Free subscribers receive the opening and the Yield Snapshot. Core and Premium subscribers receive the complete issue.
Start your subscription to read everything today: Click here
Thirteen income ETFs have shut down in 2026. None of them were in my portfolio. Here's why that wasn't luck.
On May 29 2026, YieldMax — the issuer behind several positions I hold, including MSTY, NVDY, TSLY, and PLTY — announced it was closing and liquidating four of its funds: ABNY, DISO, FEAT, and FIVY. Just weeks later, REX Shares announced an even larger liquidation — seven of its single-stock "Growth & Income" ETFs: COII, CWII, HOII, LLII, MSII, PLTI, and GIF. Earlier in the year, Tuttle Capital and REX Advisers — a separate entity — each closed a fund of their own.
If you hold income ETFs — and if you read The Yield Letter, you almost certainly do — this should get your attention. Not because closures are catastrophic. They're usually not. But understanding why funds close and learning to spot the warning signs early is one of the most practical skills an income investor can develop. This is the issue I get asked about most by readers. Single-stock income ETFs generate enormous curiosity — and enormous confusion. Let's clear both up.
I've never held any of the thirteen funds that closed this year. That wasn't luck — it was the AUM and track record framework I've talked about since Issue #4. This week, I'm revisiting that framework with real 2026 closure data and showing you exactly how to apply it to your own portfolio.
What Actually Happens When an ETF Closes
The mechanics, in plain English
ETF closures are far less dramatic than they sound. Here's the typical sequence:
The issuer announces a Plan of Liquidation. The fund board approves closing the ETF, usually citing limited prospects for asset growth and the cost of continuing to operate a small, unprofitable fund.
A final trading date is set. You can sell your shares normally on the open market through this date, just like any other day.
The fund delists and stops accepting new money. After the final trading date, the ETF is removed from its exchange.
Remaining shares are automatically redeemed for cash at NAV. If you didn't sell before the final trading date, you don't lose your investment — you receive cash equal to your proportional share of the fund's net assets, usually within a few days of the liquidation date.
The real risks aren't losing your money outright — they're losing your income stream unexpectedly, potentially selling at an inopportune time, and triggering a taxable event you didn't plan for.
The complete 13-fund closure list, my expanded closure-risk checklist, and exactly what to do if you receive a liquidation notice — all below for Core and Premium subscribers. Cancel anytime.
Upgrade now → theyieldletter.com/upgrade