ALPS is to liquidate the four exchange-traded funds that make up the ALPS|GS Momentum BuilderInd ex ETFs series.
The funds – ALPS|GS Momentum Builder Multi-Asset Index ETF, ALPS|GS Momentum Builder Growth Equities and US Treasuries Index ETF, ALPS|GS Momentum Builder Asia ex-Japan Equities and US Treasuries Index ETF and ALPS|GS Risk-Adjusted Return US Large Cap Index ETF – will close to new investors on 25 August and liquidate on 28 August.
The decision to close the funds was made by the ALPS ETF Trust’s board of trustees after consultation with ALPS Advisors, the investment advisor to the funds. On consideration of current market conditions, as well as prospects for growth in the funds’ assets, the board determined that it was in the best interests of the funds and their shareholders to liquidate the funds’ shares, which are listed on the NYSE Arca. The last day of trading for the four funds is scheduled to be 27 August 2014.
The funds will immediately begin the process of closing down and liquidating their portfolios. The process will result in the funds not tracking their underlying indices and their cash holdings increasing, which may be inconsistent with the funds’ investment objectives and strategies. From 26 to 27 August, shareholders may be able to sell their shares to certain broker-dealers.
Any person holding shares in the funds as of the liquidation date will receive a cash distribution equal to the net asset value of their shares. Shareholders receiving this cash distribution will not incur transaction fees in connection with this distribution or the liquidation of their shares in the funds. A portion of the distribution may represent an ordinary income dividend or a capital gain distribution.
