ETF Watch: 2 More Closures

Credit Suisse kicked off the month of June with two ETN closures.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Credit Suisse has shut down two more of its exchange-traded notes. Yesterday was the last day of trading for the Credit Suisse X-Links Commodity Rotation ETN (CSCR) and the Credit Suisse FI Enhanced Big Cap Growth ETN (FIBG). The closures bring the number of Credit Suisse-branded ETNs to 10.

CSCR launched in June 2013, while FIBG rolled out in October of the same year. These most recent closures bring the total for the year so far to 33. In 2016, the first five months of the year saw 35 ETF closures. 

First Trust Plans New Take On Dow

The latest filing from First Trust outlines plans for an ETF that would offer a new perspective on the components of the Dow Jones industrial average. The First Trust Dow 30 Equal Weight ETF will hold the 30 components of the industrial average, but rather than price-weighting them as the blue-chip average does, its index will weight them equally.

The industrial average started off as a simple average of 12 stock prices, but for the sake of continuity, as the number of companies in the index increased and the components experienced corporate actions like splits and spinoffs, the divisor was adjusted. Today it is a fraction rather than a whole number.

Quarterly Rebalancing

The fund’s index will be rebalanced quarterly, meaning that with 30 stocks in the modern Dow, individual component weights will regularly be rebalanced back to 3.33% each.

The Dow is often criticized for being narrow and for its subjective methodology since its portfolio of just 30 stocks is mainly selected by committee. However, it has tracked fairly closely with broader U.S. indexes throughout its history.

The filing indicates that the fund will list on the NYSE Arca. The document did not include a ticker or expense ratio.

Contact Heather Bell at [email protected].

 

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