Javelin Investment Management, the Princeton, N.J.-based exchange-traded fund firm, will close its Shariah-focused Islamic ETF on Oct. 19, after the fund failed to attract major assets. The JETS Dow Jones Islamic Market International Index Fund (NYSEArca: JVS) was launched in July 2009.
"With over seven million Muslims in the United States, we believe that Shariah-based investing has a promising future," Javelin President and founder Brint Frith said in a press release. “But we found it difficult to reach target investors through the marketing channels typically used by ETFs."
JVS’ shutdown is the second such announcement by an ETF company in as many days. On Wednesday, Geary Advisors said it was closing two of its funds and exiting the ETF business. The fund shutdowns are the latest in a spate of ETF closings that has put the industry on pace to shutter at least 40 funds by the end of 2010. Grail Advisors closed two of its actively managed ETFs last month, while Claymore planned to shut down four funds on Sept. 10.
The shuttering of JVS leaves Javelin with one other ETF, the JETS Contrarian Opportunities Index Fund (NYSEArca: JCO), which it rolled out in April. The fund consists of stocks that have been identified by Dow Jones as having underperformed in recent years while maintaining relatively strong fundamentals.
"The contrarian fund is gaining traction, and we are now developing similar funds that provide strategic solutions to challenging market conditions," Frith said.
Javelin doubled its assets under management to $4 million in August, according to data compiled by IndexUniverse.com.