ETF Managers Group is raising a toast to its Spirited Funds/ETFMG Whiskey & Spirits ETF (WSKY) and closing the ETF effective immediately. Citing an ongoing review of market demand, the ETF issuer has decided to liquidate the fund that did not age well since its launch in October 2016.
The once-top shelf ETF that returned 21.7% since its inception had investors rye-led up with its niche opportunity set, attracting $2.5 million in the first three months.
The ETF invests in publicly traded companies involved in the production, distillation, storage, aging and selling of whiskey, as well as bourbon and other spirits. Its holdings include household names like Remy Cointreau, Pernod Ricard that includes Jameson and Beefeater.
The ETF may have lost its spirit by charging an expense ratio of 60 basis points for a concentrated portfolio of 25 holdings that comprised 66% of the portfolio.
While on a bender of strong performance since its launch, the ETF has gathered $14.6 million in assets as of March 31. But flows have sobered up since the beginning of 2018, attracting only $1.6 million.
Proceeds of the liquidation are scheduled to be sent to shareholders on or before June 20.
Legg Mason to launch active bond ETF
Legg Mason is preparing to launch an active unconstrained bond exchange-traded fund (ETFs) according to a filing with the Securities and Exchange Commission.
BrandywineGlobal—Global Total Return ETF will seek total return through income and capital appreciation by investing across fixed income sectors including sovereign debt, corporate bonds, currencies and derivative instruments on a long and short basis.
The ETF will mirror the $1.4 billion BrandywineGlobal Unconstrained Bond fund (LROIX) that is led by the same management team. The new ETF will charge a management fee of 0.60% versus the mutual fund’s total expense ratio of 0.86%.
A spokesperson for Legg Mason could not be reached at the time of publication.