Global X Funds, the New York-based fund provider known for niche
ETF strategies, today, as previously announced, closed down four of
its ETFs that have failed to attract assets. The four funds
represented less than 1 percent of the firm's total assets under
The four funds stopped trading today-Oct. 18-and will be
completely liquidated by Oct. 26, a Global X representative told
IndexUniverse. The ETFs and their respective assets as of
Wednesday, Oct. 17, include:
- Global X Aluminum ETF (NYSEArca:ALUM), $2.35 million in
- Global X Auto ETF (NYSEArca:VROM), $2.59 million
- Global X Nasdaq 500 ETF (NasdaqGM:QQQV), $1.49 million
- Global X Nasdaq 400 Mid Cap (NasdaqGM:QQQM), $1.42
The funds are the latest to join a growing ETF graveyard that
has most recently claimed Scottrade's FocusShares ETFs and
Russell's entire lineup of ETFs, with the exception of one
actively managed fund.
While ETF closures are to be expected as the market matures and
more funds are launched vying for the same pool of investor assets,
the pace of fund liquidation year-to-date is exceeding last year's
pace. Since the beginning of the year, 86 ETFs and ETNs have
already been shut down, a significant jump from the 30 funds that
closed in 2011.
Back in December, Global X closed eight ETFs that had
gathered less than $2 million each by that time, following other
fund providers such as IndexIQ and Jefferies that also liquidated
funds late last year.
Investors still holding on to shares of any of the now-closed
Global X funds on Oct. 26 will receive a cash distribution equal to
the net asset value of those shares, and they will not be
responsible for any fees other than brokerage fees and expenses.
Global X will bear all costs associated with the liquidation
Global X is the 19
-largest ETF provider in the U.S., with some $1.46 billion in total
assets under management split among 40 ETFs.
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