Group 1 - Low-cost ETFs require revenue generation to cover costs, leading to regular ETF closures due to insufficient assets [1] - A significant percentage of ETFs are at risk of closure, but investors typically do not lose their investments upon closure [1][2] - For each high-closure-risk ETF, there are usually larger, more viable alternatives available [2] Group 2 - Upon the decision to delist or liquidate an ETF, a prospectus supplement will announce the last trading date and liquidation date [3] - The fund will halt creations and prepare to convert to cash, causing performance divergence from the underlying index [3][4] - Indicative net asset value (iNAV) will continue to be published, and it is advisable to sell shares before the last trading day [4] Group 3 - Liquidation typically results in cash distributions equal to NAV, making it less cumbersome than delisting [5] - If an ETF delists without liquidating, investors must trade over the counter, which is generally more complicated and costly [6] Group 4 - ETF closures can lead to reputation risk for advisors, as recommending a fund that closes can result in difficult conversations with clients [7] - Reinvestment risk arises when an ETF delists or liquidates, requiring investors to find new investment opportunities for their cash-equivalent NAV [7]