State Street Global Advisors this week announced it will close and liquidate 12 of its exchange-traded funds before month’s end.
The hit list comprises the following:
• SPDR MSCI EM Beyond BRIC ETF (EMBB)
• SPDR BofA Merrill Lynch EM Corp. Bond ETF (EMCD)
• SPDR Barclays International High Yield Bond ETF (IJNK)
• SPDR MSCI EM 50 ETF (EMFT)
• SPDR Russell/Nomura PRIME Japan ETF (JPP)
• SPDR Russell/Nomura Small Cap Japan ETF (JSC)
• SPDR S&P International Mid Cap ETF (MDD)
• SPDR S&P BRIC 40 ETF (BIK)
• SPDR SSGA Risk Aware ETF (RORO)
• SPDR Nuveen Barclays Build America Bond ETF (BABS)
• SPDR Nuveen Barclays California Muni Bond ETF (CXA)
• SPDR Nuveen Barclays New York Muni Bond ETF (INY)
In an investment paper on the SDPR University website, State Street says “a commonly recognized asset level at which an ETF becomes sustainable is $50 million, a level not matched by almost half of today’s ETFs.”
And it was a level not matched by half of its 12 ETFs slated for closure. The SPDR Nuveen Barclays California Muni Bond ETF by far was the largest fund to close, with assets under management of $149 million. The next largest was the SPDR S&P BRIC 40 ETF, with assets of $73 million. The SPDR MSCI EM Beyond BRIC ETF and SPDR MSCI EM 50 ETF were the smallest funds with assets of $2.6 million and $2.1 million, respectively.
According to State Street, the final day for creations will be either August 23 or August 24, depending on the fund. Trading of all 12 funds will be suspended on the NYSE Arca at the open of market on August 25, and liquidated proceeds will be sent to shareholders on or about August 31.