NEW YORK, June 30, 2020 /PRNewswire/ -- Exchange Traded Concepts (ETC) announced that the ETFMG Prime Cyber Security ETF ("HACK") and ETFMG Prime Mobile Payments ETF ("IPAY") (each an "Acquired Fund" and, collectively, the "Acquired Funds") will be reorganized into the ISE Cybersecurity ETF and ISE Mobile Payments ETF, respectively, each a series of ETF Series Solutions (each an "Acquiring Fund" and, collectively, the "Acquiring Funds"). The Board of Trustees of ETF Managers Trust unanimously approved an Agreement and Plan of Reorganization providing for each reorganization (each, a "Reorganization" and, collectively, the "Reorganizations").
If the Reorganizations are completed as proposed, each shareholder of the applicable Acquired Fund would become a shareholder in the corresponding Acquiring Fund. Each Acquiring Fund's investment objective, principal investment strategies, and fundamental and non-fundamental policies will be similar to those of the corresponding Acquired Fund. Upon completion of the respective Reorganization, ETC will serve as the investment adviser for the Acquiring Funds. Each Reorganization will be subject to approval by the shareholders of HACK and IPAY, respectively. If approved by shareholders of the applicable Acquired Fund, it is expected that each Reorganization will close in the second half of 2020.
About Exchange Traded Concepts
Exchange Traded Concepts is a private-label ETF advisor that launches custom domestic and international equity and fixed income exchange traded funds through a complete turnkey solution. ETC currently manages, advises and sub-advises 27 ETF's with more than $3 billion in AUM. ETC's ETF-In-A-Box TM Solution provides an efficient and cost-effective method to bring exchange-traded funds to market. Additional information can be found on the Exchange Traded Concepts' website.
Carefully consider the Fund's investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund's summary or statutory prospectuses, available on www.etfmg.com. Please read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Acquired Funds. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The Acquired Funds are concentrated in technology-related companies that face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Such companies may have limited product lines, markets, financial resources or personnel. The products of such companies may face obsolescence due to rapid technological developments, frequent new product introduction, unpredictable changes in growth rates, competition for the services of qualified personnel, and competition from foreign competitors with lower production costs. Technology companies are heavily dependent on patent and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. IPAY is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in smaller companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Diversification does not assure a profit or protect against a loss in a declining market. Each Acquired Fund's return may not match or achieve a high degree of correlation with the return of the respective index that seeks to track. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the respective index.
The Funds are distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, "ETFMG").
SOURCE Exchange Traded Concepts, LLC