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
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
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
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
Investors may call 800.826.2333 or visit vaneck.com
for a free prospectus
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.
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