Exchange Traded Concepts to Close and Liquidate AKROS MONTHLY PAYOUT ETF (NYSE:MPAY)

Rhea-AI Summary

Exchange Traded Concepts has announced the termination and liquidation of the AKROS MONTHLY PAYOUT ETF (NYSE:MPAY). The fund will cease operations and liquidate on April 25, 2025.

Key dates include:

• April 21, 2025: Fund closes to new creation units
• April 22, 2025: Last trading day on NYSE Arca
• April 25, 2025: Final liquidation and cash distribution to shareholders

During the liquidation period, the fund will be managed to facilitate orderly liquidation, potentially deviating from its stated investment strategy. Shareholders may face trading opportunities between April 21-22, with no secondary market trading available thereafter until liquidation. The final distribution will include accrued capital gains and dividends, representing taxable events for shareholders.

Positive

• Orderly liquidation process with clear timeline provided
• Pro rata cash distribution to shareholders including accrued gains and dividends

Negative

• Complete fund termination and delisting from NYSE
• trading opportunities during liquidation period
• Forced liquidation may result in unplanned tax consequences for shareholders
• Investment strategy deviation during liquidation period may impact fund performance

Insights

ETF Portfolio Strategist

The liquidation of AKROS MONTHLY PAYOUT ETF (MPAY) on April 25, 2025, signals a significant event for current shareholders who face an imminent forced exit. This classic fund closure scenario follows a familiar pattern in the ETF industry where underperforming or subscale products are eliminated.

The tight timeline is particularly noteworthy - shareholders have barely a month from announcement to final liquidation. After April 21, the fund will no longer accept creation units, and secondary market trading ends around April 22. This compressed schedule creates potential liquidity challenges as market makers reduce support, potentially widening bid-ask spreads during the final trading days.

Current shareholders face three critical implications:

• The forced liquidation creates mandatory tax events regardless of shareholders' preferred investment timelines
• Portfolio management will shift toward cash and liquid assets, abandoning the fund's stated investment approach
• Between the last trading day and liquidation date, shareholders will have no ability to exit their positions

Most concerning for shareholders is the statement that "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," suggesting performance may deviate from expectations during this wind-down period.

Income-focused investors now face the challenge of identifying suitable replacement vehicles for monthly distributions while managing the tax implications of this forced exit. The orderly liquidation process, while standard industry practice, nonetheless represents a disruption for existing shareholders who must now reallocate their capital.

OKLAHOMA CITY, March 28, 2025 /PRNewswire/ -- After careful consideration, Exchange Traded Concepts, LLC, the Fund's investment adviser has recommended, and the Board of Trustees of Exchange Listed Funds Trust has approved, the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation. Accordingly, the Fund is expected to cease operations and liquidate on or about April 25, 2025 (the "Liquidation Date").

The Fund will be closed to orders for new creation units on April 21, 2025, and the last day of trading of the Fund's shares on the NYSE Arca, Inc. will be on or about April 22, 2025. From April 21, 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: (855) 955-1865 or visit: https://akrosetfs.com/fund/mpay.

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 (855) 955-1865 or visit our website at https://akrosetfs.com/fund/mpay. 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

View original content:https://www.prnewswire.com/news-releases/exchange-traded-concepts-to-close-and-liquidate-akros-monthly-payout-etf-nysempay-302413772.html

SOURCE Exchange Traded Concepts, LLC

FAQ

When will MPAY ETF stop trading on NYSE Arca?

MPAY will have its last trading day on NYSE Arca on April 22, 2025.

What happens to MPAY shareholders after the liquidation date of April 25, 2025?

Shareholders will receive a pro rata cash distribution including accrued capital gains and dividends, if any.

Can investors trade MPAY shares between April 21-25, 2025?

Trading will be to certain broker-dealers from April 21-22, with no secondary market trading available afterward until liquidation.

Will the MPAY ETF liquidation distribution be taxable for shareholders?

Yes, the final distributions will be considered taxable events for shareholders.

How will MPAY's investment strategy change during the liquidation period?

The fund will focus on raising cash and highly liquid assets, potentially deviating from its stated investment strategy.