VanEck announced today that the Board of Trustees of VanEck Vectors ETF Trust has approved a 1-for-2 reverse split of the shares of the following three ETFs: VanEck Vectors J.P Morgan EM Local Currency Bond ETF (NYSE Arca: EMLC), VanEck Vectors AMT-Free Intermediate Municipal Index ETF (NYSE Arca: ITM), and the VanEck Vectors High-Yield Municipal Index ETF (NYSE Arca: HYD).
|EMLC||VanEck Vectors J.P Morgan EM Local Currency Bond ETF||92189F494||92189H300|
|ITM||VanEck Vectors AMT-Free Intermediate Municipal Index ETF||92189F544||92189H201|
|HYD||VanEck Vectors High-Yield Municipal Index ETF||92189F361||92189H409|
The effective date of the split will be at market open on October 26, 2018. The Funds will continue to trade on the NYSE Arca under the same ticker symbols. The Funds will be issued new CUSIP numbers, as listed above.
The Depository Trust Company (DTC), the registered owner of all Fund shares, has been notified of the reverse split and has been instructed to adjust each shareholders investment accordingly.
Shares of the Funds will be offered on a split-adjusted basis on October 26, 2018. The total market value of the shares outstanding will not be affected as a result of this reverse split, except with respect to the redemption of fractional shares, as discussed below.
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example: a multiple of 2 for a 1-for-2 split), the reverse splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize a gain or loss, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for shareholders of the Funds.
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 September 30, 2018, VanEck managed approximately $46.1 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.
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. Shares may trade at a premium or discount to their NAV in the secondary market.
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC) is not sponsored, endorsed, sold or promoted by J.P. Morgan and J.P. Morgan makes no representation regarding the advisability of investing in EMLC. J.P. Morgan does not warrant the completeness or accuracy of the J.P. Morgan GBI-EMG Core Index. “J.P. Morgan” is a registered service mark of JPMorgan Chase & Co. 2018. JPMorgan Chase & Co. All rights reserved.
VanEck Vectors AMT-Free Intermediate Municipal Index ETF and VanEck Vectors High-Yield Municipal Index ETF are not sponsored by, endorsed, sold or promoted by Bloomberg or Barclays and neither Bloomberg nor Barclays makes any representation regarding the advisability of investing in them. The only relationship to the Adviser with respect to the VanEck Vectors ETFs is the licensing of certain trademarks and trade names of Bloomberg and Barclays and the BLOOMBERG BARCLAYS INDICES that are determined, composed and calculated by Bloomberg without regard to the Adviser or any investor in the VanEck Vectors ETFs.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. Debt securities carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuers financial health. High-yield and municipal securities have additional risks. The Funds underlying securities may be subject to call risk, which may result in the Funds having to reinvest the proceeds at lower interest rates, resulting in a decline in the Funds income.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com/etf. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, 666 Third Avenue, New York, NY 10017
Mike MacMillan/Chris Sullivan, 212-473-4442