Seeking Alpha

Guggenheim announces it will shutter 9 ETFs "in order to focus resources on products that have...

Guggenheim announces it will shutter 9 ETFs "in order to focus resources on products that have demonstrated greater marketplace demand." Final day of trading to be March 15 with liquidation expected to be "on or around" March 22. The affected funds (with direct competitors in parentheses) are: ABCS (SDIV, VYM), EWEF, EWMD, EWSM, FAA, RSU (SSO), RSW (SDS), WFVK and WXSP. (PR)
Comments (13)
  • First to market along with sufficient promotion usually wins.
    20 Feb 2013, 07:39 AM Reply Like
  • How is this going to effect SDS's value for those holding it?
    20 Feb 2013, 08:30 AM Reply Like
  • Not affected. SDS has tons of volume and is very liquid. Only thing to worry about is what index it tracks. It may become even more popular with the eventual closing of RSW.
    20 Feb 2013, 08:35 AM Reply Like
  • It is my impression that SDS will also be shut down. Am I wrong ?
    20 Feb 2013, 09:26 AM Reply Like
  • Yes.
    20 Feb 2013, 03:34 PM Reply Like
  • what happens to SDIV holders? do we get full value; and the dividend....are there substitutes we can switch to?
    20 Feb 2013, 10:27 AM Reply Like
  • SDIV is fine...not closing. Read the news blurb again. Closing funds are NOT in the parentheses.
    20 Feb 2013, 03:33 PM Reply Like
  • SDIV is not one of the one's on the death watch. It's a Global X ETF, not Guggenheim. I think SDIV is listed as an ETF that is similar to ABCS in it's intended purpose - for comparison purposes only.
    20 Feb 2013, 06:41 PM Reply Like
  • How will the closing of ABCS affect the price of SDIV? Will it's excellent yield remain the same?
    20 Feb 2013, 05:03 PM Reply Like
  • No affect on SDIV except that it's maybe gained some slight additional AUM/liquidity
    19 Mar 2013, 08:10 AM Reply Like
  • It's a pity that EWSM is closing - note how it outperforms the equivalent market cap weighted index ETF:
    19 Mar 2013, 08:14 AM Reply Like
  • Pity indeed. There is another smallcap equal weight fund - - Guggenheim Russell 2000 equal weight (EWRS) - but the outperformance doesn't seem to be there.
    19 Mar 2013, 09:39 AM Reply Like
  • Thank you, Jonathan - v. helpful.


    Another issue is that the S&P 600 small cap turns out to be a better performing index than the Russell 2000. See
    20 Mar 2013, 12:38 PM Reply Like
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