ETF Giant Defiance Shutters Some Funds. Here's How They Performed

The fund owning the Defiance Next Gen Altered Experience ETF PSY and Defiance Next Gen SPAC Derived ETF funds, ETF Series Solutions recently decided to close and liquidate each fund.

The action will take place immediately after the close of business on August 30, 2022, aka the liquidation date. 

Each fund has already begun liquidating their portfolio assets, an action that will cause them to increase cash holdings and deviate from the original investment objective and strategies.

The EFTs wwill not create new units after the close of business on August 29, and shares trading will be terminated before the market opens on August 30. 

Before the set date, shareholders will have a chance to sell their allocations to specific broker-dealers. Further, on or about August 30, both funds will liquidate their assets and distribute cash pro-rata to the lasting shareholders, within a taxable context. 

EFT Series Solutions encourages shareholders to contact their tax advisors on the income tax consequences of the liquidation, which will also include the existent capital gains and dividends. 

Each fund’s net asset value as of the liquidation date will reflect the potential costs of its conclusion, and shareholders will receive liquidation proceeds after the closing date.

The funds’ shares are listed, and movement can already be perceived. Defiance Next Gen Altered Experience ETF PSY shares began trading at $5.49 per unit at the start of this month, the date of the announcement, and later began gradually trading until achieving a major $6.30 per share on August 8.

On or about that date, the Lenox Wealth Advisors LLC hedge fund bought a new position in the first quarter: 3,800 shares of the Defiance Next Gen Altered Experience ETF’s total stock, valued at approx. $30,000. As of its most recent SEC disclosure filing, the hedge fund owns nearly 0.41% of the ETF.

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