A.I.M. Users Bulletin Board

[SFSecurity]

Hi Toofuzzy, You said that, "I like ETFs. They can't go to zero." Well I ran into evidence that this isn't necessary so.

Guggenheim Investments will close nine ETFs “in order to focus resources on products that have demonstrated the most marketplace demand.”

The firm plans to liquidate Guggenheim ABC High Dividend ETF (NYSEArca: ABCS), Guggenheim MSCI EAFE Equal Weight ETF (NYSEArca: EWEF), Guggenheim S&P MidCap 400 Equal Weight ETF (NYSEArca: EWMD), Guggenheim S&P SmallCap 600 Equal Weight ETF (NYSEArca: EWSM), Guggenheim Airline ETF (NYSEArca: FAA), Guggenheim 2x S&P 500 ETF (NYSEArca: RSU), Guggenheim Inverse 2x S&P 500 ETF (NYSEArca: RSW), Wilshire 5000 Total Market ETF (NYSEArca: WFVK) and Wilshire 4500 Completion ETF (NYSEArca: WXSP).

This is from http://www.etftrends.com/2013/02/guggenheim-closing-nine-etfs/ last year.

Also:

With shares of US Airways (NYSE: LCC) down 9.5% on volume that is more than 11 times the daily average, it is probably a good thing that airline ETFs no longer exist.

This is from http://www.etftrends.com/2013/08/good-thing-the-airline-etfs-are-gone/.

I don't know what the actual financial repercussions were on the holders but my question is, who are they going to sell them to to get their money out of them? With luck the creators of them were ethical enough to at least buy them back at whatever cash and stocks they have in the underlying portfolio are worth. Depending on how well they were created, managed, and the performance of those stocks they might get out without losing too much skin. If it is an index fund, I'd guess, good luck.

Best to all and have a Happy New Year's.

Allen