FaithShares, the Tulsa, Okla.-based exchange-traded fund firm that first began rolling out funds that screened securities based on various Christian values late in 2009, shuttered four of its five ETFs after the funds failed to attract significant assets.
The four shuttered funds, which will stop trading July 15, are:
- FaithShares Baptist Values Fund (NYSEArca:FZB)
- FaithShares Catholic Values Fund (NYSEArca:FCV)
- FaithShares Lutheran Values Fund (NYSEArca:FKL)
- FaithShares Methodist Values Fund (NYSEArca:FMV)
The four that the company shut, as their names suggest, were linked to particular pockets of the Christian world, while the remaining fund, the FaithShares Christian Values Fund (NYSEArca:FOC), is focused on Christian values in general, according to a weekly report from Morgan Stanley Smith Barney on the U.S. ETF landscape that cited a regulatory filing. An official at FaithShares confirmed the content of the report.
The closings are the latest sign that too few investors are interested in overly specific investment themes to sustain narrowly focused lines of products. Princeton, N.J.-based Javelin Investment Management shut its Shariah-focused JETS Dow Jones Islamic Market International Index Fund (NYSEArca:JVS) last October after it too had failed to attract significant assets.
FaithShares had a total of $10.6 million in assets as of June 3, according to data compiled by IndexUniverse.
At that time, its remaining fund, FOC, had almost $3.1 million; the Baptist fund, FZB, had almost $1.5 million; the Catholic ETF, FCV, had $3.1 million; the Lutheran fund, FKL, had almost $1.5 million; and the Methodist ETF, FMV, had just over $1.5 million.
According to the filing with the Securities and Exchange Commission, the last day of trading for the closing ETFs will be July 15, and shareholders may sell their shares through a broker in the standard manner through that date.
The regulatory paperwork also said that between July 20 and July 27, the funds will liquidate their assets. Shareholders remaining in any of the closing funds as of July 27, will have their shares redeemed automatically on that date and receive, in cash, the net asset value of their shares as of the close of business on July 27. This amount includes any accrued capital gains and dividends, the SEC filing said.
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