NEW YORK--(BUSINESS WIRE)--VanEck, one of the largest providers of exchange traded funds (“ETFs”) in the U.S. and worldwide with approximately $46 billion in assets under management as of April 30, 2018, announced today that it plans to close and liquidate two VanEck Vectors ETFs.
On June 22, 2018, the Board of Trustees of VanEck Vectors ETF Trust approved the liquidation and dissolution of the following funds (the “Funds”):
|VanEck Vectors Spin-Off ETF||SPUN||NYSE Arca|
|VanEck Vectors EM Investment Grade+BB Rated USD Sovereign Bond ETF||IGEM||NYSE Arca|
As the sponsor of VanEck Vectors ETFs, VanEck is proud to be an industry leader in offering unique, targeted exposures to numerous asset classes through ETFs that 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 NYSE Arca until market close on July 31, 2018 (transaction fees from their broker-dealer may be incurred). The Funds’ shares will no longer trade on the NYSE Arca after market close on July 31, 2018, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of either of the Funds on the Funds’ liquidation date, which is expected to be on or about August 7, 2018, 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 August 7, 2018. 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 July 31, 2018.
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 has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of April 30, 2018, VanEck managed approximately $46 billion in assets, including mutual funds, ETFs, and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
Please call 800.826.2333 or visit our website for the most recent month-end performance of VanEck Vectors ETFs.
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. 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.