Exchange Traded Concepts to Liquidate Range Global Offshore Oil Services ETF by June 2025

Exchange Traded Concepts to Liquidate Range Global Offshore Oil Services ETF

Exchange Traded Concepts, LLC, which serves as the investment adviser for various funds, has made the significant decision to terminate and liquidate the Range Global Offshore Oil Services Index ETF (traded as NYSE: OFOS). The Board of Trustees of Exchange Traded Concepts Trust has endorsed this recommendation, following detailed evaluations of the fund's performance and market conditions.

Timeline of Liquidation Process

The planned liquidation is set to occur on or around June 20, 2025. As part of the preparation for this process, the Fund will halt the creation of new shares on June 16, 2025. Investors should be aware that the last day to trade shares on the NYSE will be approximately June 17, 2025. From this point until the liquidation date, shareholders may only be able to sell their shares through specific broker-dealers, and there is no guarantee that a market will be available for these transactions.

Fund Management During Liquidation

In anticipation of closing, the Fund will actively manage its assets to ensure a smooth liquidation process. This strategy includes converting holdings into cash and investing in highly liquid assets. As a result, the Fund's investment approach may diverge from its original strategy, which could impact its ability to meet previously set investment objectives.

Distribution and Tax Implications

Upon liquidation, the remaining assets will be distributed among shareholders on a pro-rata basis. Investors should expect that these distributions will be considered taxable events. The final net asset value (NAV) will encompass liquidation costs, and any accrued capital gains or dividends will also be included in the payouts to shareholders.

Risks for Investors

This liquidation comes with an array of risks that potential investors should carefully consider before proceeding. The energy sector can exhibit significant volatility, influenced by changing commodity prices, regulation shifts, and geopolitical tensions. Companies providing offshore oil services, such as those under the ETF, suffer from cyclicality and competitive pressures that can affect stock prices, particularly in times of economic instability.

Moreover, offshore oil services companies largely depend on a small customer base, which means that budget constraints from governmental entities can adversely affect revenue streams. Compounding these challenges are the operational risks inherent in the offshore oil business, such as exposure to natural disasters and varying weather conditions that can disrupt services and negatively impact revenue.

Conclusion

Investors in the Range Global Offshore Oil Services ETF should prepare for the upcoming liquidation process by familiarizing themselves with critical dates and possible tax consequences. For further inquiries, interested parties are encouraged to reach out to customer service at 855-726-4388 or explore the official webpage of the fund for comprehensive details.

In the rapidly evolving market landscape, being informed can significantly influence investment outcomes, so it's imperative to stay updated with the latest developments regarding the Fund’s status and operations.