As part of the winding down process, within the next two weeks, DXO investors will receive the cash equivalent of the net asset value of their holdings in the ETN. As Morningstar’s Scott Burns notes, it is important to note that investors will be receiving the NAV of the note assets, rather than the market value. DXO, like other commodity exchange-traded products, has stopped issuing new shares in recent weeks, resulting in shares of the fund trading at a premium to NAV. “So if you bought this fund at a premium, you are out of luck unless you can sell it at the same premium,” notes Burns. Burns suggests that investors sell their holdings in DXO as soon as possible, but notes that most of DXO’s premium evaporated shortly after the announcement. In an extreme example of supply/demand imbalance for commodity funds, the U.S. Natural Gas was recently trading as high as 20% above its net asset value.
So what sunk DXO?
The fact that the Commodities Futures Trading Commission (CFTC) is expected to place position limits on commodity ETPs later this year certainly didn’t help. The fear in the ETF industry is that many funds are already over the position limits that will ultimately be imposed, and that such funds will be forced to liquidate a portion of their holdings to come into compliance
http://etfdb.com/2009/crude-oil-etf-shuts-its-doors/
Recent DXO News
- Fonds Dynamique annonce la distribution en espèces de juin 2024 des FNB actifs Dynamique • PR Newswire (Canada) • 06/18/2024 01:00:00 PM
- Dynamic Funds announces June 2024 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 06/18/2024 01:00:00 PM
- Dynamic Funds announces May 2024 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 05/21/2024 01:00:00 PM
- Fonds Dynamique annonce la distribution en espèces de mai 2024 des FNB actifs Dynamique • PR Newswire (Canada) • 05/21/2024 01:00:00 PM
- Dynamic Funds announces April 2024 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 04/18/2024 01:00:00 PM
- Fonds Dynamique annonce la distribution en espèces d'avril 2024 des FNB actifs Dynamique • PR Newswire (Canada) • 04/18/2024 01:00:00 PM
- Fonds Dynamique annonce la distribution en espèces de mars 2024 des FNB actifs Dynamique • PR Newswire (Canada) • 03/18/2024 01:00:00 PM
- Dynamic Funds announces March 2024 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 03/18/2024 01:00:00 PM
- Dynamic Funds announces February 2024 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 02/16/2024 02:00:00 PM
- Fonds Dynamique annonce la distribution en espèces de février 2024 des FNB actifs Dynamique • PR Newswire (Canada) • 02/16/2024 02:00:00 PM
- Dynamic Funds announces January 2024 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 01/19/2024 02:00:00 PM
- Fonds Dynamique annonce les distributions en espèces de janvier 2024 pour les FNB actifs Dynamique • PR Newswire (Canada) • 01/19/2024 02:00:00 PM
- Fonds Dynamique annonce les montants finaux des distributions en espèces de fin d'année des FNB actifs Dynamique • PR Newswire (Canada) • 12/28/2023 02:00:00 PM
- Dynamic Funds announces final year-end cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 12/28/2023 02:00:00 PM
- Dynamic Funds announces estimated year-end cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 12/20/2023 02:00:00 PM
- Dynamic Funds announces estimated year-end reinvested distributions for Dynamic Active ETFs • PR Newswire (Canada) • 12/20/2023 02:00:00 PM
- Fonds Dynamique annonce les distributions réinvesties estimatives de fin d'année des FNB actifs Dynamique • PR Newswire (Canada) • 12/20/2023 02:00:00 PM
- Fonds Dynamique annonce les distributions en espèces estimatives de fin d'année des FNB actifs Dynamique • PR Newswire (Canada) • 12/20/2023 02:00:00 PM
- Fonds Dynamique annonce les distributions réinvesties estimatives de fin d'année des FNB actifs Dynamique • PR Newswire (Canada) • 11/24/2023 01:00:00 PM
- Dynamic Funds announces estimated year-end reinvested distributions for Dynamic Active ETFs • PR Newswire (Canada) • 11/24/2023 01:00:00 PM
- Dynamic Funds announces November 2023 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 11/20/2023 02:00:00 PM
- Fonds Dynamique annonce les distributions en espèces de novembre 2023 des FNB actifs Dynamique • PR Newswire (Canada) • 11/20/2023 02:00:00 PM
- Fonds Dynamique annonce la distribution en espèces d'octobre 2023 pour les FNB actifs Dynamique • PR Newswire (Canada) • 10/19/2023 01:00:00 PM
- Dynamic Funds announces October 2023 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 10/19/2023 01:00:00 PM
- Dynamic Funds announces September 2023 cash distributions for Dynamic Active ETFs • PR Newswire (Canada) • 09/19/2023 01:00:00 PM
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