Elkhorn to close suite of S&P mid-cap sector ETFs

Sep 5th, 2017 | By | Category: Equities

Elkhorn Investments has announced its range of US mid-cap sector ETFs are to close.

Elkhorn to close suite of S&P mid-cap sector ETFs

Elkhorn to close suite of S&P mid-cap sector ETFs.

The nine funds track various US equity sector-specific exposures, derived from the S&P Midcap 400 Index using the Global Industry Classification Standard (GICS) which was jointly developed by MSCI and Standard & Poor’s.

While the range of SPDR Select Sector ETFs, which are based on the GICS categorization of US large-cap equities (S&P 500 constituents), holds over $120bn in total assets under management, the Elkhorn funds have failed to generate investor interest – each fund has less than $1 million in AUM.

The list of Elkhorn funds scheduled for closure includes the following:

Elkhorn S&P MidCap Consumer Discretionary Portfolio (XD)
Elkhorn S&P MidCap Energy Portfolio (XE)
Elkhorn S&P MidCap Financial Portfolio (XF)
Elkhorn S&P MidCap Health Care Portfolio (XH)
Elkhorn S&P MidCap Industrials Portfolio (XI)
Elkhorn S&P MidCap Information Technology Portfolio (XK)
Elkhorn S&P MidCap Materials Portfolio (XM)
Elkhorn S&P MidCap Consumer Staples Portfolio (XS)
Elkhorn S&P MidCap Utilities Portfolio (XU)

The last day of trading in the funds will be 14 September 2017. After this date, Elkhorn will begin the liquidation process for the ETFs – during this period, each fund will increase its cash holdings and, as a consequence, will likely cease to deliver its intended exposure. The funds will liquidate their assets and distribute cash pro rata to all remaining shareholders who have not previously redeemed or exchanged their shares.

This is the second week in a row Elkhorn has been in the news following the announcement that the firm is in the final stages of negotiating a deal that will see it being acquired by Pennsylvania-based asset manager Turner Investments (See: “Turner Investments to acquire ETF issuer Elkhorn Capital“).

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