#USA #Newtown Square #Empowered Funds #AOT ETF #ETF Liquidation

Empowered Funds LLC to Liquidate ETF in 2026

Empowered Funds, LLC has officially announced the impending liquidation of its AOT Software Platform ETF, designated as NYSE ARCA AOTS. The liquidation is scheduled to occur around August 19, 2026, a decision influenced by a thorough evaluation of investor interest and market performance.

Key Details of the Liquidation

The trading activities for the AOT Software Platform ETF will be halted on the New York Stock Exchange (NYSE) after the market closes on August 18, 2026. Following this closure, investors will no longer be able to purchase shares of the ETF. Shareholders have the option to sell their shares before the liquidation date, although they should be prepared for customary brokerage fees associated with these transactions. It is important to note that not all broker-dealers may facilitate the sale of these shares, and the availability of a market for them is uncertain.

As the liquidation date approaches, the ETF may shift its investment strategy, potentially increasing cash holdings and aligning less with its original investment objectives. Shareholders should take this into account when planning their next steps.

Distribution of Liquidation Proceeds

After the liquidation concludes, cash will be disbursed to shareholders who are on record as of the liquidation date. This disbursement will be conducted on a pro-rata basis, and shareholders are advised to consult their tax advisors for guidance on the implications of these payments. Given that liquidation proceeds will be classified as sales of shares, they could be subject to taxation, resulting in either capital gains or losses depending on an individual's tax basis.

In addition to the cash distribution, shareholders might also receive any accrued capital gains and dividend distributions, calculated as of the liquidation date. The net asset value of the fund will reflect all costs associated with its closure, ensuring a clear understanding of financial standing at the time of termination.

Investment Risks and Considerations

Investing in ETFs always entails risks, including the potential loss of the principal. Prospective investors are urged to carefully examine the investment goals, risks, charges, and expenses before making commitments. Empowered Funds also emphasizes that stakeholders consider the prospectus or summary prospectus for comprehensive insights regarding the fund.

Conclusion

As Empowered Funds prepares for this significant transition, investors are encouraged to stay informed and ready to make decisions regarding their holdings. Notably, the ETF sector can be volatile, and the closure of an ETF is a reflective indicator of broader market conditions. Therefore, stakeholders must remain vigilant about upcoming changes in the investment landscape.

For further information on the AOT Software Platform ETF, including how to proceed during the liquidation period, shareholders can reach out to Empowered Funds at 1.215.330.4476 or explore their website at aotetf.com.

This update serves as a crucial reminder of the dynamic nature of ETF investments and the importance of proactive investment management.

Disclaimer

This article does not constitute investment advice, and readers should consult financial professionals when making investment decisions.