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VanEck Announces Reverse Share Split of Five VanEck Vectors ETFS

Business Wire 1-Apr-2020 8:00 AM

VanEck announced today that the Board of Trustees of the VanEck Vectors ETF Trust has approved a reverse split of the shares of the following five ETFs: VanEck Vectors® Coal ETF (NYSE:KOL), VanEck Vectors® Energy Income ETF (NYSE:EINC), VanEck Vectors® Oil Services ETF (NYSE:OIH), VanEck Vectors® Rare Earth/Strategic Metals ETF (NYSE:REMX) and VanEck Vectors® Unconventional Oil & Gas ETF (NYSE:FRAK).

Ticker

 

VanEck ETF

 

Old CUSIP

 

New CUSIP

 

Split Ratio

KOL

 

VanEck Vectors Coal ETF

 

92189F809

 

92189H888

 

1-for-10

EINC

 

VanEck Vectors Energy Income ETF

 

92189F288

 

92189H870

 

1-for-3

OIH

 

VanEck Vectors Oil Services ETF

 

92189F718

 

92189H607

 

1-for-20

REMX

 

VanEck Vectors Rare Earth/Strategic Metals ETF

 

92189F742

 

92189H805

 

1-for-3

FRAK

 

VanEck Vectors Unconventional Oil & Gas ETF

 

92189F668

 

92189H706

 

1-for-10

The effective date of the split will be at market open on April 15, 2020. The Funds will continue to trade on the NYSE Arca under the same ticker symbols. The Funds will be issued new CUSIP numbers, as listed above.

The Depository Trust Company ("DTC"), the registered owner of all Fund shares, has been notified of the reverse split and has been instructed to adjust each shareholder's investment accordingly.

Shares of the Funds will be offered on a split-adjusted basis on April 15, 2020. The total market value of the shares outstanding will not be affected as a result of this reverse split, except with respect to the redemption of fractional shares, as discussed below.

For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example: a multiple of 3 for a 1-for-3 split), the reverse splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize a gain or loss, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for shareholders of the Funds.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm's drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of February 29, 2020, VanEck managed approximately $52 billion in assets, including mutual funds, ETFs, and institutional accounts. The firm's capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck's passive strategies.

Since our founding in 1955, putting our clients' interests first, in all market environments, has been at the heart of the firm's mission.

Important Disclosures

Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market.

The principal risks of investing in VanEck Vectors ETFs include sector, market, economic, political, foreign currency, world event, index tracking and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. The Funds may loan their securities, which may subject them to additional credit and counterparty risk. ETFs that invest in companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies. Please see the prospectus of each Fund for more complete information regarding each Fund's specific risks.

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

Van Eck Securities Corporation, Distributor, 666 Third Avenue, New York, NY 10017

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