Zombie ETF
Categories: Investing, Mutual Funds, Stocks, Index Funds
If you're a zombie and you know it, clap your hands...
Zombie ETFs are like the elephant in the room at the ETF party. They’re ETFs that just aren’t really getting any action. They’re not seeing any trading volume, and nobody is really investing in them (okay, maybe a few hopefuls, but they will soon have their eyes open).
When this happens, it’s likely they’ll be canceled/cut/deleted/liquidated/whatever-you-want-to-call-it. Just like if a new business isn’t able to get any clients, it folds from lack of profitability. Zombie ETFs are dead-ETFs-walking. Dead ETFs tell no tales.