ALPS ETF Trust plans to fold the Jefferies TR/J CRB Global Agriculture Equity Index Fund (NYSEArca: CRBA) and Jefferies TR/J CRB Global Industrial Metals Equity Index Fund (NYSEArca: CRBI). The two commodities focused ETFs will close to new investors on December 22, 2011 and will liquidate on December 28, 2011.
ALPS ETF Trust's Board of Trustees' decision was made after consultation with ALPS Advisors, Inc., the investment advisor to the funds. The Board considered current market conditions as well as prospects for growth in the Funds' assets in the foreseeable future. The Board determined that it was advisable and in the best interests of the Funds and their shareholders to liquidate the Funds.
Since the beginning of the year, commodities (NYSEArca: GCC) as a group are down around 9% while stocks of commodity producers (NYSEArca: HAP) have declined 13.40%.
The last day of trading on the NYSE Arca for CRBA and CRBI is on Thursday, December 22, 2011. Beginning immediately through December 27, 2011, the funds will be in the process of closing down and liquidating their portfolios.
From December 23, 2011 to December 27, 2011, shareholders may be able to sell their shares to certain broker-dealers, but there can be no assurance that there will be a market for the Funds. Any person holding shares in the Funds as of the liquidation date of December 28, 2011 will receive a cash distribution equal tothe net asset value of their shares as of that date. Shareholders receiving this cash distribution will not incur transaction fees in connection with this distribution or the liquidation of their shares in the Funds. However, a portion of the distribution may represent an ordinary income dividend or a capital gain distribution.
The liquidation process for the Jefferies ETFs will result in the Funds not tracking their underlying indexes and their cash holdings increasing, which may not be consistent with the Funds' investment objectives and strategies.
For commodity focused investors, ALPS also offers the TR/J CRB Global Commodity Equity Index Fund (NYSEArca: CRBQ) and the TR/J CRB Wildcatters Energy & Production Equity ETF (NYSEArca: WCAT).
Revamped China ETF is Launched
Global X Funds re-launched the Global X NASDAQ China Technology ETF (NasdaqGM: QQQC) on the NASDAQ. The fund was previously named the Global X China Technology ETF (Ticker: CHIB).
QQQC tracks the NASDAQ OMX China Technology Index, which lists ASM Pacific Techno, Lenovo Group, and BAIDU as the three largest holdings within the underlying index.
The stocks within QQQC have their main businesses in the following technology sectors: computer services, Internet, software, computer hardware, semiconductors, and telecommunications equipment. Altogether, QQQC holds 30 Chinese technology stocks.
QQQC's annual expense ratio is 0.65%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.