Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:SSgA Pulls Plug on ETF Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, August 28, 2006

SSgA Pulls Plug on ETF

by: Sean Hanna, Editor in Chief

Many investors have noticed (or perhaps imagined) that, when a stock wins the fancy of the financial press, it has often peaked in value and is more likely than not in for a rough run. Could that rule of thumb apply to ETFs, too? In recent weeks there have been a spate of articles hyping ETFs and even a handful wondering if there are too many ETFs for investors to choose from. Now, at least one fund advisor seems to agree (that there are too many, that is).

Friday SSgA Funds Management officials said that they are pulling the plug on their SPDR(R) O-Strip ETF. The move -- which may signify the ETFs are a maturing industry -- marks one of the first (if not the first) times that an exchange-traded fund will be liquidated. The Fund's board of trustees' decision to close the Fund was part of an ongoing business review, according to SSgA officials.

The most likely reason for the move was that the fund had failed to attract enough assets to make it viable. After two years, the fund has just $5 million of assets.

State Street will halt trading in the fund just prior to the opening bell on the American Exchange on September 14, 2006. It will then close down the fund and liquidate the portfolio from September 14, 2006 through September 20, 2006. During the wind-down period the fund may not track its respective index due to its increasing cash holdings and liquidating portfolio securities, warned SSgA officials.

Shareholders of record remaining as of September 20, 2006 will receive cash at the Net Asset Value (NAV) of their shares as of this date which will include any capital gains and dividends as of this date. These shareholders will not incur transaction fees, but the NAV of the Funds will reflect the costs of closing the Fund. Payments to shareholders will be made on September 25, 2006. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use