Odds & Ends: ETF Closures Dominate the Week

The past week in the exchange-traded fund industry was rife with closures, with one firm closing its entire lineup and another shutting more than half of its funds.  

In all, the ETF industry saw announcements for 18 new closures this week. There are also two more mutual-fund-to-ETF conversions in the works in addition to the handful of fund launches. 

Emles Advisors entered the ETF space in the last quarter of 2020, at a time when the world was still reeling from the COVID-19 pandemic. The firm specializes in thematic ETFs. Its lineup will cease to trade after the market close on Oct. 19; it includes the following funds:  

• Emles @Home ETF (LIV) 
• Emles Alpha Opportunities ETF (EOPS) 
• Emles Federal Contractors ETF (FEDX) 
• Emles Luxury Goods ETF (LUXE) 
• Emles Made in America ETF (AMER) 
• Emles Real Estate Credit ETF (REC) 

John Hancock’s lineup of 18 ETFs includes 10 multifactor sector funds tracking indexes provided by Dimensional Fund Advisors. The ETFs will stop trading after the market close on Oct. 24; they include the following: 

• John Hancock Multifactor Consumer Discretionary ETF (JHMC) 
• John Hancock Multifactor Consumer Staples ETF (JHMS) 
• John Hancock Multifactor Energy ETF (JHME) 
• John Hancock Multifactor Financials ETF (JHMF) 
• John Hancock Multifactor Healthcare ETF (JHMH) 
• John Hancock Multifactor Industrials ETF (JHMI) 
• John Hancock Multifactor Materials ETF (JHMA) 
• John Hancock Multifactor Media and Communications ETF (JHCS) 
• John Hancock Multifactor Technology ETF (JHMT) 
• John Hancock Multifactor Utilities ETF (JHMU) 

First Trust will close two of its nearly 200 ETFs. The First Trust Dorsey Wright People's Portfolio ETF (DWPP) and the First Trust TCW ESG Premier Equity ETF (EPRE) will both cease to trade after the market close on Dec. 26.  

These new closures bring the total completed and scheduled ETF shutdowns in 2022 to 114.  

Another seven ETFs from Direxion closed as of Friday. They include the following: 

• Direxion Daily Cloud Computing Bear 2X Shares (CLDS) 
• Direxion Low Priced Stock ETF (LOPX) 
• Direxion Fallen Knives ETF (NIFE) 
• Direxion Russell 1000 Growth Over Value ETF (RWGV) 
• Direxion Russell 1000 Value Over Growth ETF (RWVG) 
• Direxion Daily 5G Communications Bull 2X Shares (TENG) 
• Direxion World Without Waste ETF (WWOW) 

Conversions 

On or around Oct. 21, Neuberger Berman will convert the Neuberger Berman Commodity Strategy Fund into the Neuberger Berman Commodity Strategy ETF trading under the ticker NBCM. 

Similarly, on or around Jan. 20, 2023, Goldman Sachs will convert the Goldman Sachs Defensive Equity Fund into the Goldman Sachs Defensive Equity ETF.  

Launches 

On Wednesday, First Trust rolled out the latest addition to its lineup of defined outcome ETFs. The FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF – September (XSEP) looks to provide its investors with twice the positive price return of the SPDR S&P 500 ETF Trust (SPY) up to a before-expenses cap of 14.90%, and protect from the first 15% of SPY’s unleveraged downside losses during an outcome period that lasts from Sept. 22, 2022 to Sept. 15, 2023, according to its prospectus.  

The fund comes with an expense ratio of 0.85% and lists on Cboe Global Markets. 

Other Changes 

A number of other changes occurred or were announced during the week.  

The Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD) will change its name to the Roundhill Video Games ETF and its index from the Roundhill BITKRAFT Esports Index to the Nasdaq CTA Global Video Games Software Index as of Sept. 27. 

As of Oct. 3, the First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (FFR) will change its name to the First Trust Alerian Disruptive Technology Real Estate ETF and its index from the FTSE EPRA/NAREIT Developed Markets Real Estate Index to the Alerian Disruptive Technology Real Estate Index. Its new ticker will be DTRE. 

On Dec. 1, the iShares Evolved U.S. Discretionary Spending ETF (IEDI) will change its name to the iShares U.S. Consumer Focused ETF, while the iShares Evolved U.S. Technology ETF (IETC) will change its name to the iShares U.S. Tech Independence Focused ETF. 

And on Sept. 27, three Credit Suisse ETNs will undergo 1-for-20 reverse splits. The affected funds are as follows: 

• Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI) 
• Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO) 
• Credit Suisse X-Links Oil Shares Covered Call ETN (USOI) 

Finally, as of Aug. 2, the Regents Park Hedged Market Strategy ETF (RHPS) saw its expense ratio decrease from 0.77% to 0.75%. 

Contact Heather Bell at [email protected]