Shareholder Notice: RSX and RSXJ Liquidation>
This update is to inform you of important developments relating to the Funds.
VanEck Russia ETF (RSX) and VanEck Russia Small-Cap ETF (RSXJ) (together, the “Funds”) have suspended the right of redemption of fund shares pursuant to an exemptive order issued by the Securities and Exchange Commission on December 28, 2022, in order to permit the Funds to liquidate their portfolios. The Funds made an initial liquidating distribution to shareholders of a pro-rata share of current liquid assets, less a reserve to cover operating and liquidation expenses for an extended period. The initial distribution occurred on January 12, 2023. In addition, RSX made additional liquidating distributions on July 27, 2023, September 29, 2023 and April 19, 2024. The Funds may make additional liquidating distributions, although additional distributions may not occur.
The effect of geopolitical affairs and sanctions imposed by the United States and other countries on transactions in Russian equities, and on related clearance and payment systems, have rendered a substantial number of the Funds’ positions illiquid, including many depositary receipts. The Funds’ inability to buy, sell, and take or make delivery of Russian securities has made it impossible to manage the Funds consistent with their investment objectives. The Funds will not engage in any business or investment activities except for the purposes of winding up their affairs. VanEck cautions investors that it is expected that the liquidation of the Funds will take an extended period of time, if circumstances involving Russian securities markets do not improve.
The plan of liquidation provides that the Funds will terminate (a) after payment of a final liquidating distribution and redemption of all shares outstanding, (b) after the Russian securities held by the Funds cease to represent valid interests in their issuers, or if earlier than (a) or (b) on a date after December 31, 2023 as determined by the Funds’ Board of Trustees upon recommendation of the Funds’ investment adviser. It is possible that the liquidation period could extend well beyond December 31, 2023. Due to the uncertainty involved, there can be no assurance that shareholders would receive any liquidating distribution relating to the Russian securities and depositary receipts after the initial distribution, described above. The distribution to shareholders of sale proceeds of Russian securities and depositary receipts, if any, will be reduced by expenses related to the sale and the distribution; other Fund operating and liquidation expenses will be paid out of the reserve.
Future updates regarding the status of the fund and its liquidation may be published on the Funds’ webpages: VanEck Russia ETF (RSX) and VanEck Russia Small-Cap ETF (RSXJ) . Should you have additional questions concerning this update or the liquidation process, please contact us at 1-800-826-2333.
