Three IndexIQ ETFs To Disappear Today

December 23, 2011 by  
Filed under Commentary, ETF Closings

Today (12/23/2011) is the last day of trading for IQ Taiwan Small Cap ETF (TWON), IQ Hong Kong Small Cap ETF (HKK), and IQ Japan Mid Cap ETF (RSUN).  According to the press release (pdf), shareholders who do not sell their holdings by today will have their shares automatically redeemed on December 30, 2011.  My advice regarding ETFs that have announced a closure is to sell prior to delisting using a limit order.

My personal belief is these three funds were simply victims of being ahead of their time.  Exposure to small and mid cap stocks in established markets like Japan, Hong Kong, and Taiwan will likely be in demand some day.  However, IndexIQ apparently does not have deep enough pockets or the patience to wait for that day to arrive.

The demise of these three products, along with one more announced suspension scheduled for next week, will bring the closure count to 38 for 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.

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