Direxion to Close 7 ETFs
2022 has so far eclipsed 2021 when it comes to closures.
Direxion will be closing seven of its exchange-traded funds by the end of September due to an “inability to attract sufficient investment assets,” according to a company statement released last Friday.
The closures are as follows:
- Direxion Daily 5G Communications Bull 2X Shares (TENG)
- Direxion Daily Cloud Computing Bear 2X Shares (CLDS)
- Direxion Russell 1000 Growth Over Value ETF (RWGV)
- Direxion Russell 1000 Value Over Growth ETF (RWVG)
- Direxion Fallen Knives ETF (NIFE)
- Direxion Low Price Stock ETF (LOPX)
- Direxion World Without Waste ETF (WWOW)
All seven ETFs will stop trading on the NYSE Arca by the end of the trading day on Sept. 23. By Sept. 30, each fund will liquidate its respective assets and distribute cash pro rata to shareholders who have not sold or redeemed shares, the Virginia-based firm said. It closed four products during the first quarter.
The number of ETF closures that are expected to be completed by the end of the year so far now stands at 91. Last year, 79 ETFs shut down, the slowest year for closures in roughly the past decade.
Contact Shubham Saharan at [email protected]
