The VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL) was awarded the title of “ETF of the Year” at last night’s ETF.com awards dinner in New York City.
ANGL, which will celebrate its fifth anniversary on April 10, provides investors with exposure to “fallen angel” high yield bonds. These are bonds that were originally issued as investment grade and have since been downgraded to high yield. Fallen angels have historically higher average credit quality than the broad high yield universe and have outperformed the broad high yield space in 10 of the last 13 years, including 2016, as measured by the BofA Merrill Lynch US Fallen Angel High Yield Index (H0FA) and the BofA Merrill Lynch US High Yield Index (H0A0), respectively.
“When we brought ANGL to market, our goal was to provide access to a segment of the high yield market that had a history of outperformance,” said Ed Lopez, Head of ETF Product Management with VanEck. “We are pleased that the fallen angel story has confirmed its merit as a simple, yet smart approach to high yield investing.”
ANGL has 5-star overall and three-year ratings from Morningstar,1 and recently passed the $700 million mark in assets. ANGL returned 25.32 percent in calendar year 2016 based on Net Asset Value (NAV), and as of February 28, 2017 was delivering a 30-day SEC yield of 4.82 percent.2
ANGL is a key part of VanEck’s fixed income ETF suite, which includes a number of category leaders and first-of-their-kind offerings, such as VanEck Vectors Emerging Markets High Yield Bond ETF (HYEM), VanEck Vectors High-Yield Municipal Index ETF (HYD), and the recently launched VanEck Vectors Green Bond ETF (GRNB).
VanEck’s mission is to offer investors forward-looking, intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, the firm is a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, VanEck continues this tradition by offering innovative active and passive investment portfolios in hard assets, emerging markets equity and debt, precious metals, fixed income, and other alternative asset classes. VanEck Vectors exchange-traded products are one of the largest ETP families in the world, managing more than 70 funds that span a range of sectors, asset classes, and geographies. As of February 28, 2017, VanEck managed approximately $43.4 billion in assets, including mutual funds, ETFs, and institutional accounts.
About ETF.com & Inside ETFs
ETF.com is one of the world's leading authorities on exchange-traded funds. Since 2001, it has delivered clear, independent and authoritative news, analysis and education about ETFs online and in print. The firm's marquee properties are its website, ETF.com, and its print publication, ETF Report.
Inside ETFs is a world leader in ETF education. Through conferences, webinars, roadshows and more, it aims to educate investors about ETFs and increase the fidelity between their investing goals and their realized outcomes. Its marquee event, Inside ETFs, is the largest ETF conference in the world.
About the ETF.com Awards
The ETF.com Awards – jointly developed by ETF.com and Inside ETFs – recognize the people, products and companies that are moving the ETF industry forward and working to generate better results for investors. Winners are selected from a carefully screened list of nominations by a panel of eleven independent experts, including leading financial advisors, ETF strategists, and ETF due diligence experts.
|VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)|
Quarter-End Performance History (%) As of 12/31/2016
|YTD||1 YR||3 YR||LIFE||
SEC Yield (%)
|Unsubsidized 30-Day SEC Yield (%)|
|Fees and Expenses*|
|Gross Expense Ratio||0.65%|
|Fee Waivers and Expense Reimbursement||-0.30%|
|Net Expense Ratio||0.35%|
*Expenses for ANGL are capped contractually at 0.35% until at least September 1, 2017. Cap excludes certain expense, such as interest.
The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Investment return and value of the shares of the Fund will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Performance current to the most recent month end is available by calling 800.826.2333 or visiting www.vaneck.com.
1Morningstar ratings: ©Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. As of February 28, 2017, ANGL was rated against 597 high yield bond funds over the last three years. ANGL received a Morningstar Rating of 5 stars for the 3-year and overall rating. Past performance is no guarantee of future results.
2In the absence of temporary expense waivers or reimbursements, the 30Day SEC Yield for VanEck Vectors Fallen Angel High Yield Bond ETF would have been 4.75% on 02/28/17.
The indices listed are unmanaged indices and do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in a fund. An index’s performance is not illustrative of a fund’s performance. Indices are not securities in which investments can be made.
BofA Merill Lynch US Fallen Angel High Yield Index (H0FA) is a subset of the BofA Merrill Lynch US High Yield Index including securities that were rated investment grade at point of issuance.
BofA Merrill Lynch US High Yield Index (H0A0) tracks the performance of U.S. dollar-denominated below investment grade corporate debt publicly issued in the U.S. domestic market. Qualifying securities must have a below investment grade rating. Original issue zero coupon bonds, 144a securities, both with and without registration rights, and pay-in-kind securities, including toggle notes, qualify for inclusion.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates ("BofA Merrill Lynch") indices and related information, the name "BofA Merrill Lynch", and related trademarks, are intellectual property licensed from BofA Merrill Lynch, and may not be copied, used, or distributed without BofA Merrill Lynch's prior written approval. The licensee's products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE INDICES, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).
An investment in the Fund may be subject to risk, which include, among others, credit risk, call risk, and interest rate risk, all of which may adversely affect the Fund. High yield bonds may be subject to greater risk of loss of income and principal, and are likely to be more sensitive to adverse economic changes than higher rated securities. International investing involves additional risks, which include greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity, and political instability. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Fund shares are not individually redeemable and will be issued and redeemed at their Net Asset Value (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. Bonds and bond funds will generally decrease in value as interest rates rise. 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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