Global X Closing 4 Struggling ETFs

September 25, 2012 by  
Filed under Commentary, ETF Closings

Global X recently announced its intent to close and liquidate four ETFs.  According to the company press release, Global X will absorb all fees and expenses that may be incurred in connection with the liquidation and distribution of assets. 

I advise shareholders to dispose of their holdings, using a limit order, prior to the October 18, 2012 delisting to avoid any surprises.  Any remaining shareholders will receive a cash distribution equal to the net asset value as calculated six days later on October 26.

The four closing funds are:

  1. Global X Aluminum ETF (ALUM), launched 1/5/11, is actually an aluminum producers fund and has less than $3 million in assets.
  2. Global X Auto ETF (VROM), launched on 5/19/11, was the third fund in a not-so-popular category and managed to attract less than $3 million in assets.
  3. Global X NASDAQ 400 Mid Cap ETF (QQQM) was introduced on 12/6/11 while being based on a newly invented index.  It has less than $2 million in assets.
  4. Global X NASDAQ 500 ETF (QQQV) launched less than a year ago on 12/6/11 and was also based on a newly invented index.  It has less than $2 million in assets.

These ETFs are regular members of ETF Deathwatch, although the closings appear to be part of a healthy ongoing process at Global X to remove unpopular, non-strategic products from their lineup.  

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.

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