IndexIQ plans to close the IQ South Korea Small Cap ETF (NYSE Arca: SKOR).

The firm said that assets in SKOR represent only approximately 1% of IndexIQ’s ETF assets.

The Board of Trustees of the IndexIQ ETF Trust approved the closures on July 3, 2012.

The final day of trading on the NYSE Arca will be Friday, August 17, 2012. Shareholders who do not sell their fund shares by this date will have their shares automatically redeemed on August 22, 2012, the fund’s last day of operations.

Shareholders holding shares in the Fund as of Aug. 22 will receive a cash distribution equal to the net asset value of their shares as of that date, inclusive of remaining income and capital gains. Shareholders remaining on August 22, 2012 will not incur transaction fees in connection with the liquidation of their shares. Other costs of closing the funds will be borne by the IndexIQ Advisors LLC