NEW YORK--(BUSINESS WIRE)--VanEck announced today that it plans to close and liquidate two of its ETFs.
On September 14, 2021, the Board of Trustees of the VanEck ETF Trust approved the liquidation and dissolution of the following funds (the "funds"):
ETF Name | Ticker | Exchange |
VanEck Vectors Emerging Markets Aggregate Bond ETF | EMAG | NYSE Arca |
VanEck Vectors Unconventional Oil & Gas ETF | FRAK | NYSE Arca |
As the sponsor of VanEck ETFs, 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 the afore-mentioned factors.
Shareholders of these funds may sell their shares on the listing exchange, NYSE Arca, until market close on October 15, 2021 (transaction fees from their broker-dealer may be incurred). The shares of these funds will no longer trade on the listing exchange after market close on October 15, 2021, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of these funds on the liquidation date, which is expected to be on or about October 22, 2021, 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 22, 2021. 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 October 15, 2021.
In addition, shareholders who hold shares of these 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, thereby reducing a shareholder's basis in such shares).
If you have any questions concerning this information or the VanEck ETFs in general, please call 800.826.2333 between 9:00 a.m. and 5:30 p.m., Monday through Friday.
About VanEck
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 August 31, 2021, VanEck managed approximately $81.1 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.
Important Disclosures
Please call 800.826.2333 or visit our website for the most recent month-end performance of VanEck Vectors ETFs.
An investment in VanEck Vectors Emerging Markets Aggregate Bond may be subject to risks which include, among others, foreign securities, emerging market issuers, foreign currency, special risk considerations of investing in European, Asian, Latin American and Mexican, energy and , financial sector issuers, credit, interest rate, high yield securities, sovereign bond, cash transactions, market, operational, call, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentrations risks, all of which may adversely affect the Fund.
An investment in VanEck Vectors Unconventional Oil & Gas ETF may be subject to risks which include, among others, investing in oil and gas companies, unconventional oil and gas, Canadian issuers, energy sector, depositary receipts, small- and medium-capitalization companies, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's return. Small- and medium-capitalization companies may be subject to elevated risks.
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. 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
800.826.2333
Contacts
Chris Sullivan/Julia Stoll
MacMillan Communications
212.473.4442
chris@macmillancom.com
