Exchange Traded Concepts to Close and Liquidate The Blue Horizon BNE ETF (NYSE:BNE)

Rhea-AI Summary

Exchange Traded Concepts has announced the closure and liquidation of the Blue Horizon BNE ETF (NYSE:BNE) on September 27, 2024. Key points include:

• The Fund will begin liquidating its portfolio assets around September 18, 2024
• No new creation units will be accepted after the business day before liquidation
• Trading will be halted on the Liquidation Date
• Shareholders may only sell shares to certain broker-dealers before liquidation
• Cash distributions will be made pro rata to remaining shareholders on the Liquidation Date
• These distributions are taxable events
• The Fund's NAV will reflect closing costs

Investors are advised to consider the Fund's objectives, risks, charges, and expenses before investing.

Positive

• None.

Negative

• Complete closure and liquidation of the Blue Horizon BNE ETF (NYSE:BNE)
• Potential liquidity for shareholders trying to sell shares before liquidation
• Taxable event for shareholders due to cash distributions
• Possible deviation from stated investment objective and strategies during liquidation process
• Potential for NAV to be impacted by fund closing costs

Insights

ETF Specialist

The closure of the Blue Horizon BNE ETF is a significant event for its shareholders and reflects broader trends in the ETF market. This liquidation highlights the competitive nature of the ETF industry, where funds that fail to attract sufficient assets or meet performance expectations often face closure.

Key points for investors:

• The fund will cease accepting new creation units after September 18, 2024, potentially affecting liquidity.
• Shareholders may face selling options and potential tax implications from the liquidation.
• The fund's deviation from its stated investment objective during the liquidation process could impact short-term performance.

This closure serves as a reminder for ETF investors to regularly review their holdings and be prepared for potential fund closures, especially in niche or underperforming sectors.

Tax Advisor

The liquidation of the Blue Horizon BNE ETF presents important tax considerations for shareholders. The distribution of cash pro rata to shareholders is considered a taxable event, typically treated as a capital gain or loss depending on the shareholder's cost basis.

Key tax implications:

• Shareholders may realize capital gains or losses upon liquidation, affecting their tax liability for the year.
• The timing of the liquidation (September 27, 2024) allows investors some time for tax planning.
• Investors holding the fund in tax-advantaged accounts (e.g., IRAs) may be shielded from immediate tax consequences.

It's important for affected shareholders to consult with their tax advisors to understand the specific impact on their tax situation and explore potential strategies to manage any tax liabilities arising from this liquidation.

OKLAHOMA CITY, Aug. 26, 2024 /PRNewswire/ -- The Board of Trustees of ETF Series Solutions, upon a recommendation from Exchange Traded Concepts, LLC, the investment adviser to the Blue Horizon BNE ETF,  (the "Fund"), has determined to close and liquidate the Fund immediately after the close of business on September 27, 2024 (the "Liquidation Date"). Shares of the Fund are listed on the New York Stock Exchange Arca, Inc.

Effective on or about September 18, 2024, the Fund will begin liquidating its portfolio assets. This will cause the Fund to increase its cash holdings and deviate from the investment objective and strategies stated in the Fund's prospectus.

The Fund will no longer accept orders for new creation units after the close of business on the business day prior to the Liquidation Date, and trading in shares of the Fund will be halted prior to market open on the Liquidation Date. Prior to the Liquidation Date, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for the Fund's shares during that time period. Customary brokerage charges may apply to such transactions.

On or about the Liquidation Date, the Fund will liquidate its assets and distribute cash pro rata to all remaining shareholders. These distributions are taxable events. Distributions made to shareholders should generally be treated as received in exchange for shares and will therefore generally give rise to a capital gain or loss depending on a shareholder's tax basis. Shareholders should contact their tax advisor to discuss the income tax consequences of the liquidation. As calculated on the Liquidation Date, the Fund's net asset value will reflect the costs of closing the Fund, if any. Once the distributions are complete, the Fund will terminate. Proceeds of the liquidation will be sent to shareholders promptly after the Liquidation Date.

For additional information, please call 1-800-617-0004.

Please retain this Supplement with your Summary Prospectus, Prospectus, and SAI for future reference.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing.

For a prospectus or summary prospectus with this and other information about the Fund, please call (800) 617-0004 or visit our website at https://www.bne-etf.com/. Read the prospectus or summary prospectus carefully before investing.

Investments involve risk. Principal loss is possible. The fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. As a result, the value of the Fund's shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.

Exchange Traded Concepts, LLC is advisor to the fund. Blue Horizon serves as the index provider. The fund is distributed by Quasar Distrib­utors, LLC which is not affiliated with Blue Horizon, Exchange Traded Concepts, LLC, or any of their affiliates.

Investment Products and Services:

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

View original content:https://www.prnewswire.com/news-releases/exchange-traded-concepts-to-close-and-liquidate-the-blue-horizon-bne-etf-nysebne-302230719.html

SOURCE Exchange Traded Concepts, LLC

FAQ

When will the Blue Horizon BNE ETF (NYSE:BNE) be liquidated?

The Blue Horizon BNE ETF (NYSE:BNE) will be liquidated immediately after the close of business on September 27, 2024.

What happens to BNE shareholders during the liquidation process?

Shareholders may only be able to sell their BNE shares to certain broker-dealers before the Liquidation Date. On the Liquidation Date, remaining shareholders will receive cash distributions pro rata.

Are there tax implications for BNE shareholders due to the liquidation?

Yes, the cash distributions made to BNE shareholders as part of the liquidation are considered taxable events and may result in capital gains or losses.

When will BNE stop accepting new creation units?

BNE will no longer accept orders for new creation units after the close of business on the business day prior to September 27, 2024.