VanEck ETFs: Fund Closure FAQs
September 15, 2021
Two funds are closing:
1. VanEck Vectors Emerging Markets Aggregate Bond ETF (EMAG)
2. VanEck Vectors Unconventional Oil & Gas ETF (FRAK)
Collectively referred to as (the “funds”)
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 funds based on an analysis of these factors.
The last day of trading of shares of the above referenced funds on NYSE Arca is expected to be Friday, October 15, 2021. In addition, after the close of business (4:00 p.m. ET) on Friday, October 15, 2021, the funds are expected to no longer accept creation orders from authorized participants.
Yes, investors can sell their shares on the NYSE Arca during normal market hours until market close on Friday, October 15, 2021. Please be advised that ordinary brokerage commissions will generally apply.
The funds are expected to be de-listed after market close on Friday, October 15, 2021. Shareholders who do not sell their shares of the funds before the market close on Friday, October 15, 2021 and continue to hold their shares through the liquidation date are expected to receive cash on or about Friday, October 22, 2021 in the cash portion of their brokerage accounts equal to the amount of the net asset value (NAV) of their shares.
Shareholders who do not sell their shares prior to the liquidation date 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 may also receive a final distribution of dividends, capital gains and/or income earned by the funds and not previously distributed prior to liquidation.
Liquidating payments are expected to be made on or about Friday, October 22, 2021, although this may occur prior to or later than this date.
No action is required on the part of the shareholder or the financial advisor.
Shareholders should generally treat the liquidating distribution 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.
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 that 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.
VanEck has issued a formal press release and this FAQ document to notify shareholders of the upcoming fund closures. In addition, the registration statement for the funds have been supplemented.
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.
Please call 800.826.2333or visit our website for the most recent month-end performance of VanEck 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.
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. 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 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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