VanEck, one of the largest U.S. issuers of exchange traded funds (ETFs), said it is closing two of its ETFs.
The VanEck Vectors Global Spin-Off ETF (NYSEArca: SPUN) and the VanEck Vectors EM Investment Grade + BB Rated USD Sovereign Bond ETF (NYSEArca: IGEM) are the two funds slated for closure.
“Shareholders of the Funds may sell their holdings of each Fund on the NYSE Arca until market close on July 31, 2018 (transaction fees from their broker-dealer may be incurred),” according to a statement. “The Funds’ shares will no longer trade on the NYSE Arca after market close on July 31, 2018, and the shares will subsequently be de-listed. Shareholders who continue to hold shares of either of the Funds on the Funds’ liquidation date, which is expected to be on or about August 7, 2018, will receive a liquidating distribution of cash in the cash portion of their brokerage accounts equal to the amount of the net asset value of their shares.”
History of the SPUN, IGEM
SPUN debuted just over three years and had $5.2 million in assets under management as of June 22. IGEM is nearly two years and had $11.6 million in assets as of June 22.
SPUN tracks the performance of the Horizon Kinetics Global Spin-Off Index, a rules-based, equal-weight index that tracks global spin-offs from the U.S. and developed markets of Western Europe and Asia.
IGEM tracks the “J.P. Morgan Custom EM Investment Grade Plus BB-Rated Sovereign USD Bond Index (JPEGIGBB), which is comprised primarily of investment grade U.S. dollar-denominated bonds issued by emerging markets (EM) governments,” according to VanEck.
For more information on the fixed-income market, visit our bond ETFs category.