An early termination of a Barclays ETN and the orderly shutdown of three Direxion ETFs mark the first closures of 2013. These four ETPs were all members of ETF Deathwatch, and therefore their closures should not come as a surprise to anyone. After a record setting 102 ETP closures in 2012, investors are anxious to see what lies ahead in 2013.
Barclays ETN+ S&P 500 Leveraged Short C ETN (NASDAQ:BXDC) was a leveraged ETN with a “no-reset” feature. As such, it requires an early termination trigger to prevent total ruin or the possibility of a negative value. The intraday net asset value of BXDC hit $10 on January 4, triggering the early termination. Its last day of trading was January 10, 2013.
DirexionShares announced the closing of three ETFs back on December 14, giving shareholders ample opportunity to exit positions prior to the liquidation. January 18, 2013 was the last day of trading for:
- Direxion Large Cap Insider Sentiment (INSD)
- Direxion S&P 1500 DRRC Volatility Response (VSPR)
- Direxion S&P Latin America 40 DRRC Volatility Response (VLAT)
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.