ETF Trends
ETF Trends

Let’s get this straight: No target-date exchange traded funds (ETFs) are closing.

However, portfolio provider XTF Advisors is shutting down its lineup of target-date ETF portfolios.

Since Claymore’s announcement that it’s booting 11 of its weakest-performing ETFs, you’ll forgive the alarm these days when investors see "closing" and "ETFs" in the same sentence.

We repeat: No other ETFs are actually closing this time.

"No animals have been injured in this movie," says Jeffrey Feldman, chairman of XShares. XShares has nothing to do with XTF, but somehow in the spreading of the news, their similar-sounding names were linked. XShares currently offers the only target-date ETFs in the marketplace through its line of TDAX products.

Feldman set the record straight: "They went out of business for reasons totally unrelated to ETFs. There was an inability to raise capital. They had a very good business model, but they never built or managed ETFs."

Meanwhile, State Street Global Advisors filed with the Securities and Exchange Commission (SEC) to launch a series of actively managed target-date ETFs, reports Stacy Schultz for On Wall Street. They’re going to be a "fund of funds" and hold other ETFs, according to Matthew Hougan for Index Universe.

The XShares line consists of ETFs of stocks and bonds – analogous but different products, Feldman says.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.