FFCM, LLC, the parent company of ETF issuer QuantShares, announced it will shutter three of the firm's ETFs next month due to limited demand and low volume. The funds being closed are the QuantShares U.S. Market Neutral High Beta Fund (NYSE:BTAH), the QuantShares U.S. Market Neutral Anti-Momentum Fund (NYSE:NOMO) and the QuantShares U.S. Market Neutral Quality Fund (NYSE:QLT).
QLT has average daily volume of just over 2,700 shares while NOMO's daily turnover barely eclipses 1,400 shares. Just over 2,000 shares per day change hands in BTAH.
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"As a result of lower than anticipated levels of institutional and retail demand, the trading volume in their shares has been less than expected. As a result, liquidity in such shares has lagged, and FFCM believes that closing the Liquidating Funds and liquidating their portfolios is in the best interest of shareholders," the firm said in a statement.
The last day of trading for the ETFs will be November 2 and the funds will be fully liquidated by November 19. The closures will leave QuantShares with four ETFs, but the firm has filed plans with the SEC to possibly introduce as many as six new funds.
Eighty-nine exchange-traded products have closed this year, a record for the still new industry. Thirty funds have been shuttered in October.
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