VanEck is set to close its actively managed smart home ETF following the termination of its investment advisory agreement and failing to gather significant assets.
The VanEck Smart Home Active UCITS ETF (CAVE) will delist from the London Stock Exchange, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, SIX Swiss Exchange and Euronext Dublin on 20 August.
In a shareholder notice, the firm said the ETF’s investment advisor Dasym's decision to terminate the agreement prompted a review of the ETF's viability.
VanEck said the assets under management (AUM) of the ETF have “been below the expectations since the fund was launched on 5 November 2021” and “have considered the viability of the fund in light of the ‘value for money’ principles”.
Since its launch, CAVE has amassed $2.9m AUM with a total expense ratio of 0.85%.
Actively managed, CAVE captures 44 companies that buy into the smart home megatrend, with the top three holdings being Amazon (4.5%), Check Point Software Technologies (3.8%) and Nestle (3.5%).
It amid a flurry of ETF closures by issuers as BlackRock announced it would close the iShares J.P. Morgan € EM Bond UCITS ETF (EB3M) and the iShares FTSE Italia Mid-Small Cap UCITS ETF (IPIR) this week, while Invesco said it would shut the Invesco MSCI EMU ESG Universal Screened UCITS ETF (EEMU).
