Direxion, the second-largest sponsor of inverse and leveraged exchange traded funds, said it is closing the Direxion Daily Gold Bull 3X Shares (NYSEArca: BAR).
The firm previously shuttered BAR’s bearish equivalent, the Direxion Daily Gold Bear 3X Shares (NYSEArca: BARS). The two ETFs debuted in April 2014.
Due to BAR’s “inability to attract sufficient investment assets, Direxion believes the Fund cannot continue to conduct its business and operations in an economically efficient manner. As a result, Direxion concluded that liquidating and closing the Fund would be in the best interests of the Fund and its shareholders,” said Direxion in a statement.
BAR will cease trading at the close of U.S. markets on June 19. On June 26, 2015, the Fund will liquidate its assets and distribute cash pro rata to shareholders who have not previously redeemed or exchanged their shares, according to Direxion.
In 2014, approximately 80 ETFs closed while issuers brought nearly 205 new products to market. This year, nearly 30 U.S. ETFs have been closed. Roughly 90 new ETFs have come to market this year and the number will likely top 100 in the coming weeks. [Another Good Year for new ETFs]