NEW YORK--(BUSINESS WIRE)--VanEck announced today that it is lowering the expense ratio for its VanEck Vectors® J.P. Morgan EM Local Currency Bond ETF (NYSE Arca: EMLC®). Effective March 29, 2018, the expense cap for EMLC will be reduced from 0.44% to 0.42%1. EMLC seeks to track the J.P. Morgan GBI-EMG Core Index, which is comprised of bonds issued by emerging markets governments and denominated in the local currency of the issuer.
VanEck regularly evaluates fund expenses to identify opportunities to lower shareholder costs. The reduction in EMLC’s expense cap allows investors to benefit from the economies of scale that have resulted from the significant asset growth in the fund over the past year. EMLC has attracted approximately $2.9 billion of inflows since February 2017 and, as of February 28, 2018, had over $5.9 billion in assets under management.
“Emerging markets local currency bonds have allowed investors to diversify away from rising interest rates in most developed economies, while benefitting from the attractive yields that this asset class provides. Further, the positive global growth environment and improvement in many emerging markets economies provides the opportunity for potential appreciation of emerging markets currencies,” said Fran Rodilosso, Head of Fixed Income ETF Portfolio Management.
In addition to EMLC, VanEck manages a broad suite of emerging markets bond ETFs including VanEck Vectors® Emerging Markets High Yield Bond ETF (NYSE Arca: HYEM®), VanEck Vectors® EM Investment Grade + BB Rated USD Sovereign Bond ETF (NYSE Arca: IGEM®), VanEck Vectors® Emerging Markets Aggregate Bond ETF (NYSE Arca: EMAG®) and VanEck Vectors® ChinaAMC China Bond ETF (NYSE Arca: CBON®). Investors can subscribe to receive commentaries and other emerging markets debt insights from VanEck by visiting the firm’s website.
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, 2018, VanEck managed approximately $45.9 billion in assets, including mutual funds, ETFs, and institutional accounts.
1The Fund’s gross expense ratio is 0.48% and net expense ratio is 0.42%. Expenses are capped contractually at 0.42% until at least 9/1/19. This cap excludes certain expenses, such as acquired fund fees and expenses, interest, trading, taxes and extraordinary expenses.
Indexes 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.
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC) is not sponsored, endorsed, sold or promoted by J.P. Morgan and J.P. Morgan makes no representation regarding the advisability of investing in EMLC. J.P. Morgan does not warrant the completeness or accuracy of the J.P. Morgan GBI-EMG Core Index. "J.P. Morgan" is a registered service mark of JPMorgan Chase & Co. © 2018. JPMorgan Chase & Co. All rights reserved.
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, interest rate risk, and sovereign defaults, 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. Changes in currency exchange rates may negatively impact the Fund's return. Investments in emerging markets securities are subject to elevated risks which include, among others, expropriation, confiscatory taxation, issues with repatriation of investment income, limitations of foreign ownership, political instability, armed conflict and social 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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