Another set of exchange traded funds (ETFs) is going to join the casualty list soon.
FocusShares Trust is going to close up four of their funds as of Oct. 20, 2008. Their last day of trading will be on Oct. 17.
This brings the total number of closings in 2008 to 40.
Blame a lack of traction in the market, says Eric Rosenbaum for Index Universe. Don’t count FocusShares out just yet, though. Though calls weren’t returned, there are several ETFs currently in the pipeline and in various stages of registration with the Securities and Exchange Commission (SEC).
There’s a first-mover advantage when it comes to ETFs. Pair that up with a troubled economy, and assets just aren’t flowing into ETFs as they normally would be. When the markets turn around again, though, investors will be back.
The following ETFs are going to be dissolved:
- FocusShares ISE Homebuilders Index (SAW)
- FocusShares ISE SINdex Fund (PUF)
- FocusShares ISE-CCM Homeland Security Index Fund (MYP)
- FocusShares ISE-Revere Wal-Mart Supplier Index Fund (WSI)
The four funds had gathered a total of $17 million in assets at the end of September, and had net outflows year-to-date of $5 million.
The total number of exchange traded products stands at 813.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.