Six more exchange traded product (“ETP”) delistings are scheduled to occur before the end of the year. The closures include two ETFs from Guggenheim and four VelocityShares ETNs issued by Credit Suisse.
There is always the possibility of some additional last-minute closures, but as it stands now, 2012 will likely see 102 ETP closures and become the first year the death toll reaches triple digits.
Anticipated closures include:
- Guggenheim BulletShares 2012 Corporate Bond (BSCC) will have its last day of trading December 28, 2012 due to its planned maturity and liquidation (Guggenheim press release).
- Guggenheim BulletShares 2012 High Yield Corporate Bond (BSJC) will have its last day of trading December 28, 2012 due to its planned maturity and liquidation.
- VelocityShares 2x Long Palladium ETN (LPAL) will have its last day of trading December 28, 2012.
- VelocityShares 2x Inverse Palladium ETN (IPAL) will have its last day of trading December 28, 2012.
- VelocityShares 2x Long Copper ETN (LCPR) will have its last day of trading December 31, 2012.
- VelocityShares 2x Inverse Copper ETN (SCPR) will have its last day of trading December 31, 2012.
The two Guggenheim ETFs are healthy products that have reached maturity and are gracefully closing per the plan in place since their launch. Guggenheim BulletShares 2011 Corporate Bond ETF (former ticker BSCB) was the first ETF to close in a graceful manner. The four VelocityShares failed to attract any investor interest. They average less than $0.7 million in assets and are on ETF Deathwatch.
Some discrepancies my arise as to whether the closings of LCPR and SCPR are listed as 2012 or 2013. Some analysts track inception and closure dates differently than we do. Our process is very easy to understand; an ETP is born on the day it first becomes listed and available for purchase on a U.S. exchange. An ETP dies on the last day it is listed on a U.S. exchange. Any other dates are meaningless to investors if the ETP is not listed and available for trading while the markets are open.
The complete list of 2012 closures will be published once the list is finalized. As stated previously, the death toll for 2012 is currently estimated to be 102. In comparison, there were 38 closures in 2011, 49 closures in 2010, 56 closures in 2009, and 58 closures in 2008.
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.