Global X recently announced its intent to close and liquidate four ETFs. According to the company press release, Global X will absorb all fees and expenses that may be incurred in connection with the liquidation and distribution of assets.
I advise shareholders to dispose of their holdings, using a limit order, prior to the October 18, 2012 delisting to avoid any surprises. Any remaining shareholders will receive a cash distribution equal to the net asset value as calculated six days later on October 26.
The four closing funds are:
- Global X Funds (NYSEARCA:ALUM), launched 1/5/11, is actually an aluminum producers fund and has less than $3 million in assets.
- Global X Funds (NYSEARCA:VROM), launched on 5/19/11, was the third fund in a not-so-popular category and managed to attract less than $3 million in assets.
- Global X Funds (NASDAQ:QQQM) was introduced on 12/6/11 while beingbased on a newly invented index. It has less than $2 million in assets.
- Global X Funds (NASDAQ:QQQV) launched less than a year ago on 12/6/11 and was also based on a newly invented index. It has less than $2 million in assets.
These ETFs are regular members of ETF Deathwatch, although the closings appear to be part of a healthy ongoing process at Global X to remove unpopular, non-strategic products from their lineup.
This article was originally written by Ron Rowland, and posted on InvestWithAnEdge.