E*Trade Shutters Index Funds

E*Trade Financial Corp. said it is shuttering four index funds, with a total of about $400 million in assets, because the offerings were unable to attract enough assets to be profitable.

A news report on the 24/7 Wall Street.com Web site said the company told customers this week of its plans to close the funds as of March 27 and that the offerings would no longer accept new money.

The company said customers who haven’t pulled their money out of the funds by the liquidation date will receive cash equivalents.

“The E*Trade line has not gained the traction needed to maximize economies of scale,” a company representative said in the news report. “The funds also saw dwindling assets because of the falling market. This decision is not the result of performance.”

The largest of the funds being closed is the E*Trade S&P 500 Index, which has about $230 million in assets. Its other index funds include Russell 2000 (ETRUX), Technology (ETTIX), and International (ETINX).