Deutsche Bank will be closing a few ETFs.
From their disclosure document.
A number of ETFs share classes will be terminated and delisted from all relevant exchanges.
A number of ETFs share classes will be delisted from some exchanges but will remain listed on other exchanges.
A number of ETCs will be closed and delisted from all relevant exchanges.
More details are there in the attached document.
I stumbled upon this as I could not get prices for the X40 tracker and then I realized that they were terminating it.
Mmmm.. interesting,
So it's a delist buy-back at premium prices? or delist sell-out at loss-prices for ETFs holders?
(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.
(12-10-2015, 11:26 AM)CityFarmer Wrote: [ -> ] (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
(12-10-2015, 11:45 AM)Shrivathsa Wrote: [ -> ] (12-10-2015, 11:26 AM)CityFarmer Wrote: [ -> ] (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"
Hi Shrivathsa, thanks for sharing about this.
This is one risk of investing in ETFs that I have not thought of.
Just made my first ETF purchase a week back. (STI ETF)
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?
http://www.valuebuddies.com/thread-5825-...#pid120701
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...
(13-10-2015, 07:04 AM)greengiraffe Wrote: [ -> ]http://www.valuebuddies.com/thread-5825-...#pid120701
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.