Scalper1 News
iShares, the biggest issuer of ETFs, has planned to shut down 18 funds from its lineup. The closures reflect a lack of interest in these products in an investment world with more than 1,700 U.S. listed ETFs. The products to be closed have a combined AUM of $227 million and will be liquidated by August 21. All these funds are quite unpopular, as all have AUMs of under $50 million. Among the ones to be closed, the iShares FTSE China (HK-Listed) Index ETF (NASDAQ: FCHI ) is the most popular with an asset base of $36.3 million, followed by the iShares MSCI Emerging Markets Eastern Europe ETF (NYSEARCA: ESR ) with an AUM of $29.2 million. Most of the products to be closed down offer exposure to international stocks. Some of these include the iShares MSCI All Country Asia ex-Japan Small Cap Index ETF (NASDAQ: AXJS ) , the iShares MSCI Australia Small Cap Index ETF (BATS: EWAS ) , the iShares MSCI Canada Small Cap Index ETF (BATS: EWCS ) , the iShares MSCI Hong Kong Small-Cap ETF (NYSEARCA: EWHS ) and the iShares MSCI Singapore Small-Cap ETF (NYSEARCA: EWSS ) . Others with an international focus are the iShares MSCI Emerging Markets EMEA Index ETF (NASDAQ: EEME ) , the iShares MSCI Emerging Markets Growth Index ETF (NASDAQ: EGRW ) and the iShares MSCI Emerging Markets Value Index ETF (NASDAQ: EVAL ) . Apart from these, the issuer has also planned to shut down some sector specific funds including the iShares MSCI All Country Asia Information Technology Index ETF (AAIT ), the iShares MSCI Emerging Markets Consumer Discretionary Sector Index ETF (NASDAQ: EMDI ) , the iShares MSCI Emerging Markets Energy Sector Capped Index ETF (NASDAQ: EMEY ) , the iShares FTSE EPRA/NAREIT Asia Index ETF (NASDAQ: IFAS ) and the iShares FTSE EPRA/NAREIT North America Index ETF (NASDAQ: IFNA ) . The i Shares Financials Bond ETF (NYSEARCA: MONY ) , the iShares Industrials Bond ETF (NYSEARCA: ENGN ) and the iShares Utilities Bond ETF (NYSEARCA: AMPS ) are the three debt funds which will also face shutdown. The above closures will shrink the offerings of iShares by about 6% to 299, according to XTF, as mentioned in an article by Barron’s . BlackRock (NYSE: BLK ) – the parent company of iShares – said that the decision was “based on an ongoing process to review its product lineup and ensure it meets the evolving needs of its clients.” The closures clearly highlight the survival of the fittest funds and a healthy process to eliminate the unpopular and unwanted funds. In fact, the ETF industry recently witnessed its 500th closure of ETFs and ETNs. Nonetheless, even following the 18-fund closure, iShares will still have a large number of U.S. listed ETFs under its umbrella, with the iShares Core S&P 500 ETF (NYSEARCA: IVV ) being the most popular with an asset base of $68.7 billion. Link to the original article on Zacks.com Scalper1 News
Scalper1 News