Comments on: The Great ETF Flood

By: Tom Lydon

Tom Lydon — Fri, 18 May 2007 16:48:12 +0000

In most cases, early on the provider of an ETF will subsidize expenses for the creation and maintenance. They do this with the idea there will be a certain demand for the ETF. If that demand is not met, over time the provider faces the challenge of making a decision of whether to keep an ETF open with minimal assets.

By: Ira Krakow

Ira Krakow — Thu, 17 May 2007 01:51:21 +0000

What would make an ETF close?

By: Michael J Bommarito II

Michael J Bommarito II — Wed, 16 May 2007 19:16:49 +0000

Dave, I definitely agree. In fact, instead of high daily trade volumes, why not high daily dollar volumes? I've compiled a list of the top 95 ETFs and CEFs that have traded at least one billion USD so far this year if you're interested: http://www.etf-central.com/most-dollar-liquid-etfs-and-cefs-ytd-37

By: Matt

Matt — Wed, 16 May 2007 16:59:29 +0000

I think the last ETF closing was in Setpember 2006. It was the SPDR O-Strip ETF. It liquidated with less than $5.07 million in assets.

By: Dave

Dave — Wed, 16 May 2007 15:57:41 +0000

There will be more consolidation! Stick to those ETFs that have high daily trade volumes and you should be OK.