Nomura ETF Trust II is undergoing a significant transformation as it plans to convert its mutual fund, the Nomura Limited-Term Diversified Income Fund, into an exchange-traded fund (ETF). This strategic move, outlined in a recent SEC filing, aims to enhance trading flexibility and transparency for its investors, reflecting a growing preference for ETFs in the investment landscape.

The reorganization is designed to provide shareholders with several advantages, including lower expenses and increased transparency regarding portfolio holdings. Importantly, the transition will not require a shareholder vote, streamlining the process for all involved parties.

Background

Nomura ETF Trust II, previously known as Voyageur Insured Funds, is an investment entity based in Philadelphia, Pennsylvania. The company operates under the SEC file number 333-298384 and has been active in the investment sector, focusing on providing diverse investment options to its clients.

What the Filing Says

The SEC filing, dated November 4, 2026, states, "This Information Statement/Prospectus is being provided to inform you that Nomura Limited-Term Diversified Income Fund will be converted into a newly created exchange-traded fund, Nomura Limited-Term Diversified Income ETF." The filing further emphasizes that the reorganization is in the best interests of shareholders.

Impact

This reorganization is expected to affect shareholders of the Nomura Limited-Term Diversified Income Fund, as they will receive ETF shares equal in value to their current holdings. The transition is anticipated to enhance the investment experience for these shareholders by providing lower operating expenses and more trading flexibility.

What's Next

The reorganization is scheduled to take place on or about February 19, 2027. Following this date, shareholders will automatically receive ETF shares of the Acquiring Fund at net asset value, with cash provided for any fractional shares. The filing does not say what happens next beyond this date.