AdvisorShares to Close Active ETFs GIVE, GTAA

A pair of actively managed exchange traded funds will close later this month. Maryland-based AdvisorShares, one of the largest issuers of actively managed ETFs, said in a statement out Monday, that it will close the AdvisorShares Global Echo ETF (NYSEArca: GIVE) and the AdvisorShares Morgan Creek Global Tactical ETF (NYSE Arca: GTAA).

“The AdvisorShares Board of Trustees approved the closing and subsequent liquidation of GIVE and GTAA. The last day of trading for both funds will be May 12, 2017, which will also be the final day for creations or redemptions by authorized participants,” said AdvisorShares in the statement. “The funds will cease operations, withdraw their assets, and distribute the remaining proceeds to shareholders on or after May 19, 2017.”

In 2014, North Carolina-based Morgan Creek Capital Management became GTAA’s new sub-advisor, replacing Mebane Faber’s Cambria Investments. GTAA uses a “combination of qualitative and quantitative approaches with established risk management controls to actively manage the portfolio in an attempt to control downside losses and protect capital,” according to AdvisorShares.

GTAA’s lineup is comprised of other ETFs.

“GIVE is designed as a core allocation that proactively seeks opportunities in sustainable and impact investment themes, which includes a philanthropic strategic initiative. The ETF will allocate capital to equity of publicly traded companies and debt securities with a proactive and meaningful sustainability mandate,” according to AdvisorShares.