VanEck Vectors® ETFs: Fund Closure FAQs
December 03, 2020
One fund is closing:
- VanEck Vectors Coal ETF (KOL) (the “Fund”).
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.
The last day of trading of shares of the above referenced Fund on NYSE Arca is expected to be Monday, December 14, 2020. In addition, after the close of business (4:00 p.m. ET) on Monday, December 14, 2020, the Fund is expected to no longer accept creation orders from authorized participants.
Yes, investors can sell their shares on the Fund’s listing exchange during normal market hours until market close on Monday, December 14, 2020. Please be advised that ordinary brokerage commissions will generally apply.
The Fund is expected to be de-listed after market close on Monday, December 14, 2020. Shareholders who do not sell their shares of the Fund before the market close on Monday, December 14, 2020 and continue to hold their shares through the liquidation date are expected to receive cash on or about Tuesday, December 22, 2020 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 Fund and not previously distributed prior to liquidation.
Liquidating payments are expected to be made on or about Tuesday, December 22, 2020, 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 Fund, including the liquidating distribution, will be provided to shareholders with the year-end tax reporting for the Fund (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 fund closure. In addition, the registration statement for the fund has 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 October 31, 2020, VanEck managed approximately $60.2 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 800.826.2333 or visit our website for the most recent month-end performance of VanEck Vectors ETFs.
An investment in the Fund may be subject to risks which include, among others, investing in coal companies, investing in Asian issuers, Chinese issuers, foreign securities, emerging market issuers, foreign currency, depositary receipts, basic materials sector, energy sector, industrials sector, 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, issuer-specific changes, non-diversified and concentration risks, all of which may adversely affect the Fund. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. 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 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.
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