, highlighting the growing pressure on smaller and niche products in an increasingly crowded ETF landscape.
Defiance, in partnership with Tidal Financial Group, said it will close the Defiance Daily Target 2X Long B ETF (NASDAQ:BU) and Defiance Daily Target 2X Long CVNA ETF (NASDAQ:CVNX). The final day of trading for both funds will be June 8, with liquidation scheduled for June 12.
Separately, YieldMax announced plans to liquidate four ETFs: the YieldMax ABNB Option Income Strategy ETF (NYSE:ABNY), YieldMax DIS Option Income Strategy ETF (NYSE:DISO), YieldMax Dorsey Wright Featured 5 Income ETF (NASDAQ:FEAT), and YieldMax Dorsey Wright Hybrid 5 Income ETF (NASDAQ:FIVY). Trading in these funds is expected to cease on June 15.
The closures arrive as the ETF market continues to grow at a record pace. According to recent data from FactSet, the number of U.S.-listed ETFs reached 5,072 as of March 31, more than double the count from a decade ago. Fund launches remain near all-time highs, fueled by strong investor demand for thematic, leveraged, income-focused and single-stock ETF strategies.
