DWS Group is to close and liquidate two Xtrackers exchange-traded funds (ETFs) – Xtrackers Germany Equity ETF (GRMY) and Xtrackers MSCI United Kingdom Hedged Equity ETF (DBUK).
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 April 30, 2019. Creations will be accepted until that time. Proceeds of the liquidations are scheduled to be sent to shareholders on or about 10 May, 2019.
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 April 30, 2019, 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 May 10, 2019, 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.
