(Bloomberg) -- One of the issuers in a race to launch single-stock ETFs that target foreign companies is pulling its application for dozens of funds.
Roundhill Investments sought to withdraw proposals for 33 products it had filed to the Securities and Exchange Commission, according to a Monday document. The planned exchange-traded funds covered major companies currently difficult to access in the US, including Samsung Electronics Co., Saudi Aramco and Tencent Holdings Ltd.
The move to target foreign companies unbound by US listing requirements is a potentially risky shift for single-stock ETFs, which are a new arrival to the American market. The first such funds listed in July delivering leveraged or inverse exposure on the daily performance of US companies. Roundhill is one of at least three issuers who have since filed plans to target foreign shares.
Most of the overseas companies targeted by the three firms don’t have American receipts trading on US exchanges, meaning they generally don’t have to meet the same financial reporting standards as a US-listed business.
Roundhill didn’t respond to calls and emails seeking comment.
Read more: Wall Street Rush Into Single-Stock ETFs Takes Risky Foreign Turn
SEC officials voiced concerns about single-stock ETFs as they launched, but the agency didn’t block any from listing.
(Updates with additional details.)
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