E*Trade Shutters Two Index Funds to New Investors

Published July 23, 2001, 1:00 a.m. EDT

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Extended Market Index Fund and Global Titans Index Fund Will Be Liquidated

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E* E*Trade Funds has closed its Extended Market Index Fund and Global Titans Index Fund to new investors and will liquidate both funds Aug. 31, according to a company filing with the Securities and Exchange Commission. The move cuts E* E*Trade's fund lineup to eight index funds.

As of July 20, the Extended Market Index Fund and the Global Titans Index Fund had attracted just $11 million and $16 million respectively, according to fund tracker Morningstar. It is widely held that the average mutual fund must accumulate at least $100 million in assets to recover expenses and costs.

The Extended Market Index Fund's expense ratio was just .38% and the Global Titans Index Fund's was .60%. Both funds will pay all remaining obligations and expenses and divide the assets among shareholders, according to the filing.

Calls to the E* E*Trade seeking comment were not returned in time to meet deadline.

In other news, the company today announced it is expanding the content of its E* E*Trade Knowledge Center Web site. The site offers investors information and educational materials designed to help them reach investment goals. The site has been expanded to include a section called 'E* E*Trade Exclusives' which includes content from the firm's daily show, 'E* E*Trade On Air' and excerpts from a book written by Christos Cotsakos, CEO and chairman of E* E*Trade. The Web site will also include content from the firm's quarterly print publication, 'E* E*Trade The Magazine.'