Exchange Traded Concepts to Close and Liquidate The Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NYSE:UTRN)

Rhea-AI Summary

Exchange Traded Concepts has announced the termination and liquidation of the Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NYSE:UTRN). The fund will cease operations and liquidate on March 28, 2025.

Key dates include:

• March 24, 2025: Fund closes to new creation units
• March 25, 2025: Last trading day on NYSE Arca
• March 28, 2025: Final liquidation and cash distribution to shareholders

During the liquidation process, the fund will be managed to facilitate orderly closure, potentially deviating from its stated investment strategy. Shareholders will receive pro-rata cash distributions, which will be considered taxable events. The fund's final NAV will reflect liquidation costs.

Positive

• Orderly liquidation process with clear timeline
• Pro-rata cash distribution to shareholders

Negative

• Complete fund termination and delisting from NYSE
• Forced liquidation of all positions
• trading capability after March 24, 2025
• Potential tax implications for shareholders

Insights

Financial Analyst

The announcement of The Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NYSE:UTRN) liquidation represents a significant development for current shareholders. The fund will cease operations on March 28, 2025, with trading halted after March 25 and creation units suspended from March 24.

For existing shareholders, several key considerations emerge:

• The liquidation creates a forced tax event as distributions will include accrued capital gains and dividends
• liquidity during the wind-down period may create trading challenges
• Shareholders face a narrow exit window when secondary market trading might experience reduced liquidity
• NAV will reflect liquidation costs, potentially impacting final distribution values

During the pre-liquidation phase, the fund will deviate from its stated investment strategy to facilitate orderly liquidation, creating potential tracking divergence from its index. This affects shareholders who use this ETF as part of a specific investment strategy targeting short-term reversal patterns in large-cap equities.

While ETF closures are routine in the industry when funds fail to gather sufficient assets or interest, investors should be aware of the mechanical implications rather than viewing this as a judgment on the strategy itself. Current shareholders should review their portfolios to determine appropriate action before the liquidation timeline accelerates.

OKLAHOMA CITY, March 4, 2025 /PRNewswire/ -- After careful consideration, Exchange Traded Concepts, LLC, the Fund's investment adviser has recommended, and the Board of Trustees of Exchange Traded Concepts 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 March 28, 2025 (the "Liquidation Date").

The Fund will be closed to orders for new creation units on March 24, 2025, and the last day of trading of the Fund's shares on the NYSE Arca, Inc. will be on or about March 25, 2025. From March 24, 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: 833-835-6633 or visit: www.utrnetf.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 833-835-6633 or visit our website at https://www.utrnetf.com/. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal. The Fund's return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund's investments are concentrated in or have significant exposure to a particular issuer, industry or group of industries, or asset class, the Fund may be more vulnerable to adverse events affecting such issuer, industry or group of industries, or asset class than if the Fund's investments were more broadly diversified. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of the Fund. The Fund is not actively managed and therefore the Fund would not sell shares of an equity security unless that security is removed from the Index or the selling of shares is otherwise required upon a rebalancing of the Index. Diversification may not protect against market risk. Holdings are subject to change.

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-vesper-us-large-cap-short-term-reversal-strategy-etf-nyseutrn-302391701.html

SOURCE Exchange Traded Concepts, LLC

FAQ

When will the UTRN ETF stop trading on NYSE Arca?

The last trading day for UTRN on NYSE Arca will be March 25, 2025.

What happens to UTRN shareholders after March 25, 2025?

Shareholders cannot trade shares in the secondary market and will receive pro-rata cash distributions on the liquidation date (March 28, 2025).

Are the cash distributions from UTRN liquidation taxable?

Yes, the distributions are taxable events and will include accrued capital gains and dividends, if any.

Will UTRN maintain its investment strategy until liquidation?

No, the fund may deviate from its strategy to raise cash and invest in highly liquid assets for orderly liquidation.