ETF issuer O’Shares said it plans to shutter two of its currency hedged ETFs. The O’Shares FTSE Asia Pacific Quality Dividend Hedged ETF (NYSEArca: OAPH) and O’Shares FTSE Europe Quality Dividend Hedged ETF (NYSEArca: OEUH) will cease trading on Nov. 30th.
OAPH tries to reflect the performance of the FTSE Asia Pacific Qual / Vol / Yield Factor 5% Capped Hedged 100% to USD Index, which is designed to measure the performance of large- and mid-sized dividend paying stocks in the Asia Pacific based on market cap, liquidity, quality, low volatility and dividend yield.
OEUH tries to reflect the performance of the FTSE Europe Qual / Vol / Yield Factor 5% Capped Hedged 100% to USD Index, which tracks large- and mid-sized dividend paying companies from Europe based on market-cap, liquidity, quality, low volatility and dividend yield.
“The Funds will not accept creation unit orders from authorized participants after the Closing Date, and trading on the NYSE Arca for the shares of the Funds will be suspended prior to the open of business on December 1, 2017. Shareholders may sell their holdings on or before the Closing Date and customary brokerage charges may apply to such transactions,” according to a statement from O’Shares.
OEUH has $17.4 million in assets under management while OAPH has $3 million.
Investors have shown great demand for several of the O’Shares ETFs, including O’Shares FTSE U.S. Quality Dividend ETF (NYSEARCA: OUSA) for U.S. large caps and O’Shares FTSE Russell US Small Cap Quality Dividend ETF (NYSEARCA: OUSM) for U.S. small caps. However, we have had limited demand for our currency hedged ETFs investing in Europe and Asia. Due to the small size and limited demand for these products, the decision has been made to close the Funds, so we can direct resources to developing new O’Shares ETFs to meet investors’ demand for different strategies,” stated Connor O’Brien, CEO of O’Shares, in the statement.