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VanEck to Liquidate Two ETFs, Closing and Dissolving MOTE and MGRO Funds.
ByAinvest
Friday, Sep 5, 2025 8:35 am ET1min read
VanEck plans to close and liquidate its VanEck Morningstar ESG Moat ETF (MOTE) and VanEck Morningstar Wide Moat Growth ETF (MGRO) due to poor performance, liquidity, and assets under management. Shareholders can sell their shares until September 19, 2025, and will receive a liquidating distribution of cash on or about September 26, 2025. The funds will stop accepting creation orders on September 19, 2025.
VanEck has announced plans to close and liquidate its VanEck Morningstar ESG Moat ETF (MOTE) and VanEck Morningstar Wide Moat Growth ETF (MGRO) due to poor performance, liquidity, and assets under management. Shareholders can sell their shares until September 19, 2025, and will receive a liquidating distribution of cash on or about September 26, 2025. The funds will stop accepting creation orders on September 19, 2025.The decision to close these ETFs comes as VanEck seeks to refocus its investment strategies. The VanEck Morningstar Wide Moat ETF (MOTG), which has outperformed in 2025 by investing in durable "wide moat" companies like Microsoft, BlackRock, and KLA Corp., will continue to operate. These firms leverage competitive advantages to withstand macroeconomic volatility.
The poor performance of the MOTE and MGRO ETFs is likely due to market conditions and shifts in investor preferences. The fragmented global market marked by trade wars and AI disruption has made it challenging for these ETFs to maintain their value. The MOTG, however, has shown resilience by focusing on high-margin, low-volatility businesses that align with 61% of leaders prioritizing resilience over growth.
Shareholders are advised to carefully consider their investment options and consult with financial advisors before making any decisions regarding the sale of their shares. The liquidating distribution will be based on the net asset value of the ETFs at the time of liquidation.
References:
[1] https://www.ainvest.com/news/vaneck-morningstar-wide-moat-etf-moat-outperforms-fragmented-market-2509/
[2] https://www.ainvest.com/news/vaneck-morningstar-esg-moat-etf-poor-performance-2509/
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