For the month of September, the ETF Deathwatch slightly increased in size. Twenty-one exchange-traded products (“ETPs”) were added to the list, and 19 funds were removed. Of the removals, nine were removed due to increased health and 10 were due to asset managers closing their funds. It’s likely that many of the fund closures were the result of fund managers wanting to “clean up” their business lines at the end of the quarter.
Continue reading at Invest With An Edge right here: http://investwithanedge.com/etf-deathwatch-september-2018
See the Complete List of 423 ETFs and ETNs on ETF Deathwatch for September 2018 right here: http://investwithanedge.com/etf-deathwatch/etf-deathwatch-september-2018
Hi MIcah,
I am learning a lot from you (and your site)!
I own SCIN (IndiaSmallCapColumbia). What would you do today if you owned it?
Thanks!
Hi Vin
This is a great question.
First of all, I wouldn’t buy or sell SCIN based solely on the fact that it is on the ETF deathwatch list.
Second, there is no reason to do whatever you plan to do with any great speed.
SCIN does have very low trading volume, but some of my holdings have low volumes also, for example RFG and RYU.
This low volume can affect the bid/ask spread prices which concerns some investor, but this does not bother me.
I don’t see any great danger of continuing to hold SCIN for some time.
I’ve read the material at Columbia’s website on this fund.
They don’t disclose any intentions to close the fund at this time.
Personally, if I held this fund, I would look for another similar fund that was trading at higher volumes.
I would also consider my current profit or loss in the fund.
If I had an unrealized loss, I would continue to hold it until it is profitable.
Once I had a profit, I would set a percentage based trailing stop limit order.
For example, if I had a 10% profit showing, I would set a 5% trailing stop limit order.
This way, you can capture some satisfactory gains before you liquidate it.
Once again, I’m not saying you need to sell SCIN, that’s your call.
If you like the fund a lot, you might want to keep it.
If Columbia ever decided to close the fund, they would send out literature to shareholders stating their intentions several months before they close it.
When a fund closes, they simply liquidate the underlying holdings on a predetermined date.
The shareholders on the date of liquidation would receive cash equivalent to the net asset value of the holdings that were sold.
The bottom line is that I don’t believe you are in a financially dangerous situation at this time.
But, you are now an informed shareholder and can take action as you see fit.
Thanks for the question Vin.
Micah
How can you be so very lucid and thorough in your explanations to your readers, Micah!
One can see your immense passion through your posts, replies, and the site.
You rock, brother. Thanks a many.
Be blessed.
🙂
Too kind Vin.
Thank you once again for asking questions.
And thank you for giving me an idea for an article this weekend.
“How to liquidate a fund when you’ve changed your mind”
Or something like that.
Blessings to you too.
Micah