Exchange Traded Concepts Announces Liquidation of Vesper ETF Effective March 2025
Exchange Traded Concepts to Liquidate Vesper U.S. Large Cap ETF
Exchange Traded Concepts LLC, the investment adviser for the Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NYSE: UTRN), has announced plans for the fund's closure and liquidation. This decision follows thorough consideration by the firm's board of trustees, culminating in a formal recommendation to terminate the fund based on predefined terms of a liquidation plan. The anticipated date for liquidating the fund is approximately March 28, 2025, after which the fund will cease operations.
As part of this process, the fund will stop accepting orders for new creation units on March 24, 2025. Investors should note that the last day for trading the fund's shares on the NYSE Arca, Inc. will occur around March 25, 2025. During the time from March 24 until the final trading day, shareholders may face restrictions when attempting to sell their shares, with limited options available through specific broker-dealers. Importantly, the liquidity of the fund’s shares may become uncertain, and customary brokerage fees may apply to these transactions.
The fund is undergoing management changes to facilitate a smooth liquidation. This includes strategic movements toward cash or highly liquid assets, thereby potentially altering its standard investment strategy during this transitional period. This could adversely affect the fund's investment objectives, as the portfolio may not align with its initial strategies aimed at capital growth.
Upon reaching the liquidation date, the fund will proceed to dissolve its assets, distributing the cash remaining to shareholders on a pro-rata basis. It is crucial for investors to understand that these distributions are taxable events, which will include any accrued capital gains and dividends existing at the time of liquidation. Additionally, the expenses incurred during this liquidation process will be reflected in the fund's net asset value.
Following the completion of asset distributions, the fund will officially terminate its activities. Investors wishing to glean further insights regarding this transition can reach out to 833-835-6633 or browse the official website at www.utrnetf.com. It’s also advised that all investors keep this announcement with other relevant prospectuses for future reference.
Before making any investment choices, stakeholders must carefully evaluate the associated risks, objectives, and charges linked to investing. For anyone interested in obtaining the prospectus or any additional information about the fund, calling the aforementioned number or visiting the specified website is highly recommended.
Investors should remain aware that investing always entails risks, including the possibility of losing principal. The performance and returns of the fund might not align closely with the index it tracks, particularly in environments where investments are heavy in specific industries or companies. Such concentration could expose the fund to distinct adverse events that might affect its value more generally than a diversified portfolio would experience.
This is an essential time for investors in the fund to reassess their portfolios and prepare for any financial implications arising from this liquidation scenario. As the landscape of investment continues to evolve, remaining informed and proactive is critical.