XShares Advisors says the board of directors of its flagship ETF family, HealthShares, has approved a reorganization of 19 HealthShares ETFs, which includes liquidating 15 funds.
The redesigned HealthShares suite of ETFs will include four of the current HealthShares ETFs — each of which is expected to carry a significantly lower expense ratio – as well as the closing of 15 HealthShares ETFs and the expected introduction of new HealthShares ETFs in the coming months. Changes in the composition of the proprietary HealthShares indexes will result in the remaining HealthShares ETFs holding a greater number of constituent companies and generally higher minimum capitalization requirements than before.
“Health care and life sciences remain the most exciting sectors for investment in the global economy,” says Joseph L. Schocken, chairman and interim chief executive officer of XShares Group, Inc., parent company of XShares Advisors. “We believe that significant, untapped demand exists for specialized health care investment vehicles that focus on the innovation taking place outside the sector’s large-cap and mega-cap companies.”
After taking a long, careful look at the HealthShares ETFs and the health care sector, these strategic redesigns reflect a sharper differentiation in the investment rationales of the continuing HealthShares ETFs. “In addition,” continues Schocken, “we also pared back those ETFs that didn’t resonate with investors. We expect these changes will make HealthShares ETFs more attractive to a wider array of individual and institutional investors.”
The following HealthShares ETFs will keep trading:
– HealthShares Cancer Exchange Traded Fund (HHK)
– HealthShares European Drugs Exchange Traded Fund (HRJ)