Odds & Ends: ETF Shutdowns Are Ramping Up

January 20, 2023

Aside from Putnam Investments rolling out five actively managed ESG exchange-traded funds today, there was only one other launch during the week.  

The PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is an actively managed ETF targeting a portion of the market that typically offers equitylike returns with less than half of the volatility of stocks, a press release said. It launched on Jan. 19. 

Preferred and capital securities are both hybrid financial instruments that offer higher dividend distributions than many other types of securities. The fund’s prospectus notes that it can hold derivatives in order to achieve its desired exposure, and that the fund can invest up to half of its portfolio in high yield securities.  

PRFD will target an average portfolio duration that falls within one year of the duration of the ICE BofA US All Capital Securities Index, which had a duration of 5.05 years at the end of September. 

The fund launched on the NYSE Arca and has an expense ratio of 0.69%.  

Closures 

However, closures were where the real action was this week. Two of them completed during the week, while another three are scheduled for later in the quarter.  

The actively managed Volt Crypto Industry and Equity ETF (BTCR) saw its last day of trading on Tuesday after launching in October 2021, and the Qraft AI-Enhanced U.S. High Dividend ETF (HDIV), an actively managed ETF that launched in February 2020, ceased to trade after the markets closed on Thursday. 

The KFA Large Cap Quality Dividend Index ETF (KLCD) and the KFA Small Cap Quality Dividend Index ETF (KSCD) rolled out in the KraneShares lineup in June 2019. The two funds are set to see their last day of trading on Feb. 1.  

Similarly, the APEX Healthcare ETF (APXH), a global health care equity ETF that launched in September 2021, will no longer trade after the markets close on Jan. 24.  

The total number of completed closures for 2023 now stands at seven.  

Other Changes 

Finally, the iShares MSCI India ETF (INDA) reduced its expense ratio from 0.68% to 0.64% as of Jan. 13.  

 

Contact Heather Bell at [email protected] 

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