Geary Advisors shuts its only two funds and plans on quitting the business.
The closings come in the wake of a dismal August for Geary, whose two funds, the Texas Large Companies ETF (NYSEArca: TXF) and the Oklahoma ETF (NYSEArca: OOK), had combined net outflows last month of $7 million—about 50 percent of total assets under management—according to data compiled by IndexUniverse.com.
Geary’s exit is the latest in a spate of ETF closings that has put the industry on pace to shutter at least 40 funds by the end of 2010. Grail Advisors closed two of its actively managed ETFs last month, while Claymore is planning to shut down four funds on Sept. 10.
Despite continued closings, as Matt Hougan wrote in his recent blog “Industry Should Close 200 More ETFs,” the rate of fund closings is slower than it was in 2008 or 2009, when sponsors pulled 58 and 56 ETFs off the market, respectively.
Geary’s funds were the first ETFs to target the economies of individual
NYSE Arca will halt trading in TXF and OOK on Sept. 27.
Remaining shareholders will receive cash equal to the amount of the net asset value of their shares as of Sept. 30. Geary will bear the expenses associated with closing the funds, the company said.