Some more exchange traded funds (ETFs) are closing their doors.
This time, it’s five Treasury bond ETFs that launched last June:
- Ameristock/Ryan 1 Year Treasury (GKA)
- Ameristock/Ryan 2 Year Treasury (GKB)
- Ameristock/Ryan 5 Year Treasury (GKC)
- Ameristock/Ryan 10 Year Treasury (GKD)
- Ameristock/Ryan 20 Year Treasury (GKE)
The ETFs were based on fundamentally weighted indexes created by Ron Ryan of Ryan ALM. Ryan told us earlier this month that he believes fundamentally weighted bond indexes are the solution to problems with equal-weight bond indexes. In total, the five funds had $13 million in assets, says Murray Coleman for Index Universe.
The last day of trading will be June 10, and from June 11 to June 19, they will be liquidated.
This is the second major ETF closing. The first came in February, when Claymore shut the door on 11 funds.
We predicted that this wouldn’t be the first round of fund closings, and there will likely be more down the road. It’s a natural thing in any industry, not just ETFs: some products take off, others aren’t always going to be accepted by the marketplace.
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.