DWS is to close and liquidate three Xtrackers exchange-traded funds (ETFs) – Xtrackers MSCI Brazil Hedged Equity ETF (DBBR), Xtrackers MSCI EAFE Small Cap Hedged Equity ETF (DBES) and Xtrackers MSCI Mexico Hedged Equity ETF (DBMX).
The three funds represent less than 1 per cent of Xtrackers total US assets under management as of 10 May 2018.
DWS plans to close and liquidate these funds following a regular and ongoing process to review and evolve the Xtrackers product lineup to ensure the business continues to meet clients’ needs. The last day of trading is expected to be 31 May, 2018. Creations will be accepted until that time. Proceeds of the liquidations are scheduled to be sent to shareholders on or about 12 June, 2018.
When each ETF commences liquidation of its portfolio securities, each ETF may hold cash and securities that may not be consistent with the ETF’s investment objective and strategy. During this period, each ETF is likely to incur higher tracking error than is typical for the ETF.
Shareholders may sell their holdings of an ETF on the applicable stock exchange until the market close on 31 May 2018, and may incur typical transaction fees from their broker-dealer. At the time the liquidation of the ETFs is complete, shares of the ETFs will be individually redeemed. For investors that still hold shares as of 12 June 2018, each ETF will automatically redeem its shares for cash at the ETF’s current net asset value as of close of business on that date. Shareholders generally will recognise a capital gain or loss on the redemptions. The ETFs may or may not, depending upon each ETFs circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments.
