More ETF’s Bite The Dust, Including Wal-Mart ETF (SAW, PUF, MYP, WSI, WMT)

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Another ETF group with esoteric index funds is closing down and liquidating several ETF programs.  FocusShares, LLC has announced that its board and its advisors plan to discontinue and liquidate several exchange-traded funds. 

The following ETF’s are being liquidated:

  • FocusShares ISE Homebuilders Index Fund (NYSE: SAW);
  • FocusShares ISE SINdex Fund (NYSE: PUF);
  • FocusShares ISE-CCM Homeland Security Index Fund (NYSE: MYP);
  • FocusShares ISE-Revere Wal-Mart Supplier Index Fund (NYSE: WSI).

The last trading day is listed as October 17 on the NYSE Arca inthe ETF’s. NYSE Arca will halt trading in the shares of the fundsbefore the open on October 20, 2008 and shares will be permanently goneafter that.

This was not a surprise.  We listed that Wal-Mart(NYSE: WMT) Supplier Index ETF as an example of ETF’s gone wild.  There are manytrading days where that ETF does not even trade.

ETF’s are great tools and great investment vehicles when they areproperly matched to liquid index levels or to liquid baskets.  But as they become esoteric, ETFs become the less liquid (and perhaps the lesssuccessful).

Jon C. Ogg
October 7, 2008