What Makes an ETF Successful?
Fortunately for investors, there is more than one path to ETF success


Exchange-traded funds have exploded in popularity, with the industry now reaching the milestone of $10 trillion in assets.
Aniket Ullal, head of ETF research and analytics at CFRA Research, recently examined the ETFs launched over the 10-year period ending June 30, 2024, to identify trends among the successes. Ullal did not look at the funds’ returns, so “success” here is defined in terms of gathering enough assets to survive and, for many, thrive — which is, after all, ultimately what determines the selection available to investors.
He found that of the 3,426 ETFs launched (not including mutual fund conversions), only 38% were viable, meaning they remained listed and exceeded $100 million in peak assets. Some 10% of the listings crossed the $1 billion mark in assets at some point over the decade. Among his other observations:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Pioneers are rewarded. Among the most successful launches of the decade (again, in terms of assets) were iShares Bitcoin Trust (IBIT) and JPMorgan Equity Premium Income ETF (JEPI).
Though not the first entrants in their nascent categories, they had cost advantages and well-heeled sponsors.
The JPMorgan fund, which uses a covered-call options strategy that invests in high-quality stocks and then sells options against those holdings to boost income, has garnered $36 billion in assets (as of October 31) since its May 2020 launch, making it the most popular ETF of the decade.
The path to $1 billion varies. The Bitcoin Trust ETF reached $1 billion in just seven days; Pacer U.S. Cash Cows 100 (COWZ), which targets companies with high free cash flow, took almost five years to reach $1 billion.
Tapping into the zeitgeist works… JPMorgan Ultra-Short Income (JPST) and iShares 0-3 Month Treasury Bond (SGOV) prospered when investors sought funds that are less sensitive to interest rate moves after the Federal Reserve began an aggressive rate-hiking cycle. Invesco NASDAQ 100 ETF (QQQM), a more recent version of the parent fund (QQQ), grew as investors looked for a proxy for the Magnificent Seven stocks.
…Until it doesn’t. Ark Innovation (ARKK) rode the wave of ultra-high-growth stocks in 2020 and 2021 until it became the largest actively managed ETF at the time, reaching peak assets of $28.2 billion. A subsequent correction in Tesla and other highfliers, however, led to a significant decline in Innovation’s assets, which stood at just $5.4 billion recently.
Bonds have beaten stocks. Bond ETF launches have been more successful over the decade, with 50% reaching the $100 million viability threshold, compared with 36% for stock-focused ETFs. Success rates for commodity and alternative ETFs were much lower.
Looking ahead, Ullal says managers are increasingly launching more complex products, such as defined-outcome ETFs, which offer investors protection from losses in exchange for capping potential gains; actively managed stock funds; and ETFs tied to specific themes. “I’m always amazed by how people come up with new ideas,” he says.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
Keep Tax Collectors at Bay with Muni Bond Funds
Municipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the Fairway
Think of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
Just Sold Your Business? Avoid These Five Hasty Moves
If you've exited your business, financial advice is likely to be flooding in from all quarters. But wait until the dust settles before making any big moves.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Bonds Right Now?
Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.