VanEck will make changes to two of its emerging market equity ETFs. The changes will seek to provide investors with access to fundamentally strong companies in the relevant countries with favorable long-term growth potential priced at reasonable valuations.
Effective May 1, 2020, VanEck Vectors® ChinaAMC CSI 300 ETF will be renamed VanEck Vectors China Growth Leaders ETF and will trade under a new ticker, GLCN. The fund will seek to track, before fees and expenses, the MarketGrader China All-Cap Growth Leaders Index. VanEck Vectors® India Small-Cap Index ETF will be renamed VanEck Vectors India Growth Leaders ETF, and will trade under the ticker GLIN. The fund will seek to track, before fees and expenses, the MarketGrader India All-Cap Growth Leaders Index.
The new indices select the top-ranked companies in each market based on the index provider’s proprietary fundamental scoring methodology that emphasizes growth at reasonable valuations. Companies of all market capitalizations are eligible for inclusion in each index. Additionally, the new index for GLCN broadens the universe of Chinese companies eligible for inclusion from the fund’s current index. The new index that GLCN will seek to track includes locally listed China A-shares, as well as Chinese companies listed on eligible stock exchanges as determined by the index provider, allowing investors to access leading growth companies from the full China opportunity set.
“Investors often seek to invest in emerging markets in order capture the growth potential of those economies, but we believe that the investor risk and return experience may be improved over broad benchmarks through a selective approach that considers the growth, value and quality characteristics of a company,” said Ed Lopez, Managing Director, Head of ETF Product. “VanEck has been investing in emerging markets for nearly 30 years. Given that it values growth at a reasonable price, this new index methodology aligns well with VanEck’s active management investment philosophy. We are happy to be able to provide investors access to this new index approach in a cost-efficient ETF.”
VanEck has a robust family of emerging markets ETF offerings, covering both equity and debt markets.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of March 31, 2020, VanEck managed approximately $43.2 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
An investment in the VanEck Vectors China Growth Leaders ETF may be subject to risks associated with investments in Chinese securities, including A-shares, which include risk of the RQFII regime and Stock Connect program, foreign and emerging markets investments. In addition, the Fund is subject to foreign currency risk, non-diversification risk, and other risks associated with investing in the consumer discretionary sector, consumer staples sector, financials sector, industrials sector, swaps, futures, investing in other funds, small- and medium capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading, passive management, fund shares trading, premium/discount risk and liquidity of fund shares and concentration risks, all of which may adversely affect the Fund.
An investment in the VanEck Vectors India Growth Leaders ETF may be subject to risks which include, among others, special risk considerations of investing in Indian issuers, foreign securities, emerging market issuers, foreign currency, depositary receipts, consumer staples sector, basic materials sector, consumer discretionary sector, financials sector, industrials sector, information technology sector, small- and medium capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares and concentration risks, all of which may adversely affect the Fund.
Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. Small- and micro capitalization companies may be subject to elevated risks. Please see the prospectus of each Fund for more complete information regarding each Fund's specific risks.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
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