However, if you are executing a large block trade, Hamman suggests calling the ETF sponsor to find out the best price that they can find for the order.

Alternatively, an investor can hold the ETF until the closure date. The termination date is typically set within four to six weeks of the closing announcement. Once the ETF shuts down, shares will be redeemed on that day’s closing NAV, and cash is then deposited into investors’ accounts.

In rare cases, those who opt to hold until the fund is liquidated may also be billed for the costs of closing, or “termination fee,” which includes legal fees and administrative costs – ETFs may raise the expense ratio retroactively.

For more information on ETFs, visit our ETF 101 category.

Max Chen contributed to this article.