VettaFi’s Murphy Wins Bloomberg’s ETF IQ Challenge

VettaFi Director of Research Cinthia Murphy appeared on Bloomberg’s ETF IQ to participate in this week’s addition of “IQ Test,” answering questions about market trends and new ETFsKey Takeaways VettaFi Director of Research Cinthia Murphy won the latest Bloomberg “IQ Test” by correctly answering every question regarding market trends and new ETFs. The market for new ETF launches is highly competitive, with 86% of funds launched this year currently trading below break-even. Due to the record pace of new launches, ETFs closed in 2026 had an average market lifespan of only 2.3 years, down from 3.6 years in 2025, and 4.8 years in 2024. Think you know the ETF market inside and out? VettaFi’s Murphy set the bar high, correctly answering all three questions on Bloomberg ETF IQ’s latest “IQ Test.” Follow along with each question below to see if you can match her perfect score.Question 1: The Rise of 351 Conversions“The MIG Core ETF (ticker MIGO), a 351 conversion, was seeded by the family behind which snack brand: A) Hot Pockets, B) Chex Mix, C) SkinnyPop, or D) Pirate’s Booty?” Faced with a four-way choice of iconic pantry staples, Murphy, along with Bloomberg’s Scarlet Fu and Eric Balchunas all correctly selected Hot Pockets as their answer.  The MIG Core ETF (MIGO) represents a prime example of a Section 351 exchange, a rule that allows investors to transfer appreciated securities into a newly formed ETF without triggering capital gains tax at the time of transfer. To meet the requirements for a Section 351 exchange, transferors must own 80% or more of the total voting power and total shares immediately post-exchange. Individual portfolio constituents cannot exceed 25% of the portfolio’s value, with the top five issuers capped at 50% of the portfolio’s value. The transferor’s original cost basis and holding period are carried directly into the new shares.   Investor demand for products created through the Section 351 exchange is growing, with 105 ETFs on the market created through 351 exchanges. Collectively these funds held $22.1 billion in assets at launch. They helped defer at least $6.5 billion in embedded capital gains tax, according to Bloomberg News analysis. Question 2: New ETF Launches Below Break-Even“What percentage of ETFs launched this year are still below break-even today: A) 12%, B) 44%, C) 78%, D) 86%?” When asked the question, Fu and Balchunas took a more conservative estimate, speculating that 78% of ETF launches this year are still below break-even. Murphy, on the other hand, took a more aggressive estimate, correctly pointing to 86% as the answer.  The first half of 2026 set a historic pace for ETFs, putting launches and inflows on track to break all-time annual records by the end of the year. With an influx of new ETFs in the market, the competition for investor capital has increased significantly.  Recently launched products such as Defiance KSM TipRanks Analyst ETF (RANK) and Porter & Company Porter Portfolio Index ETF (PCPP) embody this environment. RANK aims to leverage Wall Street’s highest-rated analyst consensus data to capitalize on U.S. market momentum by tracking the TipRanks US Momentum Analyst Index. Since RANK’s inception in late June, the fund has received inflows of $8.60 million.  PCPP offers a rule-based strategy that balances four return drivers in the spirit of Harry Browne’s "permanent portfolio” from the 1980s. The fund allocates 25% of the portfolio to property & casualty insurance companies, 25% to capital-efficient equities, 25% to hard assets such as bitcoin and precious metals, and 25% to cash-like investments. Tracking the Porter & Co. Porter Portfolio Index, PCPP has recorded inflows of $16.21 million since its inception in May.  While new strategies like RANK and PCPP highlight the growing level of innovation in the ETF market this year, they also demonstrate the difficulty of capturing inflows with new product launches. Murphy’s answer shows the steep race to gather assets that ETF issuers face to go beyond break-even when launching new ETFs.Question 3: Average Lifespan for Closed ETFs“In 2026, how long had the average ETF been on the market when it closed: A) 2.3 Years, B) 4.1 Years, C) 3.8 Years, D) 5.4 Years?” In a moment of unanimous agreement, Murphy, Fu, and Balchunas correctly selected 2.3 years as the average lifespan for an ETF that has closed in 2026.  The average lifespan of a liquidated ETF was an average of 3.6 years in 2025, down from 4.8 years in 2024, according to Bloomberg reporting. The decline in lifespan is attributed to the record number of ETF launches over the past year, which has made it increasingly difficult for new strategies to attract assets.  With a surge in new launches on the market, asset managers are increasingly liquidating ETFs that have not gathered sufficient capital. That allows managers to recycle resources and administrative cost into current products and future launches.  From tracing the Hot Pockets family office fortune behind MIGO to calling out the average 2.3 year lifespan for closed funds, Murphy delivered a flawless performance. She correctly answered every question, ultimately winning the Bloomberg “IQ Test”.  For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for RANK and PCPP, for which it receives an index licensing fee. However, RANK and PCPP are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of RANK or PCPP.