Global X Funds, the New York-based fund provider known for niche
ETF strategies, on Oct. 18 is closing down four of its ETFs that
have failed to attract assets, which combined represent less than 1
percent of the firm's total assets under management.
The four funds will stop trading on Oct. 18 and be completely
liquidated by Oct. 26, a Global X representative told
IndexUniverse. The ETFs and their respective assets as of Friday,
Sept. 21, include:
- Global X Aluminum ETF (NYSEArca:ALUM), $2.4 million in
- Global X Auto ETF (NYSEArca:VROM), $2.7 million
- Global X Nasdaq 500 ETF (NasdaqGM:QQQV), $1.5 million
- Global X Nasdaq 400 Mid Cap (NasdaqGM:QQQM), $1.4
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
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 closed
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 had also been
liquidating funds late last year.
Investors still holding on to shares of any of the 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 process.
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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