VanEck announced today that it plans to close and liquidate four VanEck Vectors ETFs....
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On September 7, 2017, the Board of Trustees of VanEck Vectors ETF Trust approved the liquidation and dissolution of the following funds :
VanEck Vectors AMT-Free 12-17 Year Municipal Index ETF
Ticker : ITML
VanEck Vectors AMT-Free 6-8 Year Municipal Index ETF
Ticker : ITMS
Exchange : Bats
VanEck Vectors Solar Energy ETF
Ticker : KWT
Exchange :NYSE Arca
VanEck Vectors Treasury-Hedged High Yield Bond ETF
Ticker : THHY
Exchange :NYSE Arca
As the sponsor of VanEck Vectors Exchange Traded Funds ,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).