IndexIQ, a developer of index-based alternative investment solutions, plans to close the IQ Emerging Markets Mid Cap ETF (EMER).
Assets in EMER represent less than 0.5 per cent of IndexIQ’s ETF assets.
The board of trustees of the IndexIQ ETF Trust approved the closures on 3 December. The final day of trading on the NYSE Arca will be 18 December.
Between the final day of trading and 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 during that time period. Shareholders who do not sell their fund shares by this date will have their shares automatically redeemed on 28 December, the fund’s last day of operations.
Fund shareholders holding shares in the fund as of the liquidation date of 28 December will receive a cash distribution equal to the net asset value of their shares as of that date, inclusive of remaining income and capital gains. Shareholders remaining on 28 December will not incur transaction fees in connection with the liquidation of their shares. Other costs of closing the funds will be borne by the IndexIQ Advisors.