Global X, the New York-based issuer of exchange trade funds best known for its unique lineup of income and international ETFs, said it will close two of its funds.
The issuer said it is closing the Global X Canada Preferred ETF (NYSEArca: CNPF) and the Global X Pure Gold Miners ETF (NYSEArca: GGGG). Though Global X did provide a reason for closing the funds, low assets and weak trading volume are the traits most often associated with ETF closures.
GGGG had just $4.7 million in assets under management as of Sept. 26 while CNPF had just $5.4 million. The funds combined represent less than 1% of the assets of the Global X Funds, said Global X in a statement.
CNPF and GGGG “will cease trading at the end of the trading day on October 16, 2014 and will liquidate on or around October 24, 2014. Any person holding shares in the Funds as of the liquidation date of October 24, 2014 will receive a cash distribution equal to the net asset value of their shares as of that date,” according to the statement.
News of the Global X closures brings this year’s ETF closure total to 47. Seventy U.S.-listed exchange traded products were closed last year.
Last month, BlackRock’s (NYSEArca: BLK) iShares unit, the world’s largest issuer of exchange traded funds, said itwill close 18 of its ETFs, including 10 target date ETFs. ALPS and PIMCO also announced four ETF closures apiece in August. [These ETFs are Closing]
Global X previously closed ETFs in 2011 and 2012. Despite the closures, several Global X ETFs have proven to be formidable asset gatherers this year. That group includes the Global X SuperDividend ETF (NYSEArca: SDIV), Global X MLP ETF (NYSEArca: MLPA) and the Global X MLP & Energy Infrastructure ETF (NYSEArca: MLPX).
ETF Trends editorial team contributed to this post.