Short Squeeze ETF To Close

Fund invests in stocks likely to be subjected to short-squeeze situations.
 

An actively managed fund offering investors access to a unique strategy is set to close. The Active Alts Contrarian ETF (SQZZ) will see its last day of trading May 25.

The ETF launched in March 2017 and never broached the $1 million mark in assets under management. Part of SQZZ’s problem may have been its expense ratio of 1.95%, which surely gave investors pause.

Investors may also have been uncertain about its strategy, which sought to invest in heavily shorted securities that were likely to see price appreciation and be the subject of a wave of investors seeking to unwind short positions by purchasing shares, a scenario known as a “short squeeze.”

So far, 2018 has seen 75 ETF closures, including a massive wave of 50 iPath ETNs that shut down or delisted in April.

Contact Heather Bell at [email protected]