VanEck today announced the launch of two new VanEck Vectors ETFs. Both funds seek to leverage research from Morningstar’s experienced equity research team.
The VanEck Vectors Morningstar Durable Dividend ETF (DURA) seeks to provide exposure to high dividend yielding U.S. companies with strong financial health and attractive valuations, according to Morningstar. DURA seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® US Dividend Valuation IndexSM. The Index leverages Morningstar’s forward-looking fair value assessments as well as its proprietary quantitative Distance to Default score, which helps target financially strong companies with a higher probability of sustaining dividend payments.
“Traditional methods of screening dividend paying companies generally rely on backward-looking data, such as a company’s history or magnitude of past distributions,” said Ed Lopez, Head of ETF Product with VanEck. “Key features of DURA’s index are Morningstar’s fair value and financial health assessments. After years of very low interest rates and ongoing demand for dividend paying stocks, an important consideration for investors is making sure not to overpay for yield, and the Distance to Default metric helps select companies with the lowest probability of future dividend cuts.”
The VanEck Vectors Morningstar Global Wide Moat ETF (GOAT) seeks to provide exposure to global companies with sustainable competitive advantages, or “wide moats,” that are attractively priced according to Morningstar’s estimate of fair value. GOAT seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Global Wide Moat Focus IndexSM.
“Morningstar’s equity research team consists of over 100 analysts globally and applies one consistent, forward-looking methodology to their stock analysis,” added Lopez.
DURA and GOAT add to VanEck’s suite of ETFs featuring stock selection and valuation methodologies by Morningstar Equity Research, joining VanEck Vectors Morningstar Wide Moat ETF (MOAT®) and VanEck Vectors Morningstar International Moat ETF (MOTI®).
DURA has a net expense ratio of 0.29%. GOAT has a net expense ratio of 0.52%1.
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 September 30, 2018, VanEck managed approximately $46.1 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.
1Gross expenses for DURA and GOAT are 0.38% and 0.56%, respectfully. Expenses for DURA are capped contractually at 0.29% until February 1, 2020. Expenses for GOAT are capped contractually at 0.52% until February 1, 2020. Cap excludes acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses. Expenses are based on estimated amounts for the current fiscal year.
Distance to Default: a structural or contingent claim model that takes advantage of both market information and accounting financial information to determine the expectation that default will occur.
Indices are unmanaged and are not securities in which an investment can be made. Index returns do not reflect a deduction for fees & expenses.
Morningstar Global Wide Moat Focus Index consists of global companies identified as having sustainable, competitive advantages and whose stocks are attractively priced.
Morningstar US Dividend Valuation Index is designed to provide exposure to securities that have high dividend yield, strong financial health, and attractive uncertainty-adjusted valuation.
The Morningstar® Global Wide Moat Focus IndexSM and Morningstar® US Dividend Valuation IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Global Wide Moat ETF and VanEck Vectors Morningstar Durable Dividend ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Global Wide Moat Focus IndexSM and Morningstar® US Dividend Valuation IndexSM are service marks of Morningstar, Inc.
An investment in the VanEck Vectors Morningstar Durable Dividend ETF (DURA) may be subject to risks which include, among others, investing in the consumer staples, energy, health care, and utilities sectors, small and medium-capitalization companies, equity securities, dividend paying securities, market, operational, high portfolio turnover, 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, non-diversified, and concentration risks, which may make these investments volatile in price or difficult to trade.
An investment in the VanEck Vectors Morningstar Global Wide Moat ETF (GOAT), VanEck Vectors Morningstar Wide Moat ETF (MOAT), VanEck Vectors Morningstar International Moat ETF (MOTI), (the “Funds”) may be subject to risks which include, among others, investing in the health care, consumer discretionary, consumer staples, industrials, telecommunications, information technology, financial services, medium-capitalization companies, equity securities, market, operational, high portfolio turnover, index tracking and data, emerging market issuers, special risk considerations of investing in European and Asian issuers, depositary receipts, cash transactions, underlying fund, new fund, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, replication management, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and concentration risks, which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns.
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.
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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