EUROPE – iShares is to close nine of its sector-based exchange traded funds next month, saying they are “just not a priority for European buyers”.

iShares said it will focus on a “core broad market product set in Europe”. It would add new products covering equity and bond indices across UK, US and European markets.

It said it aims to develop a FTSE 250 fund and additional fixed income funds, including an iBoxx Sterling product.

“iShares is fully committed to the expansion of the core broad market product set in the European ETF market,” said iShares director Lee Kranefuss. “Sector funds, generally, are just not a priority for European buyers of ETFs – there is a much bigger appetite for ETFs based on the core equity and bond indices and these ETFs continue to see phenomenal growth.”

“We have therefore taken the decision to close the sector funds because we firmly believe it is in shareholders’ best interests.”

The nine funds that will close on September 15 cover technology, media, banks, pharmaceuticals, utilities, consumer cyclicals and non-cyclicals and oil & gas.

iShares is a range of exchange traded funds managed by Barclays Global Investors. It has more than 100 ETFs listed around the world with assets under management of over 40 billion dollars.