Another Active ETF Shuts Down

The Horizons Cadence Hedged U.S. Dividend Yield ETF (USDY) last traded Friday, Aug. 24. The fund has been closed.

The actively managed strategy focused on quality dividend-paying stocks, picked from the Russell 1000 universe. Launched in February, USDY grew to a $33.8 million in six months, closing with average daily trading volume clocking in near $70,000. USDY cost a competitive 0.68% expense ratio (ER) in a segment that includes other active ETFs such as:

• Main Sector Rotation ETF (SECT), $382 million in total assets, 0.88% ER
• First Trust Horizon Managed Volatility Domestic ETF (HUSV), $140 million in assets, 0.70% ER
• Davis Select U.S. Equity ETF (DUSA), $136 million in assets, 0.65% ER
• Cambria Core Equity ETF (CCOR), $80 million in assets, 1.05% ER
• AdvisorShares Madrona Domestic ETF (FWDD), $31 million in assets, 1.25% ER

The closure is part of a shakeup in the firm’s lineup of ETFs. USDY’s issuer, Horizons, is owned by Mirae Asset Global Investments, which also acquired Global X Funds earlier this year. USDY’s closure comes at a time when Mirae is also making other changes to its ETF lineup by bringing three other Horizons ETFs under Global X’s brand.

Almost 100 ETFs have been shuttered this year, putting 2018 on pace to be a record-breaking year for ETF closures.

Contact Cinthia Murphy at [email protected]