WisdomTree (WETF) recently announced its intent to close three of its ETFs. Two of the closures are actively managed currency funds, while the third tracks an earnings weighted index of large cap growth stocks. The funds will remain open for about six more weeks, with the last day of trading scheduled for December 3, 2012. This gives shareholders ample opportunity to dispose of their holdings in an orderly manner prior to the delisting.
According to the Fund Closure FAQ (pdf), each fund’s liquidating “net asset value will reflect costs incurred in connection with the unwinding of its portfolio investments and the winding down of its operations.” Therefore, I strongly advise shareholders to exit all positions prior to the liquidation using the precautions outlined in Five Steps to Avoid Disaster When Your ETF Closes.
The liquidating ETFs are:
- WisdomTree Dreyfus Japanese Yen Fund (JYF)
- WisdomTree Dreyfus South African Rand Fund (SZR)
- WisdomTree LargeCap Growth Fund (ROI)
These three ETFs are currently on ETF Deathwatch and will be automatically removed after their actual closure. Investors seeking direct exposure to the South African Rand will no longer have a US-listed ETP to accomplish that task. However, the ETF Field Guide identifies four other products providing yen exposure and 16 in the large cap growth category.
There have been 89 ETP closures so far in 2012, with another eight products scheduled to close before the end of the year. The eight that temporarily remain open include these three WisdomTree ETFs, three QuantShares ETFs that will close next week, and two Guggenheim funds that will mature and liquidate in late December.
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.