Guggenheim Investments is closing up shop on eight exchange traded funds in March. This will allow the provider to focus more energy and resources on funds that have attracted the most demand.
“Guggenheim Investments remains committed to the U.S. ETP business,” William Beldon, head of product development, said. “As a leader in the market we are dedicated to providing high quality investment solutions for our clients,” he said in a press release. [Emerging Market Currency ETFs]
The last day for trading is March 23,2012 on the NYSE Arca for the following funds:
- CurrencyShares Russian Ruble Trust (NYSEArca: FXRU)
- CurrencyShares Mexican Peso Trust (NYSEArca: FXM)
- Guggenheim EW Euro-Pacific LDRs ETF (NYSEArca: EEN)
- Guggenheim International Small-Cap LDRs ETF (NYSEArca: XGC)
- Guggenheim Ocean Tomo Growth Index ETF (NYSEArca: OTR)
- Guggenheim Ocean Tomo Patent ETF (NYSEArca: OTP)
- Guggenheim Sector Rotation ETF (NYSEArca: XRO)
- Rydex MSCI All-Country World Equal Weight ETF (NYSEArca: EWAC)
Together, the Claymore ETF Trust, Rydex ETF Trust and the Claymore ETF Trust 2 decided to liquidate these 8 ETFs. The total in assets for all 8 funds is around $105 million, less than 1% of Guggenheim’s assets at $11.9 billion, according to the press release. [Smartening Up Your Portfolio with Smart ETFs]
Guggenheim remains the eighth largest ETF provider and is committed to their line-up of about 72 ETPs. [ETF Chart of the Day: Equal-Weighted Funds]
The ETF industry has let funds close up shop at a rate of 2% per year, and has been up to 6% over the past few years, reports Brendan Conway for Barron’s. A guideline for ETF assets is that a fund needs about $50 to $100 million in assets under management to cover a single funds expense. Conway reports that about 53% of all U.S. listed ETFs manage less than $50 million, as of December 2011.
Tisha Guerrero contributed to this article.
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.