Last week that the WisdomTree Australia Debt ETF (AUNZ) lost 88% of its assets in one day. Franklin/Templeton, the $21 billion manager of mutual and other investment funds decided to liquidate its entire position in AUNZ, leaving a paltry $19 million left in the ETF. “Investors need to complete a careful analysis of any ETF they invest in,” said Bryan Anderson, Market Strategist for Beck Capital. “With only $19 million left in this ETF, unless a very large new investor takes a position, it may not be a viable entity. Just last summer, Blackrock closed 10 ETFs because of miniscule asset bases, and investors were required to redeem whether they wanted to or not, suffering possible tax consequences. This is just one reason we use very few ETFs when managing our client portfolios,” said Anderson. For the complete story on Franklin/Templeton’s withdrawal from the WisdomTree Australia Debt ETF, click here.
