Closure Coming for Large-Cap ETF

After the close of U.S. markets Friday, Guggenheim Investments said it will close the Guggenheim Large Cap Optimized Diversification ETF (NYSEARCA: OPD). The Guggenheim Large Cap Optimized Diversification ETF debuted in April 2016.

OPD tracks the Wilshire Large Cap Optimized Diversification Index, “is designed to provide optimized diversification to the U.S. large-cap equity market. Utilizing a proprietary algorithm, the index seeks to optimize diversification by selecting a subset of stocks, generally with higher stock specific risk (diversifiable risk), and weighting them so that each stock contributes approximately the same amount of correlation-weighted risk to the parent index. The index is constrained at the sector and stock level relative to the cap-weighted Wilshire Large Cap Index. This approach may provide the potential for attractive risk-adjusted returns,” according to Guggenheim.

The ETF had just $1.4 million in assets under management as of Nov. 16th.

OPD holds 110 stocks, over a third of which hail from the two consumer sectors. None of OPD’s account for more than 1.27% of the soon-to-be-closed ETF’s weight.

“The final date for creation and redemption activity for the fund will be Thursday, December 14, 2017 and the last day of trading will be Monday, December 18, 2017. The fund will be delisted from the NYSE Arca prior to the start of trading on Tuesday, December 19, 2017,” according to a statement from Guggenheim.

OPD is the first ETF to be closed by Guggenheim this year.