What Happens When An ETF Closes

Share This Article
June 25, 2009 9:47am ETF BASIC NEWS

closedBob Pisani, from CNBC, spoke on this topic in a recent segment called “ETF-101.” Bob states that your investment is safe although there is a process in the dissolution of the fund. Following the closing announcement, the ETF trades for about a month. After that period, the ETF closes and all trading stops. At that point the fund company has a few weeks to liquidate

 the holdings and distribute the proceeds to the shareholders. Since the value of the holdings is determined at the point of sale, you should sell your ETF before it closes. (see video below)

9 "BUY THE DIP" Growth Stocks For 2020

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular

Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories