VanEck Revamps an Energy Income ETF to Better Reflect Investor Needs and Trends in the Category
NEW YORK--(BUSINESS WIRE)--Dec 2, 2019--
VanEck today announced that the VanEck Vectors ® High Income MLP ETF (NYSE Arca: YMLP ® ) has been renamed the VanEck Vectors ® Energy Income ETF (NYSE Arca: EINC).
In addition to the new name and ticker, EINC is also now seeking to track a new index, the MVIS North America Energy Infrastructure Index. The fund’s new expense ratio is now 0.45%, a significant reduction from the previous expense ratio of 0.84%.
“We’re very pleased to be announcing these changes, which should better position EINC as an attractive option for investors looking to access the attractive yield potential and growth prospects of the asset class,” said Ed Lopez, Head of ETF Product with VanEck. “Given the recent history of industry consolidation and corporate restructurings, the new index provides a current reflection of the high-yielding energy infrastructure universe.”
The Fund’s new underlying index, the MVIS North America Energy Infrastructure Index, is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of companies involved in the midstream energy segment, which includes MLPs and corporations involved in oil and gas storage. The Index will limit exposure to companies taxed as partnerships to 24% of its weighting each quarter allowing the Fund to offer comprehensive exposure to the asset class without K-1 tax forms or fund-level taxation.
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 October 31, 2019, VanEck managed approximately $51.5 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 EINC may be subject to risks which include, among others, risks specific to oil and gas companies (midstream, marine shipping, geopolitical risk), investing in Canadian issuers, MLP, MLP Tax, energy sector, return of capital distributions from the fund reduce the tax basis of fund shares, liquidity, market, operational, medium – capitalization companies, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, high portfolio turnover, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund.
Index returns are not Fund returns and do not reflect any management fees or brokerage expenses. Certain indices may take into account withholding taxes. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses. Index returns assume that dividends have been reinvested.
The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.
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.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectus and summary prospectus, which contain 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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Mike MacMillan/Chris Sullivan
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PUB: 12/02/2019 09:45 AM/DISC: 12/02/2019 09:45 AM