Exchange-traded fund provider Reality Shares announced on Tuesday it has liquidated and closed the Reality Shares Nasdaq NexGen Economy China ETF (BCNA) and the Reality Shares Fundstrat DQM Long ETF. According to Reality Shares, BCNA will cease trading on the Nasdaq Stock Market (Nasdaq), DQML will cease trading on the NYSE Arca, Inc. (NYSE), and the Funds will be closed to purchase by investors as of the close of regular trading on the Nasdaq and NYSE on October 22nd.
As of today, net assets for BCNA are quoted at around $2.02 million. DQML is quoted at around $2.62 million in net assets.
“Shareholders may sell their holdings in the Funds prior to the Closing Date, and customary brokerage charges may apply to these transactions. This process will result in a Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which is inconsistent with each Fund’s investment objective and strategy.”
Reality Shares further explained that from October 22nd through October 29th, shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for a Fund’s shares during this time period. Reality Shares went onto add:
“Between the Closing Date and the Liquidation Date, each Fund will be in the process of closing down and shareholders who have not previously redeemed or exchanged their shares. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund’s net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Funds will terminate.”