VanEck, one of the largest providers of exchange traded funds (ETFs) in the U.S. and worldwide, announced today that it plans to close and liquidate the VanEck Vectors High Income Infrastructure MLP ETF (the Fund).
On September 13, 2019, the Board of Trustees of VanEck Vectors ETF Trust approved the liquidation and dissolution of the Fund.
VanEck Vectors High Income Infrastructure MLP ETF
As the sponsor of VanEck Vectors ETFs, VanEck is proud to be an industry leader in offering unique, targeted exposures to numerous asset classes through ETFs that 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 the Fund based on an analysis of these factors.
Shareholders of the Fund may sell their shares until market close on October 18, 2019 (transaction fees from their broker-dealer may apply). The Funds shares will no longer trade on the NYSE Arca after market close on October 18, 2019, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of the Fund on the Funds liquidation date, which is expected to be on or about October 25, 2019, 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 25, 2019. 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 October 18, 2019.
The final tax status of 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 shareholders basis in such shares).
If you have any questions concerning this information or the VanEck Vectors ETFs in general, please call 800.826.2333 between 9:00 a.m. and 5:30 p.m., Monday through Friday.
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 firms 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, 2019, VanEck managed approximately $50.4 billion in assets, including mutual funds, ETFs, and institutional accounts. The firms 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 VanEcks passive strategies.
Since our founding in 1955, putting our clients interests first, in all market environments, has been at the heart of the firms 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, risks specific to MLPs such as tax, energy sector, industry specific, tax status of the fund, deferred tax, return of capital distributions from the fund reduce the tax basis of fund shares, liquidity, potential substantial after-tax tracking error from index performance, cash transactions, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading, 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. MLP investments can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, and factors affecting the energy sector and infrastructure MLP industry. The complex tax nature of MLPs may adversely affect the Fund. The Fund may defer income taxes for many years on gains attributable to its underlying MLP holdings and the deferred tax liability used to calculate the Funds NAV could vary dramatically from the Funds actual tax liability. Upon sale of an MLP security, the Fund may be liable for previously deferred taxes and, as a result, the determination of the Funds actual tax liability may substantially increase expenses and lower the Funds NAV.
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. Total returns are based upon closing market price (price) of the ETF on the dates listed.
Fund shares are not individually redeemable and will be issued and redeemed at their 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. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market.
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.
Mike MacMillan/Chris Sullivan