ALPS, one of the largest distributors of exchange traded funds, will shutter four of its own ETFs due to low assets.
In a filing with the Securities and Exchange Commission, ALPS said it will close the ALPS/GS Momentum Builder Growth Markets Equities and U.S. Treasuries Index ETF (NYSEArca: GSGO), the ALPS/GS Momentum Builder Asia ex-Japan Equities and U.S. Treasuries Index ETF (NYSEArca: GSAX), the ALPS/GS Momentum Builder Multi-Asset Index ETF (NYSEArca: GSMA) and the ALPS/GS Risk-Adjusted Return U.S. Large Cap Index ETF (NYSEArca: GSRA).
Combined, the four ETFs have about $10.5 million in assets under management.
“From August 13, 2014 through August 28, 2014, the Funds will be in the process of closing down and liquidating their portfolios. This process will result in the Funds not tracking their underlying indexes and their cash holdings increasing, which may not be consistent with the Funds’ investment objectives and strategies,” according to the filing.
The funds will close to new investors on Aug. 25.
The four ETFs, which follow momentum strategies courtesy of Goldman Sachs, are “designed to provide exposure to price momentum equity and U.S. fixed income markets by reflecting the combination of underlying ETF weightings that provide the highest six-month historical return, subject to the constraints on maximum and minimum weights and volatility controls,” according to ALPS.
Three of the four funds to be shuttered were pricy by the standards of ETFs with total expense ratios ranging from 0.95% to 1.18%.
News of the ALPS closures was initially reported by ETF.com, which notes the closures bring the 2014 total of shuttered ETFs to 23. Seventy U.S.-listed exchange traded products were closed last year.
ETF Trends editorial team contributed to this post.