2 ETFs To Close

August 14, 2018

Two more ETFs are slated to shut down later this year. The iShares Commodity Optimized Trust (CMDT) and the Horizons Cadence Hedged U.S. Dividend Yield ETF (USDY) will see their last days of trading Oct. 10 and Aug. 24, respectively.  

CMDT launched in 2013 and currently has only $16 million in assets under management.

USDY launched in February this year and currently has $33.5 million in AUM. That seems like a lot for a fund that is due to shut down, but Horizons is owned by Mirae Asset Global Investments, which also acquired Global X Funds earlier this year. In addition to shutting down USDY, Mirae is bringing the three other Horizons ETFs under Global X’s brand.

It’s not clear when the change will be made, but eventually the Horizons DAX Germany ETF (DAX), the Horizons S&P 500 Covered Call ETF (HSPX) and the Horizons Nasdaq-100 Covered Call ETF (QYLD) will all carry the Global X name.

The Year So Far

Closures are moving at a rapid pace this year, currently nearing 100 completed shutdowns before the first eight months of the year are over. Last year, fewer than 70 funds had shut down by the end of August. Much of that difference can be accounted for by the 50 ETNs that were closed by Barclays’ iPath unit back in April. Without that wave of shutdowns, 2018 would be conspicuous for its lower level of closures.

In all, 2017 saw nearly 140 ETFs shut down, and given the current pace, we can probably look forward to another record broken at the end of 2018.

Contact Heather Bell at [email protected]

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