September 21, 2006 at 12:22 pm by Tom Lydon
Last week the SPDR O-Strip (OOO) exchange traded fund ceased trading, the first time in more than three years an ETF closed its doors. David Hoffman of Investment News reports on the closing and any other possible ETF closings.
OOO was launched two years ago, but only had about $5 million in total assets when liquidated. This won’t be the last ETF to go, its going to be part of the normal progression of the market as the expansion of ETF offerings continues.
If lack of assets is the reason for the closing, then Hoffman points out there are many ETFs in the same situation. It isn’t just the lack of assets, but also the fact that OOO was an unusual product and retail investors didn’t understand it.
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