However, investors were not impressed as the fund experienced steady outflows over the past two years – ALT had $141 million in assets in 2011, but it now holds $57.6 million.
This is iShares’ first fund closure since 2002. The firm closed two sector products based on chemical and internet industries and one linked to the S&P/TSE 60, which covers Canadian stocks, arguing that the products were too narrow or duplicated existing funds.
Some have pointed out that smaller ETFs tend to get the axe first, but ALT was not iShares’ smallest ETF. Of the firm’s 281 ETFs, 75 funds have less assets than ALT, with 32 under $10 million in assets under management.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.