ETF provider WisdomTree has announced that it will close down a range of ETFs at the end of May 2020, including the WisdomTree Middle East Dividend ETF (ticker: GULF).
The WisdomTree Middle East Dividend Fund is an exchange-traded fund (ETF) that aims to follow the investment results (price and yield) of the index it tracks: the WisdomTree Middle East Dividend Total Return Index. It is incorporated in the USA and is managed by Karen Wong and Rick Brown. It was launched in 2008 and has a market cap of $12.5 million. The ETF’s share price has declined by almost 20% since the start of the year.
In relation to the country collocation in the ETF as of the 12th May 2020, Saudi Arabia is the largest constituent in the index with a weighting of 27.85%, closely followed by Qatar which comprises of 27.11%. United Arab Emirates (17.08%) and Kuwait (15.18%) also make up a sizable portion of the ETF.
The ETF is heavily positioned in stocks in the Financial sector (60.81%), with the likes of Qatar National Bank (8.58%) and National Bank of Kuwait (7.37%) being the largest members in the fund. Communication Services (12.56%) and Materials (9.65%) also hold a reasonable position in the fund.
The final day of trading for the WisdomTree Middle East Dividend ETF will be Wednesday 27th May. Those who miss the final trading date will have their shares automatically redeemed for cash based on the ETF’s net asset value (NAV), which is expected to be provided around Tuesday 9th June.
Other WisdomTree ETFs that are due to be liquidated are: Dynamic Long/Short US Equity Fund (DYLS), Europe Multi-Factor Fund (EUMF), Japan Multi-Factor Fund (JNMF), Asia Pacific ex-Japan Fund (AXJL), ICBCCS S&P China 500 Fund (WCHN), Yield Enhanced Global Aggregate Bond Fund (GLBY), Emerging Markets Consumer growth Fund (EMCG), Negative Duration High Yield Bond Fund (HYND) and Negative Duration US Aggregate Bond Fund (AGND).