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iShares to Close, Liquidate Diversified Alternatives ETF

Fees fall on 4 Vanguard ETFs, PIMCO announces that 3 actively managed bond funds are close to launch, Van Eck plans to self-index 2 frontier-markets ETFs, and more firms win permission to issue actively managed ETFs. Plus, the week's best- and worst-performing funds.

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On Thursday, April 25, iShares announced that it is taking the unusual step--for iShares at least--of shuttering an exchange-traded fund.

In a filing and a letter to shareholders, the firm revealed that it plans to close and liquidate the actively managed ETF iShares Diversified Alternatives Trust (ALT), which follows a market-neutral strategy that takes long and short positions in historically correlated assets. The firm said in the letter that it had based the decision on several factors including "client feedback on limited application in investment portfolios" and a "lack of long-term demand for ALT." The ETF has about $57 million in assets, making it one of the larger ETFs to liquidate in recent memory.

Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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