NEW YORK--(BUSINESS WIRE)--VanEck is today celebrating the fifth anniversary of the launch of its VanEck Vectors® Fallen Angel High Yield Bond ETF (ANGL), which was recently named “ETF of the Year” by the team at ETF.com.
ANGL was the first exchange traded fund (ETF) to provide targeted exposure to “fallen angels,” a category of high yield bonds that were originally issued as investment grade but which have since experienced a downgrade to junk status. Fallen angels have had historically higher average credit quality than the broad high yield universe, and the category has outperformed the broad high yield space in 10 of the last 13 years, including 20161.
“We’re proud to be celebrating ANGL’s five year anniversary and its recent recognition by the industry for its positive impact on investors,” said Ed Lopez, Head of ETF Product Management and Marketing with VanEck. “The investment thesis behind ANGL is a time-tested strategy, well beyond the ETF’s five year history. ANGL’s simple and intuitive approach to capturing quality and value in the high yield market helps it stand out in a growing sea of smart beta ETFs.”
In calendar year 2016, ANGL returned 25.32% based on net asset value, while delivering a 30-Day SEC yield of 4.97% as of March 31, 2017. In addition to the recent honor bestowed by ETF.com, ANGL has also earned 5-star overall and three-year ratings from Morningstar2. The Fund passed the $750 million asset mark last Thursday.
In the years since launching ANGL, VanEck has brought several other innovative fixed income ETFs to market, dramatically expanding the range of exposures in their industry-leading municipal bond ETF suite, and launching other first-of-their-kind offerings such as the VanEck Vectors® Investment Grade + BB Rated USD Sovereign Bond ETF (IGEM) and their newest ETF, the VanEck Vectors® Green Bond ETF (GRNB).
“Our fixed income suite has been carefully designed to provide investors and advisors with important tools in their search for yield,” added Lopez. “We’re committed to providing ETFs that help investors improve their investing experience.”
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.
VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
Quarter-End Performance History (%) As of 03/31/2017
|YTD||1 YR||3 YR||LIFE||
SEC Yield (%)
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.
Data as of March 31, 2017. 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons primarily among bond funds. It is based on the most recent 30-day period. This yield figure reflects the interest earned during the period after deducting the Fund's expenses for the period.
1Source: FactSet. Data as of March 31, 2017. Fallen angels are represented by the BofA Merrill Lynch US Fallen Angel High Yield Index (H0FA Index). The broad high yield bond market is represented by BofA Merrill Lynch US High Yield Index (H0A0 Index).
2©2017 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 RatingTM 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 March 31, 2017, ANGL received Morningstar Rating of 5 stars, rated against 596 high yield bond funds overall and for the last three years.
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 any underlying exchange-traded funds. Index performance is not illustrative of fund performance. Fund performance current to the most recent month end is available by visiting vaneck.com. Historical performance is not indicative of future results; current data may differ from data quoted. Indexes are unmanaged and are not securities in which an investment can be made.
BofA Merrill Lynch US Fallen Angel High Yield Index (H0FA) is a subset of the BofA Merrill Lynch US High Yield Index (H0A0), including securities that were rated investment grade at time of issuance. Performance and characteristics of the BofA Merrill Lynch US Fallen Angel High Yield Index (H0FA) are quoted throughout this material. H0FA is representative of the entire fallen angel high yield corporate bond market. H0FA does not represent the performance or yield of the VanEck Vectors Fallen Angel High Yield Bond ETF.
BofA Merrill Lynch US High Yield Index (H0A0) is comprised of below-investment grade corporate bonds (based on an average of Moody's, S&P, and Fitch) denominated in U.S. dollars. The country of risk of qualifying issuers must be an FX-G10 member, a Western European nation, or a territory of the U.S. or a Western European nation.
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).
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.
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.
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 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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