IndexIQ, creator of the first hedge fund replication ETFs, plans to close three of its international equity ETFs by year end. The three funds have combined assets of about $5 million, or about 1% of Index IQ’s total assets.
Friday, Dec. 31 will be the last day of trading for the IQ Taiwan Small Cap ETF (TWON), IQ Hong Kong Small Cap ETF (HKK) and the IQ Japan Mid Cap ETF (RSUN). All three funds were less than a year old.
Shareholders who don’t sell their shares by Friday will have their shares automatically redeemed on Dec. 30. Shareholders who don’t sell by this date will not incur transaction fees in connection with the liquidation. Index IQ will pay all the costs.
Elsewhere in ETFLand:
WisdomTree ETFs declare quarterly distributions. The Dividend ex-Financials Fund (DTN) tops the list with an actual payout of 47 cents per share. LargeCap Dividend (DLN) and Asia Pacific ex-Japan (AXJL) show and place with 39 cents and 38.4 cents, respectively. Equity Income (DHS) follows closely with 38.0 cents. Most International funds don’t post dividends this quarter.
Financial Times says in 2011 British ETF investors flocked to fixed income and strategies that provide insurance should equities take a dive. Emerging market ETFs holding either stocks or bonds saw a lot of inflows as did gold mining stock ETFs, such as Market Vectors Gold Miners (GDX).