An ETF issuer announced that it has temporarily suspended further creation of new shares of ….
iShares S&P GSCI Commodity-Indexed Trust (the “Trust”). The Trust is listed and trades on the NYSE Arca under the ticker GSG. As disclosed in the Trust’s prospectus, a suspension may cause the market price of the Trust’s shares to vary more from the Trust’s net asset value than historically. Redemptions by eligible shareholders of the Trust will not be affected by this suspension.
The Trust seeks performance that corresponds generally to the performance of the S&P GSCI™ Total Return Index before expenses. The S&P GSCI™ Total Return Index is intended to reflect the performance of a diversified group of commodities. The temporary limitation on issuance of new shares may impair traders’ ability to balance the supply and demand for the Trust’s shares in the secondary market, which may cause the shares to trade at a premium or discount in relation to the Trust’s net asset value.
“We are actively working with regulators, product partners and exchanges to explore solutions that will lead to resumption of the creation of new shares of the iShares S&P GSCI Commodity-Indexed Trust to satisfy demand,” said Michael Latham, Co-CEO of iShares at Barclays Global Investors. “We’ve taken this temporary step to protect existing investors from being adversely affected by market reaction to proposed new regulations of commodity futures that have created uncertainty. Just as we were able to design a product that gave investors access to difficult-to-reach markets using a combination of significant talent, resources and perseverance under one set of regulatory guidelines, we are pursuing a solution for investors that will adjust to any new environment that results from proposed new regulations.”
Source: ETFWorld.com – BGI
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