Comments on: Don’t Let ETF Closings Give You a Case of the Mondays http://www.etftrends.com/2008/07/dont-let-etf-closings-give-you-a-case-of-the-mondays.html Keeping a grip on exchange traded funds (ETFs) Sat, 21 Nov 2009 23:28:06 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Tom Lydon http://www.etftrends.com/2008/07/dont-let-etf-closings-give-you-a-case-of-the-mondays.html/comment-page-1/#comment-942 Tom Lydon Mon, 07 Jul 2008 19:29:58 +0000 http://etftrends.com.s14057.gridserver.com/2008/07/dont-let-etf-closings-give-you-a-case-of-the-mondays.html#comment-942 Once an ETF closing is announced, they trade as they normally would, and each closing follows a standard procedure. Once the fund is officially closed, all trading stops and the provider sells all the holdings in the fund. If you're holding an ETF when it closes, you run the risk of those securities going up or down in value at the time of the sale. UCR and DCR didn't have closing procedures that were different from the norm - the closings were announced, then trading ceased awhile later and assets were liquidated among shareholders. Once an ETF closing is announced, they trade as they normally would, and each closing follows a standard procedure. Once the fund is officially closed, all trading stops and the provider sells all the holdings in the fund. If you’re holding an ETF when it closes, you run the risk of those securities going up or down in value at the time of the sale.

UCR and DCR didn’t have closing procedures that were different from the norm – the closings were announced, then trading ceased awhile later and assets were liquidated among shareholders.

]]> By: Anonymous http://www.etftrends.com/2008/07/dont-let-etf-closings-give-you-a-case-of-the-mondays.html/comment-page-1/#comment-940 Anonymous Mon, 07 Jul 2008 14:29:27 +0000 http://etftrends.com.s14057.gridserver.com/2008/07/dont-let-etf-closings-give-you-a-case-of-the-mondays.html#comment-940 How well do ETFs historically track its NAV once a closing is announced? Also, is the procedure the same for ETNs? Finally, is there a list of ETFs (it would be nice if you could compile such a list) that have unusual closing procedures and terms such as UCR and DCR? How well do ETFs historically track its NAV once a closing is announced? Also, is the procedure the same for ETNs? Finally, is there a list of ETFs (it would be nice if you could compile such a list) that have unusual closing procedures and terms such as UCR and DCR?

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