WisdomTree to Liquidate 10 ETFs
January 29, 2010

SAN DIEGO (ETFguide.com) – WisdomTree Investments has decided to pull the plug on ten struggling ETFs. All but one ETF is concentrated on stocks. The bulk of ETFs to be liquidated focus on international equity industry sectors like healthcare and technology. None of the funds were able to gain traction with investors.

According to the New York, NY-based company, the funds represent less than 3% of their roughly $6 billion in assets under management. .

“We proposed the closure of 10 ETFs in order to create capacity for future growth initiatives, and because we believe it is in the best interest of our customers and shareholders to dedicate our resources to areas of greater client interest,” said WisdomTree CEO Jonathan Steinberg. “We have no plans to make any further closures and are fully committed to maintaining and developing an innovative product line, including the introduction of new funds in the coming months.”

While ETF launches as of late have been more common than closures, other providers like Claymore and MacroShares have recently folded unsuccessful ETFs.

Low asset levels coupled with low expense ratios is a deadly combination in the hyper-competitive ETF business. Economies of scale created by large asset inflows are needed for new products to survive.  

The final day of trading on the NYSE Arca will be Wednesday, March 24, 2010. Shareholders who do not sell their Fund shares by this date will have their shares automatically redeemed on March 29, 2010, the Funds’ last day of operations.

Here’s a list of the WisdomTree ETFs set for liquidation:
       
Name   
WisdomTree International Technology Sector Fund (NYSEArca: DBT)
WisdomTree International Financial Sector Fund (NYSEArca: DRF)
WisdomTree International Health Care Sector Fund (NYSEArca: DBR)
WisdomTree International Consumer Staples Sector Fund (NYSEArca: DPN)
WisdomTree International Consumer Discretionary Sector Fund (NYSEArca: DPC)
WisdomTree International Industrial Sector Fund (NYSEArca: DDI)
WisdomTree International Communications Sector Fund (NYSEArca: DGG)
WisdomTree Europe Total Dividend Fund (NYSEArca: DEB)
WisdomTree Earnings Top 100 Fund (NYSEArca: EEZ)
WisdomTree U.S. Short Term Government Income Fund (NYSEArca: USY)