NEW YORK (
TheStreet) -- The ETF business is a cutthroat Darwinian one in which only the strongest products survive. Therefore, it is not unusual to see providers announcing the closing of funds which fail to generate an adequate amount of investor interest.
While this is natural trimming expected and makes for a stronger ETF industry as a whole, sometimes it is unfortunate to see a fund disappear.
In coming weeks, two ETF providers will shutter a number of funds.
Claymore Securities, the ETF provider responsible for the popular
Claymore/NYSE Arca Airline ETF
Claymore Shipping ETF
(SEA) is preparing to close four members of its ETF lineup.
The four Claymore funds slated for execution are Claymore
/Zacks Dividend Rotation
Claymore/Zacks Country Rotation
Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index
, and the
Claymore/Robb Report Global Luxury Index
Grail Advisors, hailed as a leading name in the active ETF space, is preparing to close two of its own ETFs as well: the
RP Technology ETF
RP Financial ETF
While I have highlighted time and again the importance of constructing an ETF portfolio comprised of large, liquid funds which boast strong average volumes, sometimes it is hard not to root for an illiquid ETF with an interesting investing strategy.
ROB has been one illiquid fund always had a soft spot in my heart for. Designed as a pure play for investors seeking exposure to the luxury industry, I have highlighted this ETF on a number of occasions as a unique and interesting way to play the spending habits of affluent consumers with a taste for
and an eye for
(TIF - Get Report)
In the absence of ROB, investors looking for exposure to retailers in the 1% will have to settle elsewhere to get their fix. The best option will likely be a broader consumer focused ETFs such as
SPDR S&P Retail ETF
While XRT boasts exposure to some of the companies represented in ROB and, with an average volume over 16 million, is a strong, stable way to play the broad consumer picture and even, it is hard to say that the SPDR ETF is designed with luxury in mind.
I still believe that high-end retail is a neat market niche and with any luck Claymore or some other fund provider will revisit the idea of launching a similar ETF to ROB in the near future. However, in the mean time it is more important for investors holding ROB or any of the other funds highlighted for closure in coming weeks to maintain a level head and prepare for the their final days.