Global X Will Close 4 ETFs
Global X, the New York-based ETF issuer known for its international and unique income and sector funds, announced it will close four of its ETFs. The announcement was made after the close of U.S. markets on Friday September 21. The following funds will be liquidated: The Global X Aluminum ETF (NYSE: ALUM), the Global X Auto ETF (NYSE: VROM), the Global X NASDAQ 500 ETF (NASDAQ: QQQV) and the Global X NASDAQ 400 Mid Cap ETF (NASDAQ: QQQM).
The funds will stop trading at the end of the trading day on October 18 and will be liquidated on October 26. ALUM, VROM, QQQV and QQQM combine to represent less than one percent of Global X's assets under management, the firm said in a statement.
VROM is the largest of the four with $2.6 million in AUM. ALUM is the most heavily traded with average daily turnover of just under 2,600 shares. VROM is next with average volume of 750 shares, but the fund, like QQQV, has not traded since last Wednesday.
QQQV's struggles are surprising given that the ETF holds 16.2 percent allocation to Apple (NASDAQ: AAPL), one of the largest weights to the juggernaut technology stocks among all ETFs. QQQV has just $1.5 million in AUM. The fund debuted in December.
Global X announced eight eight closures in late 2011. Those funds were liquidated early this year.
For more on ETFs, click here.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.