ETF Death Toll Climbs to 134
Today is the last day of trading for 10 ETFs from WisdomTree. These are the first closures of 2010, raising the lifetime death toll to 134. Closures have averaged 57 per year the past two years, and it’s too early to know the final tally for 2010.
WisdomTree (WSDT) announced the closures back in January, giving shareholders plenty of time to take action. Final redemptions should occur on March 29, but I believe the best course is to sell any remaining shares today. Be sure to use a limit order.
The 10 WisdomTree ETFs closing after today’s trading:
- WisdomTree Earnings Top 100 (EEZ)
- WisdomTree Europe Total Dividend Fund (DEB)
- WisdomTree International Communications Sector (DGG)
- WisdomTree International Consumer Discretionary Sector Fund (DPC)
- WisdomTree International Consumer Staples Sector Fund (DPN)
- WisdomTree International Financial Sector Fund (DRF)
- WisdomTree International Health Care Sector Fund (DBR)
- WisdomTree International Industrial Sector Fund (DDI)
- WisdomTree International Technology Sector Fund (DBT)
- WisdomTree U.S. Short Term Government Income Fund (USY)
The closure of WisdomTree U.S. Short Term Government Income Fund (USY) will mark the second closure of an actively managed ETF, the first being Bear Stearns Current Yield (former ticker YYY) back in 2008.
WisdomTree Europe Total Dividend (DEB) now becomes the longest living ETF to meet its demise. Launched on June 16, 2006, it existed for more than 45 months. On average, the 10 funds closing today had lifespans exceeding 39 months. The average lifespan of all 134 closed products (121 ETFs and 13 ETNs) is just 18 months.
Additional information and reports:
- WisdomTree’s Investor FAQ on the closures (pdf)
- Complete List of 2008 ETF Closures
- Complete List of 2009 ETF Closures
- ETF Deathwatch for March 2010
Disclosure covering writer, editor, publisher, and affiliates: 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.