VanEck Announces Change to ETF Product Line

Rhea-AI Summary

VanEck has announced the closure and liquidation of its VanEck Dynamic High Income ETF (INC) on the NYSE Arca exchange. The decision was made after evaluating factors such as performance, liquidity, assets under management, and investor interest. Key dates include:

- October 8, 2024: Last day for shareholders to sell shares on the exchange
- October 15, 2024 (approx.): Liquidation date and distribution of cash to remaining shareholders

Shareholders may sell their shares until market close on October 8, 2024, or hold until liquidation to receive cash equal to the net asset value. The Fund will stop accepting creation orders from Authorized Participants on October 8, 2024. Tax implications and potential final distributions are also outlined in the announcement.

Positive

• None.

Negative

• Closure and liquidation of VanEck Dynamic High Income ETF (INC)
• Potential capital gains or losses for shareholders upon liquidation
• Discontinuation of a product in VanEck's ETF lineup

NEW YORK--(BUSINESS WIRE)-- VanEck announced today that it plans to close and liquidate one of its VanEck ETFs. On September 5, 2024, the Board of Trustees of VanEck ETF Trust approved the liquidation and dissolution of the following fund (the “Fund”):

ETF Name	Ticker	Exchange
VanEck Dynamic High Income ETF	INC	NYSE Arca

As the sponsor of VanEck ETFs, VanEck continuously monitors and evaluates its ETF offerings across several 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 8, 2024 (transaction fees from their broker-dealer may be incurred). The Fund’s shares will no longer trade on its listing exchange after market close on October 8, 2024, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of the Fund on the Fund’s liquidation date, which is expected to be on or about October 15, 2024, 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 15, 2024.

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 8, 2024.

In addition, shareholders who hold shares of the Fund may receive a final distribution of net income and capital gains earned by the Fund and not previously distributed prior to liquidation.

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 which may be treated as a return of capital for tax purposes, reducing a shareholder’s basis in such shares).

About VanEck

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 July 31, 2024, VanEck managed approximately $111.0 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.

Important Disclosures

This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.

An investment in the VanEck Dynamic High Income ETF may be subject to risks which include, among others, fund of funds, ETPs, U.S. treasury securities, interest rate, income, high portfolio turnover, active management, operational, authorized participant concentration, no guarantee of active trading market, trading issues, market, fund shares trading, premium/discount, liquidity of fund shares, affiliated fund, and non-diversified risks. The Fund may also be subject to dividend paying securities, investing in foreign securities, investing in emerging market issuers, foreign currency, investing in mortgage REITs, preferred securities, CLO, credit, high yield securities, interest rate, call and concentration risks, all of which may adversely affect the Fund.

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. Please read the prospectus and summary prospectus carefully before investing.

Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation
666 Third Avenue, New York, NY 10017
800.826.2333

View source version on businesswire.com: https://www.businesswire.com/news/home/20240906343868/en/

Media:

Chris Sullivan

Craft & Capital

917.902.0617

chris@craftandcapital.com

Source: VanEck

FAQ

When will the VanEck Dynamic High Income ETF (INC) stop trading?

The VanEck Dynamic High Income ETF (INC) will stop trading on the NYSE Arca exchange after market close on October 8, 2024.

What is the expected liquidation date for the VanEck Dynamic High Income ETF (INC)?

The expected liquidation date for the VanEck Dynamic High Income ETF (INC) is on or about October 15, 2024.

How will shareholders of the VanEck Dynamic High Income ETF (INC) receive their liquidation proceeds?

Shareholders who hold shares on the liquidation date will receive a liquidating distribution of cash in the cash portion of their brokerage accounts, equal to the net asset value of their shares.

What are the tax implications for shareholders of the VanEck Dynamic High Income ETF (INC) upon liquidation?

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.