World’s Largest Leveraged ETF Closes Due To Liquidity Concerns

Rupert Hargreaves

Published onOctober 15, 2015

Updated on May 13, 2021

Amid all the fuss surrounding ETFs and the dangers they may pose to the financial system, Nomura Asset Management Co. has announced today that it will halt subscription orders for its Next Funds Nikkei 225 Leveraged Index ETF and two other funds (Next Funds Nikkei 225 Double Inverse Index ETF and the Next Funds Nikkei 225 Inverse Index ETF) from Friday amid liquidity concerns.

According to Nomura's press release on the matter:

"The temporary suspension has been determined, considering the current situations of fund management including the liquidity of the underlying Nikkei 225 futures and the total assets under management of three ETFs, etc."

Bloomberg notes that the Nikkei...

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Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha

World’s Largest Leveraged ETF Closes Due To Liquidity Concerns

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