ETF Odds & Ends: A Raft Of Closures

September 17, 2021

There was a lot of activity in the ETF space during the past week. Perhaps most notably, in a year when closures have been few and far between, another eight closures have been announced. So far, only 34 have been completed year-to-date, a steep decline from the 184 we had seen by this time last year.

The VictoryShares Protect America ETF (SHLD) and the VictoryShares Top Veteran Employers ETF (VTRN) are set to see their last day of trading on Oct. 15. Both funds launched in November 2020 and currently have less than $2 million in assets under management each.

Meanwhile, the RiverFront Dynamic Unconstrained Income ETF (RFUN) will be closed to creations starting Oct. 20, with its last day of trading set for Oct. 21.

The VanEck Emerging Markets Aggregate Bond ETF (EMAG) and the VanEck Unconventional Oil & Gas ETF (FRAK), which launched in 2011 and 2012, respectively, will halt creations as of Oct. 15, with Oct. 21 set to be their last day of trading.

Prudential will be closing three of its seven existing ETFs as of the market close on Oct. 4. The affected funds include the following:

Finally, effective Oct. 8, the $12 million EquityCompass Tactical Risk Manager ETF (TERM) will cease to exist and will be absorbed into the $11 million EquityCompass Risk Manager ETF (ERM). That doesn’t really count as a closure, but it does mean there will be one less ETF on the market.

Invesco Adds To BulletShares Family
It was an active week for launches. Beyond what was already covered on ETF.com, on Wednesday, Invesco added three new ETFs to its lineup of BulletShares ETFs, while UBS launched a trio of ETNs.

The Invesco funds invest mainly in fixed income securities expiring in a designated year, and are popular with investors who use them for laddering strategies.

The Invesco BulletShares 2031 Corporate Bond ETF (BSCV) joined a lineup of 10 other similar funds terminating in the years 2021-2030.

Meanwhile, the Invesco BulletShares 2029 High Yield Corporate Bond ETF (BSJT) joined an offering of eight other similar ETFs terminating in the years 2021-2028, and the Invesco BulletShares 2031 Municipal Bond ETF (BSMV) joined a lineup of 10 other similarly structured ETFs terminating in the years 2021-2030.

BSCV comes with an expense ratio of 0.10%; BSJT charges 0.42%; and BSMV carries an expense ratio of 0.18%. All of the funds list on the Nasdaq stock market.

On Thursday, UBS rolled out the ETRACS IFED Invest with the Fed TR Index ETN (IFED), which tracks an index of U.S. large cap securities that are likely to benefit from the current monetary regime, according to its prospectus. The ETN comes with an expense ratio of 0.45% and lists on the NYSE Arca.

Just a day later, UBS launched a pair of ETFs: the ETRACS 2x Leveraged MSCI US ESG Focus TR ETN (ESUS) and the ETRACS 2x Leveraged IFED Invest with the Fed ETN (FEDL).

While ESUS offers twice the quarterly performance of the MSCI USA ESG Focus Index Gross Total Return USD, FEDL does the same for the index underlying IFED. Both ETNs can reset more frequently, however, if their price drops too low.

Both leveraged ETNs come with an expense ratio of 0.95% and list on the NYSE Arca.

Name & Index Changes

There were also a large number of index and name changes during the week. As of Sept. 14, the KraneShares Bloomberg Barclays China Bond Inclusion Index ETF (KBND) changed its name to the KraneShares Bloomberg China Bond Inclusion Index ETF and its index from the Bloomberg Barclays China Inclusion Focused Bond Index to the Bloomberg China Inclusion Focused Bond Index.

Many of the changes took place around iShares municipal bond ETFs on Sept. 15. Those are as follows:

Effective Dec. 10, the VanEck ChinaAMC SME-ChiNext ETF (CNXT) will change its name to the VanEck ChiNext ETF and its index from the SME-ChiNext 100 Index to the ChiNext Index.

And as of Dec. 29, the PGIM QMA Strategic Alpha International Equity ETF (PQIN) will change its name to the PGIM Quant Solutions Strategic Alpha International Equity ETF.

Contact Heather Bell at [email protected]

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