News Flash - Gastineau's ETF Advisors To Close After Short Run
April 28, 2003
ETF Advisors, which exchange traded fund authority Gary Gastineau launched less than six months ago with four Treasury fixed-income exchange traded funds, will liquidate the funds May 27 and close its doors.
Gastineau, managing director of ETF Advisors, said registration delays in bringing the ETFs to market gave Barclays Global Investors a commanding head start.
Barclays, which already had established a dominance in equity ETFs with its iShare brand, launched its fixed-income ETFs in July, five months before ETF Advisors came out with its funds.
Gastineau's firm attracted $75 million in assets through 1,500 accounts. While calling the outlook for ETFs "extraordinarily good," Gastineau said his company was unable to find an acquirer or partner to merge with because ETF Advisors, currently unprofitable, would have been fortunate to break even in a year's time.
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