NEW YORK--(BUSINESS WIRE)--VanEck today announced that the VanEck Vectors® NDR CMG Long/Flat Allocation ETF (NYSE Arca: LFEQ®) (the “Fund”) has been renamed the VanEck Vectors® Long/Flat Trend ETF (NYSE Arca: LFEQ®).
“We believe the new fund name better captures what the fund is designed to do,” said Ed Lopez, Head of ETF Product with VanEck. “LFEQ’s underlying index measures trends in the U.S. equity market, across multiple industry groups and over different time periods, to identify tactical opportunities for allocations between stocks and cash. Recent volatility in the market is a reminder of the elevated valuation risks investors face as stock prices charged higher even while earnings growth plateaued. LFEQ can be an effective risk management tool for investors, helping to minimize major drawdowns, while allowing for meaningful participation in equity markets.”
The Fund’s index, the Ned Davis Research CMG US Large Cap Long/Flat Index remains unchanged and continues to follow a rules-based model that uses technical analysis to measure U.S. equity market health and produce trade signals to guide the Index’s equity allocation. The ticker also remains unchanged.
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 trendsꟷincluding gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006ꟷthat subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of January 31, 2020, VanEck managed approximately $55.3 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 process 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.
The Fund is subject to risks associated with equity securities, index tracking, investing in other funds, market, U.S. Treasury bills, operational, high portfolio turnover, fund shares trading, premium/discount risk and liquidity of fund shares, passive management, no guarantee of active trading market, authorized participant concentration, trading issues, non-diversified and concentration risks. The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
Effective November 1, 2019, Ned Davis Research implemented several changes to the Ned Davis Research CMG Long/Flat Allocation Index construction rules. Among other changes, the methodology of the strategy evolved to reflect new enhancements to factors for composition and timeliness. Additional enhancements include the removal of smoothing on the breadth score, and adjustments to the trade signal to be either 100%, 50%, or 0% invested into equities. Past performance is no guarantee of future results.
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 the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
Ned Davis Research CMG US Large Cap Long/Flat Index (the “Index”) is a rules-based index that follows a proprietary model developed by Ned Davis Research, Inc. in conjunction with CMG Capital Management Group, Inc. (“CMG”). The model produces daily trade signals to determine the Index’s equity allocation percentage (100%, 50%, or 0%). When allocated to a percentage of equities (long), that portion of the Index will comprise the S&P 500 Index. When allocated to a percentage of cash (flat), that portion of the Index will be allocated to the Solactive 13-week U.S. T-bill Index.
The Fund is not sponsored, endorsed, sold or promoted by Ned Davis Research, Inc. (“NDR”) or CMG Capital Management Group, Inc. (“CMG”). NDR and CMG make no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track the performance of equities market.
NEITHER NDR NOR CMG GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN AND NEITHER NDR NOR CMG SHALL HAVE ANY LIABILITY WHATSOEVER FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. NDR AND CMG MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN. NDR AND CMG MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL NDR OR CMG HAVE ANY LIABILITY, JOINTLY OR SEVERALLY, FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
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 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. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
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.