Old Mutual GlobalShares to Shutter Next Week

September 28, 2010 by  
Filed under Commentary, ETF Closings, ETFs

Old Mutual Global Index Trackers last Friday (9/24/10) announced (press release) plans to close all five of its U.S. listed ETFs.  The last day of trading will be Tuesday, October 5, 2010.  I advise all shareholders to sell prior to the delisting and to use a limit order.

I have repeatedly questioned the ability of GlobalShares to succeed in the U.S. marketplace.  In my April article “Three New ETF Clones from Old Mutual GlobalShares” I boiled it down to:

“Old Mutual’s ETF strategy is unclear. Launching funds that are essentially clones of ETFs from proven sponsors that enjoy lower expense ratios and better brand recognition sounds like a recipe for disaster.”

The ETFs to be closed are:

  • GlobalShares FTSE All-World Fund (GSW)
  • GlobalShares FTSE Emerging Markets Fund (GSR)
  • GlobalShares FTSE All-Cap Asia Pacific ex Japan Fund (GSZ)
  • GlobalShares FTSE All-World ex-US Fund (GSO)
  • GlobalShares FTSE Developed Countries ex-US Fund (GSD)

Most of these funds are relatively new and have never shown up on my ETF Deathwatch only because they have been on the market for less than six months.  The other two (GSD and GSR) have appeared regularly.

Additional background articles:

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.

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