Bringing you live news and features since 2006 

Spa ETF announces closing of MarketGrader ETFs in Europe and US


UK-based exchange-traded fund provider Spa ETF has announced the closing of the Spa MarketGrader ETFs in the US and Europe.

UK-based exchange-traded fund provider Spa ETF has announced the closing of the Spa MarketGrader ETFs in the US and Europe.

The last day of trading of the US funds on NYSE Arca took place on 25 March, after which they closed to new investment.

According to the firm, the decision was made by the board of trustees of the US funds in consultation with Spa ETFs, the investment advisor to the funds, on the grounds that current market conditions were unsuitable for a long-only equity investment strategy, such as the one employed by the MarketGrader ETFs and that closing the funds was in the best interest of the funds’ shareholders.

The six US-listed sub-funds of the Spa ETF Trust are the Market Grader 40, Market Grader 100, Market Grader 200, Market Grader Large Cap, Market Grader Mid Cap and Market Grader Small Cap ETFs. The US funds are currently in the process of closing down and liquidating their portfolios.

The Spa MarketGrader ETFs attempted to distinguish itself by applying a quantitative security selection process to the investment universe, using 24 different quantitative filters within four main areas: growth, value, profitability and cash flow. All components are weighted equally.

The US fund range had been repeatedly targeted by industry commentators as a likely candidate for closure because of the low levels of assets in the various sub-funds. Trading in the funds’ shares was also described as ‘close to non-existent’.

However, the firm says that the Spa ETF Trust will remain open and that the investment advisor hopes to list new ETFs later this year. The UK-based business is also delisting its funds from exchanges in Italy and the UK.

“In light of the current market environment keeping the Spa MarketGrader Funds open would compromise investors and increase costs,” says managing director Daniel Freedman (pictured). ‘However, the Spa ETF Trust remains open and we plan to partner with other institutions to bring new ETFs to market in Europe and the US in 2009. Additionally, when market conditions improve we may reintroduce the MarketGrader strategy.’

The Spa ETF board says the company intends to undertake a total redemption of all shares in the European-listed MarketGrader funds in issue on 1 May through compulsory redemption at their then net asset value per share. As a consequence of the decision to terminate trading, the board has charged to the sub-funds all unamortised establishment expenses and all other costs associated with the termination.

Following the delisting of the shares from Borsa Italiana’s ETF Plus Market as of 30 March, Spa ETF plans to apply to the UK Listing Authority for the cancellation of the listing of the shares of the sub-funds with effect from 1 May, and to the London Stock Exchange for the cancellation of the right to trade in the funds’ shares with effect from that date.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by