Cathie Wood’s Ark Invest is closing down its Transparency ETF (BATS:CTRU) due to a change from Transparency Global.
Let’s go over everything investors need to know about this news below!
- First up is Ark Invest closing its Transparency ETF due to Transparency Global planning to stop tracking The Transparency Index.
- Transparency Global’s tracking of the index will stop at the end of the month.
- Cathie Wood’s ETF searched for other index providers to track the fund but didn’t find any that were suitable.
- As a result, it plans to liquidate its Transparency ETF on July 26, or as soon as possible after that date.
- This has Ark Invest planning to stop creating units for the fund after the close of business tomorrow.
- It will also stop trading on the Cboe BZX Exchange when markets close on July 26.
- Ark Invest notes that investors can redeem their investment in the fund prior to this.
- If they wait until after that, they will only be able to sell their shares to certain broker-dealers.
- The ETF also warns there might not be a market for these shares after its closure.
- The fund will liquidate between July 26 and July 29.
- This will have it paying out cash to shareholders that haven’t redeemed their shares yet.
- That will mark the end of Cathie Wood’s Transparency ETF, which only survived a few months after its creation in December.
CTRU is up 1.9% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.