WisdomTree (WSDT) announced last Friday (1/29/2010) its intention to close 10 ETFs. The last day of trading will be March 24, 2010 with final redemptions occurring on March 29. I suggest current shareholders avoid the liquidation process by selling on the open market prior to delisting. Be sure to use a limit order and be patient while waiting for a good fill.
The closures are a result of a recent strategic review by WisdomTree executives. The firm says it did not take the decision lightly and has no plans for closures beyond these 10 funds:
- WisdomTree Earnings Top 100 (EEZ)
- WisdomTree Europe Total Dividend Fund (DEB)
- WisdomTree International Communications Sector (DGG)
- WisdomTree International Consumer Discretionary Sector Fund (DPC)
- WisdomTree International Consumer Staples Sector Fund (DPN)
- WisdomTree International Financial Sector Fund (DRF)
- WisdomTree International Health Care Sector Fund (DBR)
- WisdomTree International Industrial Sector Fund (DDI)
- WisdomTree International Technology Sector Fund (DBT)
- WisdomTree U.S. Short Term Government Income Fund (USY)
The closures affect most, but not all, of the WisdomTree international sector funds; Basic Materials, Energy, and Utilities survived. However, without the other seven members of the GICS sector lineup, I would have to question the long-term viability of the three that remain. Many of the funds that are closing have been regular members of my ETF Deathwatch.
Just a week ago I wrote about the four new international sector suites from iShares. At that time, I suggested that nine different international sector suites were more than the market could handle. It appears that WisdomTree agrees.
Additional information can be found in the press release, prospectus supplements, and investor FAQ.
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.