ETF Securities plans to close and liquidate two funds as part of an ongoing process to concentrate its offering on products that experience sufficient investor demand.
The funds in question are the ETFS Diversified-Factor Developed Europe Index Fund (SBEU); and the ETFS Diversified-Factor US Large Cap Index Fund (SBUS).
After the close of business on 21 November 2016, subject to applicable law, ETFS Trust will no longer accept creation and redemption requests in respect of shares of the above funds.
Trading in the dhares on NYSE Arca will be suspended prior to the market opening on 22 November. Proceeds of the liquidation will be paid to the shareholders remaining in each fund on or about 28 November.
When the fund commences liquidation of its portfolio securities, the fund may hold cash and securities that may not be consistent with the fund's investment objective and strategy. During this period the fund is likely to incur higher tracking error than is typical for the fund.
Shareholders may sell their shares on NYSE Arca until the market close on 21 November 2016, and may incur typical transaction fees from their broker-dealer. At the time the liquidation of the funds is complete, shares will be individually redeemed.
Shareholders will generally recognise a capital gain or loss on the redemptions. The funds may or may not pay one or more dividends or other distributions prior to or along with the redemption payments.