QuantX ETFs To Close

April 29, 2019

Today a number of fund closures were announced, including the remaining QuantX brand funds and a China equities ETF from State Street.

China ETF To Close

The $5.7 million SPDR MSCI China A Shares IMI ETF (XINA) is a market-cap-weighted ETF that invests in A-shares (meaning, shares of China companies that trade domestically on the Shenzhen and Shanghai markets).

Launched in 2015, XINA rode a wave of A-shares ETF launches, but struggled to accrue assets, given its wide spreads and highly optimized portfolio.

While XINA's year-to-date performance has been strong, the fund's longer-term performance lagged competitors. It's one of the worst-performing China ETFs over the past three years, with a return of just 2.2%.

The last day for creations in XINA will be May 29, with trading suspended the following day. Liquidation should be completed on or by June 6.

QuantX Shutting Down

Meanwhile, Blue Sky Asset Management, the investment advisor for the QuantX suite of ETFs, announced today it is closing the remaining funds in that brand, including the $27 million QuantX Risk Managed Growth ETF (QXGG); the $16 million QuantX Risk Managed Multi-Asset Total Return ETF (QXTR) and the $16 million QuantX Dynamic Beta US Equity ETF (XUSA).

These funds had been launched through the Northern Lights trust, a white label that also launched the Inspire, Anfield and FormulaFolio families of ETFs.

QXGG and QXTR are geographical- and capitalization-agnostic ETF-of-ETFs designed to maximize exposure to the best-performing securities while minimizing downside risk. Both funds have the ability to switch to a defensive position in cash and cash equivalents in extreme market conditions. QXGG is a total market equity ETF, while QXTR is a multi-asset fund. 

Meanwhile, XUSA selects stocks from the Russell 1000 based on maximizing upside volatility, through forward-looking data from the equity options market. It also manages risk by toggling between higher and lower volatility securities, depending on market conditions.

Not only do the QuantX funds possess very dynamic portfolios, they're also very expensive compared with their competition. QXGG has an expense ratio of 1.14%; QXTR's is 1.47%; and XUSA's is 0.59%.

The last day for creations/redemptions and trading for these funds will be May 16. The funds will close and liquidate on May 24.

Contact Lara Crigger at [email protected]

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