Mmmm.. interesting,
So it's a delist buy-back at premium prices? or delist sell-out at loss-prices for ETFs holders?
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
12-10-2015, 11:26 AM (This post was last modified: 12-10-2015, 11:26 AM by CityFarmer.)
(12-10-2015, 10:55 AM)brattzz Wrote: Mmmm.. interesting,
So it's a delist buy-back at premium prices? or delist sell-out at loss-prices for ETFs holders?
Is it the redemption and depressed AUM, have made the ETF fund in-viable to sustain?
(12-10-2015, 10:55 AM)brattzz Wrote: Mmmm.. interesting,
So it's a delist buy-back at premium prices? or delist sell-out at loss-prices for ETFs holders?
For ETF/ETC being closed, it is de list and sell out at prices as of Early Redemption Valuation Date which is 20 October 2015.
Chances are these will be at whatever are the market rates.
In simple words, my guess is that it is not at premium prices, and will be sell-out at loss prices.
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
(12-10-2015, 10:55 AM)brattzz Wrote: Mmmm.. interesting,
So it's a delist buy-back at premium prices? or delist sell-out at loss-prices for ETFs holders?
Is it the redemption and depressed AUM, have made the ETF fund in-viable to sustain?
The stated reason is to improve liquidity and reduce spreads by concentrating on fewer exchanges.
A nuanced answer would likely be that the listing costs are higher than the revenue earned by listing, so, business wise it does not make sense to retain listing.
One of the additional problems one has to bear when investing in ETF
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
(12-10-2015, 10:55 AM)brattzz Wrote: Mmmm.. interesting,
So it's a delist buy-back at premium prices? or delist sell-out at loss-prices for ETFs holders?
Is it the redemption and depressed AUM, have made the ETF fund in-viable to sustain?
The stated reason is to improve liquidity and reduce spreads by concentrating on fewer exchanges.
A nuanced answer would likely be that the listing costs are higher than the revenue earned by listing, so, business wise it does not make sense to retain listing.
One of the additional problems one has to bear when investing in ETF
"The stated reason is to improve liquidity and reduce spreads by concentrating on fewer exchanges" - same as "fewer unit now, thus have to focus on fewer exchanges to ensure liquidity"?
"A nuanced answer would likely be that the listing costs are higher than the revenue earned by listing, so, business wise it does not make sense to retain listing." - same as "AUM lower, thus fee (income) lower, so need to cut expense now"
This sounds scary, I think most of us who bought ETF would not have considered the possibility of them being delisted. Can they just delist without the ETF holders' approval?
Would the chances of delisting be lower if the ETF and the component shares are in listed in the same exchange?
This link is possibly answers to the problems created by financial engineers with their robotic tools...
When liquidity dries up and the costs of roboting soars, the financial engineers simply have to make a decision if they so wish to continue...
I have no problem with a robotic tool, as long as the ETF complies with its mandate and fee remains low. It suppose a passive fund, may be a robotic tool is the most efficient mean.
Homepage
PR Newswire
