ProShares announced last Friday that it would be shutting down one of its “UltraShort” funds at the end of next month.
The ProShares UltraShort Telecommunications ETF (TLL), which launched in 2008, has about $120,000 in assets under management. Add in the fact that the fund’s trading volumes are thin and sporadic, and that its performance has been underwhelming to disastrous during the last five years, it’s no surprise that ProShares is closing the fund.
Indeed, managing director and head of strategy Steve Cohen noted that the fund was being shut down due to “limited investor interest.”
Sept. 14 will be the last day of trading, with shareholder proceeds from the fund’s liquidation distributed on or within a few days of Sept. 30.
More than 170 funds have shut down year-to-date versus some 190 for all of 2014. Given that many firms close unprofitable funds as the year draws to a close, we seem on track to match or exceed last year’s number of closures.