NEW YORK ( TheStreet) -- Exchange-traded product (ETP) closure activity last week pushed the lifetime death toll to 300 and the year-to-date count to 89. Early October action from iPath, Russell and Global X resulted in 30 delistings so far this month.
If a tree falls in the forest and no one is there to hear it, does it still make a sound? If an ETF closes and no shares are there to be redeemed, does it still need to liquidate?
That second philosophical question has now been answered by two Russell ETFs. The
Russell Low P/E ETF
Russell Small Cap Contrarian ETF
(SCTR) were scheduled to have their last day of trading on Oct. 16 as part of the
However, the final shares of LWPE were redeemed on Oct, 4 and assets went to zero. The same thing happened to SCTR on Oct. 5. Russell, in a
No shareholders were harmed by this spur-of-the-moment closing because there were none. The next product to meet an early demise was the iPath Long Enhanced S&P 500 VIX Mid-Term Futures ETN II (VZZB). It triggered an early termination event on Oct. 5 when its intra-day NAV hit $10, with delisting occurring after the close on Oct. 14. VZZB came out in July 2011 to
Analysis/Opinion: In addition to the 89 closures that have already taken place, there are currently five more scheduled to come this year. That pushes the tally for 2012 to 94 and climbing, more than double the