IndexIQ to Close Three Asia-Focused ETFs
IndexIQ, the New York-based ETF issuer that has been making a name for itself with hedge fund replication and small-cap ETFs, announced it will shutter three of its Asia-focused ETFs, two of which debuted earlier this year.
The firm will close the IndexIQ Japan Mid Cap ETF (NYSE: RSUN), the IndexIQ Hong Kong Small Cap ETF (NYSE: HKK) and the IndexIQ Taiwan Small Cap ETF (NYSE: TWON). TWON is the oldest of the trio, having debuted in May 2010. RSUN and HKK debuted this year.
All three funds were first to market in their respective niches. The closures were approved on Dec. 14 and the ETFs will cease trading on Dec. 23. Shareholders who do not sell their fund shares by this date will have their shares automatically redeemed on December 30, 2011, the funds' last day of operation, IndexIQ said in a statement.
Following the closures, IndexIQ will be left with 12 ETFs, though the firm has filed plans for other emerging markets small-cap funds, including funds tracking Indonesia and Thailand. The firm will still feature small-cap funds tracking Australia, Canada and South Korea.
HKK, RSUN and TWON were all plagued by the traits that typically lead to ETF closures: Low volume and low assets under management. Of three, not one had more than $2.2 million in AUM and not one had volume over 1,500 shares per day over the past three months, according to Yahoo Finance data.
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