How To Survive An ETF Liquidation

The last two weeks have seen two separate announcements of ETF closures, with Claymore and Grail both making plans to shutter funds that have failed to catch on with investors. Claymore will close four equity funds that maintained aggregate assets of about $35 million (IRO, CRO, EXB, and ROB) while Grail is closing the doors on two actively-managed funds that each maintained about $3 million in assets. So far in 2010, about 30 ETFs have been closed; WisdomTree gave 10 funds the ax in February and Rydex pulled the plug on most of its leveraged ETF lineup in April. Odds are that the next several years will see a wave of consolidations and closures in the ETF space. According to the most recent data from the National Stock Exchange, more than 350 ETFs maintain total assets of less than $25 million. Many of those funds are relatively new, and are [...] Click here to read the original article on ETFdb.com. Related Stories: MacroShares Shutters UMM, DMM Four ETFs To Close Their Doors PowerShares ETFs Nearly Perfect On Capital Gains