NEW YORK--(BUSINESS WIRE)--VanEck announced today that it plans to close and liquidate one of its VanEck ETFs.
On September 7, 2023, the Board of Trustees of VanEck ETF Trust approved the liquidation and dissolution of the following fund (the "Fund"):
ETF Name | Ticker | Exchange | ||
VanEck China Growth Leaders ETF | GLCN | 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 the Fund based on an analysis of these factors and other operational considerations.
Shareholders of the Fund may sell their shares on the Fund's listing exchange until market close on September 20, 2023 (transaction fees from their broker-dealer may be incurred). The Fund's shares will no longer trade on the listing exchange after market close on September 20, 2023, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of the Fund on the Fund's liquidation date, which is expected to be on or about September 27, 2023, 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 September 27, 2023. 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 Fund will stop accepting creation orders from Authorized Participants on September 20, 2023.
Additionally, a special distribution following the below schedule prior to the Fund's liquidation is expected.
Declaration Date | Record Date | Ex-Date | Pay Date | |||
9/8/2023 | 9/12/2023 | 9/11/2023 | 9/13/2023 |
Shareholders who hold shares of the Fund may receive a final distribution of net income and capital gains earned by the Fund and not previously distributed prior to liquidation.
The final tax status of distributions made by the Fund, including the liquidating distribution, will be provided to shareholders with the year-end tax reporting for the Fund (including any portion which may be treated as a return of capital for tax purposes, reducing a shareholder's basis in such shares).
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 July 31, 2023, VanEck managed approximately $83.4B 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
This is not an offer to buy or sell, or a solicitation of any offer to buy or sell any of the securities mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. Information provided by third-party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Any opinions, projections, forecasts, and forward-looking statements presented herein are valid as of the date of this communication and are subject to change without notice. The information herein represents the opinion of the author(s), but not necessarily those of VanEck.
The VanEck China Growth Leaders ETF may gain exposure to the China A-Share market by directly investing in China A-Shares and investing in swaps that are linked to the performance of China A-Shares. An investment in the Fund may be subject to risks which include, but are not limited to, risks related to the RQFII regime and the Fund's principal investment strategies, basic materials sector, consumer staples sector, health care sector, information technology sector, special risk considerations of investing in China and Chinese-issued A-shares, Stock Connect, Science and Technology Innovation Board (also known as the "STAR Board"), PRC tax, foreign securities, emerging market issuers, foreign currency, swaps, futures, investing in other funds, micro-, small- and medium-capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concertation, no guarantee of active trading market, trading issues, passive management risk, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversification and index-related concentration risks, all of which may adversely affect the Fund. The Fund may also be subject to risks related to the Adviser's and Sub-adviser's ability to manage the Fund, which depends upon the availability of China A-Shares and the willingness of swap counterparties to engage in swaps linked to the performance of China A-shares. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. The Fund may also invest in shares of other funds and absorb duplicate levels of fees with respect to these investments. Micro-, small- and medium-capitalization companies may be subject to elevated risks. Investments in China may also be subject to risks which include political and economic, inflation, tax changes, nationalization and expropriation, Hong Kong policy, Chinese securities markets, less stringent disclosure, regulatory standards, and publicly available information on Chinese issuers, and Chinese corporate and securities law risks. Investments in Chinese-issued A-shares may also be subject to risks related to investment and repatriation restrictions, loss of favorable U.S. tax treatment, tax on retained income and gains, foreign exchange control, custody risks, use of brokers, foreign currency considerations, and China-related index tracking risks. The Fund may invest in derivatives, which entail certain risks, including counterparty, liquidity, and tax risks (including short-term capital gains and/or ordinary income).
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation
666 Third Avenue, New York, NY 10017
800.826.2333
Contacts
MEDIA
Chris Sullivan
Craft & Capital
20 West 22nd Street, Suite 1605
New York, NY 10010
212.473.4442
chris@craftandcapital.com
