Even in a time when retail investors are (almost) literally throwing money at ETFs, and the passive industry is growing by billions of dollars each day at the expense of active managed funds, there are occasional casualties, and on Tuesday afternoon it was Dennis Gartman"s turn. According to AdvisorShares, which offers 18 ETFs with $1.1 billion of assets under management, the ETF administrator has begun the process of closing two Gartman ETF products, the Gartman Gold/Euro ETF (NYSE Arca: GEUR) and the AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN).
The AdvisorShares Board of Trustees approved the closings and subsequent liquidations of GEUR and GYEN. The last day of trading for both funds will be October 13, 2017, which will also be the final day for creations or redemptions by authorized participants. The funds will cease operations, withdraw their assets, and distribute the remaining proceeds to shareholders on or after October 20, 2017.
Today"s news follows similar closures of Gartman ETFs in the past, when in 2015, the AdvisorShares Gartman Gold/British Pound ETF, following a shuttering of Gartman"s Risk On/Off ETFs the prior year.
There was no reason given for the unwind, although lack of interest is the most likely answer.
No comments:
Post a Comment