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Natixis Loomis Sayles Short Duration Income ETF will be liquidated

https://www.sec.gov/Archives/edgar/data/1526787/000119312524217981/d863235d497.htm

497 1 d863235d497.htm NATIXIS ETF TRUST - 497

Supplement dated September 12, 2024 to the Natixis Loomis Sayles Short Duration Income ETF’s Summary Prospectus, Prospectus and Statement of Additional Information, each dated May 1, 2024, as may be revised or supplemented from time to time.

Natixis Loomis Sayles Short Duration Income ETF

On September 12, 2024, the Board of Trustees of Natixis ETF Trust (the “Trust”), on behalf of the Natixis Loomis Sayles Short Duration Income ETF (the “Fund”), upon the recommendation of the Fund’s adviser, Natixis Advisors, LLC (“Natixis Advisors”) approved a Plan of Liquidation for the Fund pursuant to which the Fund will be liquidated (the “Liquidation”) on or about September 30, 2024 (“Liquidation Date”). Any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed on that date.

Effective at the close of business on September 16, 2024, the Fund will no longer accept orders for the purchase of Creation Units. It is expected that September 25, 2024 will be the Fund’s last full day of trading on NYSE Arca, Inc. (“NYSE Arca”). Pursuant to this schedule, NYSE Arca is expected to halt trading in shares of the Fund after the market close on September 25, 2024.

Beginning when the Fund commences liquidation of its portfolio (expected on or around September 13, 2024), the Fund may not pursue its investment objective or engage in normal business activities, except for the purposes of winding up its business and affairs, preserving the value of its assets, paying its liabilities, and distributing its remaining assets to shareholders. During the time between market close on September 25, 2024 and the Liquidation Date, because the Fund’s shares will not be traded on NYSE Arca, there can be no assurance that there will be a market for the purchase or sale of the Fund’s shares.

In connection with the Liquidation, any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date. The proceeds of any such redemption will be equal to the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities, including certain operational costs of liquidating the Fund. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all Fund shareholders at the time of the Liquidation. Additionally, the Fund may declare and distribute to shareholders any realized capital gains and all net investment income no later than or in connection with the final Liquidation distribution. Natixis Advisors, investment manager to the Fund, may or may not, depending on the circumstances, distribute substantially all of the Fund’s net investment income and any net realized capital gains prior to the date of Liquidation.

Shareholders of the Fund may sell their shares of the Fund on NYSE Arca until the market close on September 25, 2024, and may incur customary transaction fees from their broker-dealer. Prior to the Liquidation Date, Authorized Participants may continue to submit orders to the Fund for the redemption of Creation Units. See “Buying and Selling Shares” in the Prospectus.

Although the Liquidation is not expected to be a taxable event for the Fund, for taxable shareholders, the automatic redemption of shares of the Fund on the Liquidation Date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder may voluntarily sell his or her shares on NYSE Arca until the market close on September 25, 2024, and Authorized Participants may voluntarily redeem Creation Units prior to the Liquidation Date, to the extent that the shareholder wishes to realize any such gains or losses prior thereto. See “Taxation” in the Prospectus. Shareholders should consult their tax advisers regarding the tax treatment of the Liquidation.

Comments

  • edited September 13
    Does this etf have a symbol? Clicking on the links provided got me nowhere. I own their short term bond etf, LSST. This sounds like a different bird.

    Thanks for the heads up in any event.
  • Thanks @msf. Unfortunate news.
  • Have you considered an alternative like NEAR?

    Better YTD, 1,3,5 year returns, lower expenses, nearly identical average duration, a positive Sharpe ratio (rare for this type of fund), nearly identical SEC yield, same average credit rating (AA- per M*).

    Here's a comparison at Fidelity along with three shorter term funds (FCNVX, ICSH, JPST) that look good if you want something more cash like (e.g. lower volatility, lower return).
  • edited September 13
    Thanks for the suggestion @msf. I’ll run some comparisons for NEAR over the weekend. One other I have on my watch list is TDTT. Fortunately LSST is a small position now, but I was expecting reason to add to it significantly later in the year. / d

    Regards
  • Looking at MFOP FLOW for LSST, it was just a matter of time when this happened.
    https://i.ibb.co/F7FRfCv/MFOP-FLOW-LSST-091424.png
    image
  • Added NEAR to my short-duration watch list thanks to @msf. Might end up replacing TBUX for me pretty soon. I like that it had a positive return in 2022; TBUX did not.
  • edited September 15
    In short duration like SEMIX , DHEAX and HOSIX. I have used them as cash substitutes this year. Albeit with DHEAX they will be quick to ban you if you move in and out too frequently with size.
  • edited September 15
    Junkster said:

    In short duration like SEMIX , DHEAX and HOSIX. I have used them as cash substitutes this year. Albeit with DHEAX they will be quick to ban you if you move in and out too frequently with size.

    Interesting. I may have helped doom LSST (which I realize is a tradable etf) by moving in & out frequently - treating it more like a mm fund than what it was intended for.

    There always was a longer term place for it within the retirement accounts after I’d depleted a sizable non-retirement stake in PRIHX. The latter has rebounded pretty well from a disastrous 2022. Any major cash needs will come out of it until it is fully exhausted - hopefully before it nose-dives again.

    Thanks for the suggestions @Junkster
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