ETF managers are reshuffling their investment menus to better reflect investor interest and demand. And ETFs with too few assets are on the chopping block.
Global X Funds is planning to liquidate eight Global X Funds ETFs. All of the funds are stock ETFs covering emerging markets to narrow industry sectors.
The following Global X ETFs set for liquidation are:
- Global X Russell Emerging Markets Growth ETF (EMGX)
- Global X Russell Emerging Markets Value ETF (EMVX)
- Global X Mexico Small-Cap ETF (MEXS)
- Global X Oil Equities ETF (XOIL)
- Global X Farming ETF (BARN)
- Global X Fishing Industry ETF (FISN)
- Global X Food ETF (EATX)
- Global X Waste Management ETF (WSTE)
The funds listed above will close to new investors and cease trading on the NYSE Arca at the end of the trading day on Feb. 16 and will liquidate on Feb. 27.
The Board of Trustees of Global X Funds unanimously determined that it was in the best interests of the Funds and their shareholders to liquidate the Funds.
From Feb.17 through Feb. 27, the funds will be in the process of closing down and liquidating their portfolios. During this time, the funds will not be pursuing their stated objectives and strategies and tracking their underlying indexes and their cash holdings will increase.
Also in this 10-day period, 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 during this period.
Any person holding shares in the funds as of the liquidation date of Feb. 27 will receive a cash distribution equal to the 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.
Closing 3 Asia ETFs
In other ETF news, IndexIQ folded three Asia-focused stock ETFs. The IQ Taiwan Small Cap ETF (TWON), IQ Hong Kong Small Cap ETF (HKK) and the IQ Japan Mid Cap ETF (RSUN) had their final trading day on Dec. 23.
Shareholders who did not sell their fund shares by this date were expected to have their shares automatically redeemed on Dec. 30, the funds’ last day of operations.