Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXX(TM) Long VIX Weekly Futures Strategy ETF

OKLAHOMA CITY, Aug. 2, 2017 /PRNewswire/ -- Exchange Traded Concepts, LLC today announced that the Board of Trustees of Exchange Traded Concepts Trust has authorized a reverse share split for the REX VolMAXX Long VIX Weekly Futures Strategy ETF ("VMAX"). The ?rm will execute a 1-for-8 reverse split of the shares effective at the open of the market on August 17, 2017.  The total market value of the shares outstanding will not be affected as a result of this split, except with respect to the redemption of fractional shares, as outlined below.  A summary of the ETF undergoing a reverse share split is as follows.

The reverse split will raise the price of the shares for the fund and decrease the number of shares outstanding, without affecting the total value of the shares outstanding.  A hypothetical example of a 1-for-8 reverse split is provided as follows:

Redemption of Fractional Shares and Tax Consequences for Each Reverse Split

As a result of the reverse splits, a shareholder of the ETF could potentially hold a fractional share. However, fractional shares cannot trade on Bats BZX Exchange, Inc. Thus, each ETF will redeem for cash a shareholders' fractional shares at the Fund's split-adjusted NAV. Such redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction for holders of ETF shares. Exchange Traded Concepts, LLC does not impose a transaction fee on shareholders for such redemptions.

Brokerage Charges

Some brokerage charges may apply as a result of the reverse split.  These charges are made directly by the broker and are not charges from Exchange Traded Concepts, LLC.

The VolMAXX funds are the first ETFs regulated under the Investment Company Act of 1940 to offer exposure to VIX futures. The funds seek to invest in VIX futures contracts that are near to expiration, subject to overall liquidity and roll cost considerations, and intend to maintain a weighted average time to expiration of less than one month at all times.

Exchange Traded Concepts, LLC has served as the Funds' investment advisor since each Fund's inception. ETC is a privately-held company which provides a variety of investment services, including asset management and financial advisory services, with collective assets under management of approximately $3.4 billion as of July 28, 2017 through exchange traded funds. 

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-844-REX-1414. Read the prospectus carefully before investing. 

Investing involves risk, including the possible loss of principal.

The fund should be utilized only by investors who (a) understand the risks associated with the use of derivatives, (b) are willing to assume a high degree of risk, and (c) intend to actively monitor and manage their investments in the fund.

Exchange Traded Concepts, LLC serves as the investment advisor and Vident Investment Advisory serves as sub-advisor to the fund. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.

These ETFs are actively managed and there is no guarantee investments selected and strategies employed will achieve the intended results. The Funds expect to invest primarily in VIX futures contracts. The use of derivatives, such as futures contracts, swap agreements and options, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. The derivatives may not always be liquid. The Funds will invest in exchange-traded notes and exchange-traded funds, and will be subject to the risks associated with such vehicles. The Funds are non-diversified. Short sales are transactions in which a Fund sells a security it does not own. Because a short position loses value as the security's price increases and the market price of the shorted security could increase without limit, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. 

The VIX Index is not directly investable. The settlement price of a VIX Futures Contract is based on the calculation that determines the level of the VIX Index. As a result, the behavior of a VIX Futures Contract may be different from traditional futures contracts whose settlement price is based on a specific tradable asset. When economic uncertainty increases and there is an increase in expected volatility, the value of VIX Futures Contracts will likely also increase. Similarly, when economic uncertainty recedes and there is an associated decrease in expected volatility, the value of VIX Futures Contracts will likely also decrease. Futures markets are highly volatile and the use of or exposure to futures contracts may increase volatility of the Fund's NAV. Futures contracts are also subject to liquidity risk. Several factors may affect the price and/or liquidity of VIX Futures Contracts, including, but not limited to: prevailing market prices and forward volatility levels of the U.S. stock markets, equity securities included in the S&P 500® and prevailing market prices of options on the S&P 500®, the VIX Index, options on the VIX, VIX Futures, or any other financial instruments related to the S&P 500® and the VIX or VIX Futures; interest rates; economic, financial, political, regulatory, geographical, biological or judicial events that affect the current volatility reading of the VIX or the market price or forward volatility of the U.S. stock markets; supply and demand as well as hedging activities in the listed and over-the-counter equity derivatives markets; disruptions in trading of the S&P 500 futures contracts on the S&P 500® or options on the S&P 500®; and the level of contango or backwardation in the VIX Futures Contracts market. 

SOURCE Exchange Traded Concepts, LLC