NEW YORK--(BUSINESS WIRE)--VanEck, one of the largest providers of exchange traded funds (“ETFs”) in the U.S. and worldwide with more than $40 billion in assets under management as of July 31, 2017, announced today that it plans to close and liquidate four VanEck Vectors ETFs.
On September 7, 2017, the Board of Trustees of VanEck Vectors ETF Trust approved the liquidation and dissolution of the following funds (the “Funds”):
|VanEck Vectors AMT-Free 12-17 Year Municipal Index ETF||ITML||Bats|
|VanEck Vectors AMT-Free 6-8 Year Municipal Index ETF||ITMS||Bats|
|VanEck Vectors Solar Energy ETF||KWT||NYSE Arca|
|VanEck Vectors Treasury-Hedged High Yield Bond ETF||THHY||NYSE Arca|
As the sponsor of VanEck Vectors Exchange Traded Funds (ETFs), VanEck is proud to be an industry leader in offering unique, targeted exposures to numerous asset classes through ETFs which seek to meet investor needs. VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others. The decision was made to liquidate these funds based on an analysis of these factors.
Shareholders of the Funds may sell their holdings of each Fund on the relevant exchange until market close on September 29, 2017 (transaction fees from their broker-dealer may be incurred). The Funds’ shares will no longer trade on the relevant exchange after market close on September 29, 2017, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of any of the Funds on the Funds’ liquidation date, which is expected to be on or about October 6, 2017, will receive a liquidating distribution of cash in the cash portion of their brokerage accounts equal to the amount of the net asset value of their shares. Proceeds from the liquidation are currently scheduled to be sent to shareholders on or about October 6, 2017. For tax purposes, shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares. The Funds will stop accepting creation orders from Authorized Participants on September 29, 2017.
In addition, shareholders who hold shares of the Funds may receive a final distribution of net income and capital gains earned by the Funds and not previously distributed prior to liquidation.
The final tax status of distributions made by the Funds, including the liquidating distribution, will be provided to shareholders with the year-end tax reporting for the Funds (including any portion which may be treated as a return of capital for tax purposes, reducing a shareholder’s basis in such shares).
If you have any questions concerning this information or the VanEck Vectors ETFs in general, please call 800.826.2333 between 9:00 a.m. and 5:30 p.m., Monday through Friday.
VanEck’s mission is to offer investors forward-looking, intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, the firm is a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, VanEck continues this tradition by offering innovative active and passive investment portfolios in hard assets, emerging markets equity and debt, precious metals, fixed income, and other alternative asset classes. VanEck Vectors exchange-traded products are one of the largest ETP families in the world, managing more than 70 funds that span a range of sectors, asset classes, and geographies. As of July 31, 2017, VanEck managed approximately $40.3 billion in assets, including mutual funds, ETFs, and institutional accounts.
Please call 800.826.2333 or visit our website for the most recent month-end performance of VanEck Vectors ETFs. This information will be available no later than seven business days after the most recent month end.
The “net asset value” (NAV) of an ETF is determined at the close of each business day, and represents the dollar value of one share of the ETF; it is calculated by taking the total assets of an ETF subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as an ETF's intraday trading value. Investors should not expect to buy or sell shares at NAV. Total returns are based upon closing “market price” (price) of the ETF on the dates listed.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market.
Investors may call 800.826.2333 or visit vaneck.com for a free prospectus and summary prospectus. Investing involves risk, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, and charges and expenses of VanEck Vectors ETFs carefully before investing. The prospectus and summary prospectus contains this and other information. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, 666 Third Avenue, New York, NY 10017