AdvisorShares to Shutter SectorSAM ETF

AdvisorShares, the ETF issuer known for its lineup of actively managed funds, said today it will close the AdvisorShares Rockledge SectorSAM ETF (NYSEArca: SSAM). June 14 will be the last trading day for the AdvisorShares Rockledge SectorSAM ETF and proceeds remaining in the fund after that date will be distributed to shareholders on June 21, the firm said in a statement.

“We carefully review the entire AdvisorShares actively managed ETF suite on an ongoing basis. After consulting with the Rockledge team, we determined that it was in the best interest of shareholders to close SSAM due to its performance and associated costs,” said AdvisorShares CEO Noah Hamman in the statement.

SSAM was launched in January 2012 as a long/short sector ETF fund of funds. The fund, which has $1.18 million in assets under management, currently holds long positions in four sector SPDRs ETFs and short positions in five SPDRs. [New ETFs For 2012]

Current long positions in SSAM include the Energy Select Sector SPDR (NYSEArca: XLE) and the Industrial Select Sector SPDR (NYSEArca: XLI). The ETF currently has short positions in the Financial Select Sector SPDR (NYSEArca: XLF) and the Health Care Select SPDR (NYSEArca: XLV), according to AdvisorShares data.

Following nearly 100 ETF closures last year, a record high, the pace of closures this has been steady as well as fund sponsors part ways with low-asset, low-volume products. Earlier this month, UBS-Keyinvest recently announced that it will redeem seven of its E-TRACS exchange traded notes that have struggled to gain investment interest. The number of ETF closures this year hovers around 30. [UBS to Close Seven ETNs]