Liquidation Announcement for AlphaMark ETF
AlphaMark Advisors LLC has made a significant announcement regarding the AlphaMark Actively Managed Small Cap ETF. The Board of Trustees of ETF Series Solutions, after a thorough recommendation from AlphaMark Advisors, LLC, has decided to proceed with the closure and liquidation of this fund. This decision will take effect immediately following the close of business on the designated Liquidation Date.
Understanding the Liquidation Process
Starting on December 19, 2024, the fund will initiate liquidating its portfolio assets. This transition is set to increase cash holdings while diverging from its original investment strategies and objectives as outlined in its prospectus. Such changes are essential given the upcoming liquidation.
Important Trading Information
From the day prior to the Liquidation Date, the fund will cease accepting orders for new creation units. Additionally, trading of the fund's shares will be suspended prior to the market opening on the Liquidation Date. Shareholders will only be allowed to sell their shares to select broker-dealers leading up to the closure, and the availability of the market for these shares during this time is not guaranteed. Standard brokerage fees will apply for transaction executions.
Shareholder Distributions and Tax Implications
On the Liquidation Date, the remaining assets of the fund will be liquidated, and cash will be distributed pro rata among all shareholders. It’s important to note that these distributions will be taxable events. Shareholders may treat these transactions as exchanges for their shares, potentially leading to capital gains or losses based on their respective tax basis. It is highly recommended for shareholders to consult their tax advisors regarding the tax implications arising from this liquidation.
Impact on Net Asset Value and Fund Termination
As determined on the Liquidation Date, the fund's net asset value will reflect any costs associated with the liquidation process. Once the cash distributions are finalized, the fund will officially terminate. Shareholders can expect to receive the proceeds of liquidation promptly after this date, allowing them to understand the implications of this fund closure.
Investment Risks and Considerations
Potential investors should carefully consider the investment objectives, risks, charges, and expenses before committing to any investment. AlphaMark Advisors LLC emphasizes that an investment in the fund carries inherent risks, including the possibility of principal loss. There is also no guarantee that the fund will meet its stated investment objectives.
About AlphaMark Advisors LLC
AlphaMark Advisors LLC is the advisory body for the AlphaMark Actively Managed Small Cap ETF, which is distributed by Quasar Distributors, LLC. This advisory firm focuses on creating investment strategies that are both innovative and aligned with the diverse investment needs of its clients.
Frequently Asked Questions
What precipitated the liquidation of the AlphaMark ETF?
The Board of Trustees decided to liquidate the AlphaMark ETF based on a recommendation from AlphaMark Advisors, LLC, considering market conditions and fund performance.
When will the liquidation of the fund occur?
The liquidation process will begin on December 19, 2024, culminating in the closure of the fund after business on December 27, 2024.
How will shareholders receive distributions after liquidation?
Shareholders will receive cash distributions on a pro-rata basis, with proceeds sent out promptly following the completion of liquidation.
What should shareholders know about tax implications?
Distributions from the fund will be taxable events, and shareholders should consult their tax advisors regarding potential capital gains or losses.
What is the role of AlphaMark Advisors LLC?
AlphaMark Advisors LLC acts as the investment adviser to the AlphaMark Actively Managed Small Cap ETF, offering strategic oversight and management for the fund.
