PT - JOURNAL ARTICLE AU - Nazli Sila Alan AU - John B. McDermott AU - Michael Puleo TI - ETN Closures: An Empirical Analysis AID - 10.3905/jbis.2022.1.003 DP - 2022 Jul 12 TA - The Journal of Beta Investment Strategies PG - jbis.2022.1.003 4099 - https://pm-research.com/content/early/2022/07/12/jbis.2022.1.003.short 4100 - https://pm-research.com/content/early/2022/07/12/jbis.2022.1.003.full AB - We investigate the determinants of exchange-traded-note (ETN) closures using the full sample of ETNs listed in the CRSP Database. Examining a total of 356 unique ETNs between 2006 and 2019, we document 172 ETN closures (a 48% aggregate failure rate). We find that credit quality of the issuing bank and assets under management most meaningfully explain ETN closures, both are significantly negatively related to the likelihood of closure. We also find that leveraged, inverse, actively managed, and newer ETNs each face higher failure rates. Counterintuitively, we find neither strong nor expected associations between prior ETN returns, volatility, and closure likelihood.