Odds & Ends: More ETFs Closed Than Launched Last Week
More exchange-traded funds closed than launched last week, which is part of an overall trend for the year so far, suggesting 2023 will be a strong year for closures, with Invesco alone planning to cut about 11% of its ETFs in the first quarter.
Announced ETF closures are outpacing launches this year, with 55 closures and 50 launches.
Last week’s new fund debuts included the actively managed Cambiar Aggressive Value ETF (CAMX), which will invest primarily in U.S.-listed securities that it has evaluated in terms of quality, valuation, value creation/catalyst and risk/reward criteria. The quality characteristics considered desirable include management success, consistent margins, return on invested capital, low leverage and strong free cash flow, according to the prospectus. The fund rolled out on Feb. 13.
CAMX has an expense ratio of 0.59% and lists on the NYSE Arca.
On Wednesday, two more exchange-traded notes rolled out under the MicroSectors banner providing 3X leveraged and inverse exposure to the energy sector. The MicroSectors Energy 3X Leveraged ETN (WTIU) and the MicroSectors Energy -3X Inverse Leveraged ETN (WTID) are tied to the performance of the Solactive MicroSectors Energy Index, which includes a dozen highly liquid energy and oil stocks. The two ETNs, which are issued by the Bank of Montreal, come with an annual investor fee of 0.95% and list on the NYSE Arca.
Closures
Last week saw eight closures finalize and another two announced.
The UBC Algorithmic Fundamentals ETF (UBCB), which launched in December 2021, saw its last day of trading on Feb. 13. Meanwhile, the ELEMENTS platform closed two ETNs that had reached their maturities. The ELEMENTS Linked to ICE BofAML Commodity index eXtra Grains Total Return ETN (GRU) and the ELEMENTS Linked to the ICE BofAML Commodity Index eXtra Biofuels Total Return ETN (FUE) were called on Feb. 14 and 13, respectively.
Direxion shuttered four ETFs last Friday, and Principal closed one. Those funds are as follows:
The newly announced closures include the AI Quality Growth ETF (AQGX) and the Adaptive High Income ETF (AHHX), which are both set to see their last day of trading on March 30.
Conversions
There are also several conversions pending for existing JP Morgan mutual funds. As of July 14, the JPMorgan High Yield Municipal Fund (JTIAX) will become the JPMorgan High Yield Municipal ETF, while the JPMorgan Sustainable Municipal Income Fund (OTBAX) will become the JPMorgan Sustainable Municipal Income ETF. On July 28, the JPMorgan Equity Focus Fund (JPFAX) will become the JPMorgan Equity Focus ETF, and the JPMorgan Limited Duration Bond Fund (ONUAX) will become the JPMorgan Limited Duration Bond ETF.
Other Changes
As of Monday last week, the Direxion Daily Select Large Caps & FANGs Bull 2X Shares (FNGG) underwent a 1-for-10 reverse split. The fund’s share price has fallen significantly during the past 12 months.
On Wednesday, the Procure Disaster Recovery Strategy ETF (FEMA) changed its ticker to FIXT.
And last month, The Cannabis ETF (THCX) changed its name to the AXS Cannabis ETF and swapped its index from the Innovation Labs Cannabis Index to the AXS Cannabis Index.
Contact Heather Bell at heather.bell@etf.com
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