FLYX Fails to Fly
Today (10/10/11) is the last day of trading for Direxion Airline Shares (FLYX). I questioned the viability of this fund at the time of its December 2010 launch. Being a non-leveraged ETF, the offering was out of character for Direxion. Additionally, it targeted a niche containing an existing product, Guggenheim Airlines ETF (FAA), which was failing to attract investor interest after more than two years on the market.
The closure of FLYX will automatically remove it from the next edition of ETF Deathwatch. As always, I recommend that shareholders sell all shares prior to delisting to avoid the ETF liquidation process. Anyone who fails to heed this advice will pay a penalty with FLYX because “on the liquidation date, the fund’s net asset value will reflect the cost of closing the fund.” The estimated liquidation date is October 17, 2011.
Disclosure covering writer, editor, and publisher: 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