ETFs being wound up

[torata]

Question is:
Do Toshi shintaku trusts also get wound up?

There's a bit of background to explain the question:
One of the ETFs I have 'Nikkei 400 Small and Mid-cap' (ticker: 1492, Mitsubishi UFJ) is being wound up because it's become too small and now inefficient to run.

It's mostly in a general account, but there's a small amount also in an original NISA so I'll lose that tax-free portion. (It's annoying, but not as annoying as iShares closing down 2 ETFs, making about 70% of one year's old-NISA contribution, 6 months after buying them.)

I'm looking to replace, and in fact can replace almost the full amount of what's sold within this year's Growth shin-NISA.

I have some choices. I can replace with another ETF following exactly the same index (actually it's a lot bigger than the ETF I had, but run by a less well known name, and I guess in theory the same thing could happen).

I can however replace with a 投資信託 fund (emaxis) run by the same Mitsubishi UFJ AM following the same Nikkei 400 Small and Mid-cap. I know that in theory if this was closed for similar reasons to the ETF, I get given back the allowance amount in the shin-NISA, but just wondering the likelihood of this as I'd prefer to avoid the hassle.

So do 投資信託 trusts also get wound up?

torata

[Tsumitate Wrestler]

Question is:
Do Toshi shintaku trusts also get wound up?

There's a bit of background to explain the question:
One of the ETFs I have 'Nikkei 400 Small and Mid-cap' (ticker: 1492, Mitsubishi UFJ) is being wound up because it's become too small and now inefficient to run.

It's mostly in a general account, but there's a small amount also in an original NISA so I'll lose that tax-free portion. (It's annoying, but not as annoying as iShares closing down 2 ETFs, making about 70% of one year's old-NISA contribution, 6 months after buying them.)

I'm looking to replace, and in fact can replace almost the full amount of what's sold within this year's Growth shin-NISA.

I have some choices. I can replace with another ETF following exactly the same index (actually it's a lot bigger than the ETF I had, but run by a less well known name, and I guess in theory the same thing could happen).

I can however replace with a 投資信託 fund (emaxis) run by the same Mitsubishi UFJ AM following the same Nikkei 400 Small and Mid-cap. I know that in theory if this was closed for similar reasons to the ETF, I get given back the allowance amount in the shin-NISA, but just wondering the likelihood of this as I'd prefer to avoid the hassle.

So do 投資信託 trusts also get wound up?

torata

Trusts trade less frequently, have less trading costs, and less chance of being wound up due to trading costs. It is still possible.

The index was also rebalanced last year, it was probably a costly rebalancing with the TSE changes.

[TokyoWart]

I am not sure about the rules in Japan but all Unit Investment Trusts in the US are required to have an expiration date. This is even true for the enormously successful SPY ETF (expires 2118) and the QQQ ETF (expires in 2124). More broadly, the majority of mutual funds and ETFs are not successful and are liquidated by their issuers. You don't hear about them much because this is much more common for experimental or gimmicky funds, but liquidations are not that unusual if you consider the entire universe of funds (which are numerically greater than the total number of stocks).