Some ETFs Fold As Economy Sours
July, 02, 2008

San Diego - (ETFguide.com) - Location, location, location is the main criteria when it comes to buying & owning real estate. Timing, timing, timing is the most important ingredient when it comes to launching & managing ETFs.

Unfortunately, XShares Advisors got the timing wrong when they launched their series of real estate ETFs in September 2007. The sub-prime crisis was unfolding and investor's interest in real estate was subdued, to put it mildly. 

In our June 10, 2008 article The Abyss of ETF Oblivion, we identified the AdelanteShares RE Growth ETF and the AdelanteShares RE Yield Plus ETF as likely candidates for liquidation.

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Just a few weeks later, XShares Advisors announced that they will liquidate seven of their 31 ETFs. July 24 will be the last day of trading. The liquidation process will done and over on July 31. The Adelante Shares cover various sectors of the real estate market:

Adelante Shares RE Composite ETF (Ticker: ACB)
Adelante Shares RE Classics ETF (Ticker: ACK)

Adelante Shares RE Growth ETF (Ticker: AGV)
Adelante Shares RE Kings ETF (Ticker: AKB)
Adelante Shares RE Shelter ETF (Ticker:  AQS)
Adelante Shares RE Value ETF (Ticker: AVU)
Adelante Shares RE Yield Plus ETF (Ticker: ATY)  

XShares also manages the HealthShares series of funds and the TDAX Independence Lifecycle ETFs. The HealthShares are also struggling with an average of $4.5 million in assets (19 total).

The Lifecycle ETFs (launched in partnership with TD Ameritrade) - which are target date ETFs - are doing better with an average of $34 million in assets (5 funds).

To see all funds of the XShares Group, go to the ETFguide Database and choose “XShares Group” from the drop down menu under “Fund Provider”.