Wednesday, 26 October 2016
Last updated 14 hours ago
Dec 4 2012 | 12:12pm ET
IndexIQ is closing one of its exchange-traded funds due to lack of interest.
The Rye Brook, N.Y.-based firm said that the IQ Emerging Markets Mid Cap ETF's board of trustees approved its plan to close the fund yesterday. The fund will cease trading on Dec. 18, and investors who still hold shares on that date will be automatically redeemed 10 days later, receiving a cash distribution equal to the fund's net asset value on Dec. 18.
IQ Emerging Markets Mid Capnever garnered much interest from investors; since its debut a year-and-a-half ago, it has gathered less than $1.7 million.
IndexIQ warned that in the period between the fund's end of trading and end of operations, there may not be a market for investors who wish to sell their shares.
The closure of EMER comes towards the end of the worst year ever for ETFs, in terms of attrition. Some 90 funds have closed this year, according to IndexUniverse, three times as many as last year and well ahead of the previous record, 59, in 2008.