2019 ETF Research Report, ETF Market Update, Reports

Closed ETFs

A summary of all the ASX listed ETFs that have closed or delisted over the past year.

Over the last year, 10 ETFs shut down due to cost pressures, increased competition, poor performance, and minimal take up by investors. Small scale seems to be the common denominator with the median FUM of the 10 closed ETFs being $13m.

When Stockspot selects ETFs for clients, we carefully consider their size and commercial sustainability to avoid the risk of being in an ETF which closes. When an ETF closes, investors may be forced to lock in a tax event as well as go through the time-consuming inconvenience of finding a substitute fund.

Stockspot prefers larger ETFs with at least $25 million in FUM for this very reason – because smaller products are at risk of closing due to being uncommercial. None of the Stockspot preferred ETFs we use in our portfolios has ever shutdown.

Some notable delistings over the past year:

  • Blackrock re-domiciled 14 of its US listed ETFs to Australia (which saved Australian investors from completing the US tax forms and enabled dividend reinvestment plans), and as part of this simplified their offering by closing 5 global share ETFs due to failure of attracting enough assets.
  • ETF Securities delisted its Australian Share ETF due to increased competition and being unable to compete on price with the likes of Vanguard (VAS), BetaShares (A200), iShares (IOZ), and SPDR (STW)
  • Russell Investment Management delisted its Australian Value ETF due to limited interest in the product, resulting in a lack of take up. Vanguard and BetaShares both have value orientated ETFs with their VVLU, QOZ and QUS ETFs respectively.
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Closed ETFs by closure date (March 2018-March 2019)

ASX CodeNameSectorClosure DateFUM at prior month close
RVLRussell Australian Value ETFAustralian Shares (strategies)May-18$13.1m
IRUiShares Russell 2000 ETFGlobal Shares (broad market)Jun-18$72.3m
IHKiShares MSCI Hong Kong ETFGlobal Shares (broad market)Jun-18$14.7m
ISGiShares MSCI Singapore ETFGlobal Shares (broad market)Jun-18$8.6m
IBKiShares MSCI BRIC ETFGlobal Shares (broad market)Jun-18$36.6m
IXPiShares S&P Global Telecommunications ETFGlobal Shares (sectors)Jun-18$14.5m
ZGOLETFS Physical Gold ETFCommodityJul-18$13.5m
ZCNHETFS Physical Renminbi ETFCurrencyAug-18$0.1m
AODAurora Dividend Income TrustAustralian Shares (strategies)Sep-18$6.8m
ZOZIETFS S&P/ASX 100 ETFAustralian Shares (broad market)Oct-18$9.5m

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Investment Associate

Marc has previously worked for Morgan Stanley, AMP and KPMG. He holds a Bachelor of Business (Finance/Accounting) from the University of Technology Sydney (UTS), and has completed his Chartered Financial Analyst (CFA) Level 1.

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