NEW YORK--(BUSINESS WIRE)--VanEck today announced a change to its ETF lineup related to some key developments in the ways in which investors are driving change in the energy space and seeking out opportunities to invest in stocks of low carbon energy companies.
“As climate change and its potential solutions have become more present in our global discourse, the language used by those within the energy sector, as well as those investing in it, has changed and evolved,” said Ed Lopez, Head of ETF Product at VanEck. “What used to be referred to as ‘alternative energy’ is now more commonly referred to as ‘green,’ ‘clean’ or ‘renewable,’ and numerous large public companies in the energy space have acquiesced to investor demands to set more stringent, low carbon, emission standards.”
To that end, as of July 9, 2019, the Fund GEX will become the VanEck Vectors® Low Carbon Energy ETF and will have a new ticker: SMOG.
“As this Fund was already investing at least 80% of its total assets in stocks of low carbon energy companies, we wanted to make this change to better align the fund’s branding with its mission and the exposure it provides,” added Lopez.
The Fund’s index, the Ardour Global Index Extra Liquid, will remain unchanged. The index will continue to focus on companies involved in the production of power through environmentally friendly, non-traditional sources such as wind, solar, hydro, geothermal and bio-fuels as well as the related technologies used to support the production of this power and increase efficiencies in its production, transportation and storage.
Lopez noted that VanEck has been a signatory of the Principles for Responsible Investment (PRI) since March 2017. “Our approach to responsible investment incorporates environmental, social, and governance, i.e. ‘ESG’ responsibilities and we apply this approach, as appropriate, across asset classes, regions and markets,” he continued. “We consider ESG factors, where possible, in both our active fixed income and ETF strategies. In our ETF family, we have sought to develop certain funds with sustainability-related themes or approaches that employ sustainable screening criteria and/or indices, and the changes we’re making with regard to SMOG are being done with all of that thinking in mind.”
SMOG is part an ETF family that also includes the VanEck Vectors® Green Bond ETF (GRNB), the first ETF to focus on “green” bonds, which refers to those bonds issued to finance projects that have a positive impact on the environment.
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 trend-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 May 31, 2019, VanEck managed approximately $45.6 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 the VanEck Vector® Green Bond ETF (GRNB) may be subject to risks which include, among others, green bonds, investing in European and emerging market issuers, foreign securities, foreign currency, credit, interest rate, high yield securities, supranational bond, government-related bond, restricted securities, securitized/asset-backed securities, financial services, utilities, market, operational, call, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund.
An investment in the VanEck Vectors® Low Carbon Energy ETF (SMOG) may be subject to risks which include, among others, investing in alternative energy companies, investing in European issuers, foreign securities, foreign currency, depository receipts, industrials sector, information technology sector, small- and medium-capitalization companies, equity securities, market, operational, 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, all of which may adversely affect the Fund. 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 return. Small- and medium-capitalization companies may be subject to elevated risks.
"S-Network Global Indexes, LLC℠", "ARDOUR GLOBAL INDEX℠ (Composite)", "ARDOUR COMPOSITESM", "ARDOUR GLOBAL INDEXSM(Extra Liquid)", "ARDOUR - XLSM", "ARDOUR GLOBAL ALTERNATIVE ENERGY INDEXESSM" "ARDOUR FAMILYSM" are service marks of S-Network Global Indexes, Inc. and have been licensed for use by Van Eck Associates Corporation. The Product(s) is/are not sponsored, endorsed, sold or promoted by S-Network Global Indexes Inc. and Ardour Global Indexes, LLC makes no representation regarding the advisability of investing in the Product(s).
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.
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.