Daily ETF Watch: 3 PIMCO ETFs Close
WisdomTree files for new equity ETFs.
Three PIMCO ETFs will stop trading at the end of the day today, the first step in a liquidation process that’s expected to be completed by Sept. 30.
The funds will be completely shuttered most likely due to their inability to attract enough assets. They are, according to a recent filing:
- PIMCO 3-7 Year U.S. Treasury ETF (FIVZ | C-72), launched in 2009
- PIMCO 7-15 Year U.S. Treasury ETF (TENZ | C-50), launched in 2009
- PIMCO Foreign Currency Strategy ETF (FORX | D-30), launched in 2013
Going into their last day of trading, FORX, the only actively managed fund in the trio, had less than $15 million in assets under management. TENZ had roughly $20 million and FIVZ had less than $10 million.
The prospectus said investors who own shares of these funds have until the end of day today to sell their positions.
After that, any outstanding shares will be “automatically redeemed” on the liquidation date. These redemptions will equate to the net asset value of the shares after fees and expenses. PIMCO “will bear all administrative expenses in connection with the Liquidations,” according to the filing.
WisdomTree Details New ETFs
WisdomTree has put into registration two U.S. equity ETFs; the WisdomTree Dynamic U.S. Long/Short Equity Fund and the WisdomTree Dynamic U.S. Bearish Equity Fund.
The dynamic long/short strategy will comprise long exposure to 100 U.S. large-cap stocks “that meet Index eligibility requirements and have the best combined score based on fundamental growth and value signals,” the filing said. The securities are weighted based on volatility traits.
The short part of the portfolio will hold short positions in the largest 500 U.S. companies, weighted by market capitalization. That position, which will range from 0 to 100 percent at any given time, is designed as a market risk hedge.
The dynamic bearish equity fund is a similar long/short strategy applying the same criteria to stock selection. The difference is that the bearish strategy also includes a long position in U.S. Treasurys.
Tickers and fees were not disclosed.
Contact Cinthia Murphy at [email protected].
