#United States #ETFs #Newtown Square #Empowered Funds #Sophus Capital

Empowered Funds to Liquidate ETFs

Empowered Funds, LLC, based in Newtown Square, Pennsylvania, has made a significant announcement regarding the scheduled liquidation of its exchange-traded funds (ETFs). The liquidation is planned to take place on or about September 28, 2026. The ETFs affected by this decision include the Sophus Capital Emerging Market ETF (NASDAQ EMEM) and the Sophus Capital Emerging Market Small Cap ETF (NASDAQ EMSC).

The decision to liquidate these funds is expected to significantly impact investors and shareholders, as trading for these ETFs will cease immediately after regular trading hours on September 25, 2026. This means that investors will not be able to purchase shares of these funds after this date.

Shareholders are advised that they can still sell their holdings prior to the liquidation date. However, it’s vital for investors to understand that any sales during this period may incur customary brokerage fees, and they may only have access to certain broker-dealers when trying to offload their shares. Additionally, there is no guarantee that a market will exist for the funds' shares before the liquidation date, which could complicate efforts to sell.

As the liquidation approaches, the investment strategy of each fund may change. It’s anticipated that these funds will increase their cash holdings and may not align with their standard investment objectives or strategies during the final days leading up to liquidation.

Following the liquidation date, the funds will distribute cash pro rata to all shareholders recorded as of that date. It is important to note that the liquidation proceeds are generally treated as income exchanged for the shares held. Therefore, shareholders might realize capital gains or losses based on their respective tax basis, which necessitates consultation with tax professionals to understand the implications of this transaction.

Investors should also be aware that distributions could include accrued capital gains and dividends, which may add complexity to the taxation of the liquidation proceeds. Once the distributions are fully completed, the funds will terminate, marking the end of both ETFs.

Empowered Funds aims to adhere to regulations throughout this process by providing adequate notifications and assistance to shareholders. They are diligent about making sure that affected investors can navigate this transition smoothly.

In conclusion, while the liquidation of these ETFs may seem abrupt, Empowered Funds, LLC is proactively managing the situation, ensuring that investors are kept informed and prepared for the next steps. Detailed documentation, including the necessary prospectus, will be made available for further reference, emphasizing the company's commitment to transparency in handling the liquidation process.

Relevant parties interested in further information or specific inquiries are encouraged to obtain the prospectus and get in touch with their financial advisors to weigh the potential impacts on their portfolios. The final decision will likely rest on careful considerations given the complexity of the investing landscape and individual financial goals.

For those affected, the Engaged Funds team's contacts are available for any clarifications required regarding this process, ensuring shareholder needs are prioritized effectively.