Exchange Traded Concepts to Close and Liquidate JAKOTA K-Pop and Korean Entertainment ETF (NYSE:KPOP)
Exchange Traded Concepts has announced the termination and liquidation of the JAKOTA K-Pop and Korean Entertainment ETF (NYSE:KPOP). The fund will cease operations and liquidate on April 4, 2025.
Key dates include:
- March 31, 2025: Fund closes to new creation units
- April 1, 2025: Last trading day on NYSE Arca
During the liquidation period, the fund will be managed to facilitate orderly closure, potentially deviating from its stated investment strategy. Shareholders can only sell shares to certain broker-dealers from March 31 through the last trading day. On the Liquidation Date, remaining assets will be distributed pro rata to shareholders as taxable cash distributions, including any accrued capital gains and dividends.
Exchange Traded Concepts ha annunciato la cessazione e liquidazione dell'ETF JAKOTA K-Pop e Intrattenimento Coreano (NYSE:KPOP). Il fondo cesserà le operazioni e sarà liquidato il 4 aprile 2025.
Le date chiave includono:
- 31 marzo 2025: Chiusura del fondo alle nuove unità di creazione
- 1 aprile 2025: Ultimo giorno di negoziazione su NYSE Arca
Durante il periodo di liquidazione, il fondo sarà gestito per facilitare una chiusura ordinata, deviando potenzialmente dalla sua strategia di investimento dichiarata. Gli azionisti possono vendere azioni solo a determinati broker-dealer dal 31 marzo fino all'ultimo giorno di negoziazione. Alla Data di Liquidazione, gli attivi rimanenti saranno distribuiti pro rata agli azionisti come distribuzioni in contante tassabili, comprese eventuali plusvalenze e dividendi maturati.
Exchange Traded Concepts ha anunciado la terminación y liquidación del ETF JAKOTA K-Pop y Entretenimiento Coreano (NYSE:KPOP). El fondo cesará operaciones y se liquidará el 4 de abril de 2025.
Las fechas clave incluyen:
- 31 de marzo de 2025: Cierre del fondo a nuevas unidades de creación
- 1 de abril de 2025: Último día de negociación en NYSE Arca
Durante el período de liquidación, el fondo será administrado para facilitar un cierre ordenado, posiblemente desviándose de su estrategia de inversión declarada. Los accionistas solo pueden vender acciones a ciertos corredores de bolsa desde el 31 de marzo hasta el último día de negociación. En la Fecha de Liquidación, los activos restantes se distribuirán pro rata a los accionistas como distribuciones en efectivo sujetas a impuestos, incluyendo cualquier ganancia de capital acumulada y dividendos.
Exchange Traded Concepts는 JAKOTA K-Pop 및 한국 엔터테인먼트 ETF (NYSE:KPOP)의 종료 및 청산을 발표했습니다. 이 펀드는 2025년 4월 4일에 운영을 중단하고 청산됩니다.
주요 날짜는 다음과 같습니다:
- 2025년 3월 31일: 신규 창출 단위에 대한 펀드 마감
- 2025년 4월 1일: NYSE Arca에서의 마지막 거래일
청산 기간 동안, 펀드는 질서 있는 종료를 촉진하기 위해 관리되며, 이는 명시된 투자 전략에서 벗어날 수 있습니다. 주주들은 3월 31일부터 마지막 거래일까지 특정 중개인에게만 주식을 판매할 수 있습니다. 청산일에 남은 자산은 주주들에게 과세 현금 배당금으로 비례 배분되며, 여기에는 발생한 자본 이득 및 배당금이 포함됩니다.
Exchange Traded Concepts a annoncé la cessation et la liquidation de l'ETF JAKOTA K-Pop et Divertissement Coréen (NYSE:KPOP). Le fonds cessera ses opérations et sera liquidé le 4 avril 2025.
Les dates clés incluent:
- 31 mars 2025: Fermeture du fonds aux nouvelles unités de création
- 1 avril 2025: Dernier jour de négociation sur NYSE Arca
Durant la période de liquidation, le fonds sera géré pour faciliter une fermeture ordonnée, s'écartant potentiellement de sa stratégie d'investissement déclarée. Les actionnaires ne peuvent vendre des actions qu'à certains courtiers à partir du 31 mars jusqu'au dernier jour de négociation. À la date de liquidation, les actifs restants seront distribués au prorata aux actionnaires sous forme de distributions en espèces imposables, y compris toutes les plus-values et dividendes accumulés.
Exchange Traded Concepts hat die Beendigung und Liquidation des JAKOTA K-Pop und Korean Entertainment ETF (NYSE:KPOP) angekündigt. Der Fonds wird am 4. April 2025 seine Aktivitäten einstellen und liquidiert werden.
Wichtige Daten sind:
- 31. März 2025: Fonds schließt für neue Erstellungseinheiten
- 1. April 2025: Letzter Handelstag an der NYSE Arca
Während der Liquidationsphase wird der Fonds verwaltet, um eine geordnete Schließung zu erleichtern, was möglicherweise von der angegebenen Anlagestrategie abweicht. Aktionäre können vom 31. März bis zum letzten Handelstag Aktien nur an bestimmte Broker-Dealer verkaufen. Am Liquidationstag werden die verbleibenden Vermögenswerte pro rata an die Aktionäre als steuerpflichtige Barauszahlungen verteilt, einschließlich aller aufgelaufenen Kapitalgewinne und Dividenden.
- Orderly liquidation process with clear timeline provided
- Pro rata cash distribution of remaining assets to shareholders
- Complete fund termination and liquidation announced
- Trading restrictions implemented from March 31, 2025
- Fund may deviate from stated investment strategy during liquidation
- Forced liquidation may result in taxable events for shareholders
Insights
The announcement of JAKOTA K-Pop and Korean Entertainment ETF (KPOP) liquidation represents a significant development for current shareholders. The fund will cease operations on April 4, 2025, with trading on NYSE Arca ending around April 1. This creates a compressed timeline for investor action, with creation units closing on March 31.
This liquidation introduces several critical considerations for shareholders. First, there's a liquidity risk window - from March 31 through the last trading day, investors may face selling options, restricted to certain broker-dealers with no guaranteed market. Second, a tax event is imminent as remaining shareholders will receive pro-rata cash distributions including accrued capital gains and dividends, potentially creating unexpected tax liabilities.
The fund's management strategy will shift immediately to facilitate orderly liquidation, meaning the portfolio will deviate from its stated investment approach to raise cash or acquire highly liquid assets. This transition phase may affect performance and tracking accuracy relative to K-Pop entertainment sector performance.
ETF closures typically occur due to insufficient asset gathering, poor performance, or waning investor interest. Specialized thematic ETFs like this often face viability challenges in niche markets. Current shareholders must decide whether to sell shares on the open market before trading ends or hold through liquidation, with considerations including potential price discounts, trading costs, and tax implications influencing optimal exit strategy.
The Fund will be closed to orders for new creation units on March 31, 2025, and the last day of trading of the Fund's shares on the NYSE Arca, Inc. will be on or about April 1, 2025. From March 31, 2025 through the last day of trading, 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 Fund shares during that time period. Customary brokerage charges may apply to such transactions. From the last day of trading through the Liquidation Date, shareholders will not be able to purchase or sell shares in the secondary market.
In anticipation of the liquidation, the Fund will be managed in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, in preparation for the liquidation, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategy, which may prevent the Fund from achieving its investment objective.
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. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, the Fund's net asset value will reflect the costs of liquidating the Fund. Once the distributions are complete, the Fund will terminate.
If you would like additional information, please call: 833-599-5767 or visit: www.kpopetf.com
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: 833-599-5767 or visit our website at www.kpopetf.com. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The Fund's concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
Investment Products and Services:
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
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SOURCE Exchange Traded Concepts, LLC
FAQ
When will the KPOP ETF stop trading on NYSE Arca?
What happens to KPOP ETF shares during the liquidation process?
How will KPOP ETF shareholders receive their final distribution?
Are the final distributions from KPOP ETF liquidation taxable?
