Van Eck Global - Since 1955
  • Market Vectors ETFs: Fund Closure FAQs

    Which funds are closing? 

    Why and how were these funds selected?  

    What will be the final day of trading? 

    Can I sell my shares now? 

    What if I do not sell my shares before market close on December 12, 2014? 

    Does this schedule apply to all five funds? 

    What distributions will be made to shareholders? 

    On what date will distributions be made? Is there anything I need to do in order to receive a distribution? 

    Is there anything I need to do in order to receive a distribution? 

    Does Van Eck Global anticipate significant final expenses and charges that will materially impact the final value of the fund closures? 

    How should this be treated for tax purposes? 

    How will these closures be communicated to shareholders? 



    Which funds are closing? 

    Five funds are closing:

    1. Market Vectors Bank and Brokerage ETF (RKH)
    2. Market Vectors Colombia ETF (COLX)
    3. Market Vectors Germany Small-Cap ETF (GERJ)
    4. Market Vectors Latin America Small-Cap Index ETF (LATM)
    5. Market Vectors Renminbi Bond ETF (CHLC)

    Why and how were these funds selected? 

    As the sponsor of Market Vectors ETFs, Van Eck Global has been proud to be an industry leader in offering unique, targeted exposures to numerous asset classes through ETFs which seek to meet investor needs. Van Eck Global continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others. Though Van Eck Global has never previously closed a Market Vectors ETF, the decision was made to liquidate these funds based on an analysis of these factors. As of December 1, 2014, the five ETFs listed above represented less than 0.25% of the total assets in the Market Vectors ETFs suite.


    What will be the final day of trading? 

    The last day of trading of shares of each fund listed above on NYSE Arca is expected to be Friday, December 12, 2014. In addition, after the close of business (4:00pm EST) on December 12, 2014, the funds are expected to no longer accept creation orders.


    Can I sell my shares now? 

    Yes. Investors can sell their shares during normal market hours until market close on December 12, 2014. Please be advised that ordinary brokerage commissions generally will apply.


    What if I do not sell my shares before market close on December 12, 2014? 

    The funds are expected to be de-listed after market close on December 12, 2014. Shareholders who do not sell their shares of the funds before the market close on December 12, 2014, will receive cash on or about Tuesday, December 23, 2014 in the cash portion of their brokerage accounts equal to the amount of the net asset value (NAV) of their shares.


    Does this schedule apply to all five funds? 

    Yes.


    What distributions will be made to shareholders? 

    Shareholders who do not sell their shares prior to market close on December 12, 2014, will receive a cash distribution based on the closing NAV of their shares. This is posted against a shareholder’s adjusted cost basis, and there likely will be a gain or loss on the transaction.

    Shareholders who hold shares of CHLC at market close on Monday, December 8, 2014, will also receive a final distribution of net income and capital gains earned by the fund and not previously distributed prior to liquidation.


    On what date will distributions be made? 

    Shareholders of each fund will receive their liquidating payment on the payment date, currently on or about Tuesday, December 23, 2014.

    Shareholders who hold shares of CHLC at market close on December 8, 2014, will receive their additional payment on the payment date of Monday, December 15, 2014.


    Is there anything I need to do in order to receive a distribution? 

    No action is required on the part of the shareholder or the financial advisor.


    Does Van Eck Global anticipate significant final expenses and charges that will materially impact the final value of the fund closures? 

    No.


    How should this be treated for tax purposes? 

    Shareholders should generally treat the liquidating distribution as a gains/loss issue in the same manner as they would handle the sale of a security. Shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares. Information regarding the final tax status of distributions will be provided to shareholders with the year-end tax reporting of the funds.

    The final tax status of distributions made by CHLC, including the liquidating distribution, will be provided to shareholders with the year-end tax reporting for CHLC (including any portion which may be treated as a return of capital for tax purposes, reducing a shareholder’s basis in such shares).

    Please consult a qualified tax advisor with any tax-related questions.


    How will these closures be communicated to shareholders? 

    Van Eck Global has issued a formal press release and this FAQ document to notify shareholders of the fund closures. In addition, the registration statement for each fund has been supplemented and individual mailings will be sent to all shareholders of record.





    About Market Vectors ETFs 

    Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family is one of the largest providers of ETFs in the U.S. and worldwide.

    Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. 

    Van Eck Securities Corporation does not offer tax advice. Please consult a qualified tax advisor with any tax-related questions.

    Market Vectors ETFs ("the Funds") are subject to elevated risks associated with investments in exchange-traded funds ("ETFs"), including emerging market, sector, economic, political, foreign currency, world event, and index tracking risks, all of which may adversely affect the Funds or Fund trading. Fixed income investments are subject to interest rate risk, credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Investments focused in a particular industry or sector, or non-diversified investments, are subject to greater risks than investments in more diversified portfolios. Additional risks include risks associated with investing in companies with medium- and small-capitalizations which tend to have limited operating histories.

    Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (“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. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

    Investing involves substantial risk and high volatility, 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, charges and expenses of a Fund carefully before investing. Please refer to the prospectus for complete risk information. To obtain a prospectus and summary prospectus, which contains this and other information, call 888.MKT.VCTR or visit marketvectorsetfs.com. Please read the prospectus and summary prospectus carefully before investing.

    Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017