WisdomTree, an ETF issuer specializing in international and fundamentally-weighted funds, announced the closure of ten of its funds, effective March 24th, 2010. The ETFs effected represent just 3% of WisdomTree’s $6 billion in assets under management and include several of the company’s international sector funds. The largest fund closing is WisdomTree International Communications Sector Fund (DGG) which had roughly $27 million in assets at the end of last year.
“We proposed the closure of 10 ETFs in order to create capacity for future growth initiatives, and because we believe it is in the best interest of our customers and shareholders to dedicate our resources to areas of greater client interest,” said WisdomTree CEO Jonathan Steinberg. “We have no plans to make any further closures and are fully committed to maintaining and developing an innovative product line, including the introduction of new funds in the coming months.”
The funds that will be closed are as follows:
- International Technology Sector Fund (DBT)
- International Financial Sector Fund (DRF)
- International Health Care Sector Fund (DBR)
- International Consumer Staples Sector Fund (DPN)
- International Consumer Discretionary Sector Fund (DPC)
- International Industrial Sector Fund (DDI)
- International Communications Sector Fund (DGG)
- Europe Total Dividend Fund (DEB)
- Earnings Top 100 Fund (EEZ)
- U.S. Short Term Government Income Fund (USY)
With the announcement of these closures, 2010 has already been a year of very high turnover in the ETF industry. Nearly two dozen new funds were launched in January, including the International Hedged Equity Fund (HEDJ) from WisdomTree (see a complete summary of new ETF launches for January here). With more than 150 ETFs maintaining assets of less than $20 million, the number of fund closures in 2010 could far exceed previous years.
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Disclosure: No positions at time of writing