BSCB: Not Your Typical ETF Closure
Today (December 29, 2011) is the last day of trading for the Guggenheim BulletShares 2011 Corporate Bond ETF (BSCB). In what is believed to be the most timely liquidation and payment to shareholders, the fund’s final distribution will be payable tomorrow.
The delisting, liquidation, closure, and termination of BSCB will be unlike previous ETF closings. BSCB is not closing:
- to prevent ruin like IVO
- due to regulatory constraints like DXO
- because its structure became obsolete like HOLDRS
- due to non-compliance with listing standards like OOK
- because investors didn’t understand the concept like ASO
- because it was ahead of its time like NETS
- due to being a perpetual member of ETF Deathwatch
- but failing to liquidate its portfolio like GOE after trading at a 1000% premium
- and leaving its shareholders hanging like BSR
- because it was different than the hype like MacroShares
- due to shareholders failing to reach a quorum like SEA
- because competition was too formidable like Old Mutual
- because it was an unsecured note issued by Lehman
No, this one closed as planned. This one closed the way it said it would at the time of launch: because it reached maturity. See Guggenheim BulletShares 2011 Corporate Bond ETF Announces Scheduled Maturity (pdf).
Guggenheim BulletShares 2011 Corporate Bond ETF (BSCB) has a designated maturity year of 2011 and will terminate after its last day of trading on December 29, 2011. In connection with the termination, BSCB will make a cash distribution to then-current shareholders of its net assets after making appropriate provisions for any liabilities (summary page).
Disclosure covering writer, editor, and publisher: Long BSCB until the end. No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.