VanEck expands product range with two new ETFs
VanEck Investments has expanded its product range with the launch of two new UCITS ETF, the VanEck Vectors Preferred US Equity UCITS ETF that invests in US preferred stocks and hybrid securities and the VanEck Vectors Natural Resources UCITS ETF, which offers investors access to global commodities equities.
The VanEck Vectors Preferred US Equity UCITS ETF tracks the performance of the Wells Fargo Hybrid and Preferred Securities Aggregate Index (WAGG).
The firm writes that the index is composed of so-called ‘preferred stocks and hybrid securities’ of companies that are listed at US stock exchanges with an investment-grade rating. Preferred stocks are fixed or floating rate securities with coupon payments subordinated to bonds.
VanEck writes that with its combination of stock and bond features, this hybrid type of securities gives investors seniority over holders of ordinary stocks in the context of dividend pay-outs and in the event of a company’s liquidation in return for waiving their voting rights.
The VanEck Vectors Natural Resources UCITS ETF is based on the VanEck Natural Resources Index (RVEIT). Van Eck writes that this index provides comprehensive exposure to worldwide companies that are involved in the production and distribution of commodities and commodity-related products and services. It provides balanced exposure to agriculture, base and industrial metals, energy, forest products, and precious metals sectors, and it was one of the first commodity equity indices to include alternatives, such as water and renewable energy.
Philip Schlegel, Director of International Business Development at VanEck, says: “These new funds listed today on the LSE add to the already varied and diverse range of products we offer to help investors meet their goals. The VanEck Vectors Preferred US Equity UCITS ETF offers investors access to US preferred stocks which have higher income potential than ordinary stocks and senior corporate bonds with investment-grade rating. VanEck Vectors Natural Resources UCITS ETF gives investors the opportunity to buy into a broad-based portfolio that tracks the biggest and best-known companies in the global commodities sector, such as Monsanto and ExxonMobil.”
The two new ETFs are physically replicated. The VanEck Vectors Preferred US Equity UCITS ETF is reconstituted monthly and has a total expense ratio of 0.41 per cent. The VanEck Vectors Natural Resources UCITS ETF is reconstituted quarterly and has a total expense ratio of 0.50 per cent.