IndexIQ To Shut Emerging Markets ETF

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.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.