UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-10325
VANECK ETF TRUST
(Exact name of registrant as specified in charter)
666 Third Avenue, New York, NY 10017
(Address of principal executive offices) (Zip code)
Van Eck Associates Corporation
666 Third Avenue, New York, NY 10017
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 293-2000
Date of fiscal year end: DECEMBER 31
Date of reporting period: JUNE 30, 2022
Item 1. Reports to Shareholders
SEMI-ANNUAL REPORT June 30, 2022 (unaudited) |
Agribusiness ETF | MOO® |
Future of Food ETF | YUMY |
Gold Miners ETF | GDX® |
Green Metals ETF | GMET® |
Junior Gold Miners ETF | GDXJ® |
Low Carbon Energy ETF | SMOG® |
Natural Resources ETF | HAP® |
Oil Refiners ETF | CRAK® |
Oil Services ETF | OIH® |
Rare Earth/Strategic Metals ETF | REMX® |
Steel ETF | SLX® |
Uranium+Nuclear Energy ETF | NLR® |
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2022.
PRESIDENT’S LETTER
June 30, 2022 (unaudited)
Dear Fellow Shareholders:
When will market volatility be over? The short answer: not yet. Financial tightening by central banks is never good for financial assets. And while the first half of 2022 has already been painful, we are only now, in midsummer, experiencing the onset of “quantitative tightening,” when the central banks stop buying bonds. This, to me, is the final act in this process and it may take a few months to work itself out. I am hoping that there are no implosions by major, indebted countries, or major dislocations in fixed income or banking markets.
The second signal that will imply less pressure on financial markets—stocks and bonds—is weaker labor markets, because only that, I believe, will slow wage pressure and therefore inflation. While there will likely be many minor signals and headlines, we may not have confirmation of cooling wage pressure until year-end or later.
For over a year, I’ve been saying that we would be in a better position to gauge inflation persistence in the second half of 2022, because only now would we know whether inflationary psychology had affected wages. Well, here we are. Despite a cooling U.S. economy, the labor market is still hot. There is a strong relationship between wages and inflation, which historically becomes more pronounced during periods of high inflation. Based on the fact that the record-setting spending stimulus has led to wage inflation, our view now is that inflation will be higher for longer.
Rising Correlation: Upward Pressure on Wages Leads to Upward Pressure on Inflation
While we expect to be in an elevated inflation regime for an extended period of time, there should be some temporary relief on the horizon from the negative wealth effect from declining asset values, a recent pullback in commodity prices and improving supply chains. But asset values can still fall further from here, commodity prices are still high by historical standards, and supply chain pressures are still at last summer’s levels.
Consumers are being squeezed from high inflation and more restrictive, yet still accommodative, monetary policy. We estimate the evisceration of over $40 trillion from the global stock, bond and crypto markets as a result of the current macro-economic conditions. That equates to nearly half of the world’s GDP!
Multi-Year Investment Themes: Resources Transition and Blockchain Disruption
So, we continue to focus on two multi-year investment themes.
Commodities have broken out of their prolonged bear market to reach record highs, driven by forces—primarily, the supply-demand imbalance—that have been in place even before Russia’s invasion of Ukraine. The Russia-Ukraine crisis has, however, accelerated efforts to reduce dependency on Russian energy supply in Europe, and part of that plan includes a shift towards renewable energy.
Commodity prices have more than doubled from their COVID-19 lows. Yet, the supply response across all industries has been limited due to the emphasis on capital discipline and environmental, social and governance constraints. If we are in the early stages of an economic slowdown, then it is very unlikely that we will see an increase in capital expenditures leading to additional supply. This should lead to a swift rebound in prices when economic growth resumes.
We still like commodity equities, particularly companies involved in green metals used in electric vehicle and clean energy components and, perhaps with a longer-term horizon, agribusiness companies looking to innovate for more efficient, climate-friendly and sustainable food production. Fears of global recession have hurt these investments, but I believe the longer-term trends will prevail.
The fallout from the Terra ecosystem’s collapse in May on the broader digital assets market cannot be understated. It caused major damage, and bankruptcies and liquidations of borrowing/lending firms are likely ahead, not to mention litigation from retail investors. Volatility is a given with crypto, with Bitcoin and Ethereum under the most pressure from their status as the “reserve” holdings for many in the crypto world. However, while I used to think Bitcoin’s drawdown risk was 90% back in 2017, I expected the drawdowns to
3 |
VANECK ETF TRUST
PRESIDENT’S LETTER
(unaudited) (continued)
be more muted in current times. This is because the underlying blockchain technology is being used to gain efficiency and reduce risk in the financial system, and I believe adoption will keep expanding.
Growth is Less Rich Relative to Value
For much of 2021, many growth stocks were very richly valued. At the end of 2021, the price-to-earnings (“P/E”) ratio of the Russell 1000 Growth Index was hovering around 40. By comparison, during that same period, the P/E ratio of the Russell 1000 Value Index was below 20. That equated to a valuation spread of roughly 20.
We hadn’t seen such a big dislocation between growth and value stocks since the tech bubble in the early 2000s. That is why, at the start of 2022, we said to wait to buy growth. We could be getting closer, but investors should be cautious. The current spread between the P/E ratios of growth and value stocks is over 11 and the long-term average is 8. If inflation remains persistently high, as we expect, then this spread may go even lower.
We thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each the funds for the six month period ended June 30, 2022. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
CEO and President
VanEck ETF Trust
July 12, 2022
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
4 |
EXPLANATION OF EXPENSES
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2022 to June 30, 2022.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022(a) | |||||||||||||
Agribusiness ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $907.80 | 0.52 | % | $ | 2.46 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,022.22 | 0.52 | % | $ | 2.61 | |||||||||
Future of Food ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $772.00 | 0.70 | % | $ | 3.08 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.32 | 0.70 | % | $ | 3.51 | |||||||||
Gold Miners ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $858.80 | 0.51 | % | $ | 2.35 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,022.27 | 0.51 | % | $ | 2.56 | |||||||||
Green Metals ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $836.10 | 0.60 | % | $ | 2.73 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.82 | 0.60 | % | $ | 3.01 | |||||||||
Junior Gold Miners ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $767.50 | 0.52 | % | $ | 2.28 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,022.22 | 0.52 | % | $ | 2.61 | |||||||||
Low Carbon Energy ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $783.30 | 0.59 | % | $ | 2.61 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.87 | 0.59 | % | $ | 2.96 | |||||||||
Natural Resources ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $956.80 | 0.49 | % | $ | 2.38 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,022.36 | 0.49 | % | $ | 2.46 |
5 |
VANECK ETF TRUST
EXPLANATION OF EXPENSES
(unaudited) (continued)
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022(a) | |||||||||||||
Oil Refiners ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $1,093.60 | 0.60 | % | $ | 3.11 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.82 | 0.60 | % | $ | 3.01 | |||||||||
Oil Services ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $1,259.40 | 0.35 | % | $ | 1.96 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,023.06 | 0.35 | % | $ | 1.76 | |||||||||
Rare Earth/Strategic Metals ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $778.80 | 0.53 | % | $ | 2.34 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,022.17 | 0.53 | % | $ | 2.66 | |||||||||
Steel ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $930.00 | 0.56 | % | $ | 2.68 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,022.02 | 0.56 | % | $ | 2.81 | |||||||||
Uranium+Nuclear Energy ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $950.10 | 0.60 | % | $ | 2.90 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.82 | 0.60 | % | $ | 3.01 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2022), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(b) | Assumes annual return of 5% before expenses |
6 |
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.8% | ||||||||
Australia: 2.2% | ||||||||
Incitec Pivot Ltd. # | 7,110,799 | $ | 16,302,467 | |||||
Treasury Wine Estates Ltd. # | 2,515,439 | 19,652,280 | ||||||
35,954,747 | ||||||||
Brazil: 2.5% | ||||||||
Rumo SA | 4,678,700 | 14,288,087 | ||||||
Yara International ASA (NOK) # | 640,453 | 26,753,990 | ||||||
41,042,077 | ||||||||
Canada: 6.5% | ||||||||
Nutrien Ltd. (USD) | 1,347,154 | 107,354,702 | ||||||
Chile: 3.2% | ||||||||
Sociedad Quimica y Minera de Chile SA (ADR) | 629,982 | 52,622,396 | ||||||
China: 3.8% | ||||||||
China Mengniu Dairy Co. Ltd. (HKD) # * | 6,802,000 | 34,098,820 | ||||||
Wilmar International Ltd. (SGD) # | 9,431,551 | 27,403,966 | ||||||
61,502,786 | ||||||||
Denmark: 1.0% | ||||||||
Bakkafrost P/F (NOK) # | 195,665 | 12,572,241 | ||||||
Schouw & Co. A/S # | 57,370 | 4,002,646 | ||||||
16,574,887 | ||||||||
Germany: 8.3% | ||||||||
Bayer AG # | 1,944,797 | 115,859,121 | ||||||
K+S AG # | 844,268 | 20,498,650 | ||||||
136,357,771 | ||||||||
Indonesia: 0.2% | ||||||||
Golden Agri-Resources Ltd. (SGD) # | 20,697,645 | 3,719,434 | ||||||
Israel: 1.4% | ||||||||
ICL Group Ltd. (USD) † | 2,441,395 | 22,167,867 | ||||||
Japan: 4.4% | ||||||||
Kubota Corp. # † | 3,546,730 | 53,083,185 | ||||||
Maruha Nichiro Corp. # | 165,300 | 3,108,197 | ||||||
NH Foods Ltd. # | 359,300 | 11,240,043 | ||||||
Nippon Suisan Kaisha Ltd. # | 951,000 | 4,015,211 | ||||||
71,446,636 | ||||||||
Malaysia: 2.1% | ||||||||
IOI Corp. Bhd # | 8,801,555 | 7,669,858 | ||||||
Kuala Lumpur Kepong Bhd # | 1,670,670 | 8,312,716 | ||||||
PPB Group Bhd | 2,393,480 | 8,612,727 | ||||||
Sime Darby Plantation Bhd # | 10,716,100 | 10,530,565 | ||||||
35,125,866 | ||||||||
Netherlands: 0.7% | ||||||||
OCI NV # | 352,515 | 11,568,554 | ||||||
Norway: 3.6% | ||||||||
Leroy Seafood Group ASA # | 1,103,755 | 7,878,905 | ||||||
Mowi ASA # | 1,505,460 | 34,321,665 | ||||||
Salmar ASA # | 228,636 | 16,137,324 | ||||||
58,337,894 | ||||||||
Russia: 0.0% | ||||||||
PhosAgro PJSC (USD) (GDR) #∞ | 1,882 | 0 | ||||||
PhosAgro PJSC (USD) (GDR) #∞ | 292,219 | 0 | ||||||
0 |
Number of Shares | Value | |||||||
Singapore: 0.8% | ||||||||
Charoen Pokphand Indonesia Tbk PT (IDR) # | 31,825,900 | $ | 12,824,115 | |||||
Sweden: 0.3% | ||||||||
Oatly Group AB (ADR) * † | 1,226,866 | 4,244,956 | ||||||
Switzerland: 0.6% | ||||||||
Bucher Industries AG # | 29,383 | 10,227,125 | ||||||
Taiwan: 0.4% | ||||||||
Taiwan Fertilizer Co. Ltd. # | 3,294,000 | 7,081,867 | ||||||
Thailand: 0.9% | ||||||||
Charoen Pokphand Foods PCL (NVDR) # | 20,766,636 | 15,296,836 | ||||||
United Kingdom: 3.2% | ||||||||
CNH Industrial NV (USD) | 3,972,153 | 46,037,253 | ||||||
Genus Plc # | 223,393 | 6,817,368 | ||||||
52,854,621 | ||||||||
United States: 53.7% | ||||||||
AGCO Corp. | 223,594 | 22,068,728 | ||||||
Archer-Daniels-Midland Co. | 1,135,908 | 88,146,461 | ||||||
Balchem Corp. | 85,007 | 11,028,808 | ||||||
Beyond Meat, Inc. * † | 204,609 | 4,898,339 | ||||||
Bunge Ltd. | 441,729 | 40,060,403 | ||||||
CF Industries Holdings, Inc. | 570,496 | 48,908,622 | ||||||
Corteva, Inc. | 1,771,014 | 95,882,698 | ||||||
Darling Ingredients, Inc. * | 527,210 | 31,527,158 | ||||||
Deere & Co. | 412,383 | 123,496,337 | ||||||
Elanco Animal Health, Inc. * | 1,129,274 | 22,167,648 | ||||||
FMC Corp. | 411,083 | 43,989,992 | ||||||
Mosaic Co. | 1,197,573 | 56,561,373 | ||||||
Neogen Corp. * | 294,866 | 7,103,322 | ||||||
Pilgrim’s Pride Corp. * | 212,026 | 6,621,572 | ||||||
Sanderson Farms, Inc. | 73,839 | 15,914,520 | ||||||
Toro Co. | 345,949 | 26,219,475 | ||||||
Tyson Foods, Inc. | 1,041,657 | 89,645,001 | ||||||
Zoetis, Inc. | 854,716 | 146,917,133 | ||||||
881,157,590 | ||||||||
Total Common Stocks (Cost: $1,674,219,592) | 1,637,462,727 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.4% (Cost: $6,592,867) | ||||||||
Money Market Fund: 0.4% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 6,592,867 | 6,592,867 | ||||||
Total Investments: 100.2% (Cost: $1,680,812,459) | 1,644,055,594 | |||||||
Liabilities in excess of other assets: (0.2)% | (3,297,607) | |||||||
NET ASSETS: 100.0% | $ | 1,640,757,987 |
See Notes to Financial Statements
7 |
VANECK AGRIBUSINESS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
HKD | Hong Kong Dollar |
IDR | Indonesian Rupiah |
NOK | Norwegian Krone |
NVDR | Non-Voting Depositary Receipt |
SGD | Singapore Dollar |
USD | United States Dollar |
Footnotes: | |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $500,977,149 which represents 30.5% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $10,494,145. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Consumer Staples | 31.9 | % | $ | 522,455,958 | ||||
Health Care | 18.2 | 298,864,592 | ||||||
Industrials | 18.1 | 295,420,191 | ||||||
Materials | 31.8 | 520,721,986 | ||||||
100.0 | % | $ | 1,637,462,727 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 35,954,747 | $ | — | $ | 35,954,747 | ||||||||
Brazil | 14,288,087 | 26,753,990 | — | 41,042,077 | ||||||||||||
Canada | 107,354,702 | — | — | 107,354,702 | ||||||||||||
Chile | 52,622,396 | — | — | 52,622,396 | ||||||||||||
China | — | 61,502,786 | — | 61,502,786 | ||||||||||||
Denmark | — | 16,574,887 | — | 16,574,887 | ||||||||||||
Germany | — | 136,357,771 | — | 136,357,771 | ||||||||||||
Indonesia | — | 3,719,434 | — | 3,719,434 | ||||||||||||
Israel | 22,167,867 | — | — | 22,167,867 | ||||||||||||
Japan | — | 71,446,636 | — | 71,446,636 | ||||||||||||
Malaysia | 8,612,727 | 26,513,139 | — | 35,125,866 | ||||||||||||
Netherlands | — | 11,568,554 | — | 11,568,554 | ||||||||||||
Norway | — | 58,337,894 | — | 58,337,894 | ||||||||||||
Russia | — | — | 0 | 0 | ||||||||||||
Singapore | — | 12,824,115 | — | 12,824,115 | ||||||||||||
Sweden | 4,244,956 | — | — | 4,244,956 | ||||||||||||
Switzerland | — | 10,227,125 | — | 10,227,125 | ||||||||||||
Taiwan | — | 7,081,867 | — | 7,081,867 | ||||||||||||
Thailand | — | 15,296,836 | — | 15,296,836 | ||||||||||||
United Kingdom | 46,037,253 | 6,817,368 | — | 52,854,621 | ||||||||||||
United States | 881,157,590 | — | — | 881,157,590 | ||||||||||||
Money Market Fund | 6,592,867 | — | — | 6,592,867 | ||||||||||||
Total Investments | $ | 1,143,078,445 | $ | 500,977,149 | $ | 0 | $ | 1,644,055,594 |
See Notes to Financial Statements
8 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 98.9% | ||||||||
Brazil: 0.5% | ||||||||
Yara International ASA (NOK) # | 345 | $ | 14,412 | |||||
Canada: 4.0% | ||||||||
Maple Leaf Foods, Inc. | 5,760 | 113,016 | ||||||
China: 2.2% | ||||||||
Vitasoy International Holdings Ltd. (HKD) # | 36,000 | 63,104 | ||||||
Denmark: 7.0% | ||||||||
Chr. Hansen Holding A/S # | 1,506 | 109,690 | ||||||
Novozymes A/S # | 1,518 | 91,155 | ||||||
200,845 | ||||||||
France: 2.4% | ||||||||
Danone SA # | 1,221 | 68,216 | ||||||
Germany: 3.0% | ||||||||
Symrise AG # | 789 | 85,847 | ||||||
Ireland: 3.1% | ||||||||
Kerry Group Plc # | 921 | 88,834 | ||||||
Isle of Man: 0.4% | ||||||||
Agronomics Ltd. # * | 57,531 | 11,175 | ||||||
Israel: 0.0% | ||||||||
Else Nutrition Holdings, Inc. (CAD) * | 2,502 | 1,164 | ||||||
Japan: 1.9% | ||||||||
Kubota Corp. # | 3,600 | 53,880 | ||||||
Mexico: 3.9% | ||||||||
Orbia Advance Corp. SAB de CV | 48,210 | 112,450 | ||||||
Netherlands: 0.8% | ||||||||
Corbion NV # | 795 | 23,893 | ||||||
Norway: 0.6% | ||||||||
Atlantic Sapphire ASA # * † | 8,175 | 16,086 | ||||||
Philippines: 0.9% | ||||||||
Monde Nissin Corp. 144A # * | 110,700 | 26,198 | ||||||
Sweden: 3.3% | ||||||||
BioGaia AB # | 2,460 | 24,987 | ||||||
Oatly Group AB (ADR) * † | 20,139 | 69,681 | ||||||
94,668 | ||||||||
Switzerland: 8.0% | ||||||||
Bucher Industries AG # | 162 | 56,386 | ||||||
Givaudan SA # | 30 | 105,443 | ||||||
Nestle SA # | 576 | 67,129 | ||||||
228,958 | ||||||||
United States: 56.9% | ||||||||
AgEagle Aerial Systems, Inc. * | 2,532 | 1,636 | ||||||
Amyris, Inc. * † | 5,613 | 10,384 | ||||||
AppHarvest, Inc. * † | 29,643 | 103,454 | ||||||
Archer-Daniels-Midland Co. | 867 | 67,279 | ||||||
Balchem Corp. | 231 | 29,970 | ||||||
Ball Corp. | 1,383 | 95,109 | ||||||
Benson Hill, Inc. * | 10,593 | 29,025 | ||||||
Berry Global Group, Inc. * | 522 | 28,522 | ||||||
Beyond Meat, Inc. * † | 1,632 | 39,070 | ||||||
Bunge Ltd. | 1,239 | 112,365 |
Number of Shares | Value | |||||||
United States (continued) | ||||||||
Cadiz, Inc. * | 4,329 | $ | 10,087 | |||||
Conagra Brands, Inc. | 1,188 | 40,677 | ||||||
Corteva, Inc. | 3,291 | 178,175 | ||||||
Deere & Co. | 375 | 112,301 | ||||||
Ecolab, Inc. | 165 | 25,370 | ||||||
FMC Corp. | 543 | 58,106 | ||||||
Ginkgo Bioworks Holdings, Inc. * | 6,228 | 14,823 | ||||||
GrowGeneration Corp. * † | 1,116 | 4,006 | ||||||
Hydrofarm Holdings Group, Inc. * | 537 | 1,869 | ||||||
Ingredion, Inc. | 1,533 | 135,149 | ||||||
International Flavors & Fragrances, Inc. | 762 | 90,769 | ||||||
John Bean Technologies Corp. | 399 | 44,058 | ||||||
Kellogg Co. | 585 | 41,734 | ||||||
Lindsay Corp. | 498 | 66,144 | ||||||
Local Bounti Corp. * | 4,164 | 13,242 | ||||||
Tattooed Chef, Inc. * † | 7,668 | 48,308 | ||||||
Titan International, Inc. * | 2,535 | 38,279 | ||||||
Trimble, Inc. * | 1,299 | 75,641 | ||||||
Tyson Foods, Inc. | 456 | 39,243 | ||||||
Valmont Industries, Inc. | 306 | 68,737 | ||||||
1,623,532 | ||||||||
Total Common Stocks (Cost: $3,451,875) | 2,826,278 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 7.2% (Cost: $206,813) | ||||||||
Money Market Fund: 7.2% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 206,813 | 206,813 | ||||||
Total Investments: 106.1% (Cost: $3,658,688) | 3,033,091 | |||||||
Liabilities in excess of other assets: (6.1)% | (173,122) | |||||||
NET ASSETS: 100.0% | $ | 2,859,969 |
See Notes to Financial Statements
9 |
VANECK FUTURE OF FOOD ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions: | |
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
HKD | Hong Kong Dollar |
NOK | Norwegian Krone |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $906,435 which represents 31.7% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $210,454. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $26,198, or 0.9% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Consumer Discretionary | 0.1 | % | $ | 4,006 | ||||
Consumer Staples | 41.8 | 1,182,974 | ||||||
Financials | 0.4 | 11,175 | ||||||
Health Care | 0.9 | 24,987 | ||||||
Industrials | 15.7 | 443,290 | ||||||
Information Technology | 2.7 | 75,641 | ||||||
Materials | 38.0 | 1,074,119 | ||||||
Utilities | 0.4 | 10,086 | ||||||
100.0 | % | $ | 2,826,278 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $ | — | $ | 14,412 | $ | — | $ | 14,412 | ||||||||
Canada | 113,016 | — | — | 113,016 | ||||||||||||
China | — | 63,104 | — | 63,104 | ||||||||||||
Denmark | — | 200,845 | — | 200,845 | ||||||||||||
France | — | 68,216 | — | 68,216 | ||||||||||||
Germany | — | 85,847 | — | 85,847 | ||||||||||||
Ireland | — | 88,834 | — | 88,834 | ||||||||||||
Isle of Man | — | 11,175 | — | 11,175 | ||||||||||||
Israel | 1,164 | — | — | 1,164 | ||||||||||||
Japan | — | 53,880 | — | 53,880 | ||||||||||||
Mexico | 112,450 | — | — | 112,450 | ||||||||||||
Netherlands | — | 23,893 | — | 23,893 | ||||||||||||
Norway | — | 16,086 | — | 16,086 | ||||||||||||
Philippines | — | 26,198 | — | 26,198 | ||||||||||||
Sweden | 69,681 | 24,987 | — | 94,668 | ||||||||||||
Switzerland | — | 228,958 | — | 228,958 | ||||||||||||
United States | 1,623,532 | — | — | 1,623,532 | ||||||||||||
Money Market Fund | 206,813 | — | — | 206,813 | ||||||||||||
Total Investments | $ | 2,126,656 | $ | 906,435 | $ | — | $ | 3,033,091 |
See Notes to Financial Statements
10 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.0% | ||||||||
Australia: 11.6% | ||||||||
Capricorn Metals Ltd. # * ‡ | 19,687,331 | $ | 42,487,061 | |||||
Evolution Mining Ltd. # ‡ | 97,117,681 | 158,087,871 | ||||||
Gold Road Resources Ltd. # † | 46,821,310 | 36,278,733 | ||||||
Newcrest Mining Ltd. # | 35,065,821 | 497,673,693 | ||||||
Northern Star Resources Ltd. # † ‡ | 61,731,493 | 288,473,625 | ||||||
Perseus Mining Ltd. # ‡ | 72,027,268 | 77,857,838 | ||||||
Ramelius Resources Ltd. # ‡ | 45,956,413 | 27,403,678 | ||||||
Regis Resources Ltd. # ‡ | 39,990,097 | 35,481,219 | ||||||
Silver Lake Resources Ltd. # * † ‡ | 49,282,866 | 40,811,473 | ||||||
St Barbara Ltd. # † ‡ | 43,211,000 | 22,107,578 | ||||||
West African Resources Ltd. # * ‡ | 54,096,883 | 44,866,999 | ||||||
1,271,529,768 | ||||||||
Brazil: 7.5% | ||||||||
Wheaton Precious Metals Corp. (USD) † | 16,106,760 | 580,326,563 | ||||||
Yamana Gold, Inc. (USD) † ‡ | 50,918,364 | 236,770,392 | ||||||
817,096,955 | ||||||||
Burkina Faso: 0.4% | ||||||||
IAMGOLD Corp. (USD) * † ‡ | 25,372,336 | 40,849,461 | ||||||
Canada: 42.2% | ||||||||
Agnico Eagle Mines Ltd. (USD) † | 16,257,745 | 743,954,411 | ||||||
Alamos Gold, Inc. (USD) ‡ | 20,776,734 | 145,852,673 | ||||||
Aya Gold & Silver, Inc. * † ‡ | 5,561,021 | 28,280,397 | ||||||
B2Gold Corp. (USD) ‡ | 55,979,176 | 189,769,407 | ||||||
Barrick Gold Corp. (USD) | 63,480,430 | 1,122,968,807 | ||||||
Dundee Precious Metals, Inc. ‡ | 10,113,349 | 50,255,101 | ||||||
Endeavour Silver Corp. (USD) * † ‡ | 9,591,525 | 30,117,389 | ||||||
Equinox Gold Corp. (USD) * † ‡ | 16,041,476 | 71,224,153 | ||||||
First Majestic Silver Corp. (USD) † ‡ | 13,855,665 | 99,483,675 | ||||||
Fortuna Silver Mines, Inc. (USD) * † ‡ | 15,480,256 | 43,963,927 | ||||||
Franco-Nevada Corp. (USD) | 6,831,292 | 898,861,401 | ||||||
GoGold Resources, Inc. * † ‡ | 15,637,870 | 24,851,842 | ||||||
K92 Mining, Inc. * † ‡ | 12,017,310 | 72,386,138 | ||||||
Karora Resources, Inc. * † | 8,225,883 | 21,171,310 | ||||||
Kinross Gold Corp. (USD) ‡ | 68,834,660 | 246,428,083 | ||||||
New Gold, Inc. (USD) * ‡ | 36,099,644 | 38,626,619 | ||||||
OceanaGold Corp. * † ‡ | 37,310,998 | 71,443,207 | ||||||
Osisko Gold Royalties Ltd. (USD) † ‡ | 9,789,421 | 98,873,152 | ||||||
Pan American Silver Corp. (USD) ‡ | 11,153,447 | 219,388,302 | ||||||
Sandstorm Gold Ltd. (USD) ‡ | 10,184,531 | 60,597,959 | ||||||
Silvercorp Metals, Inc. (USD) ‡ | 9,383,532 | 23,271,159 | ||||||
SSR Mining, Inc. (USD) ‡ | 11,265,715 | 188,137,441 | ||||||
Torex Gold Resources, Inc. * ‡ | 4,546,643 | 35,035,181 |
Number of Shares | Value | |||||||
Canada (continued) | ||||||||
Victoria Gold Corp. * † ‡ | 3,391,383 | $ | 26,264,519 | |||||
Wesdome Gold Mines Ltd. * † ‡ | 7,517,737 | 64,981,408 | ||||||
4,616,187,661 | ||||||||
China: 4.5% | ||||||||
Zhaojin Mining Industry Co. Ltd. (HKD) # * † ‡ | 138,255,500 | 119,437,639 | ||||||
Zijin Mining Group Co. Ltd. (HKD) # ‡ | 303,956,000 | 369,872,999 | ||||||
489,310,638 | ||||||||
Egypt: 0.5% | ||||||||
Centamin Plc (GBP) # ‡ | 61,271,861 | 58,441,764 | ||||||
Kyrgyzstan: 1.0% | ||||||||
Centerra Gold, Inc. (CAD) ‡ | 15,759,198 | 106,653,590 | ||||||
Peru: 0.8% | ||||||||
Cia de Minas Buenaventura SAA (ADR) † ‡ | 13,442,510 | 88,720,566 | ||||||
South Africa: 5.1% | ||||||||
DRDGOLD Ltd. (ADR) † ‡ | 4,580,819 | 26,889,407 | ||||||
Gold Fields Ltd. (ADR) † ‡ | 47,221,292 | 430,658,183 | ||||||
Harmony Gold Mining Co. Ltd. (ADR) † ‡ | 32,665,205 | 102,242,092 | ||||||
559,789,682 | ||||||||
Tanzania: 3.0% | ||||||||
AngloGold Ashanti Ltd. (ADR) † ‡ | 22,165,662 | 327,830,141 | ||||||
Turkey: 0.6% | ||||||||
Eldorado Gold Corp. (USD) * † ‡ | 9,784,900 | 62,525,511 | ||||||
United Kingdom: 2.5% | ||||||||
Endeavour Mining Plc (CAD) † ‡ | 13,132,187 | 271,103,639 | ||||||
United States: 20.3% | ||||||||
Coeur Mining, Inc. * ‡ | 14,875,893 | 45,222,715 | ||||||
Hecla Mining Co. ‡ | 28,560,255 | 111,956,200 | ||||||
Newmont Corp. | 28,314,272 | 1,689,512,610 | ||||||
Royal Gold, Inc. ‡ | 3,477,739 | 371,352,970 | ||||||
2,218,044,495 | ||||||||
Total Common Stocks (Cost: $11,866,939,754) | 10,928,083,871 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.2% (Cost: $132,623,401) | ||||||||
Money Market Fund: 1.2% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 132,623,401 | 132,623,401 | ||||||
Total Investments: 101.2% (Cost: $11,999,563,155) | 11,060,707,272 | |||||||
Liabilities in excess of other assets: (1.2)% | (127,719,756) | |||||||
NET ASSETS: 100.0% | $ | 10,932,987,516 |
See Notes to Financial Statements
11 |
VANECK GOLD MINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions: | |
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
GBP | British Pound |
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,819,282,170 which represents 16.6% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $237,120,762. |
‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Gold | 94.7 | % | $ | 10,346,770,981 | ||||
Silver | 5.3 | 581,312,890 | ||||||
100.0 | % | $ | 10,928,083,871 |
See Notes to Financial Statements
12 |
Transactions in securities of affiliates for the period ended June 30, 2022 were as follows:
Value 12/31/2021 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2022 | ||||||||
Alamos Gold, Inc. | $–(a) | $48,097,734 | $(20,600,717) | $4,688,829 | $920,356 | $(21,113,596) | $145,852,673 | |||||||
AngloGold Ashanti Ltd. | –(a) | 139,358,630 | (57,428,047) | 13,681,660 | 2,664,669 | (158,894,115) | 327,830,141 | |||||||
Aya Gold & Silver, Inc. | –(a) | 10,929,923 | (4,681,366) | (200,878) | – | (13,119,505) | 28,280,397 | |||||||
B2Gold Corp. | –(a) | 69,367,589 | (29,580,927) | 8,732,816 | 3,980,191 | (43,995,730) | 189,769,407 | |||||||
Capricorn Metals Ltd. | –(a) | 16,206,472 | (6,764,851) | 970,096 | – | (8,997,762) | 42,487,061 | |||||||
Centamin Plc | –(a) | 20,564,542 | (9,201,850) | (737,188) | 2,926,179 | (14,750,262) | 58,441,764 | |||||||
Centerra Gold, Inc. | –(a) | 41,631,480 | (17,690,430) | 6,275,050 | 1,535,797 | (25,904,149) | 106,653,590 | |||||||
Cia de Minas Buenaventura SAA | –(a) | 37,353,330 | (14,947,616) | (1,850,992) | 961,249 | (14,765,444) | 88,720,566 | |||||||
Coeur Mining, Inc. | –(a) | 21,790,518 | (7,457,466) | (1,388,328) | – | (25,550,843) | 45,222,715 | |||||||
DRDGOLD Ltd. | –(a) | 11,766,756 | (4,746,060) | (798,408) | 473,394 | (12,072,167) | 26,889,408 | |||||||
Dundee Precious Metals, Inc. | –(a) | 17,564,171 | (7,917,177) | 2,240,955 | 794,942 | (14,537,756) | 50,255,101 | |||||||
Eldorado Gold Corp. | –(a) | 29,441,831 | (11,848,759) | 1,295,675 | – | (32,621,294) | 62,525,511 | |||||||
Endeavour Mining Plc | –(a) | 94,928,177 | (40,350,795) | 13,955,726 | 2,999,065 | (40,940,337) | 271,103,640 | |||||||
Endeavour Silver Corp. | –(a) | 13,717,829 | (4,767,720) | (685,049) | – | (10,280,761) | 30,117,388 | |||||||
Equinox Gold Corp. | –(a) | 34,583,230 | (13,620,512) | (1,378,504) | – | (39,123,181) | 71,224,153 | |||||||
Evolution Mining Ltd. | –(a) | 86,489,494 | (35,317,059) | 3,636,549 | 1,735,631 | (139,389,226) | 158,087,871 | |||||||
First Majestic Silver Corp. | –(a) | 51,075,906 | (18,368,763) | 4,116,996 | 176,286 | (64,647,388) | 99,483,675 | |||||||
Fortuna Silver Mines, Inc. | –(a) | 17,520,949 | (7,092,184) | (1,039,615) | – | (16,214,057) | 43,963,927 | |||||||
GoGold Resources, Inc. | –(a) | 11,600,686 | (3,979,391) | (490,654) | – | (11,790,682) | 24,851,842 | |||||||
Gold Fields Ltd. | –(a) | 168,157,505 | (72,149,885) | 44,276,610 | 6,721,984 | (145,270,713) | 430,658,183 | |||||||
Harmony Gold Mining Co. Ltd. | 113,149,948 | 42,491,665 | (16,997,086) | 3,111,347 | 859,324 | (39,513,782) | 102,242,092 | |||||||
Hecla Mining Co. | –(a) | 50,654,106 | (19,685,445) | 6,536,687 | 317,467 | (50,987,126) | 111,956,200 | |||||||
IAMGOLD Corp. | –(a) | 22,020,319 | (8,795,689) | (1,470,004) | – | (37,560,027) | 40,849,461 | |||||||
K92 Mining, Inc. | –(a) | 25,373,226 | (9,642,667) | 465,117 | – | 190,178 | 72,386,138 | |||||||
Kinross Gold Corp. | –(a) | 115,348,983 | (44,449,711) | 6,251,025 | 3,613,076 | (155,895,091) | 246,428,083 | |||||||
New Gold, Inc. | –(a) | 17,274,615 | (7,053,161) | 1,706,758 | – | (18,908,932) | 38,626,619 | |||||||
Northern Star Resources Ltd. | –(a) | 131,507,021 | (53,973,480) | 2,826,594 | 3,726,555 | (149,294,393) | 288,473,625 | |||||||
OceanaGold Corp. | –(a) | 23,929,468 | (9,918,722) | 349,294 | – | 2,328,512 | 71,443,207 | |||||||
Osisko Gold Royalties Ltd. | –(a) | 43,438,652 | (13,871,527) | 1,623,141 | 791,997 | (23,367,738) | 98,873,152 | |||||||
Pan American Silver Corp. | –(a) | 83,984,182 | (34,662,410) | 10,100,706 | 2,377,915 | (74,535,386) | 219,388,302 | |||||||
Perseus Mining Ltd. | –(a) | 35,266,368 | (10,804,647) | 4,852,804 | 318,052 | (16,277,852) | 77,857,838 | |||||||
Ramelius Resources Ltd. | –(a) | 14,182,464 | (6,006,249) | (717,126) | – | (24,361,467) | 27,403,678 | |||||||
Regis Resources Ltd. | –(a) | 17,248,116 | (7,212,386) | (836,082) | – | (21,649,254) | 35,481,219 | |||||||
Royal Gold, Inc. | –(a) | 130,418,328 | (54,577,380) | 15,578,769 | 3,402,756 | (28,435,258) | 371,352,970 | |||||||
Sandstorm Gold Ltd. | –(a) | 22,566,323 | (8,936,219) | 1,694,286 | 288,379 | (7,721,886) | 60,597,959 | |||||||
Silver Lake Resources Ltd. | –(a) | 23,720,890 | (7,831,831) | 569,817 | – | (26,868,865) | 40,811,473 |
See Notes to Financial Statements
13 |
VANECK GOLD MINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Transactions in securities of affiliates for the period ended June 30, 2022 were as follows: (continued)
Value 12/31/2021 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2022 | ||||||||
Silvercorp Metals, Inc. | –(a) | 9,911,024 | (3,975,529) | (765,128) | 111,504 | (11,541,003) | 23,271,159 | |||||||
SSR Mining, Inc. | –(a) | 69,300,586 | (28,622,996) | 13,517,010 | 1,419,919 | (33,454,096) | 188,137,440 | |||||||
St Barbara Ltd. | –(a) | 16,011,209 | (4,621,449) | (732,030) | – | (22,396,479) | 22,107,578 | |||||||
Torex Gold Resources, Inc. | –(a) | 15,647,266 | (6,381,304) | (830,573) | – | (13,262,775) | 35,035,181 | |||||||
Victoria Gold Corp. | –(a) | 12,780,708 | (5,068,099) | (563,682) | – | (12,427,657) | 26,264,519 | |||||||
Wesdome Gold Mines Ltd. | –(a) | 25,400,722 | (9,718,906) | 2,719,302 | – | (10,466,237) | 64,981,408 | |||||||
West African Resources Ltd. | –(a) | 14,616,564 | (6,438,850) | (133,552) | – | (7,288,602) | 44,866,999 | |||||||
Yamana Gold, Inc. | –(a) | 78,574,321 | (33,167,498) | 9,708,999 | 2,993,793 | 159,937 | 236,770,393 | |||||||
Zhaojin Mining Industry Co. Ltd. | –(a) | 37,254,223 | (15,417,460) | (538,341) | – | (1,622,662) | 119,437,638 | |||||||
Zijin Mining Group Co. Ltd. | –(a) | 122,588,302 | (51,646,796) | 36,802,412 | 8,608,268 | (43,982,454) | 369,872,999 | |||||||
$113,149,948 | $2,143,656,403 | $(867,989,072) | $207,128,896 | $54,718,748 | $(1,683,119,363) | $5,337,336,343 |
(a) | Security held by the Fund, however not classified as an affiliate at the beginning of the reporting period. |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 1,271,529,768 | $ | — | $ | 1,271,529,768 | ||||||||
Brazil | 817,096,955 | — | — | 817,096,955 | ||||||||||||
Burkina Faso | 40,849,461 | — | — | 40,849,461 | ||||||||||||
Canada | 4,616,187,661 | — | — | 4,616,187,661 | ||||||||||||
China | — | 489,310,638 | — | 489,310,638 | ||||||||||||
Egypt | — | 58,441,764 | — | 58,441,764 | ||||||||||||
Kyrgyzstan | 106,653,590 | — | — | 106,653,590 | ||||||||||||
Peru | 88,720,566 | — | — | 88,720,566 | ||||||||||||
South Africa | 559,789,682 | — | — | 559,789,682 | ||||||||||||
Tanzania | 327,830,141 | — | — | 327,830,141 | ||||||||||||
Turkey | 62,525,511 | — | — | 62,525,511 | ||||||||||||
United Kingdom | 271,103,639 | — | — | 271,103,639 | ||||||||||||
United States | 2,218,044,495 | — | — | 2,218,044,495 | ||||||||||||
Money Market Fund | 132,623,401 | — | — | 132,623,401 | ||||||||||||
Total Investments | $ | 9,241,425,102 | $ | 1,819,282,170 | $ | — | $ | 11,060,707,272 |
See Notes to Financial Statements
14 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.1% | ||||||||
Australia: 15.1% | ||||||||
Allkem Ltd. # * | 42,343 | $ | 301,717 | |||||
Glencore Plc (GBP) # | 308,535 | 1,667,246 | ||||||
IGO Ltd. # | 39,551 | 270,079 | ||||||
Iluka Resources Ltd. # | 22,157 | 143,984 | ||||||
Lynas Rare Earths Ltd. # * | 59,251 | 356,786 | ||||||
OZ Minerals Ltd. # | 21,230 | 259,999 | ||||||
Pilbara Minerals Ltd. # * | 179,907 | 285,093 | ||||||
3,284,904 | ||||||||
Canada: 6.4% | ||||||||
Hudbay Minerals, Inc. (USD) | 12,701 | 51,820 | ||||||
Ivanhoe Mines Ltd. * | 33,443 | 192,110 | ||||||
Lithium Americas Corp. (USD) * † | 8,027 | 161,584 | ||||||
Teck Resources Ltd. (USD) | 32,904 | 1,005,875 | ||||||
1,411,389 | ||||||||
Chile: 1.3% | ||||||||
Lundin Mining Corp. (CAD) | 46,503 | 294,170 | ||||||
China: 31.8% | ||||||||
Beijing Easpring Material Technology Co. Ltd. # | 26,100 | 353,300 | ||||||
Chengxin Lithium Group Co. Ltd. # | 53,600 | 484,364 | ||||||
China Minmetals Rare Earth Co. Ltd. # | 43,900 | 205,355 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd. # | 151,768 | 798,454 | ||||||
Ganfeng Lithium Co. Ltd. # | 52,300 | 1,164,436 | ||||||
GEM Co. Ltd. # | 324,800 | 441,838 | ||||||
Inner Mongolia Xingye Mining Co. Ltd. # * | 74,000 | 78,570 | ||||||
Jiangxi Copper Co. Ltd. # | 40,303 | 107,252 | ||||||
MMG Ltd. (HKD) # * | 208,000 | 77,228 | ||||||
Nanjing Hanrui Cobalt Co. Ltd. # | 15,900 | 137,865 | ||||||
Ningbo Shanshan Co. Ltd. # | 82,200 | 364,999 | ||||||
Shenghe Resources Holding Co. Ltd. # | 96,800 | 326,748 | ||||||
Tongling Nonferrous Metals Group Co. Ltd. # | 494,800 | 241,449 | ||||||
Western Mining Co. Ltd. # | 124,500 | 220,527 | ||||||
Youngy Co. Ltd. # * | 14,700 | 338,278 | ||||||
Yunnan Copper Co. Ltd. # | 78,600 | 133,633 | ||||||
Yunnan Tin Co. Ltd. # | 71,000 | 177,972 | ||||||
Zhejiang Huayou Cobalt Co. Ltd. # | 91,230 | 1,305,911 | ||||||
6,958,179 | ||||||||
Germany: 0.7% | ||||||||
Aurubis AG # | 2,348 | 159,835 | ||||||
Japan: 2.9% | ||||||||
Mitsubishi Materials Corp. # | 6,500 | 92,921 | ||||||
Sumitomo Metal Mining Co. Ltd. # | 17,800 | 551,166 | ||||||
644,087 | ||||||||
Liechtenstein: 1.8% | ||||||||
Antofagasta Plc (GBP) # | 28,687 | 404,139 |
Number of Shares | Value | |||||||
Mexico: 5.8% | ||||||||
Grupo Mexico SAB de CV | 232,300 | $ | 958,756 | |||||
Southern Copper Corp. (USD) | 6,345 | 316,044 | ||||||
1,274,800 | ||||||||
Poland: 1.1% | ||||||||
KGHM Polska Miedz SA # * | 8,655 | 230,500 | ||||||
Russia: 0.0% | ||||||||
MMC Norilsk Nickel PJSC (ADR) #∞ | 44,052 | 0 | ||||||
South Africa: 13.5% | ||||||||
Anglo American Platinum Ltd. # | 4,157 | 360,193 | ||||||
Anglo American Plc (GBP) # | 41,425 | 1,477,416 | ||||||
Impala Platinum Holdings Ltd. # | 45,040 | 496,224 | ||||||
Northam Platinum Holdings Ltd. # * | 15,980 | 166,337 | ||||||
Sibanye Stillwater Ltd. (ADR) † | 42,224 | 420,973 | ||||||
2,921,143 | ||||||||
Sweden: 2.8% | ||||||||
Boliden AB # | 19,183 | 612,425 | ||||||
United States: 14.1% | ||||||||
Albemarle Corp. | 6,675 | 1,394,941 | ||||||
Freeport-McMoRan, Inc. | 43,199 | 1,264,002 | ||||||
Livent Corp. * | 8,930 | 202,622 | ||||||
MP Materials Corp. * | 6,888 | 220,967 | ||||||
3,082,532 | ||||||||
Zambia: 2.8% | ||||||||
First Quantum Minerals Ltd. (CAD) | 32,001 | 605,810 | ||||||
Total Common Stocks (Cost: $26,464,481) | 21,883,913 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 2.4% (Cost: $530,041) | ||||||||
Money Market Fund: 2.4% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 530,041 | 530,041 | ||||||
Total Investments: 102.5% (Cost: $26,994,522) | 22,413,954 | |||||||
Liabilities in excess of other assets: (2.5)% | (540,221) | |||||||
NET ASSETS: 100.0% | $ | 21,873,733 |
See Notes to Financial Statements
15 |
VANECK GREEN METALS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
GBP | British Pound |
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $14,794,239 which represents 67.6% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $496,178. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Copper | 18.4 | % | $ | 4,016,834 | ||||
Distillers & Vintners | 0.7 | 161,583 | ||||||
Diversified Metals & Mining | 61.3 | 13,409,724 | ||||||
Electrical Components & Equipment | 1.6 | 353,300 | ||||||
Forest Products | 2.2 | 484,363 | ||||||
Precious Metals & Minerals | 6.6 | 1,443,727 | ||||||
Specialty Chemicals | 9.2 | 2,014,382 | ||||||
100.0 | % | $ | 21,883,913 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 3,284,904 | $ | — | $ | 3,284,904 | ||||||||
Canada | 1,411,389 | — | — | 1,411,389 | ||||||||||||
Chile | 294,170 | — | — | 294,170 | ||||||||||||
China | — | 6,958,179 | — | 6,958,179 | ||||||||||||
Germany | — | 159,835 | — | 159,835 | ||||||||||||
Japan | — | 644,087 | — | 644,087 | ||||||||||||
Liechtenstein | — | 404,139 | — | 404,139 | ||||||||||||
Mexico | 1,274,800 | — | — | 1,274,800 | ||||||||||||
Poland | — | 230,500 | — | 230,500 | ||||||||||||
Russia | — | — | 0 | 0 | ||||||||||||
South Africa | 420,973 | 2,500,170 | — | 2,921,143 | ||||||||||||
Sweden | — | 612,425 | — | 612,425 | ||||||||||||
United States | 3,082,532 | — | — | 3,082,532 | ||||||||||||
Zambia | 605,810 | — | — | 605,810 | ||||||||||||
Money Market Fund | 530,041 | — | — | 530,041 | ||||||||||||
Total Investments | $ | 7,619,715 | $ | 14,794,239 | $ | 0 | $ | 22,413,954 |
See Notes to Financial Statements
16 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.8% | ||||||||
Australia: 14.3% | ||||||||
Alkane Resources Ltd. # * † | 19,099,483 | $ | 8,148,737 | |||||
Aurelia Metals Ltd. # * † | 57,101,617 | 10,019,763 | ||||||
Australian Strategic Materials Ltd. # * | 1 | 2 | ||||||
Bellevue Gold Ltd. # * † | 32,575,358 | 14,334,763 | ||||||
Capricorn Metals Ltd. # * | 13,721,500 | 29,612,252 | ||||||
Dacian Gold Ltd. # * † | 38,487,409 | 2,156,254 | ||||||
De Grey Mining Ltd. # * † | 46,548,620 | 25,671,636 | ||||||
Evolution Mining Ltd. # † | 68,578,861 | 111,632,465 | ||||||
Firefinch Ltd. # * † | 54,525,312 | 7,498,867 | ||||||
Gold Road Resources Ltd. # † | 38,644,561 | 29,943,112 | ||||||
Kingsgate Consolidated Ltd. # * † | 10,131,276 | 9,271,284 | ||||||
Perseus Mining Ltd. # | 59,457,120 | 64,270,143 | ||||||
Ramelius Resources Ltd. # | 37,509,157 | 22,366,603 | ||||||
Red 5 Ltd. # * † | 77,854,902 | 13,320,202 | ||||||
Regis Resources Ltd. # † | 28,972,138 | 25,705,533 | ||||||
Resolute Mining Ltd. # * | 41,301,708 | 6,394,172 | ||||||
Silver Lake Resources Ltd. # * † | 38,416,352 | 31,812,840 | ||||||
Silver Mines Ltd. # * † | 62,768,429 | 5,590,694 | ||||||
St Barbara Ltd. # | 30,915,695 | 15,817,064 | ||||||
West African Resources Ltd. # * | 40,680,616 | 33,739,784 | ||||||
Westgold Resources Ltd. # † | 13,343,806 | 10,855,218 | ||||||
478,161,388 | ||||||||
Brazil: 5.7% | ||||||||
Yamana Gold, Inc. (USD) | 41,092,168 | 191,078,581 | ||||||
Burkina Faso: 0.9% | ||||||||
IAMGOLD Corp. (USD) * | 17,916,680 | 28,845,855 | ||||||
Canada: 53.9% | ||||||||
Alamos Gold, Inc. (USD) | 14,861,886 | 104,330,441 | ||||||
Alexco Resource Corp. (USD) * † | 6,878,717 | 2,748,047 | ||||||
Americas Gold & Silver Corp. (USD) * † | 7,895,119 | 5,435,000 | ||||||
Argonaut Gold, Inc. * † | 11,257,211 | 3,927,086 | ||||||
Arizona Metals Corp. * † | 4,393,970 | 13,386,800 | ||||||
Artemis Gold, Inc. * † | 5,012,452 | 21,294,032 | ||||||
Aya Gold & Silver, Inc. * † | 4,130,873 | 21,007,424 | ||||||
B2Gold Corp. (USD) | 36,449,014 | 123,562,157 | ||||||
Calibre Mining Corp. * † | 14,587,079 | 10,969,004 | ||||||
Dakota Gold Corp. (USD) * † | 2,605,851 | 8,729,601 | ||||||
Discovery Silver Corp. * † | 10,486,047 | 9,348,389 | ||||||
Dundee Precious Metals, Inc. | 6,085,719 | 30,241,063 | ||||||
Endeavour Silver Corp. (USD) * | 7,917,188 | 24,859,970 | ||||||
Equinox Gold Corp. (USD) * † | 12,239,773 | 54,344,592 | ||||||
First Majestic Silver Corp. (USD) † | 10,089,313 | 72,441,267 | ||||||
Fortuna Silver Mines, Inc. (USD) * † | 12,763,855 | 36,249,348 | ||||||
Galiano Gold, Inc. (USD) * † | 6,011,340 | 2,416,559 | ||||||
GCM Mining Corp. † | 4,001,590 | 10,888,469 | ||||||
GoGold Resources, Inc. * † | 12,334,321 | 19,601,813 |
Number of Shares | Value | |||||||
Canada (continued) | ||||||||
Gold Royalty Corp. (USD) † | 4,832,752 | $ | 10,873,692 | |||||
Gold Standard Ventures Corp. (USD) * † | 11,329,804 | 3,549,628 | ||||||
GoldMining, Inc. (USD) * † | 6,581,114 | 6,292,861 | ||||||
Great Panther Mining Ltd. (USD) * † | 20,504,237 | 2,530,223 | ||||||
i-80 Gold Corp. * † | 5,953,889 | 10,708,184 | ||||||
Jaguar Mining, Inc. † | 1,091,458 | 2,402,993 | ||||||
K92 Mining, Inc. * † | 7,783,077 | 46,881,281 | ||||||
Karora Resources, Inc. * | 6,035,088 | 15,532,767 | ||||||
Kinross Gold Corp. (USD) | 51,763,966 | 185,314,998 | ||||||
Liberty Gold Corp. * † | 12,441,442 | 5,304,696 | ||||||
Lundin Gold, Inc. * † | 3,999,244 | 28,646,858 | ||||||
MAG Silver Corp. (USD) * † | 3,375,774 | 41,083,170 | ||||||
Marathon Gold Corp. * † | 8,439,718 | 8,636,325 | ||||||
Maverix Metals, Inc. (USD) † | 2,505,816 | 10,900,300 | ||||||
McEwen Mining, Inc. (USD) * † | 19,126,891 | 8,400,531 | ||||||
Metalla Royalty & Streaming Ltd. (USD) * † | 1,948,606 | 9,411,767 | ||||||
New Found Gold Corp. * † | 3,050,568 | 13,645,318 | ||||||
New Gold, Inc. (USD) * | 25,851,507 | 27,661,112 | ||||||
New Pacific Metals Corp. * † | 4,255,584 | 12,107,441 | ||||||
Novagold Resources, Inc. (USD) * | 8,907,081 | 42,843,060 | ||||||
Novo Resources Corp. * † | 9,798,889 | 3,342,386 | ||||||
OceanaGold Corp. * | 27,715,533 | 53,069,783 | ||||||
Orla Mining Ltd. * † | 6,713,745 | 18,320,386 | ||||||
Osisko Gold Royalties Ltd. (USD) | 4,850,103 | 48,986,040 | ||||||
Osisko Mining, Inc. * † | 10,883,948 | 25,818,738 | ||||||
Pan American Silver Corp. (USD) † | 9,205,615 | 181,074,447 | ||||||
Prime Mining Corp. * † | 3,712,189 | 4,690,777 | ||||||
Sabina Gold & Silver Corp. * † | 19,459,736 | 15,990,790 | ||||||
Sandstorm Gold Ltd. (USD) | 8,405,935 | 50,015,313 | ||||||
Seabridge Gold, Inc. (USD) * † | 3,390,390 | 42,142,548 | ||||||
Silvercorp Metals, Inc. (USD) † | 7,658,739 | 18,993,673 | ||||||
SilverCrest Metals, Inc. (USD) * † | 5,530,207 | 33,789,565 | ||||||
Skeena Resources Ltd. * † | 2,069,435 | 10,909,072 | ||||||
SSR Mining, Inc. (USD) † | 7,955,190 | 132,851,673 | ||||||
Sulliden Mining Capital, Inc. * | 1,689,990 | 98,259 | ||||||
Torex Gold Resources, Inc. * | 2,961,392 | 22,819,672 | ||||||
Victoria Gold Corp. * † | 1,785,205 | 13,825,496 | ||||||
Wallbridge Mining Co. Ltd. * † | 29,582,989 | 4,357,353 | ||||||
Wesdome Gold Mines Ltd. * | 5,815,210 | 50,265,198 | ||||||
1,799,869,436 | ||||||||
China: 1.2% | ||||||||
Real Gold Mining Ltd. (HKD) # *∞ | 19,287,400 | 0 |
See Notes to Financial Statements
17 |
VANECK JUNIOR GOLD MINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
China (continued) | ||||||||
Zhaojin Mining Industry Co. Ltd. (HKD) # * † | 45,645,700 | $ | 39,432,897 | |||||
39,432,897 | ||||||||
Egypt: 1.2% | ||||||||
Centamin Plc (GBP) # | 40,457,125 | 38,588,444 | ||||||
Indonesia: 1.9% | ||||||||
Bumi Resources Minerals Tbk PT * | 3,910,353,300 | 64,571,030 | ||||||
Jersey, Channel Islands: 0.1% | ||||||||
Caledonia Mining Corp. Plc (USD) † | 424,011 | 4,642,920 | ||||||
Kyrgyzstan: 1.6% | ||||||||
Centerra Gold, Inc. (CAD) | 7,795,673 | 52,758,809 | ||||||
Mexico: 4.2% | ||||||||
Fresnillo Plc (GBP) # | 8,951,163 | 83,422,015 | ||||||
Industrias Penoles SAB de CV † | 5,987,634 | 55,259,282 | ||||||
138,681,297 | ||||||||
Peru: 2.3% | ||||||||
Cia de Minas Buenaventura SAA (ADR) | 8,948,877 | 59,062,588 | ||||||
Hochschild Mining Plc (GBP) # | 15,480,490 | 18,171,393 | ||||||
77,233,981 | ||||||||
South Africa: 2.2% | ||||||||
DRDGOLD Ltd. (ADR) | 2,100,468 | 12,329,747 | ||||||
Harmony Gold Mining Co. Ltd. (ADR) † | 19,471,513 | 60,945,836 | ||||||
73,275,583 |
Number of Shares | Value | |||||||
Turkey: 1.9% | ||||||||
Eldorado Gold Corp. (USD) * | 6,554,508 | $ | 41,883,306 | |||||
Koza Altin Isletmeleri AS # * | 2,222,937 | 22,592,115 | ||||||
64,475,421 | ||||||||
United Kingdom: 4.6% | ||||||||
Endeavour Mining Plc # | 6,382,780 | 131,931,675 | ||||||
Greatland Gold Plc # * † | 185,915,625 | 20,834,558 | ||||||
152,766,233 | ||||||||
United States: 3.8% | ||||||||
Aura Minerals, Inc. (BRL) (BDR) | 1,728,277 | 11,312,647 | ||||||
Coeur Mining, Inc. * | 9,550,806 | 29,034,450 | ||||||
Gatos Silver, Inc. * | 1,678,999 | 4,818,727 | ||||||
Gold Resource Corp. | 4,034,729 | 6,576,608 | ||||||
Hecla Mining Co. | 19,119,954 | 74,950,220 | ||||||
126,692,652 | ||||||||
Total Common Stocks (Cost: $4,578,741,594) | 3,331,074,527 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 2.8% (Cost: $92,878,949) | ||||||||
Money Market Fund: 2.8% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 92,878,949 | 92,878,949 | ||||||
Total Investments: 102.6% (Cost: $4,671,620,543) | 3,423,953,476 | |||||||
Liabilities in excess of other assets: (2.6)% | (86,489,685) | |||||||
NET ASSETS: 100.0% | $ | 3,337,463,791 |
Definitions:
ADR | American Depositary Receipt |
BDR | Brazilian Depositary Receipt |
BRL | Brazilian Real |
CAD | Canadian Dollar |
GBP | British Pound |
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $833,134,485 which represents 25.0% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $131,657,663. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Diversified Metals & Mining | 3.0 | % | $ | 102,460,724 | ||||
Gold | 75.8 | 2,521,758,285 | ||||||
Precious Metals & Minerals | 5.5 | 181,980,888 | ||||||
Silver | 15.7 | 524,874,630 | ||||||
100.0 | % | $ | 3,331,074,527 |
See Notes to Financial Statements
18 |
Transactions in securities of affiliates for the period ended June 30, 2022 were as follows:
Value 12/31/2021 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2022 | |||||||||||||||||||||
Silver Mines Ltd. | $10,965,205 | $1,087,842 | $(1,842,678) | $(388,872) | $– | $(4,230,803) | $–(a) | ||||||||||||||||||||
Silvercorp Metals, Inc. | 35,008,409 | 3,276,309 | (9,053,615) | (5,061,125) | 97,595 | (5,176,306) | –(a) | ||||||||||||||||||||
$45,973,614 | $4,364,151 | $(10,896,293) | $(5,449,997) | $97,595 | $(9,407,109) | $– |
(a) | Security held by the Fund, however not classified as an affiliate at the end of the reporting period. |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 478,161,388 | $ | — | $ | 478,161,388 | ||||||||
Brazil | 191,078,581 | — | — | 191,078,581 | ||||||||||||
Burkina Faso | 28,845,855 | — | — | 28,845,855 | ||||||||||||
Canada | 1,799,869,436 | — | — | 1,799,869,436 | ||||||||||||
China | — | 39,432,897 | 0 | 39,432,897 | ||||||||||||
Egypt | — | 38,588,444 | — | 38,588,444 | ||||||||||||
Indonesia | 64,571,030 | — | — | 64,571,030 | ||||||||||||
Jersey, Channel Islands | 4,642,920 | — | — | 4,642,920 | ||||||||||||
Kyrgyzstan | 52,758,809 | — | — | 52,758,809 | ||||||||||||
Mexico | 55,259,282 | 83,422,015 | — | 138,681,297 | ||||||||||||
Peru | 59,062,588 | 18,171,393 | — | 77,233,981 | ||||||||||||
South Africa | 73,275,583 | — | — | 73,275,583 | ||||||||||||
Turkey | 41,883,306 | 22,592,115 | — | 64,475,421 | ||||||||||||
United Kingdom | — | 152,766,233 | — | 152,766,233 | ||||||||||||
United States | 126,692,652 | — | — | 126,692,652 | ||||||||||||
Money Market Fund | 92,878,949 | — | — | 92,878,949 | ||||||||||||
Total Investments | $ | 2,590,818,991 | $ | 833,134,485 | $ | 0 | $ | 3,423,953,476 |
See Notes to Financial Statements
19 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.2% | ||||||||
Austria: 0.6% | ||||||||
Verbund AG # | 13,767 | $ | 1,350,043 | |||||
Brazil: 1.2% | ||||||||
Centrais Eletricas Brasileiras SA (ADR) † | 142,630 | 1,265,128 | ||||||
Cia Energetica de Minas Gerais (ADR) † | 523,975 | 1,058,429 | ||||||
Cia Paranaense de Energia (ADR) | 73,132 | 465,120 | ||||||
2,788,677 | ||||||||
Canada: 3.6% | ||||||||
Ballard Power Systems, Inc. (USD) * † | 106,583 | 671,473 | ||||||
Boralex, Inc. † | 38,037 | 1,264,411 | ||||||
Brookfield Renewable Corp. (USD) | 44,716 | 1,592,337 | ||||||
Canadian Solar, Inc. (USD) * † | 18,021 | 561,174 | ||||||
Innergex Renewable Energy, Inc. † | 56,468 | 757,313 | ||||||
Northland Power, Inc. † | 98,511 | 2,926,424 | ||||||
TransAlta Renewables, Inc. † | 45,435 | 579,407 | ||||||
8,352,539 | ||||||||
Chile: 0.3% | ||||||||
Enel Americas SA (ADR) † | 164,387 | 747,961 | ||||||
China: 23.9% | ||||||||
BYD Co. Ltd. (HKD) # | 285,000 | 11,487,980 | ||||||
China Everbright Environment Group Ltd. (HKD) # | 1,490,000 | 881,049 | ||||||
China Longyuan Power Group Corp. Ltd. (HKD) # | 739,000 | 1,432,129 | ||||||
Daqo New Energy Corp. (ADR) * | 23,785 | 1,697,773 | ||||||
GCL Technology Holdings Ltd. (HKD) # * † | 8,766,000 | 4,249,641 | ||||||
JinkoSolar Holding Co. Ltd. (ADR) * | 20,808 | 1,439,498 | ||||||
Li Auto, Inc. (ADR) * | 265,646 | 10,176,898 | ||||||
NIO, Inc. (ADR) * | 608,963 | 13,226,676 | ||||||
Xinyi Solar Holdings Ltd. (HKD) # | 2,044,000 | 3,167,221 | ||||||
XPeng, Inc. (ADR) * | 219,328 | 6,961,471 | ||||||
54,720,336 | ||||||||
Denmark: 7.8% | ||||||||
Orsted AS 144A # | 80,518 | 8,461,630 | ||||||
ROCKWOOL International A/S # | 3,163 | 716,514 | ||||||
Vestas Wind Systems A/S # | 408,344 | 8,662,924 | ||||||
17,841,068 | ||||||||
France: 0.3% | ||||||||
Neoen SA 144A # † | 21,419 | 805,501 | ||||||
Germany: 1.4% | ||||||||
Encavis AG # | 51,226 | 939,083 | ||||||
Nordex SE # * | 45,634 | 390,541 | ||||||
Siemens Gamesa Renewable Energy SA # * † | 95,673 | 1,799,545 | ||||||
3,129,169 | ||||||||
Ireland: 1.1% | ||||||||
Kingspan Group Plc # | 41,752 | 2,504,604 |
Number of Shares | Value | |||||||
Italy: 6.7% | ||||||||
Enel SpA # | 2,674,769 | $ | 14,634,025 | |||||
ERG SpA # | 23,673 | 736,252 | ||||||
15,370,277 | ||||||||
Japan: 0.3% | ||||||||
Horiba Ltd. # | 15,784 | 672,467 | ||||||
New Zealand: 1.6% | ||||||||
Contact Energy Ltd. # | 289,073 | 1,306,495 | ||||||
Mercury NZ Ltd. # † | 276,437 | 969,001 | ||||||
Meridian Energy Ltd. # | 515,639 | 1,497,965 | ||||||
3,773,461 | ||||||||
Norway: 0.5% | ||||||||
NEL ASA # * † | 663,498 | 809,740 | ||||||
Scatec ASA 144A # | 43,967 | 381,198 | ||||||
1,190,938 | ||||||||
Portugal: 1.0% | ||||||||
EDP Renovaveis SA # † | 102,212 | 2,408,751 | ||||||
South Korea: 4.4% | ||||||||
Hanwha Solutions Corp. # * | 45,592 | 1,334,975 | ||||||
Samsung SDI Co. Ltd. # | 21,073 | 8,690,185 | ||||||
10,025,160 | ||||||||
Spain: 8.3% | ||||||||
Acciona SA # † | 10,507 | 1,931,384 | ||||||
Atlantica Sustainable Infrastructure Plc (USD) | 24,410 | 787,467 | ||||||
Iberdrola SA # | 1,567,926 | 16,285,365 | ||||||
19,004,216 | ||||||||
Sweden: 2.0% | ||||||||
Nibe Industrier AB # | 607,106 | 4,568,630 | ||||||
Switzerland: 0.2% | ||||||||
Landis+Gyr Group AG # | 9,105 | 476,493 | ||||||
Taiwan: 0.3% | ||||||||
Simplo Technology Co. Ltd. # | 72,000 | 617,900 | ||||||
Thailand: 0.8% | ||||||||
Energy Absolute PCL (NVDR) # | 762,100 | 1,758,899 | ||||||
United Kingdom: 1.0% | ||||||||
Ceres Power Holdings Plc # * † | 48,897 | 326,527 | ||||||
ITM Power Plc # * † | 198,347 | 417,230 | ||||||
Johnson Matthey Plc # | 66,252 | 1,558,607 | ||||||
2,302,364 | ||||||||
United States: 32.9% | ||||||||
Badger Meter, Inc. | 8,222 | 665,078 | ||||||
Bloom Energy Corp. * † | 48,377 | 798,221 | ||||||
EnerSys | 13,670 | 805,983 | ||||||
Enphase Energy, Inc. * | 45,404 | 8,864,677 | ||||||
First Solar, Inc. * | 29,034 | 1,978,086 | ||||||
Fisker, Inc. * † | 56,135 | 481,077 | ||||||
FuelCell Energy, Inc. * † | 126,421 | 474,079 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. † | 28,858 | 1,092,564 | ||||||
Installed Building Products, Inc. | 6,983 | 580,706 | ||||||
Lucid Group, Inc. * † | 234,265 | 4,019,987 | ||||||
NextEra Energy, Inc. | 245,193 | 18,992,650 | ||||||
Nikola Corp. * † | 120,099 | 571,671 | ||||||
Ormat Technologies, Inc. † | 12,410 | 972,323 | ||||||
Owens Corning | 32,230 | 2,395,011 |
See Notes to Financial Statements
20 |
Number of Shares | Value | |||||||
United States (continued) | ||||||||
Plug Power, Inc. * † | 182,085 | $ | 3,017,148 | |||||
Rivian Automotive, Inc. * | 152,009 | 3,912,712 | ||||||
SolarEdge Technologies, Inc. * | 21,689 | 5,935,846 | ||||||
Sunnova Energy International, Inc. * † | 26,834 | 494,551 | ||||||
Sunrun, Inc. * | 68,862 | 1,608,616 | ||||||
Tesla, Inc. * | 26,523 | 17,861,119 | ||||||
75,522,105 | ||||||||
Total Common Stocks (Cost: $254,029,091) | 229,931,559 |
Number of Shares | Value | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.7% (Cost: $8,445,942) | ||||||||
Money Market Fund: 3.7% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 8,445,942 | $ | 8,445,942 | |||||
Total Investments: 103.9% (Cost: $262,475,033) | 238,377,501 | |||||||
Liabilities in excess of other assets: (3.9)% | (9,046,688) | |||||||
NET ASSETS: 100.0% | $ | 229,330,813 |
Definitions:
ADR | American Depositary Receipt |
HKD | Hong Kong Dollar |
NVDR | Non-Voting Depositary Receipt |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $108,230,494 which represents 47.2% of net assets. |
† | Security fully or partially on loan. Total market value of securities on loan is $26,411,462. |
* | Non-income producing |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $9,648,329, or 4.2% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Consumer Discretionary | 29.9 | % | $ | 68,708,626 | ||||
Financials | 0.5 | 1,092,564 | ||||||
Industrials | 13.7 | 31,419,506 | ||||||
Information Technology | 16.9 | 39,016,039 | ||||||
Materials | 1.3 | 2,893,581 | ||||||
Utilities | 37.7 | 86,801,243 | ||||||
100.0 | % | $ | 229,931,559 |
See Notes to Financial Statements
21 |
VANECK LOW CARBON ENERGY ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Austria | $ | — | $ | 1,350,043 | $ | — | $ | 1,350,043 | ||||||||
Brazil | 2,788,677 | — | — | 2,788,677 | ||||||||||||
Canada | 8,352,539 | — | — | 8,352,539 | ||||||||||||
Chile | 747,961 | — | — | 747,961 | ||||||||||||
China | 33,502,316 | 21,218,020 | — | 54,720,336 | ||||||||||||
Denmark | — | 17,841,068 | — | 17,841,068 | ||||||||||||
France | — | 805,501 | — | 805,501 | ||||||||||||
Germany | — | 3,129,169 | — | 3,129,169 | ||||||||||||
Ireland | — | 2,504,604 | — | 2,504,604 | ||||||||||||
Italy | — | 15,370,277 | — | 15,370,277 | ||||||||||||
Japan | — | 672,467 | — | 672,467 | ||||||||||||
New Zealand | — | 3,773,461 | — | 3,773,461 | ||||||||||||
Norway | — | 1,190,938 | — | 1,190,938 | ||||||||||||
Portugal | — | 2,408,751 | — | 2,408,751 | ||||||||||||
South Korea | — | 10,025,160 | — | 10,025,160 | ||||||||||||
Spain | 787,467 | 18,216,749 | — | 19,004,216 | ||||||||||||
Sweden | — | 4,568,630 | — | 4,568,630 | ||||||||||||
Switzerland | — | 476,493 | — | 476,493 | ||||||||||||
Taiwan | — | 617,900 | — | 617,900 | ||||||||||||
Thailand | — | 1,758,899 | — | 1,758,899 | ||||||||||||
United Kingdom | — | 2,302,364 | — | 2,302,364 | ||||||||||||
United States | 75,522,105 | — | — | 75,522,105 | ||||||||||||
Money Market Fund | 8,445,942 | — | — | 8,445,942 | ||||||||||||
Total Investments | $ | 130,147,007 | $ | 108,230,494 | $ | — | $ | 238,377,501 |
See Notes to Financial Statements
22 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.8% | ||||||||
Argentina: 0.0% | ||||||||
Cresud SACIF y A (ADR) * | 4,767 | $ | 24,026 | |||||
Australia: 8.5% | ||||||||
Alumina Ltd. # | 77,263 | 78,025 | ||||||
Ampol Ltd. # | 4,198 | 98,710 | ||||||
APA Group # † | 20,576 | 159,638 | ||||||
Bega Cheese Ltd. # | 21,494 | 56,531 | ||||||
BHP Group Ltd. # | 166,413 | 4,747,055 | ||||||
BlueScope Steel Ltd. # | 15,727 | 172,638 | ||||||
Costa Group Holdings Ltd. # | 35,167 | 69,279 | ||||||
Elders Ltd. # | 12,098 | 104,929 | ||||||
Evolution Mining Ltd. # | 59,641 | 97,083 | ||||||
Fortescue Metals Group Ltd. # | 51,619 | 618,367 | ||||||
Glencore Plc (GBP) # | 178,502 | 964,581 | ||||||
GrainCorp Ltd. # | 18,246 | 119,692 | ||||||
IGO Ltd. # | 20,911 | 142,793 | ||||||
Inghams Group Ltd. # | 24,245 | 43,059 | ||||||
Lynas Rare Earths Ltd. # * † | 29,368 | 176,842 | ||||||
Newcrest Mining Ltd. # | 29,653 | 420,852 | ||||||
Northern Star Resources Ltd. # † | 38,297 | 178,963 | ||||||
Nufarm Ltd./Australia # | 21,423 | 75,262 | ||||||
Origin Energy Ltd. # † | 30,714 | 121,462 | ||||||
OZ Minerals Ltd. # † | 10,344 | 126,681 | ||||||
Perseus Mining Ltd. # | 40,563 | 43,847 | ||||||
Rio Tinto Plc (GBP) # | 34,495 | 2,057,511 | ||||||
Rural Funds Group # | 28,917 | 49,950 | ||||||
Santos Ltd. # | 56,679 | 286,290 | ||||||
Select Harvests Ltd. # † | 8,961 | 29,007 | ||||||
South32 Ltd. # | 142,007 | 383,345 | ||||||
Tassal Group Ltd. # | 16,435 | 54,170 | ||||||
Turquoise Hill Resources Ltd. (CAD) * | 3,241 | 86,631 | ||||||
Washington H Soul Pattinson & Co. Ltd. # † | 4,005 | 64,979 | ||||||
Woodside Energy Group Ltd. # † | 33,447 | 732,346 | ||||||
12,360,518 | ||||||||
Austria: 0.3% | ||||||||
Andritz AG # | 2,272 | 91,493 | ||||||
Mayr Melnhof Karton AG # | 272 | 46,383 | ||||||
OMV AG # | 2,479 | 116,311 | ||||||
Verbund AG # | 1,485 | 145,625 | ||||||
voestalpine AG # | 3,698 | 78,846 | ||||||
478,658 | ||||||||
Brazil: 3.4% | ||||||||
Adecoagro SA (USD) | 9,488 | 80,268 | ||||||
BrasilAgro - Co. Brasileira de Propriedades Agricolas | 4,300 | 20,047 | ||||||
BRF SA (ADR) * | 57,536 | 147,292 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo (ADR) | 4,517 | 36,091 | ||||||
Cia Siderurgica Nacional SA (ADR) † | 20,489 | 60,033 | ||||||
Cosan SA | 15,200 | 52,900 | ||||||
CSN Mineracao SA | 18,400 | 13,581 |
Number of Shares | Value | |||||||
Brazil (continued) | ||||||||
Dexco SA | 10,100 | $ | 19,063 | |||||
Engie Brasil Energia SA | 2,300 | 18,164 | ||||||
Gerdau SA (ADR) | 37,297 | 160,004 | ||||||
Klabin SA | 35,550 | 137,320 | ||||||
Minerva SA | 20,550 | 52,147 | ||||||
Neoenergia SA | 7,900 | 22,539 | ||||||
Petroleo Brasileiro SA (ADR) | 32,775 | 382,812 | ||||||
Sao Martinho SA | 12,500 | 86,840 | ||||||
SLC Agricola SA | 7,865 | 66,371 | ||||||
Suzano SA | 23,300 | 221,396 | ||||||
Vale SA (ADR) | 145,098 | 2,122,784 | ||||||
Wheaton Precious Metals Corp. (USD) | 14,977 | 539,621 | ||||||
Yamana Gold, Inc. (USD) | 31,549 | 146,703 | ||||||
Yara International ASA (NOK) # | 12,308 | 514,149 | ||||||
4,900,125 | ||||||||
British Virgin Islands: 0.1% | ||||||||
Japfa Ltd. (SGD) # | 30,000 | 12,842 | ||||||
Lee & Man Paper Manufacturing Ltd. (HKD) # | 37,100 | 15,946 | ||||||
Nine Dragons Paper Holdings Ltd. (HKD) # | 48,757 | 41,336 | ||||||
70,124 | ||||||||
Canada: 10.1% | ||||||||
Agnico Eagle Mines Ltd. (USD) | 15,126 | 692,166 | ||||||
Alamos Gold, Inc. | 13,020 | 91,143 | ||||||
Algonquin Power & Utilities Corp. † | 8,882 | 119,120 | ||||||
AltaGas Ltd. | 4,891 | 102,980 | ||||||
ARC Resources Ltd. † | 12,012 | 151,134 | ||||||
B2Gold Corp. † | 34,770 | 117,522 | ||||||
Ballard Power Systems, Inc. * † | 3,149 | 19,847 | ||||||
Barrick Gold Corp. (USD) | 58,486 | 1,034,617 | ||||||
Boralex, Inc. † | 1,329 | 44,178 | ||||||
Cameco Corp. (USD) | 13,096 | 275,278 | ||||||
Canadian Natural Resources Ltd. (USD) | 20,069 | 1,077,304 | ||||||
Canadian Solar, Inc. (USD) * † | 608 | 18,933 | ||||||
Canadian Utilities Ltd. | 2,117 | 63,004 | ||||||
Canfor Corp. * † | 1,892 | 32,928 | ||||||
Cenovus Energy, Inc. | 25,148 | 477,441 | ||||||
Emera, Inc. † | 4,601 | 215,078 | ||||||
Enbridge, Inc. (USD) | 35,682 | 1,507,921 | ||||||
Equinox Gold Corp. * † | 9,148 | 40,707 | ||||||
Filo Mining Corp. * † | 2,661 | 36,719 | ||||||
First Majestic Silver Corp. † | 7,554 | 54,051 | ||||||
Franco-Nevada Corp. | 6,289 | 825,500 | ||||||
Innergex Renewable Energy, Inc. † | 1,857 | 24,905 | ||||||
Ivanhoe Mines Ltd. * † | 18,704 | 107,443 | ||||||
Kinross Gold Corp. (USD) | 42,622 | 152,587 | ||||||
Lundin Gold, Inc. * | 2,480 | 17,764 | ||||||
Maple Leaf Foods, Inc. | 6,033 | 118,373 | ||||||
Methanex Corp. † | 963 | 36,707 |
See Notes to Financial Statements
23 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
Canada (continued) | ||||||||
Northland Power, Inc. | 2,974 | $ | 88,347 | |||||
Novagold Resources, Inc. (USD) * | 7,522 | 36,181 | ||||||
Nutrien Ltd. (USD) | 44,495 | 3,545,806 | ||||||
Osisko Gold Royalties Ltd. † | 6,013 | 60,505 | ||||||
Pan American Silver Corp. (USD) | 6,988 | 137,454 | ||||||
Pembina Pipeline Corp. † | 9,724 | 342,992 | ||||||
SSR Mining, Inc. (USD) | 6,981 | 116,583 | ||||||
Stella-Jones, Inc. | 1,995 | 50,264 | ||||||
Suncor Energy, Inc. (USD) | 25,215 | 884,290 | ||||||
Sundial Growers, Inc. (USD) * † | 165,899 | 54,100 | ||||||
TC Energy Corp. (USD) | 17,111 | 886,521 | ||||||
Teck Resources Ltd. (USD) | 17,354 | 530,512 | ||||||
Tourmaline Oil Corp. † | 5,502 | 285,475 | ||||||
TransAlta Renewables, Inc. † | 1,411 | 17,994 | ||||||
West Fraser Timber Co. Ltd. † | 2,357 | 180,473 | ||||||
14,672,847 | ||||||||
Chile: 0.8% | ||||||||
Empresas CMPC SA | 34,039 | 55,408 | ||||||
Empresas Copec SA | 6,640 | 47,982 | ||||||
Lundin Mining Corp. (CAD) | 20,319 | 128,535 | ||||||
Sociedad Quimica y Minera de Chile SA (ADR) | 11,042 | 922,338 | ||||||
1,154,263 | ||||||||
China: 1.9% | ||||||||
Aluminum Corp. of China Ltd. (HKD) # | 122,500 | 46,048 | ||||||
Angang Steel Co. Ltd. (HKD) # | 45,840 | 17,161 | ||||||
Astra Agro Lestari Tbk PT (IDR) # | 31,000 | 20,405 | ||||||
Beijing Enterprises Water Group Ltd. (HKD) # | 51,200 | 15,447 | ||||||
China Coal Energy Co. Ltd. (HKD) # | 35,200 | 29,744 | ||||||
China Gas Holdings Ltd. (HKD) # | 47,000 | 72,760 | ||||||
China Hongqiao Group Ltd. (HKD) # † | 79,200 | 89,221 | ||||||
China Longyuan Power Group Corp. Ltd. (HKD) # | 44,629 | 86,488 | ||||||
China Petroleum & Chemical Corp. (HKD) # | 336,327 | 151,546 | ||||||
China Resources Gas Group Ltd. (HKD) # | 15,500 | 72,251 | ||||||
China Shenhua Energy Co. Ltd. (HKD) # | 59,491 | 170,634 | ||||||
CMOC Group Ltd. (HKD) # * † | 119,000 | 66,449 | ||||||
ENN Energy Holdings Ltd. (HKD) # | 13,300 | 219,828 | ||||||
Hong Kong & China Gas Co. Ltd. (HKD) # | 190,605 | 205,700 | ||||||
Jiangxi Copper Co. Ltd. (HKD) # | 35,400 | 48,407 |
Number of Shares | Value | |||||||
China (continued) | ||||||||
Kunlun Energy Co. Ltd. (HKD) # | 69,600 | $ | 57,074 | |||||
Maanshan Iron & Steel Co. Ltd. (HKD) # † | 40,900 | 12,426 | ||||||
PetroChina Co. Ltd. (HKD) # | 371,340 | 174,157 | ||||||
Power Assets Holdings Ltd. (HKD) # | 24,300 | 153,085 | ||||||
Shandong Chenming Paper Holdings Ltd. (HKD) # * | 11,900 | 4,532 | ||||||
Shandong Gold Mining Co. Ltd. (HKD) 144A # | 22,800 | 39,591 | ||||||
Sinofert Holdings Ltd. (HKD) # * † | 140,900 | 20,672 | ||||||
United Tractors Tbk PT (IDR) # | 26,900 | 51,374 | ||||||
Wilmar International Ltd. (SGD) # | 149,564 | 434,568 | ||||||
Xinyi Solar Holdings Ltd. (HKD) # | 58,000 | 89,872 | ||||||
Yankuang Energy Group Co. Ltd. (HKD) # * † | 25,300 | 79,145 | ||||||
Zhaojin Mining Industry Co. Ltd. (HKD) # * | 59,100 | 51,056 | ||||||
Zijin Mining Group Co. Ltd. (HKD) # | 188,461 | 229,331 | ||||||
2,708,972 | ||||||||
Cyprus: 0.0% | ||||||||
Novolipetsk Steel PJSC (USD) (GDR) #∞ | 2,691 | 0 | ||||||
Czech Republic: 0.1% | ||||||||
CEZ AS # | 2,748 | 123,722 | ||||||
Denmark: 0.5% | ||||||||
Bakkafrost P/F (NOK) # | 4,001 | 257,080 | ||||||
Orsted AS 144A # | 2,500 | 262,725 | ||||||
Vestas Wind Systems A/S # | 12,947 | 274,667 | ||||||
794,472 | ||||||||
Egypt: 0.1% | ||||||||
Abou Kir Fertilizers & Chemical Industries # | 23,261 | 28,055 | ||||||
Centamin Plc (GBP) # | 38,012 | 36,256 | ||||||
Egypt Kuwait Holding Co. SAE # | 36,970 | 40,856 | ||||||
105,167 | ||||||||
Finland: 0.8% | ||||||||
Kemira Oyj # | 3,197 | 39,103 | ||||||
Metsa Board Oyj # | 5,211 | 43,537 | ||||||
Neste Oyj # | 7,452 | 330,681 | ||||||
Stora Enso Oyj # | 17,839 | 281,987 | ||||||
UPM-Kymmene Oyj # | 16,393 | 501,464 | ||||||
1,196,772 | ||||||||
France: 1.8% | ||||||||
Electricite de France SA # | 7,409 | 60,711 | ||||||
Eramet SA # | 265 | 27,683 | ||||||
Neoen SA 144A # † | 580 | 21,812 | ||||||
SunPower Corp. (USD) * † | 1,126 | 17,802 | ||||||
TotalEnergies SE # | 42,294 | 2,220,917 | ||||||
Veolia Environnement SA # * † | 8,971 | 219,384 |
See Notes to Financial Statements
24 |
Number of Shares | Value | |||||||
France (continued) | ||||||||
Voltalia SA # * | 378 | $ | 7,554 | |||||
2,575,863 | ||||||||
Germany: 3.9% | ||||||||
Aurubis AG # | 975 | 66,371 | ||||||
Bayer AG # | 79,118 | 4,713,367 | ||||||
E.ON SE # | 29,326 | 246,426 | ||||||
Encavis AG # | 1,527 | 27,993 | ||||||
K+S AG # | 15,414 | 374,249 | ||||||
Nordex SE # * | 1,311 | 11,220 | ||||||
Siemens Energy AG # | 7,424 | 109,156 | ||||||
Siemens Gamesa Renewable Energy SA # * † | 2,971 | 55,882 | ||||||
Suedzucker AG # | 4,769 | 77,034 | ||||||
Uniper SE # | 1,418 | 21,140 | ||||||
VERBIO Vereinigte BioEnergie AG # | 259 | 13,017 | ||||||
5,715,855 | ||||||||
Greece: 0.0% | ||||||||
Terna Energy SA # | 704 | 12,710 | ||||||
Hungary: 0.0% | ||||||||
MOL Hungarian Oil & Gas Plc # | 6,640 | 51,200 | ||||||
India: 1.3% | ||||||||
Reliance Industries Ltd. (USD) 144A (GDR) # * | 28,005 | 1,830,878 | ||||||
Indonesia: 0.2% | ||||||||
Adaro Energy Indonesia Tbk PT # | 247,900 | 47,741 | ||||||
Golden Agri-Resources Ltd. (SGD) # | 475,619 | 85,470 | ||||||
Indah Kiat Pulp & Paper Tbk PT # | 81,400 | 41,607 | ||||||
Merdeka Copper Gold Tbk PT # * | 447,847 | 119,945 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk PT # | 39,400 | 17,081 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT # | 219,800 | 17,128 | ||||||
Vale Indonesia Tbk PT # * | 65,300 | 24,850 | ||||||
353,822 | ||||||||
Ireland: 0.2% | ||||||||
Smurfit Kappa Group Plc (GBP) # | 8,157 | 273,703 | ||||||
Israel: 0.4% | ||||||||
Energix-Renewable Energies Ltd. # | 3,008 | 9,144 | ||||||
Enlight Renewable Energy Ltd. # * | 12,080 | 23,063 | ||||||
ICL Group Ltd. # | 57,771 | 526,347 | ||||||
558,554 | ||||||||
Italy: 0.5% | ||||||||
ACEA SpA # | 563 | 8,326 | ||||||
Eni SpA # | 41,919 | 496,001 | ||||||
ERG SpA # | 735 | 22,859 | ||||||
Snam SpA # † | 34,338 | 179,720 | ||||||
706,906 |
Number of Shares | Value | |||||||
Japan: 2.8% | ||||||||
Chubu Electric Power Co., Inc. # | 10,800 | $ | 108,609 | |||||
Daio Paper Corp. # | 2,400 | 25,081 | ||||||
ENEOS Holdings, Inc. # | 53,500 | 201,050 | ||||||
Hitachi Metals Ltd. # * | 6,517 | 98,528 | ||||||
Hokuto Corp. # | 1,500 | 21,376 | ||||||
Idemitsu Kosan Co. Ltd. # | 3,400 | 81,117 | ||||||
Inpex Corp. # † | 17,300 | 185,222 | ||||||
JFE Holdings, Inc. # | 14,964 | 157,221 | ||||||
Kubota Corp. # † | 75,400 | 1,128,496 | ||||||
Kumiai Chemical Industry Co. Ltd. # | 5,700 | 46,382 | ||||||
Kurita Water Industries Ltd. # † | 1,265 | 45,732 | ||||||
Maruha Nichiro Corp. # | 3,036 | 57,087 | ||||||
NH Foods Ltd. # | 6,100 | 190,827 | ||||||
Nippon Sanso Holdings Corp. # | 2,700 | 43,175 | ||||||
Nippon Steel Corp. # | 25,300 | 353,620 | ||||||
Nippon Suisan Kaisha Ltd. # | 21,614 | 91,256 | ||||||
Nissan Chemical Corp. # | 8,900 | 410,271 | ||||||
Nisshin Seifun Group, Inc. # | 14,250 | 166,554 | ||||||
Oji Holdings Corp. # | 23,776 | 102,873 | ||||||
Sakata Seed Corp. # | 2,300 | 77,410 | ||||||
Sumitomo Forestry Co. Ltd. # | 4,183 | 59,413 | ||||||
Sumitomo Metal Mining Co. Ltd. # | 7,300 | 226,040 | ||||||
Tokyo Gas Co. Ltd. # | 6,500 | 134,533 | ||||||
4,011,873 | ||||||||
Kazakhstan: 0.0% | ||||||||
NAC Kazatomprom JSC (USD) (GDR) # | 2,131 | 55,219 | ||||||
Kyrgyzstan: 0.0% | ||||||||
Centerra Gold, Inc. (CAD) | 7,306 | 49,445 | ||||||
Liechtenstein: 0.1% | ||||||||
Antofagasta Plc (GBP) # † | 11,343 | 159,799 | ||||||
Luxembourg: 0.3% | ||||||||
ArcelorMittal SA # | 19,114 | 427,616 | ||||||
Malaysia: 0.5% | ||||||||
Genting Plantations Bhd | 23,151 | 33,879 | ||||||
HAP Seng Consolidated Bhd # | 42,100 | 68,111 | ||||||
IOI Corp. Bhd # | 177,194 | 154,411 | ||||||
Kuala Lumpur Kepong Bhd # | 32,178 | 160,107 | ||||||
Petronas Dagangan Bhd # | 4,000 | 19,182 | ||||||
Petronas Gas Bhd # | 11,900 | 44,371 | ||||||
PPB Group Bhd | 35,500 | 127,744 | ||||||
Press Metal Aluminium Holdings Bhd # | 94,800 | 102,560 | ||||||
Ta Ann Holdings Bhd | 12,200 | 11,017 | ||||||
721,382 | ||||||||
Mexico: 0.6% | ||||||||
Fresnillo Plc (GBP) # | 5,872 | 54,725 | ||||||
Gruma SAB de CV † | 15,065 | 166,175 | ||||||
Grupo Mexico SAB de CV | 102,364 | 422,480 |
See Notes to Financial Statements
25 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
Mexico (continued) | ||||||||
Industrias Penoles SAB de CV | 4,132 | $ | 38,134 | |||||
Southern Copper Corp. (USD) | 2,796 | 139,269 | ||||||
820,783 | ||||||||
Netherlands: 0.5% | ||||||||
OCI NV # | 7,297 | 239,467 | ||||||
Tenaris SA (ADR) | 7,568 | 194,422 | ||||||
Ternium SA (ADR) † | 6,453 | 232,889 | ||||||
666,778 | ||||||||
Norway: 1.5% | ||||||||
Aker BP ASA # † | 1,903 | 65,706 | ||||||
Austevoll Seafood ASA # | 6,857 | 80,627 | ||||||
Equinor ASA # | 18,363 | 637,920 | ||||||
Mowi ASA # | 32,899 | 750,035 | ||||||
NEL ASA # * † | 20,398 | 24,894 | ||||||
Norsk Hydro ASA # | 44,209 | 249,077 | ||||||
Salmar ASA # | 4,554 | 321,425 | ||||||
2,129,684 | ||||||||
Peru: 0.0% | ||||||||
Cia de Minas Buenaventura SAA (ADR) | 7,076 | 46,702 | ||||||
Poland: 0.2% | ||||||||
Grupa Azoty SA # * | 3,755 | 37,662 | ||||||
KGHM Polska Miedz SA # * | 4,471 | 119,072 | ||||||
Polski Koncern Naftowy ORLEN SA # | 5,123 | 78,414 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA # | 28,500 | 36,238 | ||||||
271,386 | ||||||||
Portugal: 0.1% | ||||||||
EDP Renovaveis SA # † | 3,174 | 74,799 | ||||||
Galp Energia SGPS SA # | 8,694 | 101,486 | ||||||
Navigator Co. SA # | 6,756 | 27,092 | ||||||
203,377 | ||||||||
Russia: 0.0% | ||||||||
Evraz Plc (GBP) #∞ | 10,824 | 0 | ||||||
Gazprom PJSC (ADR) #∞ | 62,760 | 0 | ||||||
LUKOIL PJSC (ADR) #∞ | 3,739 | 0 | ||||||
MMC Norilsk Nickel PJSC (ADR) #∞ | 12,857 | 0 | ||||||
Novatek PJSC (USD) (GDR) #∞ | 1,958 | 0 | ||||||
PhosAgro PJSC (USD) (GDR) #∞ | 89 | 0 | ||||||
PhosAgro PJSC (USD) (GDR) #∞ | 13,870 | 0 | ||||||
Polyus PJSC (USD) (GDR) #∞ | 1,669 | 0 | ||||||
Ros Agro Plc (USD) (GDR) #∞ | 4,076 | 0 | ||||||
Rosneft Oil Co. PJSC (USD) (GDR) #∞ | 13,000 | 0 | ||||||
Severstal PAO (USD) (GDR) #∞ | 4,118 | 0 | ||||||
Surgutneftegas PJSC (ADR) #∞ | 37,143 | 0 | ||||||
Tatneft PJSC (ADR) #∞ | 2,680 | 0 | ||||||
0 |
Number of Shares | Value | |||||||
Saudi Arabia: 0.0% | ||||||||
S-Oil Corp. (KRW) # | 734 | $ | 58,503 | |||||
Singapore: 0.3% | ||||||||
Charoen Pokphand Indonesia Tbk PT (IDR) # | 581,100 | 234,152 | ||||||
First Resources Ltd. # | 29,300 | 34,382 | ||||||
Keppel Infrastructure Trust # | 53,400 | 21,896 | ||||||
Olam Group Ltd. # * | 71,209 | 77,906 | ||||||
368,336 | ||||||||
South Africa: 2.0% | ||||||||
Anglo American Platinum Ltd. # | 1,850 | 160,298 | ||||||
Anglo American Plc (GBP) # | 40,013 | 1,427,058 | ||||||
Astral Foods Ltd. | 3,111 | 35,775 | ||||||
Gold Fields Ltd. (ADR) | 29,590 | 269,861 | ||||||
Harmony Gold Mining Co. Ltd. (ADR) | 18,013 | 56,381 | ||||||
Impala Platinum Holdings Ltd. # | 28,222 | 310,933 | ||||||
Northam Platinum Holdings Ltd. # * | 10,271 | 106,911 | ||||||
Omnia Holdings Ltd. | 13,478 | 59,786 | ||||||
Royal Bafokeng Platinum Ltd. † | 2,603 | 23,277 | ||||||
Sasol Ltd. # * | 10,197 | 233,500 | ||||||
Sibanye Stillwater Ltd. # | 91,134 | 224,758 | ||||||
2,908,538 | ||||||||
South Korea: 0.6% | ||||||||
Coway Co. Ltd. # | 712 | 35,228 | ||||||
CS Wind Corp. # | 318 | 14,165 | ||||||
Hyundai Steel Co. # | 2,720 | 67,466 | ||||||
Korea Zinc Co. Ltd. # | 285 | 107,272 | ||||||
POSCO Holdings, Inc. # | 2,436 | 434,429 | ||||||
SK Innovation Co. Ltd. # | 939 | 139,401 | ||||||
SK, Inc. # | 653 | 108,671 | ||||||
906,632 | ||||||||
Spain: 1.1% | ||||||||
Atlantica Sustainable Infrastructure Plc (USD) | 832 | 26,840 | ||||||
Enagas SA # † | 4,154 | 91,653 | ||||||
Iberdrola SA # | 109,998 | 1,142,501 | ||||||
Repsol SA # † | 24,215 | 356,126 | ||||||
1,617,120 | ||||||||
Sweden: 1.0% | ||||||||
BillerudKorsnas AB # † | 4,452 | 52,111 | ||||||
BillerudKorsnas AB * † | 1,284 | 15,036 | ||||||
Boliden AB # | 8,811 | 281,295 | ||||||
Epiroc AB # | 10,738 | 166,207 | ||||||
Holmen AB # | 2,859 | 116,257 | ||||||
Husqvarna AB # † | 33,042 | 243,127 | ||||||
Lundin Energy MergerCo AB # * † | 3,324 | 135,148 | ||||||
Orron Energy AB # † | 3,324 | 2,256 | ||||||
SSAB AB # | 20,276 | 84,106 | ||||||
Svenska Cellulosa AB SCA # | 18,982 | 284,714 | ||||||
1,380,257 | ||||||||
Taiwan: 0.4% | ||||||||
China Steel Corp. # | 408,472 | 391,112 |
See Notes to Financial Statements
26 |
Number of Shares | Value | |||||||
Taiwan (continued) | ||||||||
Formosa Petrochemical Corp. # | 19,920 | $ | 62,791 | |||||
Taiwan Fertilizer Co. Ltd. # | 57,200 | 122,976 | ||||||
576,879 | ||||||||
Tanzania: 0.1% | ||||||||
AngloGold Ashanti Ltd. (ADR) | 13,888 | 205,404 | ||||||
Thailand: 0.3% | ||||||||
B Grimm Power PCL (NVDR) # | 12,400 | 12,296 | ||||||
Energy Absolute PCL (NVDR) # | 14,300 | 33,004 | ||||||
PTT Exploration & Production PCL (NVDR) # | 23,800 | 107,289 | ||||||
PTT PCL (NVDR) # | 241,500 | 232,513 | ||||||
SCG Packaging PCL (NVDR) # | 35,300 | 55,528 | ||||||
440,630 | ||||||||
Turkey: 0.2% | ||||||||
Eldorado Gold Corp. (USD) * | 6,074 | 38,813 | ||||||
Eregli Demir ve Celik Fabrikalari TAS # | 55,227 | 89,798 | ||||||
Gubre Fabrikalari TAS # * | 4,304 | 18,325 | ||||||
Hektas Ticaret TAS # * | 58,177 | 103,384 | ||||||
250,320 | ||||||||
Ukraine: 0.0% | ||||||||
Kernel Holding SA (PLN) # | 3,181 | 13,505 | ||||||
United Kingdom: 5.0% | ||||||||
BP Plc # | 333,692 | 1,563,180 | ||||||
Centrica Plc # * | 101,738 | 99,118 | ||||||
Ceres Power Holdings Plc # * † | 1,413 | 9,436 | ||||||
CNH Industrial NV (USD) | 79,618 | 922,773 | ||||||
ContourGlobal Plc 144A # | 2,342 | 7,184 | ||||||
DS Smith Plc # | 41,764 | 141,116 | ||||||
Endeavour Mining Plc (CAD) | 6,104 | 126,012 | ||||||
ITM Power Plc # * † | 5,025 | 10,570 | ||||||
Kumba Iron Ore Ltd. (ZAR) # | 1,800 | 57,949 | ||||||
Mondi Plc # | 15,067 | 266,815 | ||||||
Pennon Group Plc # | 3,501 | 40,643 | ||||||
Severn Trent Plc # | 3,077 | 101,918 | ||||||
Shell Plc # | 132,317 | 3,437,834 | ||||||
SSE Plc | 18,619 | 366,592 | ||||||
United Utilities Group Plc # | 8,833 | 109,698 | ||||||
7,260,838 | ||||||||
United States: 47.1% | ||||||||
A.O. Smith Corp. | 1,702 | 93,064 | ||||||
Advanced Drainage Systems, Inc. | 798 | 71,876 | ||||||
AGCO Corp. | 4,923 | 485,900 | ||||||
Alcoa Corp. | 6,001 | 273,526 | ||||||
Ameresco, Inc. * † | 415 | 18,907 | ||||||
American States Water Co. | 484 | 39,451 | ||||||
American Vanguard Corp. | 2,212 | 49,438 | ||||||
American Water Works Co., Inc. | 2,402 | 357,346 | ||||||
Andersons, Inc. | 2,546 | 83,993 | ||||||
Antero Resources Corp. * | 4,878 | 149,511 | ||||||
APA Corp. | 6,111 | 213,274 |
Number of Shares | Value | |||||||
United States (continued) | ||||||||
Archer-Daniels-Midland Co. | 44,845 | $ | 3,479,972 | |||||
Atmos Energy Corp. | 2,362 | 264,780 | ||||||
Baker Hughes Co. | 17,170 | 495,698 | ||||||
Boise Cascade Co. | 1,224 | 72,816 | ||||||
Bunge Ltd. | 11,380 | 1,032,052 | ||||||
Cal-Maine Foods, Inc. | 3,022 | 149,317 | ||||||
CF Industries Holdings, Inc. | 16,528 | 1,416,946 | ||||||
Cheniere Energy, Inc. | 4,436 | 590,121 | ||||||
Chesapeake Energy Corp. † | 1,984 | 160,902 | ||||||
Chevron Corp. | 34,610 | 5,010,836 | ||||||
Clearway Energy, Inc. † | 1,039 | 36,199 | ||||||
Cleveland-Cliffs, Inc. * | 15,687 | 241,109 | ||||||
Commercial Metals Co. | 3,954 | 130,877 | ||||||
ConocoPhillips | 22,830 | 2,050,362 | ||||||
Continental Resources, Inc. | 2,431 | 158,866 | ||||||
Corteva, Inc. | 58,530 | 3,168,814 | ||||||
Coterra Energy, Inc. | 14,000 | 361,060 | ||||||
Darling Ingredients, Inc. * | 12,882 | 770,344 | ||||||
Deere & Co. | 22,483 | 6,732,984 | ||||||
Devon Energy Corp. | 11,466 | 631,891 | ||||||
Diamondback Energy, Inc. | 2,969 | 359,694 | ||||||
Elanco Animal Health, Inc. * | 36,605 | 718,556 | ||||||
EOG Resources, Inc. | 10,312 | 1,138,857 | ||||||
EQT Corp. | 6,301 | 216,754 | ||||||
Essential Utilities, Inc. | 3,344 | 153,322 | ||||||
Evoqua Water Technologies Corp. * | 1,565 | 50,878 | ||||||
Exxon Mobil Corp. | 74,437 | 6,374,785 | ||||||
Farmland Partners, Inc. | 1,980 | 27,324 | ||||||
First Solar, Inc. * | 1,240 | 84,481 | ||||||
FMC Corp. | 10,037 | 1,074,059 | ||||||
Franklin Electric Co., Inc. | 509 | 37,289 | ||||||
Freeport-McMoRan, Inc. | 47,823 | 1,399,301 | ||||||
Fresh Del Monte Produce, Inc. | 2,996 | 88,472 | ||||||
FuelCell Energy, Inc. * † | 4,653 | 17,449 | ||||||
Graphic Packaging Holding Co. | 9,664 | 198,112 | ||||||
Halliburton Co. | 15,889 | 498,279 | ||||||
Hecla Mining Co. | 17,534 | 68,733 | ||||||
Hess Corp. | 4,911 | 520,271 | ||||||
HF Sinclair Corp. | 2,831 | 127,848 | ||||||
Howmet Aerospace, Inc. | 13,591 | 427,437 | ||||||
Imperial Oil Ltd. | 3,536 | 166,581 | ||||||
Ingredion, Inc. | 5,141 | 453,231 | ||||||
International Paper Co. | 11,752 | 491,586 | ||||||
Intrepid Potash, Inc. * | 746 | 33,786 | ||||||
Itron, Inc. * | 589 | 29,114 | ||||||
Kinder Morgan, Inc. | 34,750 | 582,410 | ||||||
Lindsay Corp. | 875 | 116,218 | ||||||
Louisiana-Pacific Corp. | 2,548 | 133,541 | ||||||
LSB Industries, Inc. * | 6,564 | 90,977 | ||||||
Marathon Oil Corp. | 12,658 | 284,552 | ||||||
Marathon Petroleum Corp. | 9,839 | 808,864 | ||||||
Matador Resources Co. | 1,913 | 89,127 | ||||||
Mission Produce, Inc. * † | 3,299 | 47,011 | ||||||
Mosaic Co. | 29,152 | 1,376,849 | ||||||
National Fuel Gas Co. | 1,546 | 102,113 |
See Notes to Financial Statements
27 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
United States (continued) | ||||||||
New Fortress Energy, Inc. † | 1,312 | $ | 51,916 | |||||
Newmont Corp. | 26,350 | 1,572,305 | ||||||
NextEra Energy, Inc. | 25,966 | 2,011,326 | ||||||
NiSource, Inc. | 7,076 | 208,671 | ||||||
NOV, Inc. | 6,851 | 115,850 | ||||||
Nucor Corp. | 8,747 | 913,274 | ||||||
Occidental Petroleum Corp. | 16,504 | 971,756 | ||||||
ONEOK, Inc. | 7,788 | 432,234 | ||||||
Ormat Technologies, Inc. † | 741 | 58,057 | ||||||
Ovintiv, Inc. | 4,511 | 199,341 | ||||||
Packaging Corp. of America | 2,908 | 399,850 | ||||||
PDC Energy, Inc. | 1,663 | 102,458 | ||||||
Pentair Plc | 2,186 | 100,053 | ||||||
PG&E Corp. * | 27,308 | 272,534 | ||||||
Phillips 66 | 8,390 | 687,896 | ||||||
Pilgrim’s Pride Corp. * | 3,732 | 116,550 | ||||||
Pioneer Natural Resources Co. | 4,150 | 925,782 | ||||||
Plug Power, Inc. * † | 6,799 | 112,659 | ||||||
PotlatchDeltic Corp. | 2,131 | 94,169 | ||||||
Primo Water Corp. | 2,065 | 27,630 | ||||||
Range Resources Corp. * | 4,490 | 111,128 | ||||||
Rayonier, Inc. | 4,568 | 170,752 | ||||||
Reliance Steel & Aluminum Co. | 2,016 | 342,438 | ||||||
Reliance Worldwide Corp. Ltd. (AUD) # † | 8,981 | 25,003 | ||||||
Royal Gold, Inc. | 2,179 | 232,674 | ||||||
Schlumberger NV | 24,893 | 890,174 | ||||||
Scotts Miracle-Gro Co. | 3,223 | 254,585 | ||||||
Seaboard Corp. | 21 | 81,534 | ||||||
SJW Group | 352 | 21,968 | ||||||
SolarEdge Technologies, Inc. * | 710 | 194,313 | ||||||
Southern Co. | 18,717 | 1,334,709 |
Number of Shares | Value | |||||||
United States (continued) | ||||||||
Southwestern Energy Co. * | 15,925 | $ | 99,531 | |||||
Steel Dynamics, Inc. | 5,856 | 387,374 | ||||||
Sylvamo Corp. | 1,034 | 33,791 | ||||||
Targa Resources Corp. | 3,941 | 235,160 | ||||||
The Williams Companies, Inc. | 21,443 | 669,236 | ||||||
Toro Co. | 8,449 | 640,350 | ||||||
Tractor Supply Co. | 8,941 | 1,733,213 | ||||||
Tyson Foods, Inc. | 22,846 | 1,966,127 | ||||||
UGI Corp. | 3,659 | 141,274 | ||||||
United States Steel Corp. | 8,479 | 151,859 | ||||||
Valero Energy Corp. | 7,212 | 766,491 | ||||||
Watts Water Technologies, Inc. | 359 | 44,100 | ||||||
Westrock Co. | 8,251 | 328,720 | ||||||
Weyerhaeuser Co. | 23,656 | 783,487 | ||||||
Xylem, Inc. | 2,380 | 186,068 | ||||||
68,380,463 | ||||||||
Zambia: 0.2% | ||||||||
First Quantum Minerals Ltd. (CAD) | 18,175 | 344,070 | ||||||
Total Common Stocks (Cost: $139,172,864) | 144,944,696 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.8% (Cost: $1,183,311) | ||||||||
Money Market Fund: 0.8% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 1,183,311 | 1,183,311 | ||||||
Total Investments: 100.6% (Cost: $140,356,175) | 146,128,007 | |||||||
Liabilities in excess of other assets: (0.6)% | (886,426) | |||||||
NET ASSETS: 100.0% | $ | 145,241,581 |
Definitions:
ADR | American Depositary Receipt |
AUD | Australia Dollar |
CAD | Canadian Dollar |
GBP | British Pound |
GDR | Global Depositary Receipt |
HKD | Hong Kong Dollar |
IDR | Indonesian Rupiah |
KRW | Korean Won |
NOK | Norwegian Krone |
NVDR | Non-Voting Depositary Receipt |
PLN | Polish Zloty |
SGD | Singapore Dollar |
USD | United States Dollar |
ZAR | South African Rand |
See Notes to Financial Statements
28 |
Footnotes:
* | Non-income producing |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $52,294,915 which represents 36.0% of net assets. |
† | Security fully or partially on loan. Total market value of securities on loan is $4,031,096. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $2,162,190, or 1.5% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Consumer Discretionary | 1.3 | % | $ | 1,827,853 | ||||
Consumer Staples | 9.0 | 13,067,423 | ||||||
Energy | 33.3 | 48,318,234 | ||||||
Health Care | 3.8 | 5,486,023 | ||||||
Industrials | 8.6 | 12,537,500 | ||||||
Information Technology | 0.3 | 434,516 | ||||||
Materials | 35.5 | 51,421,012 | ||||||
Real Estate | 0.8 | 1,125,682 | ||||||
Utilities | 7.4 | 10,726,453 | ||||||
100.0 | % | $ | 144,944,696 |
See Notes to Financial Statements
29 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ | 24,026 | $ | — | $ | — | $ | 24,026 | ||||||||
Australia | 86,631 | 12,273,887 | — | 12,360,518 | ||||||||||||
Austria | — | 478,658 | — | 478,658 | ||||||||||||
Brazil | 4,385,976 | 514,149 | — | 4,900,125 | ||||||||||||
British Virgin Islands | — | 70,124 | — | 70,124 | ||||||||||||
Canada | 14,672,847 | — | — | 14,672,847 | ||||||||||||
Chile | 1,154,263 | — | — | 1,154,263 | ||||||||||||
China | — | 2,708,972 | — | 2,708,972 | ||||||||||||
Cyprus | — | — | 0 | 0 | ||||||||||||
Czech Republic | — | 123,722 | — | 123,722 | ||||||||||||
Denmark | — | 794,472 | — | 794,472 | ||||||||||||
Egypt | — | 105,167 | — | 105,167 | ||||||||||||
Finland | — | 1,196,772 | — | 1,196,772 | ||||||||||||
France | 17,802 | 2,558,061 | �� | 2,575,863 | ||||||||||||
Germany | — | 5,715,855 | — | 5,715,855 | ||||||||||||
Greece | — | 12,710 | — | 12,710 | ||||||||||||
Hungary | — | 51,200 | — | 51,200 | ||||||||||||
India | — | 1,830,878 | — | 1,830,878 | ||||||||||||
Indonesia | — | 353,822 | — | 353,822 | ||||||||||||
Ireland | — | 273,703 | — | 273,703 | ||||||||||||
Israel | — | 558,554 | — | 558,554 | ||||||||||||
Italy | — | 706,906 | — | 706,906 | ||||||||||||
Japan | — | 4,011,873 | — | 4,011,873 | ||||||||||||
Kazakhstan | — | 55,219 | — | 55,219 | ||||||||||||
Kyrgyzstan | 49,445 | — | — | 49,445 | ||||||||||||
Liechtenstein | — | 159,799 | — | 159,799 | ||||||||||||
Luxembourg | — | 427,616 | — | 427,616 | ||||||||||||
Malaysia | 172,640 | 548,742 | — | 721,382 | ||||||||||||
Mexico | 766,058 | 54,725 | — | 820,783 | ||||||||||||
Netherlands | 427,311 | 239,467 | — | 666,778 | ||||||||||||
Norway | — | 2,129,684 | — | 2,129,684 | ||||||||||||
Peru | 46,702 | — | — | 46,702 | ||||||||||||
Poland | — | 271,386 | — | 271,386 | ||||||||||||
Portugal | — | 203,377 | — | 203,377 | ||||||||||||
Russia | — | — | 0 | 0 | ||||||||||||
Saudi Arabia | — | 58,503 | — | 58,503 | ||||||||||||
Singapore | — | 368,336 | — | 368,336 | ||||||||||||
South Africa | 445,080 | 2,463,458 | — | 2,908,538 | ||||||||||||
South Korea | — | 906,632 | — | 906,632 | ||||||||||||
Spain | 26,840 | 1,590,280 | — | 1,617,120 | ||||||||||||
Sweden | 15,036 | 1,365,221 | — | 1,380,257 | ||||||||||||
Taiwan | — | 576,879 | — | 576,879 | ||||||||||||
Tanzania | 205,404 | — | — | 205,404 | ||||||||||||
Thailand | — | 440,630 | — | 440,630 | ||||||||||||
Turkey | 38,813 | 211,507 | — | 250,320 | ||||||||||||
Ukraine | — | 13,505 | — | 13,505 | ||||||||||||
United Kingdom | 1,415,377 | 5,845,461 | — | 7,260,838 | ||||||||||||
United States | 68,355,460 | 25,003 | — | 68,380,463 | ||||||||||||
Zambia | 344,070 | — | — | 344,070 | ||||||||||||
Money Market Fund | 1,183,311 | — | — | 1,183,311 | ||||||||||||
Total Investments | $ | 93,833,092 | $ | 52,294,915 | $ | 0 | $ | 146,128,007 |
See Notes to Financial Statements
30 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.3% | ||||||||
Australia: 4.7% | ||||||||
Ampol Ltd. # | 110,744 | $ | 2,603,984 | |||||
Austria: 4.5% | ||||||||
OMV AG # | 52,736 | 2,474,296 | ||||||
Finland: 6.8% | ||||||||
Neste Oyj # | 85,644 | 3,800,441 | ||||||
Greece: 1.4% | ||||||||
Motor Oil Hellas Corinth Refineries SA # | 41,037 | 762,817 | ||||||
Hungary: 4.2% | ||||||||
MOL Hungarian Oil & Gas Plc # | 303,540 | 2,340,554 | ||||||
India: 8.8% | ||||||||
Reliance Industries Ltd. (USD) 144A (GDR) # * | 74,549 | 4,873,776 | ||||||
Japan: 12.7% | ||||||||
Cosmo Energy Holdings Co. Ltd. # | 53,700 | 1,478,875 | ||||||
ENEOS Holdings, Inc. # | 845,900 | 3,178,846 | ||||||
Idemitsu Kosan Co. Ltd. # | 100,168 | 2,389,797 | ||||||
7,047,518 | ||||||||
Poland: 5.7% | ||||||||
Grupa Lotos SA # | 52,296 | 804,609 | ||||||
Polski Koncern Naftowy ORLEN SA # | 155,556 | 2,380,971 | ||||||
3,185,580 | ||||||||
Portugal: 4.8% | ||||||||
Galp Energia SGPS SA # | 229,739 | 2,681,759 |
Number of Shares | Value | |||||||
Saudi Arabia: 3.2% | ||||||||
S-Oil Corp. (KRW) # | 21,989 | $ | 1,752,615 | |||||
South Korea: 6.7% | ||||||||
HD Hyundai Co. Ltd. # | 26,069 | 1,197,770 | ||||||
SK Innovation Co. Ltd. # | 17,137 | 2,544,114 | ||||||
3,741,884 | ||||||||
Taiwan: 5.1% | ||||||||
Formosa Petrochemical Corp. # | 907,000 | 2,859,016 | ||||||
Thailand: 3.2% | ||||||||
IRPC PCL (NVDR) # | 7,569,500 | 690,872 | ||||||
Thai Oil PCL (NVDR) # | 755,700 | 1,102,585 | ||||||
1,793,457 | ||||||||
Turkey: 2.3% | ||||||||
Turkiye Petrol Rafinerileri AS # * | 82,643 | 1,302,308 | ||||||
United States: 26.2% | ||||||||
Delek US Holdings, Inc. * | 35,736 | 923,418 | ||||||
HF Sinclair Corp. | 51,476 | 2,324,656 | ||||||
Marathon Petroleum Corp. | 46,498 | 3,822,601 | ||||||
PBF Energy, Inc. * | 33,307 | 966,569 | ||||||
Phillips 66 | 38,678 | 3,171,209 | ||||||
Valero Energy Corp. | 31,941 | 3,394,690 | ||||||
14,603,143 | ||||||||
Total Common Stocks (Cost: $57,372,543) | 55,823,148 | |||||||
Total Investments: 100.3% (Cost: $57,372,543) | 55,823,148 | |||||||
Liabilities in excess of other assets: (0.3)% | (177,743) | |||||||
NET ASSETS: 100.0% | $ | 55,645,405 |
Definitions:
GDR | Global Depositary Receipt |
KRW | Korean Won |
NVDR | Non-Voting Depositary Receipt |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $41,220,005 which represents 74.1% of net assets. |
* | Non-income producing |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $4,873,776, or 8.8% of net assets. |
Summary of Investments by Sector | % of Investments | Value | ||||||
Energy | 100.0 | % | $ | 55,823,148 |
See Notes to Financial Statements
31 |
VANECK OIL REFINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 2,603,984 | $ | — | $ | 2,603,984 | ||||||||
Austria | — | 2,474,296 | — | 2,474,296 | ||||||||||||
Finland | — | 3,800,441 | — | 3,800,441 | ||||||||||||
Greece | — | 762,817 | — | 762,817 | ||||||||||||
Hungary | — | 2,340,554 | — | 2,340,554 | ||||||||||||
India | — | 4,873,776 | — | 4,873,776 | ||||||||||||
Japan | — | 7,047,518 | — | 7,047,518 | ||||||||||||
Poland | — | 3,185,580 | — | 3,185,580 | ||||||||||||
Portugal | — | 2,681,759 | — | 2,681,759 | ||||||||||||
Saudi Arabia | — | 1,752,615 | — | 1,752,615 | ||||||||||||
South Korea | — | 3,741,884 | — | 3,741,884 | ||||||||||||
Taiwan | — | 2,859,016 | — | 2,859,016 | ||||||||||||
Thailand | — | 1,793,457 | — | 1,793,457 | ||||||||||||
Turkey | — | 1,302,308 | — | 1,302,308 | ||||||||||||
United States | 14,603,143 | — | — | 14,603,143 | ||||||||||||
Total Investments | $ | 14,603,143 | $ | 41,220,005 | $ | — | $ | 55,823,148 |
See Notes to Financial Statements
32 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.9% | ||||||||
Netherlands: 5.1% | ||||||||
Tenaris SA (ADR) † | 5,225,613 | $ | 134,245,998 | |||||
United Kingdom: 4.8% | ||||||||
TechnipFMC Plc (USD) * | 19,116,721 | 128,655,533 | ||||||
United States: 90.0% | ||||||||
Baker Hughes Co. | 7,000,251 | 202,097,246 | ||||||
Cactus, Inc. | 2,776,221 | 111,798,420 | ||||||
ChampionX Corp. | 6,284,327 | 124,743,891 | ||||||
Core Laboratories NV † | 1,917,478 | 37,985,239 | ||||||
DMC Global, Inc. * † | 557,791 | 10,056,972 | ||||||
Dril-Quip, Inc. * | 1,585,264 | 40,899,811 | ||||||
Expro Group Holdings NV * † | 3,877,580 | 44,669,722 | ||||||
Halliburton Co. | 10,382,909 | 325,608,026 | ||||||
Helix Energy Solutions Group, Inc. * ‡ | 7,877,907 | 24,421,512 | ||||||
Helmerich & Payne, Inc. | 2,960,145 | 127,463,844 | ||||||
Liberty Energy, Inc. * | 6,470,835 | 82,567,854 | ||||||
Nabors Industries Ltd. * | 439,325 | 58,825,617 | ||||||
NexTier Oilfield Solutions, Inc. * | 6,797,843 | 64,647,487 | ||||||
NOV, Inc. | 8,332,469 | 140,902,051 | ||||||
Oceaneering International, Inc. * | 4,830,533 | 51,590,092 |
Number of Shares | Value | |||||||
United States (continued) | ||||||||
Oil States International, Inc. * | 2,935,507 | $ | 15,910,448 | |||||
Patterson-UTI Energy, Inc. | 8,072,580 | 127,223,861 | ||||||
ProPetro Holding Corp. * | 4,159,374 | 41,593,740 | ||||||
RPC, Inc. * † | 7,496,936 | 51,803,828 | ||||||
Schlumberger NV | 14,294,800 | 511,182,047 | ||||||
Select Energy Services, Inc. * ‡ | 5,465,947 | 37,277,758 | ||||||
Transocean Ltd. * † | 33,146,248 | 110,377,006 | ||||||
US Silica Holdings, Inc. * | 3,750,385 | 42,829,397 | ||||||
2,386,475,869 | ||||||||
Total Common Stocks (Cost: $2,948,655,449) | 2,649,377,400 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.2% (Cost: $4,998,253) | ||||||||
Money Market Fund: 0.2% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 4,998,253 | 4,998,253 | ||||||
Total Investments: 100.1% (Cost: $2,953,653,702) | 2,654,375,653 | |||||||
Liabilities in excess of other assets: (0.1)% | (1,809,202) | |||||||
NET ASSETS: 100.0% | $ | 2,652,566,451 |
Definitions:
ADR | American Depositary Receipt |
USD | United States Dollar |
Footnotes:
† | Security fully or partially on loan. Total market value of securities on loan is $22,715,429. |
* | Non-income producing |
‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Oil & Gas Drilling | 16.0 | % | $ | 423,890,328 | ||||
Oil & Gas Equipment & Services | 84.0 | 2,225,487,072 | ||||||
100.0 | % | $ | 2,649,377,400 |
See Notes to Financial Statements
33 |
VANECK OIL SERVICES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Transactions in securities of affiliates for the period ended June 30, 2022 were as follows:
Value 12/31/2021 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2022 | ||||||||||||||||||||||
Helix Energy Solutions Group, Inc. | $–(a) | $23,591,657 | $(17,997,087) | $(1,249,541) | $– | $(486,779) | $24,421,512 | |||||||||||||||||||||
Nabors Industries Ltd. | 35,558,614 | 45,026,212 | (44,108,308) | 9,739,372 | – | 12,609,727 | –(b) | |||||||||||||||||||||
Patterson-UTI Energy, Inc. | 100,436,962 | 100,932,945 | (156,209,791) | 46,009,705 | 876,747 | 36,054,040 | –(b) | |||||||||||||||||||||
Select Energy Services, Inc. | 33,115,316 | 34,672,617 | (32,948,221) | 5,185,488 | – | (2,747,442) | 37,277,758 | |||||||||||||||||||||
Transocean Ltd. | 89,632,915 | 93,218,184 | (87,048,753) | 8,518,554 | – | 6,056,106 | –(b) | |||||||||||||||||||||
US Silica Holdings, Inc. | 36,741,836 | 36,814,141 | (38,945,177) | 7,945,357 | – | 273,240 | –(b) | |||||||||||||||||||||
$295,485,643 | $334,255,756 | $(377,257,337) | $76,148,935 | $876,747 | $51,758,892 | $61,699,270 |
(a) | Security held by the Fund, however not classified as an affiliate at the beginning of the reporting period. |
(b) | Security held by the Fund, however not classified as an affiliate at the end of the reporting period. |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks * | $ | 2,649,377,400 | $ | — | $ | — | $ | 2,649,377,400 | ||||||||
Money Market Fund | 4,998,253 | — | — | 4,998,253 | ||||||||||||
Total Investments | $ | 2,654,375,653 | $ | — | $ | — | $ | 2,654,375,653 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
34 |
VANECK RARE EARTH/STRATEGIC METALS ETF
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.1% | ||||||||
Australia: 38.1% | ||||||||
Allkem Ltd. # * | 6,686,554 | $ | 47,645,346 | |||||
Australian Strategic Materials Ltd. # * † | 2,404,968 | 5,723,318 | ||||||
AVZ Minerals Ltd. # * † | 69,192,235 | 26,207,089 | ||||||
Core Lithium Ltd. # * † | 38,856,555 | 25,589,603 | ||||||
Iluka Resources Ltd. # | 4,903,193 | 31,862,659 | ||||||
ioneer Ltd. # * † | 41,418,216 | 11,763,834 | ||||||
Lake Resources NL # * † | 32,128,842 | 17,447,998 | ||||||
Liontown Resources Ltd. # * † | 44,463,392 | 32,341,404 | ||||||
Lynas Rare Earths Ltd. # * † | 8,642,574 | 52,042,146 | ||||||
Pilbara Minerals Ltd. # * † | 29,662,303 | 47,004,932 | ||||||
297,628,329 | ||||||||
Canada: 6.1% | ||||||||
Lithium Americas Corp. (USD) * † | 1,597,936 | 32,166,452 | ||||||
Standard Lithium Ltd. (USD) * † | 3,578,503 | 15,172,853 | ||||||
47,339,305 | ||||||||
China: 35.6% | ||||||||
China Northern Rare Earth Group High-Tech Co. Ltd. # | 11,740,459 | 61,766,787 | ||||||
Ganfeng Lithium Co. Ltd. (HKD) 144A # † | 3,816,640 | 42,064,625 | ||||||
Shenghe Resources Holding Co. Ltd. # | 16,258,987 | 54,882,065 | ||||||
Xiamen Tungsten Co. Ltd. # | 12,202,471 | 39,447,200 | ||||||
Zhejiang Huayou Cobalt Co. Ltd. # | 5,576,608 | 79,826,372 | ||||||
277,987,049 |
Number of Shares | Value | |||||||
France: 3.4% | ||||||||
Eramet SA # | 253,870 | $ | 26,520,656 | |||||
Netherlands: 2.5% | ||||||||
AMG Advanced Metallurgical Group NV # | 775,597 | 19,885,000 | ||||||
United States: 14.4% | ||||||||
Livent Corp. * † | 1,332,433 | 30,232,905 | ||||||
MP Materials Corp. * † | 1,098,484 | 35,239,367 | ||||||
Piedmont Lithium, Inc. * | 398,045 | 14,492,818 | ||||||
Tronox Holdings Plc | 1,957,328 | 32,883,110 | ||||||
112,848,200 | ||||||||
Total Common Stocks (Cost: $660,408,617) | 782,208,539 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.8% (Cost: $37,136,036) | ||||||||
Money Market Fund: 4.8% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 37,136,036 | 37,136,036 | ||||||
Total Investments: 104.9% (Cost: $697,544,653) | 819,344,575 | |||||||
Liabilities in excess of other assets: (4.9)% | (38,457,893) | |||||||
NET ASSETS: 100.0% | $ | 780,886,682 |
Definitions:
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $622,021,034 which represents 79.7% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $151,236,579. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $42,064,625, or 5.4% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Materials | 100.0 | % | $ | 782,208,539 |
See Notes to Financial Statements
35 |
VANECK RARE EARTH/STRATEGIC METALS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 297,628,329 | $ | — | $ | 297,628,329 | ||||||||
Canada | 47,339,305 | — | — | 47,339,305 | ||||||||||||
China | — | 277,987,049 | — | 277,987,049 | ||||||||||||
France | — | 26,520,656 | — | 26,520,656 | ||||||||||||
Netherlands | — | 19,885,000 | — | 19,885,000 | ||||||||||||
United States | 112,848,200 | — | — | 112,848,200 | ||||||||||||
Money Market Fund | 37,136,036 | — | — | 37,136,036 | ||||||||||||
Total Investments | $ | 197,323,541 | $ | 622,021,034 | $ | — | $ | 819,344,575 |
See Notes to Financial Statements
36 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.9% | ||||||||
Australia: 12.8% | ||||||||
Rio Tinto Plc (ADR) † | 192,812 | $ | 11,761,532 | |||||
Brazil: 22.1% | ||||||||
Cia Siderurgica Nacional SA (ADR) † | 1,315,022 | 3,853,015 | ||||||
Gerdau SA (ADR) | 933,605 | 4,005,165 | ||||||
Vale SA (ADR) | 846,527 | 12,384,690 | ||||||
20,242,870 | ||||||||
China: 0.3% | ||||||||
Huadi International Group Co. Ltd. (USD) * | 13,833 | 284,130 | ||||||
Luxembourg: 5.4% | ||||||||
ArcelorMittal SA (USD) † | 217,698 | 4,919,975 | ||||||
Netherlands: 9.7% | ||||||||
Tenaris SA (ADR) | 179,782 | 4,618,600 | ||||||
Ternium SA (ADR) † | 118,995 | 4,294,529 | ||||||
8,913,129 | ||||||||
South Korea: 4.8% | ||||||||
POSCO Holdings, Inc. (ADR) | 98,080 | 4,366,521 | ||||||
United States: 44.8% | ||||||||
Allegheny Technologies, Inc. * | 129,652 | 2,944,397 | ||||||
Carpenter Technology Corp. | 50,442 | 1,407,836 | ||||||
Cleveland-Cliffs, Inc. * | 263,031 | 4,042,786 | ||||||
Commercial Metals Co. | 124,892 | 4,133,925 | ||||||
Gibraltar Industries, Inc. * | 34,265 | 1,327,769 |
Number of Shares | Value | |||||||
United States (continued) | ||||||||
Nucor Corp. | 66,033 | $ | 6,894,507 | |||||
Olympic Steel, Inc. | 11,627 | 299,395 | ||||||
Reliance Steel & Aluminum Co. | 26,467 | 4,495,685 | ||||||
Ryerson Holding Corp. | 40,405 | 860,222 | ||||||
Schnitzer Steel Industries, Inc. | 28,661 | 941,227 | ||||||
Steel Dynamics, Inc. | 63,434 | 4,196,159 | ||||||
SunCoke Energy, Inc. | 87,122 | 593,301 | ||||||
TimkenSteel Corp. * | 48,721 | 911,570 | ||||||
United States Steel Corp. | 227,245 | 4,069,958 | ||||||
Warrior Met Coal, Inc. | 53,969 | 1,651,991 | ||||||
Worthington Industries, Inc. | 52,367 | 2,309,385 | ||||||
41,080,113 | ||||||||
Total Common Stocks (Cost: $126,333,978) | 91,568,270 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.6% (Cost: $4,204,063) | ||||||||
Money Market Fund: 4.6% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 4,204,063 | 4,204,063 | ||||||
Total Investments: 104.5% (Cost: $130,538,041) | 95,772,333 | |||||||
Liabilities in excess of other assets: (4.5)% | (4,156,219) | |||||||
NET ASSETS: 100.0% | $ | 91,616,114 |
Definitions:
ADR | American Depositary Receipt |
USD | United States Dollar |
Footnotes:
† | Security fully or partially on loan. Total market value of securities on loan is $20,875,188. |
* | Non-income producing |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Energy | 5.0 | % | $ | 4,618,599 | ||||
Industrials | 1.5 | 1,327,769 | ||||||
Materials | 93.5 | 85,621,902 | ||||||
100.0 | % | $ | 91,568,270 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks * | $ | 91,568,270 | $ | — | $ | — | $ | 91,568,270 | ||||||||
Money Market Fund | 4,204,063 | — | — | 4,204,063 | ||||||||||||
Total Investments | $ | 95,772,333 | $ | — | $ | — | $ | 95,772,333 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
37 |
VANECK URANIUM+NUCLEAR ENERGY ETF
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.2% | ||||||||
Australia: 1.1% | ||||||||
Paladin Energy Ltd. # * † | 1,264,362 | $ | 505,480 | |||||
Canada: 6.8% | ||||||||
Cameco Corp. (USD) | 89,741 | 1,886,356 | ||||||
Denison Mines Corp. (USD) * † | 388,824 | 378,326 | ||||||
NexGen Energy Ltd. (USD) * † | 230,513 | 827,541 | ||||||
3,092,223 | ||||||||
China: 2.5% | ||||||||
CGN Power Co. Ltd. (HKD) 144A # | 4,740,000 | 1,148,192 | ||||||
Czech Republic: 4.2% | ||||||||
CEZ AS # | 42,363 | 1,907,291 | ||||||
Finland: 4.4% | ||||||||
Fortum Oyj # | 130,248 | 1,963,984 | ||||||
France: 4.9% | ||||||||
Electricite de France SA # | 272,113 | 2,229,762 | ||||||
Italy: 4.5% | ||||||||
Endesa SA # † | 106,920 | 2,017,824 | ||||||
Japan: 11.1% | ||||||||
Kansai Electric Power Co., Inc. # | 234,100 | 2,314,270 | ||||||
Kyushu Electric Power Co., Inc. # | 211,000 | 1,354,871 | ||||||
Tokyo Electric Power Co. Holdings, Inc. # * | 320,600 | 1,339,409 | ||||||
5,008,550 | ||||||||
Kazakhstan: 1.9% | ||||||||
NAC Kazatomprom JSC (USD) (GDR) # | 33,169 | 859,485 |
Number of Shares | Value | |||||||
South Korea: 4.6% | ||||||||
Korea Electric Power Corp. (ADR) * † | 236,162 | $ | 2,073,502 | |||||
United States: 54.2% | ||||||||
BWX Technologies, Inc. | 23,326 | 1,285,029 | ||||||
Constellation Energy Corp. | 49,191 | 2,816,677 | ||||||
Dominion Energy, Inc. | 48,298 | 3,854,663 | ||||||
Duke Energy Corp. | 35,490 | 3,804,883 | ||||||
Energy Fuels, Inc. * † | 79,949 | 392,549 | ||||||
Entergy Corp. | 24,858 | 2,800,005 | ||||||
PG&E Corp. * | 223,913 | 2,234,652 | ||||||
Pinnacle West Capital Corp. | 29,580 | 2,162,890 | ||||||
PNM Resources, Inc. | 31,615 | 1,510,565 | ||||||
Public Service Enterprise Group, Inc. | 51,112 | 3,234,367 | ||||||
Uranium Energy Corp. * † | 123,064 | 379,037 | ||||||
24,475,317 | ||||||||
Total Common Stocks (Cost: $43,888,335) | 45,281,610 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 5.1% (Cost: $2,312,067) | ||||||||
Money Market Fund: 5.1% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 2,312,067 | 2,312,067 | ||||||
Total Investments: 105.3% (Cost: $46,200,402) | 47,593,677 | |||||||
Liabilities in excess of other assets: (5.3)% | (2,387,778) | |||||||
NET ASSETS: 100.0% | $ | 45,205,899 |
Definitions:
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
† | Security fully or partially on loan. Total market value of securities on loan is $4,794,155. |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $15,640,568 which represents 34.6% of net assets. |
* | Non-income producing |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $1,148,192, or 2.5% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Energy | 11.6 | % | $ | 5,228,775 | ||||
Industrials | 2.8 | 1,285,029 | ||||||
Utilities | 85.6 | 38,767,806 | ||||||
100.0 | % | $ | 45,281,610 |
See Notes to Financial Statements
38 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 505,480 | $ | — | $ | 505,480 | ||||||||
Canada | 3,092,223 | — | — | 3,092,223 | ||||||||||||
China | — | 1,148,192 | — | 1,148,192 | ||||||||||||
Czech Republic | — | 1,907,291 | — | 1,907,291 | ||||||||||||
Finland | — | 1,963,984 | — | 1,963,984 | ||||||||||||
France | — | 2,229,762 | — | 2,229,762 | ||||||||||||
Italy | — | 2,017,824 | — | 2,017,824 | ||||||||||||
Japan | — | 5,008,550 | — | 5,008,550 | ||||||||||||
Kazakhstan | — | 859,485 | — | 859,485 | ||||||||||||
South Korea | 2,073,502 | — | — | 2,073,502 | ||||||||||||
United States | 24,475,317 | — | — | 24,475,317 | ||||||||||||
Money Market Fund | 2,312,067 | — | — | 2,312,067 | ||||||||||||
Total Investments | $ | 31,953,109 | $ | 15,640,568 | $ | — | $ | 47,593,677 |
See Notes to Financial Statements
39 |
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Agribusiness ETF | Future of Food ETF | Gold Miners ETF | Green Metals ETF | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 1,637,462,727 | $ | 2,826,278 | $ | 5,590,747,528 | $ | 21,883,913 | ||||||||
Affiliated issuers (3) | — | — | 5,337,336,343 | — | ||||||||||||
Short-term investments held as collateral for securities loaned (4) | 6,592,867 | 206,813 | 132,623,401 | 530,041 | ||||||||||||
Cash | 1,491,014 | 39,141 | 5,496,340 | 3,255 | ||||||||||||
Cash denominated in foreign currency, at value (4) | — | — | 427 | 310,507 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 4,322,161 | — | — | — | ||||||||||||
Shares of beneficial interest sold | — | — | 22,780,112 | — | ||||||||||||
Dividends and interest | 3,324,337 | 5,673 | 5,968,886 | 33,167 | ||||||||||||
Prepaid expenses | 1,977 | — | 33,086 | — | ||||||||||||
Total assets | 1,653,195,083 | 3,077,905 | 11,094,986,123 | 22,760,883 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | — | — | 22,774,792 | — | ||||||||||||
Shares of beneficial interest redeemed | 4,327,318 | — | — | — | ||||||||||||
Collateral for securities loaned | 6,592,867 | 206,813 | 132,623,401 | 530,041 | ||||||||||||
Line of credit | — | — | — | 345,190 | ||||||||||||
Due to Adviser | 743,767 | 1,679 | 5,035,770 | 11,919 | ||||||||||||
Due to custodian | 86,243 | 9,444 | — | — | ||||||||||||
Deferred Trustee fees | 482,141 | — | 1,159,710 | — | ||||||||||||
Accrued expenses | 204,760 | — | 404,934 | — | ||||||||||||
Total liabilities | 12,437,096 | 217,936 | 161,998,607 | 887,150 | ||||||||||||
NET ASSETS | $ | 1,640,757,987 | $ | 2,859,969 | $ | 10,932,987,516 | $ | 21,873,733 | ||||||||
Shares outstanding | 18,950,000 | 150,000 | 397,852,500 | 750,000 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 86.58 | $ | 19.07 | $ | 27.48 | $ | 29.16 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 2,361,508,464 | $ | 3,462,993 | $ | 22,619,205,540 | $ | 26,637,554 | ||||||||
Total distributable earnings (loss) | (720,750,477 | ) | (603,024 | ) | (11,686,218,024 | ) | (4,763,821 | ) | ||||||||
NET ASSETS | $ | 1,640,757,987 | $ | 2,859,969 | $ | 10,932,987,516 | $ | 21,873,733 | ||||||||
(1) Value of securities on loan | $ | 10,494,145 | $ | 210,454 | $ | 237,120,762 | $ | 496,178 | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 1,674,219,592 | $ | 3,451,875 | $ | 5,127,851,154 | $ | 26,464,481 | ||||||||
(3) Cost of investments - Affiliated issuers | $ | — | $ | — | $ | 6,739,088,600 | $ | — | ||||||||
(4) Cost of short-term investments held as collateral for securities loaned | $ | 6,592,867 | $ | 206,813 | $ | 132,623,401 | $ | 530,041 | ||||||||
(4) Cost of cash denominated in foreign currency | $ | — | $ | — | $ | 434 | $ | 364,932 |
See Notes to Financial Statements
40 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Junior Gold Miners ETF | Low Carbon Energy ETF | Natural Resources ETF | Oil Refiners ETF | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 3,331,074,527 | $ | 229,931,559 | $ | 144,944,696 | $ | 55,823,148 | ||||||||
Short-term investments held as collateral for securities loaned (3) | 92,878,949 | 8,445,942 | 1,183,311 | — | ||||||||||||
Cash | 6,676,664 | 77 | 56,594 | — | ||||||||||||
Cash denominated in foreign currency, at value (4) | 12,323 | 29,075 | 135,187 | 20 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | 61 | 4 | — | ||||||||||||
Shares of beneficial interest sold | 25,014,475 | — | — | — | ||||||||||||
Dividends and interest | 2,026,135 | 490,079 | 253,498 | 194,944 | ||||||||||||
Prepaid expenses | 12,242 | 554 | — | 39 | ||||||||||||
Total assets | 3,457,695,315 | 238,897,347 | 146,573,290 | 56,018,151 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 25,025,806 | — | — | — | ||||||||||||
Shares of beneficial interest redeemed | — | — | — | 3,262 | ||||||||||||
Collateral for securities loaned | 92,878,949 | 8,445,942 | 1,183,311 | — | ||||||||||||
Line of credit | — | 947,578 | — | 290,578 | ||||||||||||
Due to Adviser | 1,569,834 | 95,641 | 63,769 | 20,528 | ||||||||||||
Due to custodian | — | — | — | 2,500 | ||||||||||||
Deferred Trustee fees | 303,345 | 15,511 | 14,855 | 772 | ||||||||||||
Accrued expenses | 453,590 | 61,862 | 69,774 | 55,106 | ||||||||||||
Total liabilities | 120,231,524 | 9,566,534 | 1,331,709 | 372,746 | ||||||||||||
NET ASSETS | $ | 3,337,463,791 | $ | 229,330,813 | $ | 145,241,581 | $ | 55,645,405 | ||||||||
Shares outstanding | 103,837,446 | 1,833,298 | 3,200,000 | 1,875,000 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 32.14 | $ | 125.09 | $ | 45.39 | $ | 29.68 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 9,149,811,626 | $ | 309,618,001 | $ | 187,419,909 | $ | 65,006,600 | ||||||||
Total distributable earnings (loss) | (5,812,347,835 | ) | (80,287,188 | ) | (42,178,328 | ) | (9,361,195 | ) | ||||||||
NET ASSETS | $ | 3,337,463,791 | $ | 229,330,813 | $ | 145,241,581 | $ | 55,645,405 | ||||||||
(1) Value of securities on loan | $ | 131,657,663 | $ | 26,411,462 | $ | 4,031,096 | $ | — | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 4,578,741,594 | $ | 254,029,091 | $ | 139,172,864 | $ | 57,372,543 | ||||||||
(3) Cost of short-term investments held as collateral for securities loaned | $ | 92,878,949 | $ | 8,445,942 | $ | 1,183,311 | $ | — | ||||||||
(4) Cost of cash denominated in foreign currency | $ | 12,270 | $ | 28,998 | $ | 135,499 | $ | 20 |
See Notes to Financial Statements
41 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Oil Services ETF | Rare Earth/ Strategic Metals ETF | Steel ETF | Uranium+Nuclear Energy ETF | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 2,587,678,130 | $ | 782,208,539 | $ | 91,568,270 | $ | 45,281,610 | ||||||||
Affiliated issuers (3) | 61,699,270 | — | — | — | ||||||||||||
Short-term investments held as collateral for securities loaned (4) | 4,998,253 | 37,136,036 | 4,204,063 | 2,312,067 | ||||||||||||
Cash | 1,002,606 | 1,067 | 286,815 | 30 | ||||||||||||
Cash denominated in foreign currency, at value (4) | — | 1,037,727 | — | 118 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 11,907,213 | — | 6,824,810 | — | ||||||||||||
Dividends and interest | 3,326,682 | 524,432 | 175,083 | 216,266 | ||||||||||||
Prepaid expenses | — | 1,007 | 252 | 45 | ||||||||||||
Total assets | 2,670,612,154 | 820,908,808 | 103,059,293 | 47,810,136 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | — | — | 3,296,377 | — | ||||||||||||
Shares of beneficial interest redeemed | 11,907,315 | — | 3,774,874 | — | ||||||||||||
Collateral for securities loaned | 4,998,253 | 37,136,036 | 4,204,063 | 2,312,067 | ||||||||||||
Line of credit | — | 2,432,145 | — | 191,966 | ||||||||||||
Due to Adviser | 925,053 | 345,419 | 41,275 | 15,918 | ||||||||||||
Deferred Trustee fees | 210,231 | 19,923 | 17,171 | 11,105 | ||||||||||||
Accrued expenses | 4,851 | 88,603 | 109,419 | 73,181 | ||||||||||||
Total liabilities | 18,045,703 | 40,022,126 | 11,443,179 | 2,604,237 | ||||||||||||
NET ASSETS | $ | 2,652,566,451 | $ | 780,886,682 | $ | 91,616,114 | $ | 45,205,899 | ||||||||
Shares outstanding | 11,400,543 | 8,974,987 | 1,850,000 | 866,632 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 232.67 | $ | 87.01 | $ | 49.52 | $ | 52.16 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 4,478,308,776 | $ | 974,748,946 | $ | 278,378,376 | $ | 127,644,919 | ||||||||
Total distributable earnings (loss) | (1,825,742,325 | ) | (193,862,264 | ) | (186,762,262 | ) | (82,439,020 | ) | ||||||||
NET ASSETS | $ | 2,652,566,451 | $ | 780,886,682 | $ | 91,616,114 | $ | 45,205,899 | ||||||||
(1) Value of securities on loan | $ | 22,715,429 | $ | 151,236,579 | $ | 20,875,188 | $ | 4,794,155 | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 2,868,276,397 | $ | 660,408,617 | $ | 126,333,978 | $ | 43,888,335 | ||||||||
(3) Cost of investments - Affiliated issuers | $ | 80,379,052 | $ | — | $ | — | $ | — | ||||||||
(4) Cost of short-term investments held as collateral for securities loaned | $ | 4,998,253 | $ | 37,136,036 | $ | 4,204,063 | $ | 2,312,067 | ||||||||
(4) Cost of cash denominated in foreign currency | $ | — | $ | 1,037,725 | $ | — | $ | 119 |
See Notes to Financial Statements
42 |
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2022 (unaudited)
Agribusiness ETF | Future of Food ETF | Gold Miners ETF | Green Metals ETF | |||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 23,246,400 | $ | 22,158 | $ | 84,157,474 | $ | 446,550 | ||||||||
Dividends - affiliated issuers | — | — | 54,718,748 | — | ||||||||||||
Interest | 672 | — | 20,692 | — | ||||||||||||
Securities lending income | 566,547 | 6,270 | 699,331 | 974 | ||||||||||||
Foreign taxes withheld | (2,336,743 | ) | (1,896 | ) | (12,321,958 | ) | (38,740 | ) | ||||||||
Total income | 21,476,876 | 26,532 | 127,274,287 | 408,784 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 3,898,632 | 8,125 | 33,860,400 | 69,511 | ||||||||||||
Professional fees | 26,063 | — | 26,005 | — | ||||||||||||
Custody and accounting fees | 39,422 | — | 103,647 | — | ||||||||||||
Reports to shareholders | 31,198 | — | 296,793 | — | ||||||||||||
Trustees’ fees and expenses | 10,000 | — | 106,169 | — | ||||||||||||
Registration fees | 2,968 | — | 9,848 | — | ||||||||||||
Insurance | 10,232 | — | 72,654 | — | ||||||||||||
Interest and taxes | 18,693 | 201 | 79,340 | 1,326 | ||||||||||||
Other | 5,302 | — | 80,537 | — | ||||||||||||
Total expenses | 4,042,510 | 8,326 | 34,635,393 | 70,837 | ||||||||||||
Net investment income | 17,434,366 | 18,206 | 92,638,894 | 337,947 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers | (16,756,650 | ) | 1,274 | (416,907,077 | ) | (488,462 | ) | |||||||||
Investments - affiliated issuers | — | — | (8,261 | ) | — | |||||||||||
In-kind redemptions - unaffiliated issuers | 50,358,244 | — | 437,052,921 | 56,624 | ||||||||||||
In-kind redemptions - affiliated issuers | — | — | 207,137,157 | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (143,112 | ) | 34 | (617,887 | ) | 30,981 | ||||||||||
Net realized gain (loss) | 33,458,482 | 1,308 | 226,656,853 | (400,857 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers | (275,868,194 | ) | (660,671 | ) | (529,745,435 | ) | (4,827,265 | ) | ||||||||
Investments - affiliated issuers | — | — | (1,683,119,363 | ) | — | |||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (72,816 | ) | 1,112 | (4,018 | ) | (60,225 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (275,941,010 | ) | (659,559 | ) | (2,212,868,816 | ) | (4,887,490 | ) | ||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (225,048,162 | ) | $ | (640,045 | ) | $ | (1,893,573,069 | ) | $ | (4,950,400 | ) |
See Notes to Financial Statements
43 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2022 (unaudited)
Junior Gold Miners ETF | Low Carbon Energy ETF | Natural Resources ETF | Oil Refiners ETF | |||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 21,176,080 | $ | 2,080,940 | $ | 2,931,962 | $ | 592,104 | ||||||||
Dividends - affiliated issuers | 97,595 | — | — | — | ||||||||||||
Interest | 12,000 | — | 34 | — | ||||||||||||
Securities lending income | 1,045,221 | 398,562 | 24,353 | 191 | ||||||||||||
Foreign taxes withheld | (2,161,407 | ) | (172,722 | ) | (142,491 | ) | (77,948 | ) | ||||||||
Total income | 20,169,489 | 2,306,780 | 2,813,858 | 514,347 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 11,009,957 | 622,745 | 339,372 | 67,074 | ||||||||||||
Professional fees | 29,515 | 41,620 | — | 23,574 | ||||||||||||
Custody and accounting fees | 114,716 | 29,725 | — | 14,606 | ||||||||||||
Reports to shareholders | 95,373 | 20,348 | — | 5,066 | ||||||||||||
Trustees’ fees and expenses | 52,162 | 2,922 | — | 229 | ||||||||||||
Registration fees | 9,745 | 2,969 | — | 2,968 | ||||||||||||
Insurance | 34,287 | 4,394 | — | 764 | ||||||||||||
Interest | 30,604 | 4,561 | 3,119 | 911 | ||||||||||||
Other | 10,136 | 2,732 | — | 1,443 | ||||||||||||
Total expenses | 11,386,495 | 732,016 | 342,491 | 116,635 | ||||||||||||
Waiver of management fees | — | — | — | (36,577 | ) | |||||||||||
Net expenses | 11,386,495 | 732,016 | 342,491 | 80,058 | ||||||||||||
Net investment income | 8,782,994 | 1,574,764 | 2,471,367 | 434,289 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers | (61,727,399 | ) | (4,194,055 | ) | (5,671,583 | ) | (1,270,322 | ) | ||||||||
Investments - affiliated issuers | (5,699,454 | ) | — | — | — | |||||||||||
In-kind redemptions - unaffiliated issuers | 95,306,995 | 1,449,225 | 1,729,308 | 852,396 | ||||||||||||
In-kind redemptions - affiliated issuers | 249,457 | — | — | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (294,262 | ) | (4,889 | ) | (54,731 | ) | (2,675 | ) | ||||||||
Net realized gain (loss) | 27,835,337 | (2,749,719 | ) | (3,997,006 | ) | (420,601 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers | (1,037,055,647 | ) | (63,176,367 | ) | (10,290,184 | ) | (2,316,947 | ) | ||||||||
Investments - affiliated issuers | (9,407,109 | ) | — | — | — | |||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (3,416 | ) | (14,645 | ) | (3,335 | ) | (6,177 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (1,046,466,172 | ) | (63,191,012 | ) | (10,293,519 | ) | (2,323,124 | ) | ||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (1,009,847,841 | ) | $ | (64,365,967 | ) | $ | (11,819,158 | ) | $ | (2,309,436 | ) |
See Notes to Financial Statements
44 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2022 (unaudited)
Oil Services ETF | Rare Earth/ Strategic Metals ETF | Steel ETF | Uranium+Nuclear Energy ETF | |||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 18,281,290 | $ | 4,328,194 | $ | 3,213,462 | $ | 740,030 | ||||||||
Dividends - affiliated issuers | 876,747 | — | — | — | ||||||||||||
Interest | 2,779 | 2,091 | 189 | 41 | ||||||||||||
Securities lending income | 16,486 | 1,769,863 | 38,278 | 7,259 | ||||||||||||
Foreign taxes withheld | (5,803 | ) | (314,248 | ) | (59,780 | ) | (63,712 | ) | ||||||||
Total income | 19,171,499 | 5,785,900 | 3,192,149 | 683,618 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 5,692,661 | 2,353,734 | 311,699 | 107,169 | ||||||||||||
Professional fees | — | 23,892 | 23,687 | 23,109 | ||||||||||||
Custody and accounting fees | — | 60,174 | 9,877 | 13,891 | ||||||||||||
Reports to shareholders | — | 32,269 | 11,293 | 4,994 | ||||||||||||
Trustees’ fees and expenses | — | 5,764 | 1,399 | 390 | ||||||||||||
Registration fees | — | 2,969 | 2,279 | 2,968 | ||||||||||||
Insurance | — | 5,166 | 2,510 | 777 | ||||||||||||
Interest | 9,290 | 7,347 | 3,562 | 943 | ||||||||||||
Other | — | 3,679 | 677 | 1,280 | ||||||||||||
Total expenses | 5,701,951 | 2,494,994 | 366,983 | 155,521 | ||||||||||||
Waiver of management fees | — | — | (20,553 | ) | (25,974 | ) | ||||||||||
Net expenses | 5,701,951 | 2,494,994 | 346,430 | 129,547 | ||||||||||||
Net investment income | 13,469,548 | 3,290,906 | 2,845,719 | 554,071 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers | (48,599,624 | ) | (27,003,596 | ) | (2,058,408 | ) | 342,819 | |||||||||
Investments - affiliated issuers | (4,732,806 | ) | — | — | — | |||||||||||
In-kind redemptions - unaffiliated issuers | 295,406,470 | 39,828,883 | 3,403,413 | — | ||||||||||||
In-kind redemptions - affiliated issuers | 80,881,741 | — | — | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | — | (34,747 | ) | — | (12,302 | ) | ||||||||||
Net realized gain | 322,955,781 | 12,790,540 | 1,345,005 | 330,517 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers | 96,547,351 | (242,922,935 | ) | (14,497,793 | ) | (3,224,601 | ) | |||||||||
Investments - affiliated issuers | 51,758,892 | — | — | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | — | (4,438 | ) | — | (1,151 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 148,306,243 | (242,927,373 | ) | (14,497,793 | ) | (3,225,752 | ) | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 484,731,572 | $ | (226,845,927 | ) | $ | (10,307,069 | ) | $ | (2,341,164 | ) |
See Notes to Financial Statements
45 |
STATEMENTS OF CHANGES IN NET ASSETS
Agribusiness ETF | Future of Food ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Period Ended December 31, 2021 (a) | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 17,434,366 | $ | 14,113,197 | $ | 18,206 | $ | 1,947 | ||||||||
Net realized gain (loss) | 33,458,482 | 103,047,705 | 1,308 | (4 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | (275,941,010 | ) | 99,471,560 | (659,559 | ) | 35,079 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (225,048,162 | ) | 216,632,462 | (640,045 | ) | 37,022 | ||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (13,850,800 | ) | — | — | |||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 810,798,923 | 459,439,465 | 1,030,333 | 2,432,659 | ||||||||||||
Cost of shares redeemed | (127,700,547 | ) | (273,313,828 | ) | — | — | ||||||||||
Increase in net assets resulting from share transactions | 683,098,376 | 186,125,637 | 1,030,333 | 2,432,659 | ||||||||||||
Total increase in net assets | 458,050,214 | 388,907,299 | 390,288 | 2,469,681 | ||||||||||||
Net Assets, beginning of period | 1,182,707,773 | 793,800,474 | 2,469,681 | — | ||||||||||||
Net Assets, end of period | $ | 1,640,757,987 | $ | 1,182,707,773 | $ | 2,859,969 | $ | 2,469,681 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 7,950,000 | 5,250,000 | 50,000 | 100,000 | ||||||||||||
Shares redeemed | (1,400,000 | ) | (3,050,000 | ) | — | — | ||||||||||
Net increase | 6,550,000 | 2,200,000 | 50,000 | 100,000 |
(a) For the period December 1, 2021 (commencement of operations) through December 31, 2021.
See Notes to Financial Statements
46 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Gold Miners ETF | Green Metals ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Period Ended December 31, 2021 (a) | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 92,638,894 | $ | 220,313,648 | $ | 337,947 | $ | (3,750 | ) | |||||||
Net realized gain (loss) | 226,656,853 | 703,319,609 | (400,857 | ) | (61,930 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (2,212,868,816 | ) | (2,479,630,293 | ) | (4,887,490 | ) | 252,259 | |||||||||
Net increase (decrease) in net assets resulting from operations | (1,893,573,069 | ) | (1,555,997,036 | ) | (4,950,400 | ) | 186,579 | |||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (224,002,317 | ) | — | — | |||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 1,489,764,333 | 2,030,470,195 | 12,688,407 | 15,509,965 | ||||||||||||
Cost of shares redeemed | (1,936,290,284 | ) | (3,480,902,948 | ) | (1,560,818 | ) | — | |||||||||
Increase (decrease) in net assets resulting from share transactions | (446,525,951 | ) | (1,450,432,753 | ) | 11,127,589 | 15,509,965 | ||||||||||
Total increase (decrease) in net assets | (2,340,099,020 | ) | (3,230,432,106 | ) | 6,177,189 | 15,696,544 | ||||||||||
Net Assets, beginning of period | 13,273,086,536 | 16,503,518,642 | 15,696,544 | — | ||||||||||||
Net Assets, end of period | $ | 10,932,987,516 | $ | 13,273,086,536 | $ | 21,873,733 | $ | 15,696,544 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 41,900,000 | 58,150,000 | 350,000 | 450,000 | ||||||||||||
Shares redeemed | (58,850,000 | ) | (102,000,000 | ) | (50,000 | ) | — | |||||||||
Net increase (decrease) | (16,950,000 | ) | (43,850,000 | ) | 300,000 | 450,000 |
(a) For the period November 10, 2021 (commencement of operations) through December 31, 2021.
See Notes to Financial Statements
47 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Junior Gold Miners ETF | Low Carbon Energy ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 8,782,994 | $ | 43,598,687 | $ | 1,574,764 | $ | 1,432,887 | ||||||||
Net realized gain (loss) | 27,835,337 | 171,809,877 | (2,749,719 | ) | 71,875,642 | |||||||||||
Net change in unrealized appreciation (depreciation) | (1,046,466,172 | ) | (1,538,777,434 | ) | (63,191,012 | ) | (84,954,022 | ) | ||||||||
Net decrease in net assets resulting from operations | (1,009,847,841 | ) | (1,323,368,870 | ) | (64,365,967 | ) | (11,645,493 | ) | ||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (80,009,332 | ) | — | (1,340,155 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 295,318,483 | 455,259,072 | — | 209,712,572 | ||||||||||||
Cost of shares redeemed | (442,795,404 | ) | (872,059,989 | ) | (7,052,181 | ) | (166,136,494 | ) | ||||||||
Increase (decrease) in net assets resulting from share transactions | (147,476,921 | ) | (416,800,917 | ) | (7,052,181 | ) | 43,576,078 | |||||||||
Total increase (decrease) in net assets | (1,157,324,762 | ) | (1,820,179,119 | ) | (71,418,148 | ) | 30,590,430 | |||||||||
Net Assets, beginning of period | 4,494,788,553 | 6,314,967,672 | 300,748,961 | 270,158,531 | ||||||||||||
Net Assets, end of period | $ | 3,337,463,791 | $ | 4,494,788,553 | $ | 229,330,813 | $ | 300,748,961 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 7,500,000 | 9,850,000 | — | 1,300,000 | ||||||||||||
Shares redeemed | (11,000,000 | ) | (18,900,000 | ) | (50,000 | ) | (1,050,000 | ) | ||||||||
Net increase (decrease) | (3,500,000 | ) | (9,050,000 | ) | (50,000 | ) | 250,000 |
See Notes to Financial Statements
48 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Natural Resources ETF | Oil Refiners ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 2,471,367 | $ | 2,028,234 | $ | 434,289 | $ | 472,371 | ||||||||
Net realized loss | (3,997,006 | ) | (664,371 | ) | (420,601 | ) | (1,182,181 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (10,293,519 | ) | 12,884,685 | (2,323,124 | ) | 2,639,228 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (11,819,158 | ) | 14,248,548 | (2,309,436 | ) | 1,929,418 | ||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (2,140,110 | ) | — | (470,018 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 64,660,823 | 37,659,686 | 41,125,019 | 708,375 | ||||||||||||
Cost of shares redeemed | (4,848,265 | ) | (4,695,212 | ) | (2,844,057 | ) | — | |||||||||
Increase in net assets resulting from share transactions | 59,812,558 | 32,964,474 | 38,280,962 | 708,375 | ||||||||||||
Total increase in net assets | 47,993,400 | 45,072,912 | 35,971,526 | 2,167,775 | ||||||||||||
Net Assets, beginning of period | 97,248,181 | 52,175,269 | 19,673,879 | 17,506,104 | ||||||||||||
Net Assets, end of period | $ | 145,241,581 | $ | 97,248,181 | $ | 55,645,405 | $ | 19,673,879 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 1,250,000 | 800,000 | 1,250,000 | 25,000 | ||||||||||||
Shares redeemed | (100,000 | ) | (100,000 | ) | (100,000 | ) | — | |||||||||
Net increase | 1,150,000 | 700,000 | 1,150,000 | 25,000 |
See Notes to Financial Statements
49 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Oil Services ETF | Rare Earth/Strategic Metals ETF | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Period Ended | December 31, | Period Ended | December 31, | |||||||||||||
June 30, 2022 | 2021 | June 30, 2022 | 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 13,469,548 | $ | 24,048,164 | $ | 3,290,906 | $ | 685,719 | ||||||||
Net realized gain | 322,955,781 | 91,476,848 | 12,790,540 | 107,316,664 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 148,306,243 | (245,287,006 | ) | (242,927,373 | ) | 273,354,965 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 484,731,572 | (129,761,994 | ) | (226,845,927 | ) | 381,357,348 | ||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (21,600,606 | ) | — | (54,350,856 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 1,960,554,863 | 4,464,669,089 | 107,367,238 | 552,129,245 | ||||||||||||
Cost of shares redeemed | (1,935,839,010 | ) | (2,893,608,272 | ) | (113,495,071 | ) | (187,397,855 | ) | ||||||||
Increase (decrease) in net assets resulting from share transactions | 24,715,853 | 1,571,060,817 | (6,127,833 | ) | 364,731,390 | |||||||||||
Total increase (decrease) in net assets | 509,447,425 | 1,419,698,217 | (232,973,760 | ) | 691,737,882 | |||||||||||
Net Assets, beginning of period | 2,143,119,026 | 723,420,809 | 1,013,860,442 | 322,122,560 | ||||||||||||
Net Assets, end of period | $ | 2,652,566,451 | $ | 2,143,119,026 | $ | 780,886,682 | $ | 1,013,860,442 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 7,450,000 | 21,100,000 | 1,050,000 | 6,200,000 | ||||||||||||
Shares redeemed | (7,650,000 | ) | (14,200,000 | ) | (1,150,000 | ) | (2,050,000 | ) | ||||||||
Net increase (decrease) | (200,000 | ) | 6,900,000 | (100,000 | ) | 4,150,000 |
See Notes to Financial Statements
50 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Steel ETF | Uranium+Nuclear Energy ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 2,845,719 | $ | 8,722,425 | $ | 554,071 | $ | 697,092 | ||||||||
Net realized gain (loss) | 1,345,005 | 34,079,900 | 330,517 | (675,324 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | (14,497,793 | ) | (25,264,114 | ) | (3,225,752 | ) | 3,159,751 | |||||||||
Net increase (decrease) in net assets resulting from operations | (10,307,069 | ) | 17,538,211 | (2,341,164 | ) | 3,181,519 | ||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (8,650,070 | ) | — | (700,021 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 45,291,916 | 245,785,508 | 12,320,146 | 14,652,183 | ||||||||||||
Cost of shares redeemed | (55,192,472 | ) | (219,740,003 | ) | — | — | ||||||||||
Increase (decrease) in net assets resulting from share transactions | (9,900,556 | ) | 26,045,505 | 12,320,146 | 14,652,183 | |||||||||||
Total increase (decrease) in net assets | (20,207,625 | ) | 34,933,646 | 9,978,982 | 17,133,681 | |||||||||||
Net Assets, beginning of period | 111,823,739 | 76,890,093 | 35,226,917 | 18,093,236 | ||||||||||||
Net Assets, end of period | $ | 91,616,114 | $ | 111,823,739 | $ | 45,205,899 | $ | 35,226,917 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 675,000 | 4,125,000 | 225,000 | 275,000 | ||||||||||||
Shares redeemed | (925,000 | ) | (3,750,000 | ) | — | — | ||||||||||
Net increase (decrease) | (250,000 | ) | 375,000 | 225,000 | 275,000 |
See Notes to Financial Statements
51 |
For a share outstanding throughout each period:
Agribusiness ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $95.38 | $77.82 | $68.59 | $57.11 | $61.63 | $51.38 | ||||||||||||||||||
Net investment income (a) | 1.08 | 1.14 | 0.90 | 0.83 | 0.83 | 0.83 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (9.88) | 17.54 | 9.19 | 11.56 | (4.39) | 10.30 | ||||||||||||||||||
Total from investment operations | (8.80) | 18.68 | 10.09 | 12.39 | (3.56) | 11.13 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.12) | (0.86) | (0.91) | (0.96) | (0.88) | ||||||||||||||||||
Net asset value, end of period | $86.58 | $95.38 | $77.82 | $68.59 | $57.11 | $61.63 | ||||||||||||||||||
Total return (b) | (9.22)% | (c) | 23.99 | % | 14.73 | % | 21.70 | % | (5.76) | % | 21.68 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Expenses | 0.52% | (d) | 0.52 | % | 0.55 | % | 0.56 | % | 0.54 | % | 0.54 | % | ||||||||||||
Expenses excluding interest | 0.52% | (d) | 0.52 | % | 0.55 | % | 0.56 | % | 0.54 | % | 0.53 | % | ||||||||||||
Net investment income | 2.24% | (d) | 1.25 | % | 1.41 | % | 1.29 | % | 1.32 | % | 1.48 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $1,641 | $1,183 | $794 | $717 | $757 | $854 | ||||||||||||||||||
Portfolio turnover rate (e) | 15% | (c) | 17 | % | 13 | % | 21 | % | 16 | % | 22 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
52 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Future of Food ETF | ||||||||
Period Ended June 30, 2022 | Period Ended December 31, 2021(a) | |||||||
(unaudited) | ||||||||
Net asset value, beginning of period | $24.70 | $24.33 | ||||||
Net investment income (b) | 0.17 | 0.02 | ||||||
Net realized and unrealized gain (loss) on investments | (5.80) | 0.35 | ||||||
Total from investment operations | (5.63) | 0.37 | ||||||
Net asset value, end of period | $19.07 | $24.70 | ||||||
Total return (c) | (22.80)% | (d) | 1.53% | (d) | ||||
Ratios to average net assets | ||||||||
Expenses | 0.70% | (e) | 0.69% | (e) | ||||
Expenses excluding interest and taxes | 0.69% | (e) | 0.69% | (e) | ||||
Net investment income | 1.56% | (e) | 0.93% | (e) | ||||
Supplemental data | ||||||||
Net assets, end of period (in millions) | $3 | $2 | ||||||
Portfolio turnover rate (f) | 0% | (d) | 0% | (d) |
(a) | For the period December 1, 2021 (commencement of operations) through December 31, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
53 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Gold Miners ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $32.00 | $35.98 | $29.34 | $21.07 | $23.25 | $20.92 | ||||||||||||||||||
Net investment income (a) | 0.23 | 0.52 | 0.21 | 0.19 | 0.14 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (4.75) | (3.97) | 6.62 | 8.27 | (2.21) | 2.41 | ||||||||||||||||||
Total from investment operations | (4.52) | (3.45) | 6.83 | 8.46 | (2.07) | 2.51 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.53) | (0.19) | (0.19) | (0.11) | (0.18) | ||||||||||||||||||
Net asset value, end of period | $27.48 | $32.00 | $35.98 | $29.34 | $21.07 | $23.25 | ||||||||||||||||||
Total return (b) | (14.12)% | (c) | (9.56) | % | 23.30 | % | 40.15 | % | (8.92) | % | 11.99 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Expenses | 0.51% | (d) | 0.51 | % | 0.51 | % | 0.52 | % | 0.52 | % | 0.53 | % | ||||||||||||
Net investment income | 1.37% | (d) | 1.53 | % | 0.61 | % | 0.76 | % | 0.66 | % | 0.42 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $10,933 | $13,273 | $16,504 | $12,999 | $10,576 | $7,575 | ||||||||||||||||||
Portfolio turnover rate (e) | 11% | (c) | 15 | % | 13 | % | 14 | % | 15 | % | 12 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
54 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Green Metals ETF | ||||||||
Period Ended June 30, 2022 | Period Ended December 31, 2021(a) | |||||||
(unaudited) | ||||||||
Net asset value, beginning of period | $34.88 | $34.67 | ||||||
Net investment income (loss) (b) | 0.48 | (0.01) | ||||||
Net realized and unrealized gain (loss) on investments | (6.20) | 0.22 | ||||||
Total from investment operations | (5.72) | 0.21 | ||||||
Net asset value, end of period | $29.16 | $34.88 | ||||||
Total return (c) | (16.39)% | (d) | 0.61% | (d) | ||||
Ratios to average net assets | ||||||||
Expenses | 0.60% | (e) | 0.60% | (e) | ||||
Expenses excluding interest | 0.59% | (e) | 0.59% | (e) | ||||
Net investment income (loss) | 2.87% | (e) | (0.30)% | (e) | ||||
Supplemental data | ||||||||
Net assets, end of period (in millions) | $22 | $16 | ||||||
Portfolio turnover rate (f) | 17% | (d) | 10% | (d) |
(a) | For the period November 10, 2021 (commencement of operations) through December 31, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
55 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Junior Gold Miners ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $41.88 | $54.26 | $42.39 | $30.11 | $34.21 | $31.72 | ||||||||||||||||||
Net investment income (a) | 0.08 | 0.39 | 0.22 | 0.08 | 0.14 | 0.05 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (9.82) | (12.02) | 12.51 | 12.36 | (4.10) | 2.45 | ||||||||||||||||||
Total from investment operations | (9.74) | (11.63) | 12.73 | 12.44 | (3.96) | 2.50 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.75) | (0.86) | (0.16) | (0.14) | (0.01) | ||||||||||||||||||
Net asset value, end of period | $32.14 | $41.88 | $54.26 | $42.39 | $30.11 | $34.21 | ||||||||||||||||||
Total return (b) | (23.25)% | (c) | (21.44) | % | 30.07 | % | 41.31 | % | (11.58) | % | 7.89 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.52% | (d) | 0.52 | % | 0.52 | % | 0.53 | % | 0.53 | % | 0.55% | (e) | ||||||||||||
Net expenses | 0.52% | (d) | 0.52 | % | 0.52 | % | 0.53 | % | 0.53 | % | 0.54% | (e) | ||||||||||||
Net expenses excluding interest | 0.52% | (d) | 0.52 | % | 0.52 | % | 0.53 | % | 0.53 | % | 0.53% | (e) | ||||||||||||
Net investment income | 0.40% | (d) | 0.84 | % | 0.46 | % | 0.24 | % | 0.45 | % | 0.16% | (e) | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $3,337 | $4,495 | $6,315 | $5,219 | $4,273 | $4,634 | ||||||||||||||||||
Portfolio turnover rate (f) | 18% | (c) | 24 | % | 34 | % | 19 | % | 28 | % | 67 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
56 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Low Carbon Energy ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $159.69 | $165.41 | $75.70 | $55.10 | $60.94 | $50.62 | ||||||||||||||||||
Net investment income (a) | 0.85 | 0.78 | 0.16 | 0.05 | 0.26 | 1.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (35.45) | (5.79) | 89.64 | 20.55 | (5.76) | 9.97 | ||||||||||||||||||
Total from investment operations | (34.60) | (5.01) | 89.80 | 20.60 | (5.50) | 11.09 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.71) | (0.09) | — | (0.34) | (0.77) | ||||||||||||||||||
Net asset value, end of period | $125.09 | $159.69 | $165.41 | $75.70 | $55.10 | $60.94 | ||||||||||||||||||
Total return (b) | (21.67)% | (c) | (3.02) | % | 118.65 | % | 37.38 | % | (9.02) | % | 21.90 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.59% | (d) | 0.55 | % | 0.64 | % | 0.65 | % | 0.65 | % | 0.67 | % | ||||||||||||
Net expenses | 0.59% | (d) | 0.55 | % | 0.62 | % | 0.62 | % | 0.63 | % | 0.63 | % | ||||||||||||
Net expenses excluding interest | 0.58% | (d) | 0.55 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||||
Net investment income | 1.26% | (d) | 0.49 | % | 0.16 | % | 0.08 | % | 0.44 | % | 1.94 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $229 | $301 | $270 | $105 | $79 | $87 | ||||||||||||||||||
Portfolio turnover rate (e) | 7% | (c) | 77 | % | 84 | % | 40 | % | 31 | % | 21 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
57 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Natural Resources ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $47.44 | $38.65 | $37.10 | $32.20 | $37.09 | $32.31 | ||||||||||||||||||
Net investment income (a) | 0.91 | 1.21 | 0.84 | 0.96 | 0.81 | 0.72 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.96) | 8.60 | 1.65(b) | 4.94 | (4.78) | 4.81 | ||||||||||||||||||
Total from investment operations | (2.05) | 9.81 | 2.49 | 5.90 | (3.97) | 5.53 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.02) | (0.94) | (1.00) | (0.92) | (0.75) | ||||||||||||||||||
Net asset value, end of period | $45.39 | $47.44 | $38.65 | $37.10 | $32.20 | $37.09 | ||||||||||||||||||
Total return (c) | (4.32)% | (d) | 25.38 | % | 6.73 | % | 18.34 | % | (10.69) | % | 17.14 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses (e) | 0.49% | (f) | 0.78 | % | 0.90 | % | 0.79 | % | 0.72 | % | 0.80 | % | ||||||||||||
Net expenses (e) | 0.49% | (f) | 0.49 | % | 0.49 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Net expenses excluding interest (e) | 0.49% | (f) | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | % | ||||||||||||
Net investment income | 3.57% | (f) | 2.63 | % | 2.59 | % | 2.70 | % | 2.21 | % | 2.09 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $145 | $97 | $52 | $70 | $77 | $104 | ||||||||||||||||||
Portfolio turnover rate (g) | 29% | (d) | 26 | % | 26 | % | 24 | % | 23 | % | 34 | % |
(a) | Calculated based upon average shares outstanding |
(b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Periods after December 31, 2021 reflect a unitary management fee structure. |
(f) | Annualized |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
58 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Oil Refiners ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $27.14 | $25.01 | $29.01 | $26.95 | $30.40 | $20.86 | ||||||||||||||||||
Net investment income (a) | 0.49 | 0.66 | 0.58 | 0.56 | 0.74 | 0.61 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.05 | 2.12 | (3.92) | 1.91 | (3.54) | 9.38 | ||||||||||||||||||
Total from investment operations | 2.54 | 2.78 | (3.34) | 2.47 | (2.80) | 9.99 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.65) | (0.64) | (0.41) | (0.52) | (0.37) | ||||||||||||||||||
Net realized capital gains | — | — | — | — | (0.13) | (0.08) | ||||||||||||||||||
Return of capital | — | — | (0.02) | — | — | — | ||||||||||||||||||
Total distributions | — | (0.65) | (0.66) | (0.41) | (0.65) | (0.45) | ||||||||||||||||||
Net asset value, end of period | $29.68 | $27.14 | $25.01 | $29.01 | $26.95 | $30.40 | ||||||||||||||||||
Total return (b) | 9.36% | (c) | 11.10 | % | (11.50) | % | 9.19 | % | (9.22) | % | 47.91 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.87% | (d) | 1.02 | % | 1.29 | % | 1.03 | % | 0.72 | % | 2.71 | % | ||||||||||||
Net expenses | 0.60% | (d) | 0.59 | % | 0.59 | % | 0.60 | % | 0.60 | % | 0.59 | % | ||||||||||||
Net expenses excluding interest | 0.59% | (d) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Net investment income | 3.24% | (d) | 2.32 | % | 2.56 | % | 1.97 | % | 2.32 | % | 2.43 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $56 | $20 | $18 | $35 | $49 | $11 | ||||||||||||||||||
Portfolio turnover rate (e) | 23% | (c) | 18 | % | 37 | % | 30 | % | 31 | % | 24 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
59 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Oil Services ETF(a) | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $184.74 | $153.90 | $265.47 | $280.60 | $520.40 | $667.20 | ||||||||||||||||||
Net investment income (b) | 1.07 | 2.41 | 2.26 | 6.60 | 7.00 | 18.00 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 46.86 | 30.24(c) | (111.94) | (15.93)(c) | (240.80) | (151.20) | ||||||||||||||||||
Total from investment operations | 47.93 | 32.65 | (109.68) | (9.33) | (233.80) | (133.20) | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.81) | (1.89) | (5.80) | (6.00) | (13.60) | ||||||||||||||||||
Net asset value, end of period | $232.67 | $184.74 | $153.90 | $265.47 | $280.60 | $520.40 | ||||||||||||||||||
Total return (d) | 25.94% | (e) | 21.18 | % | (41.31) | % | (3.35) | % | (44.93) | % | (19.95) | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses (f) | 0.35% | (g) | 0.36 | % | 0.40 | % | 0.39 | % | 0.38 | % | 0.39 | % | ||||||||||||
Net expenses (f) | 0.35% | (g) | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||||||
Net investment income | 0.83% | (g) | 1.21 | % | 1.68 | % | 2.28 | % | 1.44 | % | 3.36 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $2,653 | $2,143 | $723 | $773 | $1,045 | $1,651 | ||||||||||||||||||
Portfolio turnover rate (h) | 6% | (e) | 28 | % | 33 | % | 29 | % | 22 | % | 34 | % |
(a) | On April 15, 2020, the Fund effected a 1 for 20 reverse share split (See Note 11). Per share data has been adjusted to reflect the reverse share split. |
(b) | Calculated based upon average shares outstanding |
(c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Periods after December 31, 2021 reflect a unitary management fee structure. |
(g) | Annualized |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
60 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Rare Earth/Strategic Metals ETF(a) | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $111.72 | $65.41 | $40.41 | $40.68 | $89.25 | $50.70 | ||||||||||||||||||
Net investment income (b) | 0.36 | 0.08 | 0.58 | 0.90 | 1.98 | 1.32 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (25.07) | 52.12 | 24.95 | (0.54)(c) | (45.48) | 39.84 | ||||||||||||||||||
Total from investment operations | (24.71) | 52.20 | 25.53 | 0.36 | (43.50) | 41.16 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (5.89) | (0.53) | (0.63) | (5.07) | (2.61) | ||||||||||||||||||
Net asset value, end of period | $87.01 | $111.72 | $65.41 | $40.41 | $40.68 | $89.25 | ||||||||||||||||||
Total return (d) | (22.12)% | (e) | 80.09 | % | 63.22 | % | 0.91 | % | (48.70) | % | 81.43 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.53% | (f) | 0.53 | % | 0.63 | % | 0.64 | % | 0.63 | % | 0.73 | % | ||||||||||||
Net expenses | 0.53% | (f) | 0.53 | % | 0.59 | % | 0.60 | % | 0.59 | % | 0.61 | % | ||||||||||||
Net expenses excluding interest | 0.53% | (f) | 0.53 | % | 0.57 | % | 0.57 | % | 0.57 | % | 0.57 | % | ||||||||||||
Net investment income | 0.70% | (f) | 0.08 | % | 1.44 | % | 2.14 | % | 2.73 | % | 1.99 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $781 | $1,014 | $322 | $193 | $93 | $182 | ||||||||||||||||||
Portfolio turnover rate (g) | 21% | (e) | 74 | % | 70 | % | 64 | % | 68 | % | 57 | % |
(a) | On April 15, 2020, the Fund effected a 1 for 3 reverse share split (See Note 11). Per share data has been adjusted to reflect the reverse share split. |
(b) | Calculated based upon average shares outstanding |
(c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
61 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Steel ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $53.25 | $44.57 | $37.74 | $34.87 | $45.74 | $37.82 | ||||||||||||||||||
Net investment income (a) | 1.36 | 3.19 | 0.71 | 1.16 | 1.30 | 0.92 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.09) | 9.25 | 6.95 | 2.75 | (9.99) | 8.12 | ||||||||||||||||||
Total from investment operations | (3.73) | 12.44 | 7.66 | 3.91 | (8.69) | 9.04 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (3.76) | (0.77) | (1.04) | (2.18) | (1.12) | ||||||||||||||||||
Return of capital | — | — | (0.06) | — | — | — | ||||||||||||||||||
Total distributions | — | (3.76) | (0.83) | (1.04) | (2.18) | (1.12) | ||||||||||||||||||
Net asset value, end of period | $49.52 | $53.25 | $44.57 | $37.74 | $34.87 | $45.74 | ||||||||||||||||||
Total return (b) | (7.00)% | (c) | 27.91 | % | 20.57 | % | 11.02 | % | (18.94) | % | 23.86 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.59% | (d) | 0.56 | % | 0.95 | % | 0.71 | % | 0.61 | % | 0.62 | % | ||||||||||||
Net expenses | 0.56% | (d) | 0.55 | % | 0.56 | % | 0.56 | % | 0.56 | % | 0.56 | % | ||||||||||||
Net expenses excluding interest | 0.55% | (d) | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | ||||||||||||
Net investment income | 4.56% | (d) | 5.48 | % | 2.31 | % | 3.11 | % | 2.80 | % | 2.25 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $92 | $112 | $77 | $66 | $58 | $151 | ||||||||||||||||||
Portfolio turnover rate (e) | 9% | (c) | 25 | % | 34 | % | 19 | % | 16 | % | 31 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
62 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Uranium+Nuclear Energy ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $54.90 | $49.35 | $48.71 | $49.67 | $49.09 | $47.55 | ||||||||||||||||||
Net investment income (a) | 0.70 | 1.44 | 0.89 | 1.07 | 1.30 | 1.35 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.44) | 5.20 | 0.85 | (0.85) | 1.22 | 2.57 | ||||||||||||||||||
Total from investment operations | (2.74) | 6.64 | 1.74 | 0.22 | 2.52 | 3.92 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.09) | (1.10) | (1.18) | (1.94) | (2.38) | ||||||||||||||||||
Net asset value, end of period | $52.16 | $54.90 | $49.35 | $48.71 | $49.67 | $49.09 | ||||||||||||||||||
Total return (b) | (4.99)% | (c) | 13.48 | % | 3.59 | % | 0.44 | % | 5.15 | % | 8.27 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.73% | (d) | 0.89 | % | 1.25 | % | 0.93 | % | 0.85 | % | 0.89 | % | ||||||||||||
Net expenses | 0.60% | (d) | 0.60 | % | 0.60 | % | 0.61 | % | 0.60 | % | 0.61 | % | ||||||||||||
Net expenses excluding interest | 0.60% | (d) | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||||
Net investment income | 2.59% | (d) | 2.70 | % | 1.97 | % | 2.13 | % | 2.58 | % | 2.67 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $45 | $35 | $18 | $23 | $26 | $28 | ||||||||||||||||||
Portfolio turnover rate (e) | 15% | (c) | 25 | % | 25 | % | 15 | % | 32 | % | 19 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
63 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2022 (unaudited)
Note 1—Fund Organization—VanEck ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust. These financial statements relate only to the investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
Fund | Diversification Classification |
Agribusiness ETF | Non-Diversified |
Future of Food ETF | Non-Diversified |
Gold Miners ETF | Non-Diversified |
Green Metals ETF | Non-Diversified |
Junior Gold Miners ETF | Non-Diversified |
Low Carbon Energy ETF | Non-Diversified |
Natural Resources ETF | Diversified |
Oil Refiners ETF | Non-Diversified |
Oil Services ETF | Non-Diversified |
Rare Earth/Strategic Metals ETF | Non-Diversified |
Steel ETF | Non-Diversified |
Uranium+Nuclear Energy ETF | Non-Diversified |
Each Fund, except for Future of Food ETF, was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in approximately the same weighting as their index. The Future of Food ETF is an actively managed ETF that seeks long-term capital appreciation and invests primarily in securities of companies engaged in Agri-Food technology and innovation.
Van Eck Associates Corporation (the “Adviser”) is the investment adviser for the Funds.
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Funds are investment companies and follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
A. | Security Valuation— The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are categorized as Level 1 in the fair value hierarchy. The Pricing Committee of the Adviser |
64 |
provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes they do not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis. | |
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments. | |
The Funds utilize various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels of the fair value hierarchy are described below: | |
Level 1 — Quoted prices in active markets for identical securities. | |
Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments). | |
A summary of the inputs and the levels used to value the Funds’ investments are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments. | |
B. | Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
C. | Distributions to Shareholders— Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. |
D. | Currency Translation— Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Such amounts are included with the net |
65 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
realized and unrealized gains and losses on investment securities in the Statements of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) and net change in unrealized appreciation (depreciation) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. | |
E. | Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. |
F. | Offsetting Assets and Liabilities— In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of offset in those agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at June 30, 2022 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
G. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. Interest income, including amortization of premiums and discounts, is accrued as earned. |
The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. |
Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of each Fund’s average daily net assets. The Adviser has agreed, until at least May 1, 2023, to waive management fees and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, and extraordinary expenses) from exceeding the expense limitations for the Funds listed in the table below.
The management fee rates and expense limitations for the period ended June 30, 2022, are as follows:
Fund | Management Fees | Expense Limitations | ||||||
Agribusiness ETF | 0.50 | % | 0.56 | % | ||||
Gold Miners ETF | 0.50 | 0.53 | ||||||
Junior Gold Miners ETF | 0.50 | 0.56 | ||||||
Low Carbon Energy ETF | 0.50 | 0.62 | ||||||
Oil Refiners ETF | 0.50 | 0.59 | ||||||
Rare Earth/Strategic Metals ETF | 0.50 | 0.57 | ||||||
Steel ETF | 0.50 | 0.55 | ||||||
Uranium+Nuclear Energy ETF | 0.50 | 0.60 |
Refer to the Statements of Operations for amounts waived/assumed by the Adviser.
66 |
The Future of Food ETF, Green Metals ETF, and effective January 1, 2022, Natural Resources ETF and Oil Services ETF utilize a unitary management fee structure where the Adviser is responsible for all expenses of the Fund, excluding the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses until at least May 1, 2023.
Fund | Unitary Management Fee Rate | |||
Future of Food ETF | 0.69 | % | ||
Green Metals ETF | 0.59 | |||
Natural Resources ETF | 0.49 | |||
Oil Services ETF | 0.35 |
In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ distributor (the “Distributor”). Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
At June 30, 2022, the Adviser owned less than 1% of Gold Miners ETF.
Note 4—Capital Share Transactions—As of June 30, 2022, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”).
The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 115% of the daily marked to market value of the missing Deposit Securities.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Funds may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
Note 5—Investments—For the period ended June 30, 2022, purchases and sales of investments (excluding short-term investments and in-kind capital share transactions) and the purchases and sales of investments resulting from in-kind capital share transactions (excluding short-term investments) were as follows:
In-Kind Capital Share Transactions | ||||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Agribusiness ETF | $ | 259,651,183 | $ | 225,549,595 | $ | 787,392,182 | $ | 123,667,445 | ||||||||
Future of Food ETF | 22,717 | 11,174 | 1,010,044 | — | ||||||||||||
Gold Miners ETF | 1,592,222,953 | 1,423,657,146 | 1,488,762,364 | 1,935,272,692 | ||||||||||||
Green Metals ETF | 7,816,665 | 4,040,251 | 8,713,626 | 1,052,995 | ||||||||||||
Junior Gold Miners ETF | 768,990,356 | 757,070,609 | 292,426,056 | 441,142,842 | ||||||||||||
Low Carbon Energy ETF | 20,643,919 | 18,810,600 | — | 6,709,067 | ||||||||||||
Natural Resources ETF | 42,391,478 | 38,923,597 | 63,023,688 | 4,730,700 | ||||||||||||
Oil Refiners ETF | 12,328,102 | 6,368,442 | 35,294,072 | 2,363,999 | ||||||||||||
Oil Services ETF | 199,396,051 | 191,235,177 | 1,960,548,664 | 1,935,634,678 | ||||||||||||
Rare Earth/Strategic Metals ETF | 199,896,106 | 197,042,031 | 82,590,677 | 85,930,486 | ||||||||||||
Steel ETF | 13,451,892 | 10,696,594 | 45,271,598 | 55,172,480 | ||||||||||||
Uranium+Nuclear Energy ETF | 7,110,301 | 6,342,280 | 12,314,489 | — |
67 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Note 6—Income Taxes—As of June 30, 2022, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments owned were as follows:
Fund | Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Agribusiness ETF | $1,687,567,610 | $95,662,441 | $(139,174,457) | $(43,512,016) | ||||||||||||
Future of Food ETF | 3,658,688 | 37,908 | (663,505) | (625,597) | ||||||||||||
Gold Miners ETF | 12,030,134,417 | 998,008,185 | (1,967,435,330) | (969,427,145) | ||||||||||||
Green Metals ETF | 27,035,615 | 350,778 | (4,972,439) | (4,621,661) | ||||||||||||
Junior Gold Miners ETF | 4,811,882,745 | 126,940,112 | (1,514,869,381) | (1,387,929,269) | ||||||||||||
Low Carbon Energy ETF | 262,717,588 | 30,993,927 | (55,334,014) | (24,340,087) | ||||||||||||
Natural Resources ETF | 140,504,253 | 15,330,634 | (9,706,880) | 5,623,754 | ||||||||||||
Oil Refiners ETF | 57,614,816 | 1,225,667 | (3,017,335) | (1,791,668) | ||||||||||||
Oil Services ETF | 2,954,907,018 | 52,375,330 | (352,906,695) | (300,531,365) | ||||||||||||
Rare Earth/Strategic Metals ETF | 746,131,395 | 215,862,461 | (142,649,281) | 73,213,180 | ||||||||||||
Steel ETF | 130,747,561 | – | (34,975,228) | (34,975,228) | ||||||||||||
Uranium+Nuclear Energy ETF | 46,464,161 | 4,744,860 | (3,615,344) | 1,129,516 |
The tax character of dividends paid to shareholders will be determined at the end of the current fiscal year.
At December 31, 2021, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
Fund | Short-Term Capital Losses with No Expiration | Long-Term Capital Losses with No Expiration | Total | |||||||||
Agribusiness ETF | $ | (175,905,265 | ) | $ | (551,654,085 | ) | $ | (727,559,350 | ) | |||
Gold Miners ETF | (1,805,505,732 | ) | (9,236,573,744 | ) | (11,042,079,476 | ) | ||||||
Green Metals ETF | (27,331 | ) | – | (27,331 | ) | |||||||
Junior Gold Miners ETF | (1,648,480,658 | ) | (2,831,424,632 | ) | (4,479,905,290 | ) | ||||||
Low Carbon Energy ETF | (7,146,828 | ) | (47,629,264 | ) | (54,776,092 | ) | ||||||
Natural Resources ETF | (3,940,074 | ) | (42,329,314 | ) | (46,269,388 | ) | ||||||
Oil Refiners ETF | (3,229,685 | ) | (4,344,872 | ) | (7,574,557 | ) | ||||||
Oil Services ETF | (234,798,568 | ) | (1,626,627,490 | ) | (1,861,426,058 | ) | ||||||
Rare Earth/Strategic Metals ETF | (35,999,127 | ) | (232,464,649 | ) | (268,463,776 | ) | ||||||
Steel ETF | (13,384,193 | ) | (142,647,850 | ) | (156,032,043 | ) | ||||||
Uranium+Nuclear Energy ETF | (13,930,669 | ) | (71,255,403 | ) | (85,186,072 | ) |
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2022, the Funds did not incur any interest or penalties.
Note 7—Principal Risks— Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse economic developments and political conflicts, or natural or other disasters, such as the coronavirus
68 |
outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets. Certain securities of Chinese issuers are, or may in the future become restricted, and the Funds may be forced to sell such restricted securities and incur a loss as a result.
Following Russia’s large-scale invasion of Ukraine on February 24, 2022, governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced and may continue to experience significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but significant trading limitations have remained. There is no assurance that these disruptions will not continue.
Economies and financial markets throughout the world have experienced periods of increased volatility, uncertainty and distress as a result of conditions associated with the COVID-19 pandemic. To the extent these conditions continue, the risks associated with an investment in a Fund could be heightened and the Fund’s investments (and thus a shareholder’s investment in a Fund) may be particularly susceptible to sudden and substantial losses, reduced yield or income or other adverse developments.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds of the Trust as directed by the Trustees.
The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities. Effective January 1, 2022, Natural Resources ETF and Oil Services ETF converted to a unitary management fee structure. For these Funds, the liability of the Plan shown as “Deferred Trustee fees” in the Statements of Asset and Liabilities represents amounts accrued through December 31, 2021. Future of Food ETF and Green Metals ETF commenced operations with a unitary management fee and therefore bear no costs or liabilities relative to the Plan.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements
69 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Fund securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related cash collateral, if any, at June 30, 2022 is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of June 30, 2022:
Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
Agribusiness ETF | $ | 10,494,145 | $ | 6,592,867 | $ | 4,451,660 | $ | 11,044,527 | ||||||||
Future of Food ETF | 210,454 | 206,813 | 19,535 | 226,348 | ||||||||||||
Gold Miners ETF | 237,120,762 | 132,623,401 | 124,926,066 | 257,549,467 | ||||||||||||
Green Metals ETF | 496,178 | 530,041 | – | 530,041 | ||||||||||||
Junior Gold Miners ETF | 131,657,663 | 92,878,949 | 58,368,936 | 151,247,885 | ||||||||||||
Low Carbon Energy ETF | 26,411,462 | 8,445,942 | 19,238,105 | 27,684,047 | ||||||||||||
Natural Resources ETF | 4,031,096 | 1,183,311 | 3,071,381 | 4,254,692 | ||||||||||||
Oil Services ETF | 22,715,429 | 4,998,253 | 19,066,360 | 24,064,613 | ||||||||||||
Rare Earth/Strategic Metals ETF | 151,236,579 | 37,136,036 | 129,123,344 | 166,259,380 | ||||||||||||
Steel ETF | 20,875,188 | 4,204,063 | 18,029,129 | 22,233,192 | ||||||||||||
Uranium+Nuclear Energy ETF | 4,794,155 | 2,312,067 | 2,759,968 | 5,072,035 |
The following table presents money market fund investments held as collateral by type of security on loan as of June 30, 2022:
Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||
Fund | Equity Securities | |||
Agribusiness ETF | $ | 6,592,867 | ||
Future of Food ETF | 206,813 | |||
Gold Miners ETF | 132,623,401 | |||
Green Metals ETF | 530,041 | |||
Junior Gold Miners ETF | 92,878,949 | |||
Low Carbon Energy ETF | 8,445,942 | |||
Natural Resources ETF | 1,183,311 | |||
Oil Services ETF | 4,998,253 | |||
Rare Earth/Strategic Metals ETF | 37,136,036 | |||
Steel ETF | 4,204,063 | |||
Uranium+Nuclear Energy ETF | 2,312,067 |
* | Remaining contractual maturity: overnight and continuous |
Note 10—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The participating Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds based on prevailing market rates
70 |
in effect at the time of borrowings. During the period ended June 30, 2022, the following Funds borrowed under this Facility:
Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate | |||||||||
Agribusiness ETF | 117 | $ | 2,598,092 | 1.87 | % | |||||||
Gold Miners ETF | 51 | 27,486,139 | 1.91 | |||||||||
Green Metals ETF | 167 | 384,424 | 1.76 | |||||||||
Junior Gold Miners ETF | 25 | 18,046,532 | 2.34 | |||||||||
Low Carbon Energy ETF | 117 | 650,429 | 1.88 | |||||||||
Natural Resources ETF | 98 | 543,381 | 1.80 | |||||||||
Oil Refiners ETF | 32 | 253,351 | 2.07 | |||||||||
Oil Services ETF | 93 | 1,868,000 | 1.62 | |||||||||
Rare Earth/Strategic Metals ETF | 98 | 1,136,405 | 1.79 | |||||||||
Steel ETF | 48 | 725,627 | 1.79 | |||||||||
Uranium+Nuclear Energy ETF | 85 | 156,326 | 2.12 |
Outstanding loan balances as of June 30, 2022, if any, are reflected in the Statements of Assets and Liabilities.
Note 11—Share Split— The Board of Trustees approved a 1 for 20 reverse share split for Oil Services ETF, and 1 for 3 reverse share split for Rare Earth/Strategic Metals ETF and shares began trading on a split-adjusted basis on April 15, 2020. The Financial Highlights prior to April 15, 2020 have been adjusted to reflect these reverse share splits.
Note 12—Subsequent Event Review—The Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
71 |
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
June 30, 2022 (unaudited)
At a meeting held on June 7, 2022 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Africa Index ETF, Agribusiness ETF, Brazil Small-Cap ETF, China Growth Leaders ETF, ChiNext ETF, Digital India ETF, Egypt Index ETF, Gold Miners ETF, Green Metals ETF, India Growth Leaders ETF, Indonesia Index ETF, Israel ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Steel ETF, Uranium + Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck China Growth Leaders ETF and ChiNext ETF (together, the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”
The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In preparation for the Renewal Meeting, the Trustees held a meeting on May 6, 2022. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses of the Funds and the Funds’ peer funds (certain other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. They also considered the fact that each of the VanEck Digital India ETF and Green Metals ETF had only recently commenced operations and therefore each had a limited operational history that could be used for comparative purposes, since tracking error measurements and the performance comparisons provided by Broadridge were not available for each Fund. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds. The Trustees also considered the Adviser’s efforts to navigate significant regulatory restrictions and other operational challenges in managing the VanEck Russia ETF and Russia Small-Cap ETF during recent periods.
The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 6, 2022 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including, where applicable, (i) (with respect to the VanEck Digital India ETF, Green Metals ETF, Natural Resources ETF and Oil Services ETF) (the “Unitary Funds”) the Adviser’s agreement to pay all of the direct expenses of the Funds (excluding the fee payment under the Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) and (ii) (with respect to all other Funds) (the “Non-Unitary Funds”) the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds
72 |
to the extent necessary to prevent the operating expenses of each of the Funds from exceeding agreed upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Foreign Institutional Investors Scheme funds. The Trustees also noted that the Sub-Adviser is a wholly-owned subsidiary of China Asset Management Co., Ltd., one of China’s largest asset management companies measured by fund assets under management.
The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance of each Fund, the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Funds was satisfactory.
The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Funds’ expenses and performance to that of certain other ETFs. The Trustees noted that the information provided showed that each Fund (except as noted) had management fees (after the effect of any applicable fee waiver) below the average and median of its respective peer group of funds, each of the VanEck Gold Miners ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Rare Earth/Strategic Metals ETF and Steel ETF had management fees (after the effect of any applicable fee waiver) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF, Agribusiness ETF, Oil Services ETF, Russia ETF and Vietnam ETF had management fees (after the effect of any applicable fee waiver) above the average and equal to the median of its respective peer group of funds, and each of the VanEck Digital India ETF, Green Metals ETF and Natural Resources ETF had management fees above the average and median of its respective peer group of funds. The Trustees also noted that the information provided showed that each Fund (except as noted) had a total expense ratio (after the effect of any applicable expense limitation) below the average and median of its respective peer group of funds, each of the VanEck Brazil Small-Cap ETF, Gold Miners ETF, Indonesia Index ETF and Oil Services ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and equal to the median of its respective peer group of funds, each of the VanEck Israel ETF and Vietnam ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and above the median of its respective peer group of funds, and Junior Gold Miners ETF had a total expense ratio (after the effect of any applicable expense limitation) equal to the average and above the median of its respective peer group of funds, each of ChiNext ETF, Digital India ETF, Green Metals ETF, India Growth Leaders ETF and Oil Refiners ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and equal to the median of its respective peer group of funds, and each of the VanEck Africa Index ETF, Egypt Index ETF, Russia Small-Cap ETF and Uranium + Nuclear Energy ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and median of its respective peer group of funds. The Trustees reviewed the amount by which certain Funds’ management fees and/or total expense ratios (after the effect of any applicable fee waivers and/or expense limitations) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. With respect to the VanEck Russia ETF and Russia Small-Cap ETF, the Trustees noted that the Adviser had voluntarily agreed to waive all of the Funds’ management fees beginning March 11, 2022 (although such waiver could be terminated at any time). The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Funds were reasonable in light of the performance of the Funds and the quality of services received.
73 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
June 30, 2022 (unaudited) (continued)
The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds and the fact that the Sub-Adviser had not identified any such monetary benefits.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap, as applicable, and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Funds invest, potential variability in the net assets of the Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Funds effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders of the Unitary Funds and noted that the Adviser has capped expenses on each of the Non-Unitary Funds since its inception, although the cap was not necessarily exceeded each year. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the profits earned by the Adviser with respect to the Funds that were profitable to the Adviser were reasonable in light of the nature and quality of the services received by such Funds.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 6, 2022 meeting as part of their consideration of the Agreements.
In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that, at the time of their considerations, each Agreement is in the best interest of each Fund and such Fund’s shareholders.
VanEck Future of Food ETF
At a meeting held on June 7, 2022 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of the investment management agreement between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Future of Food ETF (the “Fund”).
The Board’s approval of the Investment Management Agreement was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In preparation for the Renewal Meeting, the Trustees held a meeting on May 6, 2022. At that meeting, the Trustees discussed the information the Adviser and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses of the Fund and the Fund’s peer funds (certain other exchange-traded funds (“ETFs”)), information about the advisory services provided to the Fund and the personnel providing those services, and the profitability (or the absence of profitability) and the benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. In addition, as noted below, the Trustees reviewed certain performance information for the Fund which was not provided by Broadridge and which did not compare the Fund’s performance to the
74 |
performance of its peer group. The Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Fund.
The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 6, 2022 meeting regarding the management of the Fund and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser, including the background and experience of the portfolio managers and others involved in the management and administration of the Fund. The Trustees also considered the terms of, and scope of services that the Adviser provides under, the Investment Management Agreement, including the Adviser’s agreement to pay all of the direct expenses of the Fund (excluding the fee payment under the Investment Management Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses).
In evaluating the performance of the Fund, the Trustees reviewed various performance metrics, including various data from Broadridge comparing the Fund’s performance to that of certain other ETFs. The Trustees also considered information from the Adviser regarding the performance of the Fund against its benchmark and the Adviser’s statement that the Fund’s performance against its benchmark is more relevant than performance against its peer group, given the small number of funds with directly competing strategies. The Trustees noted that the Fund had underperformed its benchmark for the period since its inception on November 30, 2021 through December 31, 2021, a relatively short period. Based on the foregoing, the Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.
The Trustees also considered information relating to the financial condition of the Adviser and the current status, as they understood it, of the Adviser’s compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Fund’s expenses and performance to that of certain other ETFs. The Trustees noted that the information provided showed that the Fund had management fees above the average and median of its peer group of funds. The Trustees also noted that the information provided showed that the Fund had a total expense ratio above the average and median of its peer group of funds. The Trustees reviewed the amount by which the Fund’s management fees and total expense ratio exceeded the average and median of its peer group and information provided by the Adviser providing context for these comparisons, including that the Fund is actively managed while the other funds in its peer group are passively managed. The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Fund were reasonable in light of the performance of the Fund and the quality of services received.
The Trustees also considered the benefits, other than the fees under the Investment Management Agreement, received by the Adviser from serving as adviser to the Fund.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and the fact that the Adviser did not earn any profits from managing the Fund. The Trustees reviewed the Fund’s asset size and expense ratio and noted that the Investment Management Agreement does not include breakpoints in the advisory fee rates as asset levels in the Fund increase. The Trustees considered the potential variability in the net assets of the Fund and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Fund effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for the Fund is reasonable and appropriate in relation to the current asset size of the Fund and the other factors discussed above and that the advisory fee rate for the Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist.
75 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
June 30, 2022 (unaudited) (continued)
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 6, 2022 meeting as part of their consideration of the Investment Management Agreement.
In voting to approve the continuation of the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that, at the time of their considerations, the Investment Management Agreement is in the best interest of the Fund and the Fund’s shareholders.
VanEck Commodity Strategy ETF and VanEck Gold and Bitcoin Strategy ETF
At a meeting held on March 4, 2022 (the “Meeting”), the Board of Trustees (the “Board”) of VanEck ETF® Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), considered and approved the investment management agreements between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Commodity Strategy ETF (formerly known as VanEck Commodities and Bitcoin Strategy ETF) and VanEck Gold and Bitcoin Strategy ETF (the “Funds”).
The Board’s approval of the Investment Management Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In advance of the Meeting, the Trustees received materials from the Adviser, including expense information for other funds. The Adviser provided the Trustees with information regarding, among other things, the various aspects of the Funds’ proposed investment programs, fee arrangements and service provider arrangements. The Independent Trustees’ consideration of the Investment Management Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Meeting regarding the management of the Funds, information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Funds. The Trustees also considered the terms and scope of services that the Adviser would provide under each Investment Management Agreement, including the Adviser’s agreement to pay all of the direct expenses of each Fund (including any expenses of the Fund’s subsidiary and excluding the fee payment under the Investment Management Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses).
The Trustees considered the benefits, other than the fees under the Investment Management Agreements, that the Adviser would receive from serving as adviser to the Funds. The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of the Funds to the Adviser because the Funds had not yet commenced operations. In addition, because the Funds had not yet commenced operations, the Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Funds by the Adviser, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Meeting as part of their consideration of the Investment Management Agreements.
In voting to approve the Investment Management Agreements, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreements are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees
76 |
considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that the Investment Management Agreements are in the best interest of the Funds and the Funds’ shareholders.
At a meeting held on June 7, 2022 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of the investment management agreements between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Commodity Strategy ETF (formerly known as VanEck Commodities and Bitcoin Strategy ETF) and VanEck Gold and Bitcoin Strategy ETF (each, a “Fund” and together, the “Funds”).
The Board’s approval of the Investment Management Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In preparation for the Renewal Meeting, the Trustees held a meeting on May 6, 2022. At that meeting, the Trustees received materials from the Adviser. The Independent Trustees’ consideration of the Investment Management Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 6, 2022 meeting regarding the proposed management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Funds. In evaluating the terms of the Investment Management Agreements at the Renewal Meeting and the May 6, 2022 meeting, the Trustees considered the terms of, and scope of services that the Adviser would provide under, the Investment Management Agreements, including the Adviser’s agreement to pay all expenses of the Funds (inclusive of any expenses of the Funds’ subsidiaries), except for the fee payment under the Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses. The Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Funds’ portfolios.
The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of the Funds to the Adviser because the Funds had not yet commenced operations. The Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Funds by the Adviser, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 6, 2022 meeting as part of their consideration of the Investment Management Agreements.
In voting to approve the continuation of the Investment Management Agreements, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreements are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that, at the time of their considerations, each Investment Management Agreement is in the best interest of each Fund and such Fund’s shareholders.
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FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for most funds redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2021 to December 31, 2021 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
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This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) prospectus and summary prospectus, which includes more complete information. 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.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | |
Distributor: | VanEck Securities Corporation | |
666 Third Avenue, New York, NY 10017 | ||
vaneck.com | ||
Account Assistance: | 800.826.2333 | NRSAR |
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SEMI-ANNUAL REPORT June 30, 2022 (unaudited) |
Africa Index ETF | AFK® |
Brazil Small-Cap ETF | BRF® |
China Growth Leaders ETF | GLCN |
ChiNext ETF | CNXT® |
Digital India ETF | DGIN |
Egypt Index ETF | EGPT® |
India Growth Leaders ETF | GLIN |
Indonesia Index ETF | IDX® |
Israel ETF | ISRA™ |
Vietnam ETF | VNM® |
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2022.
PRESIDENT’S LETTER
June 30, 2022 (unaudited)
Dear Fellow Shareholders:
When will market volatility be over? The short answer: not yet. Financial tightening by central banks is never good for financial assets. And while the first half of 2022 has already been painful, we are only now, in midsummer, experiencing the onset of “quantitative tightening,” when the central banks stop buying bonds. This, to me, is the final act in this process and it may take a few months to work itself out. I am hoping that there are no implosions by major, indebted countries, or major dislocations in fixed income or banking markets.
The second signal that will imply less pressure on financial markets—stocks and bonds—is weaker labor markets, because only that, I believe, will slow wage pressure and therefore inflation. While there will likely be many minor signals and headlines, we may not have confirmation of cooling wage pressure until year-end or later.
For over a year, I’ve been saying that we would be in a better position to gauge inflation persistence in the second half of 2022, because only now would we know whether inflationary psychology had affected wages. Well, here we are. Despite a cooling U.S. economy, the labor market is still hot. There is a strong relationship between wages and inflation, which historically becomes more pronounced during periods of high inflation. Based on the fact that the record-setting spending stimulus has led to wage inflation, our view now is that inflation will be higher for longer.
Rising Correlation: Upward Pressure on Wages Leads to Upward Pressure on Inflation
While we expect to be in an elevated inflation regime for an extended period of time, there should be some temporary relief on the horizon from the negative wealth effect from declining asset values, a recent pullback in commodity prices and improving supply chains. But asset values can still fall further from here, commodity prices are still high by historical standards, and supply chain pressures are still at last summer’s levels.
Consumers are being squeezed from high inflation and more restrictive, yet still accommodative, monetary policy. We estimate the evisceration of over $40 trillion from the global stock, bond and crypto markets as a result of the current macro-economic conditions. That equates to nearly half of the world’s GDP!
Multi-Year Investment Themes: Resources Transition and Blockchain Disruption
So, we continue to focus on two multi-year investment themes.
Commodities have broken out of their prolonged bear market to reach record highs, driven by forces—primarily, the supply-demand imbalance—that have been in place even before Russia’s invasion of Ukraine. The Russia-Ukraine crisis has, however, accelerated efforts to reduce dependency on Russian energy supply in Europe, and part of that plan includes a shift towards renewable energy.
Commodity prices have more than doubled from their COVID-19 lows. Yet, the supply response across all industries has been limited due to the emphasis on capital discipline and environmental, social and governance constraints. If we are in the early stages of an economic slowdown, then it is very unlikely that we will see an increase in capital expenditures leading to additional supply. This should lead to a swift rebound in prices when economic growth resumes.
We still like commodity equities, particularly companies involved in green metals used in electric vehicle and clean energy components and, perhaps with a longer-term horizon, agribusiness companies looking to innovate for more efficient, climate-friendly and sustainable food production. Fears of global recession have hurt these investments, but I believe the longer-term trends will prevail.
The fallout from the Terra ecosystem’s collapse in May on the broader digital assets market cannot be understated. It caused major damage, and bankruptcies and liquidations of borrowing/lending firms are likely ahead, not to mention litigation from retail investors. Volatility is a given with crypto, with Bitcoin and Ethereum under the most pressure from their status as the “reserve” holdings for many in the crypto world. However, while I used to think Bitcoin’s drawdown risk was 90% back in 2017, I expected the drawdowns to
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VANECK ETF TRUST
PRESIDENT’S LETTER
(unaudited) (continued)
be more muted in current times. This is because the underlying blockchain technology is being used to gain efficiency and reduce risk in the financial system, and I believe adoption will keep expanding.
Growth is Less Rich Relative to Value
For much of 2021, many growth stocks were very richly valued. At the end of 2021, the price-to-earnings (“P/E”) ratio of the Russell 1000 Growth Index was hovering around 40. By comparison, during that same period, the P/E ratio of the Russell 1000 Value Index was below 20. That equated to a valuation spread of roughly 20.
We hadn’t seen such a big dislocation between growth and value stocks since the tech bubble in the early 2000s. That is why, at the start of 2022, we said to wait to buy growth. We could be getting closer, but investors should be cautious. The current spread between the P/E ratios of growth and value stocks is over 11 and the long-term average is 8. If inflation remains persistently high, as we expect, then this spread may go even lower.
We thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each the funds for the six month period ended June 30, 2022. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
CEO and President
VanEck ETF Trust
July 12, 2022
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
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EXPLANATION OF EXPENSES
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2022 to June 30, 2022.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022(a) | |||||||||||||
Africa Index ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $834.30 | 0.84 | % | $ | 3.82 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,020.63 | 0.84 | % | $ | 4.21 | |||||||||
Brazil Small-Cap ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $855.00 | 0.59 | % | $ | 2.71 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.87 | 0.59 | % | $ | 2.96 | |||||||||
China Growth Leaders ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $856.90 | 0.60 | % | $ | 2.76 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.82 | 0.60 | % | $ | 3.01 | |||||||||
ChiNext ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $804.70 | 0.65 | % | $ | 2.91 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.57 | 0.65 | % | $ | 3.26 | |||||||||
Digital India ETF | ||||||||||||||||
Actual (c) | $ | 1,000.00 | $793.60 | 0.75 | % | $ | 2.49 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.08 | 0.75 | % | $ | 3.76 | |||||||||
Egypt Index ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $658.60 | 1.07 | % | $ | 4.40 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,019.49 | 1.07 | % | $ | 5.36 | |||||||||
India Growth Leaders ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $733.70 | 0.81 | % | $ | 3.48 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,020.78 | 0.81 | % | $ | 4.06 |
3 |
VANECK ETF TRUST
EXPLANATION OF EXPENSES
(unaudited) (continued)
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022(a) | |||||||||||||
Indonesia Index ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $989.70 | 0.57 | % | $ | 2.81 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.97 | 0.57 | % | $ | 2.86 | |||||||||
Israel ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $766.30 | 0.59 | % | $ | 2.58 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.87 | 0.59 | % | $ | 2.96 | |||||||||
Vietnam ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $681.30 | 0.61 | % | $ | 2.54 | |||||||||
Hypothetical (b) | $ | 1,000.00 | $1,021.77 | 0.61 | % | $ | 3.06 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2022), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(b) | Assumes annual return of 5% before expenses |
(c) | Expenses are equal to the Fund’s annualized expense ratio (for the period from February 16, 2022 (commencement of operations) to June 30, 2022) multiplied by the average account value over the period, multiplied by the number of days since the commencement of operations divided by the number of days in the fiscal year. |
4 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 101.5% | ||||||||
Australia: 4.0% | ||||||||
AVZ Minerals Ltd. # * | 1,399,901 | $ | 530,223 | |||||
Paladin Energy Ltd. # * † | 559,641 | 223,739 | ||||||
Perseus Mining Ltd. # | 922,421 | 997,091 | ||||||
Sandfire Resources Ltd. # | 76,123 | 233,789 | ||||||
1,984,842 | ||||||||
Burkina Faso: 0.3% | ||||||||
IAMGOLD Corp. (USD) * | 93,923 | 151,216 | ||||||
Canada: 4.7% | ||||||||
B2Gold Corp. (USD) | 22,577 | 76,536 | ||||||
Barrick Gold Corp. (USD) | 43,912 | 776,803 | ||||||
Ivanhoe Mines Ltd. * † | 257,082 | 1,476,784 | ||||||
2,330,123 | ||||||||
China: 1.5% | ||||||||
CMOC Group Ltd. (HKD) # * † | 1,353,000 | 755,512 | ||||||
Egypt: 4.9% | ||||||||
Centamin Plc (GBP) # | 580,668 | 553,848 | ||||||
Commercial International Bank Egypt SAE (USD) (GDR) # | 1,119,875 | 1,849,620 | ||||||
2,403,468 | ||||||||
Germany: 1.1% | ||||||||
Jumia Technologies AG (ADR) * | 88,975 | 539,188 | ||||||
Ghana: 2.4% | ||||||||
Kosmos Energy Ltd. (USD) * | 188,822 | 1,168,808 | ||||||
India: 0.6% | ||||||||
MakeMyTrip Ltd. (USD) * † | 11,069 | 284,252 | ||||||
Indonesia: 0.4% | ||||||||
Golden Agri-Resources Ltd. (SGD) # | 1,228,100 | 220,694 | ||||||
Kenya: 10.9% | ||||||||
East African Breweries Ltd. | 559,600 | 651,443 | ||||||
Equity Group Holdings Plc | 4,700,100 | 1,714,201 | ||||||
Safaricom Plc | 14,176,400 | 3,000,010 | ||||||
5,365,654 | ||||||||
Morocco: 9.7% | ||||||||
Attijariwafa Bank | 51,938 | 2,206,359 | ||||||
Bank of Africa # | 46,328 | 859,268 | ||||||
Banque Centrale Populaire | 39,266 | 992,263 | ||||||
Co. Sucrerie Marocaine et de Raffinage | 32,695 | 713,090 | ||||||
4,770,980 | ||||||||
Nigeria: 12.0% | ||||||||
Guaranty Trust Holding Co. Plc | 29,131,767 | 1,319,490 | ||||||
MTN Nigeria Communications Plc | 4,835,386 | 2,457,222 | ||||||
Nestle Nigeria Plc | 266,761 | 825,156 | ||||||
Zenith Bank Plc | 27,658,608 | 1,326,098 | ||||||
5,927,966 | ||||||||
Norway: 0.2% | ||||||||
Scatec ASA 144A # | 9,163 | 79,444 | ||||||
South Africa: 34.0% | ||||||||
Absa Group Ltd. # | 46,623 | 442,080 | ||||||
Anglo American Platinum Ltd. # | 4,942 | 428,211 | ||||||
Anglo American Plc (GBP) # | 50,981 | 1,818,230 |
Number of Shares | Value | |||||||
South Africa (continued) | ||||||||
Aspen Pharmacare Holdings Ltd. # | 25,449 | $ | 217,235 | |||||
AVI Ltd. | 24,738 | 99,239 | ||||||
Bid Corp. Ltd. | 17,851 | 334,312 | ||||||
Bidvest Group Ltd. | 20,525 | 262,587 | ||||||
Capitec Bank Holdings Ltd. # | 7,621 | 927,546 | ||||||
Clicks Group Ltd. | 15,798 | 263,559 | ||||||
Coronation Fund Managers Ltd. | 18,927 | 37,802 | ||||||
Discovery Ltd. # * † | 29,076 | 228,366 | ||||||
Exxaro Resources Ltd. # | 11,464 | 138,316 | ||||||
FirstRand Ltd. # | 233,862 | 893,752 | ||||||
Foschini Group Ltd. | 11,158 | 83,093 | ||||||
Gold Fields Ltd. (ADR) | 57,720 | 526,406 | ||||||
Growthpoint Properties Ltd. | 213,025 | 160,590 | ||||||
Harmony Gold Mining Co. Ltd. (ADR) | 35,547 | 111,262 | ||||||
Impala Platinum Holdings Ltd. # | 53,546 | 589,938 | ||||||
Investec Plc (GBP) # | 43,839 | 238,160 | ||||||
Life Healthcare Group Holdings Ltd. # | 59,873 | 65,659 | ||||||
Momentum Metropolitan Holdings # | 104,914 | 91,350 | ||||||
Mr Price Group Ltd. # | 17,998 | 195,989 | ||||||
MTN Group Ltd. # | 110,313 | 891,451 | ||||||
MultiChoice Group | 20,804 | 147,066 | ||||||
Naspers Ltd. # | 14,294 | 2,073,661 | ||||||
Nedbank Group Ltd. # | 28,130 | 357,553 | ||||||
Netcare Ltd. # | 93,186 | 81,701 | ||||||
Northam Platinum Holdings Ltd. # * | 18,998 | 197,751 | ||||||
Old Mutual Ltd. # | 271,481 | 182,723 | ||||||
Pepkor Holdings Ltd. 144A | 108,520 | 126,654 | ||||||
Pick n Pay Stores Ltd. | 17,946 | 61,575 | ||||||
Rand Merchant Investment Holdings Ltd. | 50,274 | 85,434 | ||||||
Remgro Ltd. | 36,616 | 290,358 | ||||||
Resilient REIT Ltd. † | 25,555 | 83,330 | ||||||
Sanlam Ltd. # | 132,352 | 427,187 | ||||||
Sappi Ltd. # * | 39,970 | 131,801 | ||||||
Sasol Ltd. (ADR) * † | 38,513 | 888,110 | ||||||
Shoprite Holdings Ltd. # | 35,144 | 425,222 | ||||||
Sibanye Stillwater Ltd. (ADR) † | 50,198 | 500,474 | ||||||
SPAR Group Ltd. | 10,251 | 86,426 | ||||||
Standard Bank Group Ltd. # | 98,244 | 930,814 | ||||||
Thungela Resources Ltd. # | 8,948 | 125,992 | ||||||
Tiger Brands Ltd. † | 7,914 | 68,616 | ||||||
Vodacom Group Ltd. # | 32,569 | 261,913 | ||||||
Woolworths Holdings Ltd. | 63,448 | 210,106 | ||||||
16,789,600 | ||||||||
Switzerland: 0.3% | ||||||||
Mediclinic International Plc (GBP) # * | 29,428 | 164,300 | ||||||
Tanzania: 3.5% | ||||||||
AngloGold Ashanti Ltd. (ADR) | 27,461 | 406,148 | ||||||
Helios Towers Plc (GBP) # * † | 899,275 | 1,325,814 | ||||||
1,731,962 |
See Notes to Financial Statements
5 |
VANECK AFRICA INDEX ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
United Arab Emirates: 3.2% | ||||||||
Itissalat Al-Maghrib (MAD) # | 134,411 | $ | 1,586,374 | |||||
United Kingdom: 6.2% | ||||||||
Airtel Africa Plc 144A # | 1,339,171 | 2,219,508 | ||||||
Endeavour Mining Plc # | 33,460 | 691,616 | ||||||
Kumba Iron Ore Ltd. (ZAR) # | 4,857 | 156,366 | ||||||
3,067,490 | ||||||||
United States: 0.2% | ||||||||
Royal Caribbean Cruises Ltd. * | 3,391 | 118,380 | ||||||
Zambia: 1.4% | ||||||||
First Quantum Minerals Ltd. (CAD) | 37,703 | 713,754 | ||||||
Zimbabwe: 0.0% | ||||||||
Delta Corp. Ltd. # | 15,980 | 7,759 |
Number of Shares | Value | |||||||
Zimbabwe (continued) | ||||||||
Ecocash Holdings Zimbabwe Ltd. * | 32,900 | $ | 3,242 | |||||
11,001 | ||||||||
Total Common Stocks (Cost: $51,093,400) | 50,165,008 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.5% (Cost: $733,800) | ||||||||
Money Market Fund: 1.5% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 733,800 | 733,800 | ||||||
Total Investments: 103.0% (Cost: $51,827,200) | 50,898,808 | |||||||
Liabilities in excess of other assets: (3.0)% | (1,502,844) | |||||||
NET ASSETS: 100.0% | $ | 49,395,964 |
Definitions:
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
GBP | British Pound |
GDR | Global Depositary Receipt |
HKD | Hong Kong Dollar |
MAD | Moroccan Dirham |
SGD | Singapore Dollar |
USD | United States Dollar |
ZAR | South African Rand |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $24,817,566 which represents 50.2% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $4,412,253. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $2,425,606, or 4.9% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Communication Services | 23.7 | % | $ | 11,889,358 | ||||
Consumer Discretionary | 7.2 | 3,631,322 | ||||||
Consumer Staples | 7.5 | 3,757,088 | ||||||
Energy | 3.3 | 1,656,855 | ||||||
Financials | 30.7 | 15,403,669 | ||||||
Health Care | 1.0 | 528,895 | ||||||
Industrials | 0.5 | 262,587 | ||||||
Materials | 25.4 | 12,711,871 | ||||||
Real Estate | 0.5 | 243,919 | ||||||
Utilities | 0.2 | 79,444 | ||||||
100.0 | % | $ | 50,165,008 |
See Notes to Financial Statements
6 |
The summary of inputs used to value the Fund's investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 1,984,842 | $ | — | $ | 1,984,842 | ||||||||
Burkina Faso | 151,216 | — | — | 151,216 | ||||||||||||
Canada | 2,330,123 | — | — | 2,330,123 | ||||||||||||
China | — | 755,512 | — | 755,512 | ||||||||||||
Egypt | — | 2,403,468 | — | 2,403,468 | ||||||||||||
Germany | 539,188 | — | — | 539,188 | ||||||||||||
Ghana | 1,168,808 | — | — | 1,168,808 | ||||||||||||
India | 284,252 | — | — | 284,252 | ||||||||||||
Indonesia | — | 220,694 | — | 220,694 | ||||||||||||
Kenya | 5,365,654 | — | — | 5,365,654 | ||||||||||||
Morocco | 3,911,712 | 859,268 | — | 4,770,980 | ||||||||||||
Nigeria | 5,927,966 | — | — | 5,927,966 | ||||||||||||
Norway | — | 79,444 | — | 79,444 | ||||||||||||
South Africa | 4,426,999 | 12,362,601 | — | 16,789,600 | ||||||||||||
Switzerland | — | 164,300 | — | 164,300 | ||||||||||||
Tanzania | 406,148 | 1,325,814 | — | 1,731,962 | ||||||||||||
United Arab Emirates | — | 1,586,374 | — | 1,586,374 | ||||||||||||
United Kingdom | — | 3,067,490 | — | 3,067,490 | ||||||||||||
United States | 118,380 | — | — | 118,380 | ||||||||||||
Zambia | 713,754 | — | — | 713,754 | ||||||||||||
Zimbabwe | 3,242 | 7,759 | — | 11,001 | ||||||||||||
Money Market Fund | 733,800 | — | — | 733,800 | ||||||||||||
Total Investments | $ | 26,081,242 | $ | 24,817,566 | $ | — | $ | 50,898,808 |
See Notes to Financial Statements
7 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 88.7% | ||||||||
Automobiles & Components: 1.1% | ||||||||
Mahle-Metal Leve SA | 27,050 | $ | 119,862 | |||||
Tupy SA * | 37,550 | 159,500 | ||||||
279,362 | ||||||||
Capital Goods: 2.1% | ||||||||
Aeris Industria E Comercio De Equipamentos Para Geracao De Energia SA | 220,950 | 118,213 | ||||||
Armac Locacao Logistica E Servicos SA | 53,500 | 124,103 | ||||||
Iochpe Maxion SA | 66,002 | 198,128 | ||||||
Portobello SA | 58,550 | 71,153 | ||||||
511,597 | ||||||||
Commercial & Professional Services: 1.5% | ||||||||
Ambipar Participacoes e Empreendimentos SA | 31,000 | 132,270 | ||||||
Boa Vista Servicos SA | 116,000 | 118,583 | ||||||
Orizon Valorizacao de Residuos SA * | 20,100 | 107,770 | ||||||
358,623 | ||||||||
Consumer Durables & Apparel: 11.5% | ||||||||
Arezzo Industria e Comercio SA | 44,750 | 594,706 | ||||||
Construtora Tenda SA * | 33,000 | 24,592 | ||||||
Cury Construtora e Incorporadora SA | 65,700 | 77,206 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 182,750 | 412,750 | ||||||
Direcional Engenharia SA * | 51,700 | 101,850 | ||||||
Even Construtora e Incorporadora SA | 70,050 | 57,957 | ||||||
Ez Tec Empreendimentos e Participacoes SA | 104,152 | 287,572 | ||||||
Grendene SA | 139,650 | 187,589 | ||||||
Grupo de Moda Soma SA | 264,983 | 465,820 | ||||||
Guararapes Confeccoes SA * | 59,650 | 77,277 | ||||||
MRV Engenharia e Participacoes SA | 159,750 | 238,399 | ||||||
Vivara Participacoes SA | 68,150 | 286,224 | ||||||
2,811,942 | ||||||||
Consumer Services: 7.9% | ||||||||
Afya Ltd. * | 19,675 | 195,766 | ||||||
Anima Holding SA * | 139,250 | 103,770 | ||||||
Arco Platform Ltd. * † | 5,524 | 82,473 | ||||||
Arcos Dorados Holdings, Inc. | 53,236 | 358,811 | ||||||
BK Brasil Operacao e Assessoria a Restaurantes SA * | 123,950 | 131,684 | ||||||
Cogna Educacao * | 1,122,100 | 458,836 | ||||||
Cruzeiro do Sul Educacional SA | 86,000 | 47,819 | ||||||
CVC Brasil Operadora e Agencia de Viagens SA * | 132,883 | 177,230 | ||||||
Ser Educacional SA 144A | 24,475 | 29,370 | ||||||
YDUQS Participacoes SA | 141,300 | 352,882 | ||||||
1,938,641 | ||||||||
Diversified Financials: 1.8% | ||||||||
Banco Modal SA * | 67,700 | 95,080 |
Number of Shares | Value | |||||||
Diversified Financials (continued) | ||||||||
BR Advisory Partners Participacoes SA | 28,850 | $ | 72,381 | |||||
TC Traders Club SA | 67,350 | 61,643 | ||||||
Vinci Partners Investments Ltd. † | 19,249 | 205,964 | ||||||
435,068 | ||||||||
Energy: 8.2% | ||||||||
3R Petroleum Oleo e Gas SA * | 109,750 | 737,126 | ||||||
AES Brasil Energia SA | 135,050 | 275,083 | ||||||
Enauta Participacoes SA | 56,050 | 188,174 | ||||||
Karoon Energy Ltd. # * | 360,737 | 433,420 | ||||||
Modec, Inc. # | 14,300 | 123,051 | ||||||
Petroreconcavo SA | 49,000 | 240,063 | ||||||
1,996,917 | ||||||||
Food & Staples Retailing: 2.2% | ||||||||
Cia Brasileira de Distribuicao (ADR) † | 113,730 | 352,563 | ||||||
Dimed SA Distribuidora da Medicamentos | 67,750 | 124,148 | ||||||
Empreendimentos Pague Menos SA * | 62,400 | 51,866 | ||||||
528,577 | ||||||||
Food, Beverage & Tobacco: 8.1% | ||||||||
Adecoagro SA | 39,960 | 338,062 | ||||||
BrasilAgro - Co. Brasileira de Propriedades Agricolas | 35,300 | 164,445 | ||||||
Camil Alimentos SA | 68,400 | 128,606 | ||||||
Jalles Machado SA | 97,400 | 142,561 | ||||||
Minerva SA | 200,800 | 509,151 | ||||||
SLC Agricola SA | 65,720 | 554,170 | ||||||
Tres Tentos Agroindustrial SA | 87,250 | 133,373 | ||||||
1,970,368 | ||||||||
Health Care Equipment & Services: 5.2% | ||||||||
Alliar Medicos A Frente SA * | 27,500 | 102,518 | ||||||
Fleury SA | 156,600 | 487,743 | ||||||
Hospital Mater Dei SA | 29,600 | 43,155 | ||||||
Instituto Hermes Pardini SA | 27,650 | 105,614 | ||||||
Odontoprev SA | 159,940 | 285,746 | ||||||
Oncoclinicas do Brasil Servicos Medicos SA * | 111,500 | 97,152 | ||||||
Qualicorp Consultoria e Corretora de Seguros SA | 73,900 | 157,446 | ||||||
1,279,374 | ||||||||
Insurance: 1.0% | ||||||||
IRB Brasil Resseguros SA * | 651,100 | 252,555 | ||||||
Materials: 2.4% | ||||||||
ERO Copper Corp. * | 54,109 | 456,934 | ||||||
Largo, Inc. * † | 19,153 | 130,623 | ||||||
587,557 | ||||||||
Media & Entertainment: 0.7% | ||||||||
Meliuz SA 144A * | 367,450 | 75,828 | ||||||
VTEX * † | 28,022 | 86,308 | ||||||
162,136 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 0.4% | ||||||||
Blau Farmaceutica SA | 22,700 | 108,697 |
See Notes to Financial Statements
8 |
Number of Shares | Value | |||||||
Real Estate: 7.9% | ||||||||
Aliansce Sonae Shopping Centers SA | 97,188 | $ | 297,314 | |||||
BR Malls Participacoes SA | 349,550 | 502,272 | ||||||
BR Properties SA | 116,750 | 197,430 | ||||||
Iguatemi SA | 185,750 | 638,516 | ||||||
JHSF Participacoes SA | 181,550 | 202,244 | ||||||
LOG Commercial Properties e Participacoes SA | 30,950 | 108,047 | ||||||
1,945,823 | ||||||||
Retailing: 2.8% | ||||||||
C&A MODAS SA * | 65,100 | 28,610 | ||||||
Grupo SBF SA | 70,050 | 253,379 | ||||||
Lojas Quero Quero SA * | 61,900 | 67,418 | ||||||
Via SA * | 899,500 | 330,001 | ||||||
679,408 | ||||||||
Semiconductors & Semiconductor Equipment: 1.3% | ||||||||
SMART Global Holdings, Inc. * † | 19,604 | 320,917 | ||||||
Software & Services: 2.1% | ||||||||
Clear Sale SA * | 50,250 | 36,679 | ||||||
Infracommerce CXAAS SA * | 128,750 | 110,214 | ||||||
Locaweb Servicos de Internet SA 144A * | 236,700 | 254,183 | ||||||
Sonda SA | 343,141 | 102,757 | ||||||
503,833 | ||||||||
Technology Hardware & Equipment: 1.0% | ||||||||
Ituran Location and Control Ltd. | 5,344 | 130,875 | ||||||
Multilaser Industrial SA | 150,100 | 113,576 | ||||||
244,451 | ||||||||
Telecommunication Services: 1.9% | ||||||||
Brisanet Participacoes SA | 56,850 | 19,119 | ||||||
Oi SA * | 3,672,566 | 392,979 | ||||||
Unifique Telecomunicacoes SA | 89,150 | 57,407 | ||||||
469,505 | ||||||||
Transportation: 5.4% | ||||||||
EcoRodovias Infraestrutura e Logistica SA * | 161,690 | 176,104 | ||||||
Gol Linhas Aereas Inteligentes SA (ADR) * † | 62,760 | 214,012 | ||||||
Hidrovias do Brasil SA * | 320,900 | 138,577 | ||||||
Log-in Logistica Intermodal SA * | 11,900 | 68,988 | ||||||
Movida Participacoes SA | 94,300 | 235,144 | ||||||
Santos Brasil Participacoes SA | 333,850 | 415,921 | ||||||
Sequoia Logistica e Transportes SA * | 76,750 | 80,219 | ||||||
1,328,965 | ||||||||
Utilities: 12.2% | ||||||||
Alupar Investimento SA | 154,637 | 766,766 | ||||||
Auren Energia SA | 211,008 | 549,146 | ||||||
Cia de Saneamento de Minas Gerais | 133,738 | 294,388 | ||||||
Cia de Saneamento do Parana | 212,600 | 740,969 | ||||||
Light SA | 170,350 | 188,140 |
Number of Shares | Value | |||||||
Utilities (continued) | ||||||||
Omega Energia SA * | 195,202 | $ | 447,587 | |||||
2,986,996 | ||||||||
Total Common Stocks (Cost: $30,038,577) | 21,701,312 | |||||||
PREFERRED SECURITIES: 8.4% | ||||||||
Banks: 2.6% | ||||||||
Banco ABC Brasil SA | 51,470 | 152,637 | ||||||
Banco do Estado do Rio Grande do Sul SA | 121,950 | 208,786 | ||||||
Banco Pan SA | 223,650 | 261,109 | ||||||
622,532 | ||||||||
Capital Goods: 1.5% | ||||||||
Marcopolo SA | 298,059 | 140,673 | ||||||
Randon SA Implementos e Participacoes | 125,800 | 225,473 | ||||||
366,146 | ||||||||
Information Technology: 1.4% | ||||||||
Cia Ferro Ligas da Bahia | 24,450 | 217,382 | ||||||
Taurus Armas SA | 43,300 | 134,282 | ||||||
351,664 | ||||||||
Materials: 2.9% | ||||||||
Unipar Carbocloro SA | 40,449 | 704,106 | ||||||
Total Preferred Securities (Cost: $1,915,431) | 2,044,448 | |||||||
CLOSED-END FUNDS: 2.8% | ||||||||
CSHG Logistica FI Imobiliario | 15,310 | 480,996 | ||||||
FII BTG Pactual Corporate Office Fund | 17,615 | 208,313 | ||||||
Total Closed-End Funds (Cost: $775,574) | 689,309 | |||||||
Total Investments Before Collateral for Securities Loaned: 99.9% (Cost: $32,729,582) | 24,435,069 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.3% (Cost: $321,617) | ||||||||
Money Market Fund: 1.3% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 321,617 | 321,617 | ||||||
Total Investments: 101.2% (Cost: $33,051,199) | 24,756,686 | |||||||
Liabilities in excess of other assets: (1.2)% | (288,737) | |||||||
NET ASSETS: 100.0% | $ | 24,467,949 |
See Notes to Financial Statements
9 |
VANECK BRAZIL SMALL-CAP ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
ADR | American Depositary Receipt |
Footnotes:
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $760,212. |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $556,471 which represents 2.3% of net assets. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $359,381, or 1.5% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Communication Services | 2.6 | % | $ | 631,640 | ||||
Consumer Discretionary | 23.3 | 5,709,353 | ||||||
Consumer Staples | 10.3 | 2,498,945 | ||||||
Energy | 7.1 | 1,721,834 | ||||||
Financials | 5.4 | 1,310,155 | ||||||
Health Care | 5.6 | 1,388,071 | ||||||
Industrials | 10.5 | 2,565,332 | ||||||
Information Technology | 5.8 | 1,420,865 | ||||||
Materials | 5.3 | 1,291,663 | ||||||
Real Estate | 10.8 | 2,635,132 | ||||||
Utilities | 13.3 | 3,262,079 | ||||||
100.0 | % | $ | 24,435,069 |
See Notes to Financial Statements
10 |
The summary of inputs used to value the Fund's investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Automobiles & Components | $ | 279,362 | $ | — | $ | — | $ | 279,362 | ||||||||
Capital Goods | 511,597 | — | — | 511,597 | ||||||||||||
Commercial & Professional Services | 358,623 | — | — | 358,623 | ||||||||||||
Consumer Durables & Apparel | 2,811,942 | — | — | 2,811,942 | ||||||||||||
Consumer Services | 1,938,641 | — | — | 1,938,641 | ||||||||||||
Diversified Financials | 435,068 | — | — | 435,068 | ||||||||||||
Energy | 1,989,592 | 556,471 | — | 2,546,063 | ||||||||||||
Food & Staples Retailing | 528,577 | — | — | 528,577 | ||||||||||||
Food, Beverage & Tobacco | 1,970,368 | — | — | 1,970,368 | ||||||||||||
Health Care Equipment & Services | 1,279,374 | — | — | 1,279,374 | ||||||||||||
Insurance | 252,555 | — | — | 252,555 | ||||||||||||
Materials | 587,557 | — | — | 587,557 | ||||||||||||
Media & Entertainment | 162,136 | — | — | 162,136 | ||||||||||||
Pharmaceuticals, Biotechnology & Life Sciences | 108,697 | — | — | 108,697 | ||||||||||||
Real Estate | 1,945,823 | — | — | 1,945,823 | ||||||||||||
Retailing | 679,408 | — | — | 679,408 | ||||||||||||
Semiconductors & Semiconductor Equipment | 320,917 | — | — | 320,917 | ||||||||||||
Software & Services | 503,833 | — | — | 503,833 | ||||||||||||
Technology Hardware & Equipment | 244,451 | — | — | 244,451 | ||||||||||||
Telecommunication Services | 469,505 | — | — | 469,505 | ||||||||||||
Transportation | 1,328,965 | — | — | 1,328,965 | ||||||||||||
Utilities | 2,437,850 | — | — | 2,437,850 | ||||||||||||
Preferred Securities * | 2,044,448 | — | — | 2,044,448 | ||||||||||||
Closed-End Funds | 689,309 | — | — | 689,309 | ||||||||||||
Money Market Fund | 321,617 | — | — | 321,617 | ||||||||||||
Total Investments | $ | 24,200,215 | $ | 556,471 | $ | — | $ | 24,756,686 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
11 |
VANECK CHINA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.4% | ||||||||
Capital Goods: 7.0% | ||||||||
Beijing Bei Mo Gao Ke Friction Material Co. Ltd. # | 7,473 | $ | 65,225 | |||||
Beijing New Building Materials Plc # | 20,700 | 107,156 | ||||||
China International Marine Containers Group Co. Ltd. # | 55,600 | 114,889 | ||||||
Dajin Heavy Industry Co. Ltd. # * | 6,600 | 40,978 | ||||||
Guangdong Lingxiao Pump Industry Co. Ltd. # | 5,700 | 17,479 | ||||||
Guangdong Yizumi Precision Machinery Co. Ltd. # | 5,900 | 16,088 | ||||||
Guangzhou KDT Machinery Co. Ltd. # | 7,560 | 18,874 | ||||||
Hangzhou Zhongtai Cryogenic Technology Corp. # | 3,500 | 7,995 | ||||||
Harbin Boshi Automation Co. Ltd. # | 11,200 | 19,787 | ||||||
IFE Elevators Co. Ltd. # | 8,000 | 8,963 | ||||||
Jiangsu Hengli Hydraulic Co. Ltd. # | 11,116 | 102,467 | ||||||
Jiangsu NanFang Precision Co. Ltd. # | 5,900 | 8,249 | ||||||
Jingjin Equipment, Inc. # | 10,500 | 48,630 | ||||||
Nantong Jianghai Capacitor Co. Ltd. # | 11,400 | 39,740 | ||||||
Nanxing Machinery Co. Ltd. # | 3,200 | 5,561 | ||||||
Ningbo Orient Wires & Cables Co. Ltd. # | 8,800 | 100,606 | ||||||
Ocean’s King Lighting Science & Technology Co. Ltd. # | 9,500 | 17,629 | ||||||
Sany Heavy Industry Co. Ltd. # | 138,400 | 394,378 | ||||||
Shanghai Hanbell Precise Machinery Co. Ltd. # | 4,800 | 16,684 | ||||||
Sinotruk Hong Kong Ltd. # | 16,000 | 22,519 | ||||||
Warom Technology, Inc. Co. # * | 3,500 | 13,327 | ||||||
Wuxi Shangji Automation Co. Ltd. # | 2,940 | 68,608 | ||||||
Zhefu Holding Group Co. Ltd. # | 48,100 | 34,475 | ||||||
Zhuzhou Kibing Group Co. Ltd. # | 42,100 | 80,383 | ||||||
1,370,690 | ||||||||
Commercial & Professional Services: 0.6% | ||||||||
Shanghai M&G Stationery, Inc. # | 8,200 | 68,690 | ||||||
Zhejiang Weiming Environment Protection Co. Ltd. # | 9,056 | 45,107 | ||||||
113,797 | ||||||||
Consumer Durables & Apparel: 4.7% | ||||||||
Biem.L.Fdlkk Garment Co. Ltd. # | 9,700 | 36,570 | ||||||
Chow Tai Seng Jewellery Co. Ltd. # | 9,700 | 22,489 | ||||||
DR Corp. Ltd. # | 10,100 | 112,043 | ||||||
Ecovacs Robotics Co. Ltd. # | 4,100 | 74,752 | ||||||
Li Ning Co. Ltd. # * | 60,500 | 563,310 | ||||||
Ningbo Peacebird Fashion Co. Ltd. # | 2,300 | 6,957 |
Number of Shares | Value | |||||||
Consumer Durables & Apparel (continued) | ||||||||
Q Technology Group Co. Ltd. # * † | 11,000 | $ | 7,592 | |||||
Shanghai Yaoji Technology Co. Ltd. # * | 4,700 | 11,710 | ||||||
Shenzhen Aoni Electronic Co. Ltd. # | 2,800 | 13,935 | ||||||
Tonze New Energy Technology Co. Ltd. # | 5,100 | 20,718 | ||||||
Yantai Tayho Advanced Materials Co. Ltd. # | 15,300 | 38,262 | ||||||
908,338 | ||||||||
Consumer Services: 0.1% | ||||||||
Fu Shou Yuan International Group Ltd. # | 25,000 | 18,007 | ||||||
Diversified Financials: 1.9% | ||||||||
360 DigiTech, Inc. (ADR) | 2,928 | 50,654 | ||||||
CSC Financial Co. Ltd. 144A # | 137,500 | 145,924 | ||||||
Hithink RoyalFlush Information Network Co. Ltd. # | 12,724 | 183,067 | ||||||
379,645 | ||||||||
Energy: 1.2% | ||||||||
Shaanxi Coal Industry Co. Ltd. # | 67,200 | 212,092 | ||||||
Shandong Sunway Chemical Group Co. Ltd. # | 15,600 | 12,991 | ||||||
225,083 | ||||||||
Food, Beverage & Tobacco: 16.1% | ||||||||
Anhui Yingjia Distillery Co. Ltd. # | 4,500 | 43,794 | ||||||
Cheng De Lolo Co. Ltd. # * | 14,400 | 20,851 | ||||||
China Feihe Ltd. 144A # | 98,000 | 112,839 | ||||||
Chongqing Brewery Co. Ltd. # | 5,400 | 118,256 | ||||||
COFCO Joycome Foods Ltd. # * | 59,000 | 28,612 | ||||||
Ganso Co. Ltd. # | 2,100 | 5,529 | ||||||
Jiangsu King’s Luck Brewery JSC Ltd. # | 12,400 | 94,463 | ||||||
JiuGui Liquor Co. Ltd. # | 5,800 | 161,064 | ||||||
Luzhou Laojiao Co. Ltd. # | 17,928 | 660,737 | ||||||
Shanghai Bairun Investment Holding Group Co. Ltd. # | 19,236 | 86,334 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd. # | 9,495 | 460,995 | ||||||
Sichuan Swellfun Co. Ltd. # | 4,500 | 62,244 | ||||||
Want Want China Holdings Ltd. # | 102,000 | 88,949 | ||||||
Wuliangye Yibin Co. Ltd. # | 36,430 | 1,099,800 | ||||||
Yihai International Holding Ltd. # * | 14,000 | 50,504 | ||||||
Yunnan Shennong Agricultural Industry Group Co. Ltd. # | 12,480 | 47,954 | ||||||
3,142,925 | ||||||||
Health Care Equipment & Services: 4.3% | ||||||||
Blue Sail Medical Co. Ltd. # | 15,300 | 21,805 | ||||||
Dian Diagnostics Group Co. Ltd. # | 13,500 | 62,575 | ||||||
Guangzhou Kingmed Diagnostics Group Co. Ltd. # * | 6,800 | 83,755 | ||||||
Guangzhou Wondfo Biotech Co. Ltd. # | 7,530 | 45,765 |
See Notes to Financial Statements
12 |
Number of Shares | Value | |||||||
Health Care Equipment & Services (continued) | ||||||||
Intco Medical Technology Co. Ltd. # | 13,680 | $ | 51,782 | |||||
Jafron Biomedical Co. Ltd. # | 14,950 | 113,666 | ||||||
Jiangsu Bioperfectus Technologies Co. Ltd. # | 1,077 | 18,338 | ||||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. # | 15,300 | 58,589 | ||||||
Kangji Medical Holdings Ltd. # † | 8,500 | 8,469 | ||||||
Ovctek China, Inc. # | 13,509 | 115,517 | ||||||
Sansure Biotech, Inc. # | 6,076 | 26,823 | ||||||
Shanghai Kindly Enterprise Development Group Co. Ltd. # | 6,200 | 18,453 | ||||||
Shanghai ZJ Bio-Tech Co. Ltd. # | 3,055 | 17,057 | ||||||
Tibet Rhodiola Pharmaceutical Holding Co. # | 2,300 | 14,262 | ||||||
Tofflon Science & Technology Group Co. Ltd. # | 8,800 | 44,551 | ||||||
Winner Medical Co. Ltd. # | 3,800 | 37,690 | ||||||
Wuhan Easydiagnosis Biomedicine Co. Ltd. | 2,384 | 24,380 | ||||||
Zhejiang Gongdong Medical Technology Co. Ltd. # | 3,000 | 55,687 | ||||||
Zhende Medical Co. Ltd. # | 2,200 | 13,821 | ||||||
832,985 | ||||||||
Household & Personal Products: 0.1% | ||||||||
Mingchen Health Co. Ltd. # | 2,100 | 6,215 | ||||||
Tongling Jieya Biologic Technology Co. Ltd. # | 1,900 | 11,234 | ||||||
17,449 | ||||||||
Industrials: 0.0% | ||||||||
Sichuan Languang Justbon Services Group Co. Ltd. | 3,300 | 0 | ||||||
Materials: 18.4% | ||||||||
Anhui Conch Cement Co. Ltd. # | 56,567 | 298,225 | ||||||
Anhui Guangxin Agrochemical Co. Ltd. # | 9,100 | 38,282 | ||||||
Anhui Wanwei Updated High-Tech Material Industry Co. Ltd. # | 31,000 | 35,129 | ||||||
China Hongqiao Group Ltd. # † | 53,100 | 59,818 | ||||||
China Jushi Co. Ltd. # | 59,000 | 153,364 | ||||||
Citic Pacific Special Steel Group Co. Ltd. # | 37,070 | 111,639 | ||||||
City Development Environment Co. Ltd. # | 4,700 | 6,523 | ||||||
CNNC Hua Yuan Titanium Dioxide Co. Ltd. # | 43,745 | 46,605 | ||||||
CNSIG Inner Mongolia Chemical Industry Co. Ltd. # | 13,900 | 48,912 | ||||||
DeHua TB New Decoration Materials Co. Ltd. # | 9,500 | 16,491 | ||||||
Epoxy Base Electronic Material Corp. Ltd. # | 11,900 | 9,969 | ||||||
Fangda Special Steel Technology Co. Ltd. # | 26,100 | 27,236 | ||||||
Gansu Shangfeng Cement Co. Ltd. # | 8,280 | 19,526 |
Number of Shares | Value | |||||||
Materials (continued) | ||||||||
Guangzhou Tinci Materials Technology Co. Ltd. # | 37,900 | $ | 351,584 | |||||
HBIS Resources Co. Ltd. # | 6,600 | 13,469 | ||||||
Hoshine Silicon Industry Co. Ltd. # | 4,200 | 74,151 | ||||||
Huafon Chemical Co. Ltd. # | 75,600 | 95,387 | ||||||
Hubei Yihua Chemical Industry Co. Ltd. # * | 14,900 | 45,283 | ||||||
Hunan Haili Chemical Industry Co. Ltd. # * | 9,070 | 9,703 | ||||||
Inner Mongolia ERDOS Resources Co. Ltd. # | 13,580 | 36,521 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd. # | 41,200 | 30,020 | ||||||
Jiangsu Huachang Chemical Co. Ltd. # | 12,600 | 18,339 | ||||||
Jiangsu Sopo Chemical Co. # | 12,500 | 21,653 | ||||||
Jiangxi Chenguang New Materials Co. Ltd. # | 4,160 | 26,416 | ||||||
Jiangxi Wannianqing Cement Co. Ltd. # | 9,700 | 15,712 | ||||||
KBC Corp. Ltd. # | 1,510 | 66,487 | ||||||
Luoyang Jianlong Micro-Nano New Material Co. Ltd. # | 858 | 14,400 | ||||||
Luxi Chemical Group Co. Ltd. # * | 28,300 | 73,103 | ||||||
Satellite Chemical Co. Ltd. # | 24,725 | 95,482 | ||||||
Shaanxi Xinghua Chemistry Co. Ltd. # | 7,000 | 5,986 | ||||||
Shandong Bohui Paper Industrial Co. Ltd. # * | 15,000 | 17,354 | ||||||
Shandong Fiberglass Group Co. Ltd. # | 8,380 | 14,336 | ||||||
Shandong Head Group Co. Ltd. # * | 5,300 | 28,828 | ||||||
Shandong Hualu Hengsheng Chemical Co. Ltd. # | 34,900 | 152,284 | ||||||
Shandong Jinjing Science & Technology Co. Ltd. # * | 23,200 | 26,210 | ||||||
Shangdong Lubei Chemical Co. Ltd. # | 9,000 | 10,920 | ||||||
Shanghai Chlor-Alkali Chemical Co. Ltd. # | 7,800 | 14,597 | ||||||
Sichuan Anning Iron and Titanium Co. Ltd. # | 4,400 | 25,401 | ||||||
Sichuan Hebang Biotechnology Co. Ltd. # | 126,600 | 80,604 | ||||||
Sichuan Xinjinlu Group Co. Ltd. # * | 13,100 | 11,517 | ||||||
Suzhou TA&A Ultra Clean Technology Co. Ltd. # | 12,700 | 166,511 | ||||||
Wanhua Chemical Group Co. Ltd. # | 71,000 | 1,029,425 | ||||||
West China Cement Ltd. # | 48,000 | 6,072 | ||||||
Xinjiang Ba Yi Iron & Steel Co. Ltd. # * | 17,200 | 14,436 | ||||||
Xinxiang Chemical Fiber Co. Ltd. # | 25,100 | 13,650 |
See Notes to Financial Statements
13 |
VANECK CHINA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
Materials (continued) | ||||||||
Zhejiang Jiuli Hi-tech Metals Co. Ltd. # | 15,500 | $ | 37,049 | |||||
Zhejiang Wansheng Co. Ltd. # | 6,800 | 18,958 | ||||||
Zhejiang Xinan Chemical Industrial Group Co. Ltd. # | 20,040 | 64,865 | ||||||
3,598,432 | ||||||||
Media & Entertainment: 10.5% | ||||||||
G-bits Network Technology Xiamen Co. Ltd. # | 900 | 52,230 | ||||||
Guangdong South New Media Co. Ltd. # | 4,300 | 24,301 | ||||||
Hangzhou Electronic Soul Network Technology Co. Ltd. # | 1,800 | 5,453 | ||||||
NetEase, Inc. (ADR) | 11,311 | 1,055,995 | ||||||
Shanghai Fengyuzhu Culture and Technology Co. Ltd. # * | 3,600 | 10,373 | ||||||
Shenzhen Shengxunda Technology Co. Ltd. # * | 2,000 | 18,079 | ||||||
Tencent Holdings Ltd. # | 19,600 | 887,180 | ||||||
2,053,611 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 7.4% | ||||||||
Anhui Anke Biotechnology Group Co. Ltd. # | 33,000 | 49,789 | ||||||
Beijing Hotgen Biotech Co. Ltd. # | 1,345 | 14,944 | ||||||
Changchun High & New Technology Industry Group, Inc. # | 8,800 | 307,146 | ||||||
China Medical System Holdings Ltd. # | 31,000 | 48,328 | ||||||
Chongqing Zhifei Biological Products Co. Ltd. # | 26,600 | 441,120 | ||||||
Daan Gene Co. Ltd. # | 22,900 | 58,637 | ||||||
Guangdong Hybribio Biotech Co. Ltd. # | 4,900 | 15,626 | ||||||
Hainan Poly Pharm Co. Ltd. # | 7,800 | 40,967 | ||||||
Hangzhou Biotest Biotech Co. Ltd. # | 2,583 | 23,764 | ||||||
Hubei Jumpcan Pharmaceutical Co. Ltd. # | 7,300 | 29,637 | ||||||
Jenkem Technology Co. Ltd. # | 604 | 21,824 | ||||||
Livzon Pharmaceutical Group, Inc. # | 13,100 | 70,709 | ||||||
Maccura Biotechnology Co. Ltd. # | 11,300 | 34,595 | ||||||
Renhe Pharmacy Co. Ltd. # | 22,200 | 21,152 | ||||||
Shandong Wohua Pharmaceutical Co. Ltd. # | 6,300 | 5,848 | ||||||
Shenyang Xingqi Pharmaceutical Co. Ltd. # | 1,800 | 41,225 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd. # | 27,900 | 43,078 | ||||||
Zhejiang Cheng Yi Pharmaceutical Co. Ltd. # | 3,600 | 7,166 | ||||||
Zhejiang NHU Co. Ltd. # | 34,592 | 117,746 |
Number of Shares | Value | |||||||
Pharmaceuticals, Biotechnology & Life Sciences (continued) | ||||||||
Zhejiang Orient Gene Biotech Co. Ltd. # | 2,903 | $ | 49,391 | |||||
1,442,692 | ||||||||
Real Estate: 2.7% | ||||||||
A-Living Smart City Services Co. Ltd. 144A # | 17,250 | 27,769 | ||||||
CIFI Ever Sunshine Services Group Ltd. # † | 22,000 | 28,202 | ||||||
Country Garden Services Holdings Co. Ltd. # | 51,000 | 228,877 | ||||||
Evergrande Property Services Group Ltd. 144A # * †∞ | 44,000 | 8,439 | ||||||
KWG Living Group Holdings Ltd. # † | 25,000 | 7,836 | ||||||
Logan Group Co. Ltd. # † | 43,000 | 8,305 | ||||||
Longfor Group Holdings Ltd. 144A # | 38,000 | 180,730 | ||||||
S-Enjoy Service Group Co. Ltd. # * † | 7,000 | 8,190 | ||||||
Shenzhen Properties & Resources Development Group Ltd. # * | 4,900 | 9,915 | ||||||
Tianjin Jinbin Development Co. Ltd. # * | 29,300 | 11,080 | ||||||
519,343 | ||||||||
Retailing: 5.7% | ||||||||
Easyhome New Retail Group Co. Ltd. # | 54,500 | 36,244 | ||||||
JD.com, Inc. (ADR) | 16,326 | 1,048,456 | ||||||
Pop Mart International Group Ltd. 144A # † | 4,400 | 21,348 | ||||||
1,106,048 | ||||||||
Semiconductors & Semiconductor Equipment: 9.6% | ||||||||
Daqo New Energy Corp. (ADR) * | 1,713 | 122,274 | ||||||
Gigadevice Semiconductor Beijing, Inc. # | 11,680 | 249,013 | ||||||
LONGi Green Energy Technology Co. Ltd. # | 109,190 | 1,090,469 | ||||||
Shanghai Bright Power Semiconductor Co. Ltd. # | 1,429 | 34,126 | ||||||
Shenzhen Sunmoon Microelectronics Co. Ltd. # | 1,258 | 20,389 | ||||||
StarPower Semiconductor Ltd. # | 2,300 | 132,727 | ||||||
Xinyi Solar Holdings Ltd. # | 108,000 | 167,348 | ||||||
Yangzhou Yangjie Electronic Technology Co. Ltd. # | 5,400 | 57,659 | ||||||
1,874,005 | ||||||||
Software & Services: 0.9% | ||||||||
Chinasoft International Ltd. # * | 72,000 | 73,890 | ||||||
Shanghai Baosight Software Co. Ltd. # * | 12,020 | 98,199 | ||||||
Sichuan Jiuyuan Yinhai Software Co. Ltd. # | 5,460 | 11,746 | ||||||
183,835 |
See Notes to Financial Statements
14 |
Number of Shares | Value | |||||||
Technology Hardware & Equipment: 7.4% | ||||||||
Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd. # | 4,400 | $ | 88,232 | |||||
BOE Technology Group Co. Ltd. # | 745,800 | 438,715 | ||||||
Canaan, Inc. (ADR) * † | 3,879 | 12,490 | ||||||
Chongqing Chuanyi Automation Co. Ltd. # | 9,700 | 25,593 | ||||||
Cubic Sensor and Instrument Co. Ltd. # | 1,321 | 29,157 | ||||||
Eoptolink Technology, Inc. Ltd. # | 10,923 | 42,806 | ||||||
Goldenmax International Technology Ltd. # | 5,700 | 7,695 | ||||||
Maxscend Microelectronics Co. Ltd. # | 9,920 | 200,352 | ||||||
Shanghai Friendess Electronic Technology Corp. Ltd. # | 3,435 | 113,038 | ||||||
Shengyi Technology Co. Ltd. # | 25,200 | 64,008 | ||||||
Sihui Fuji Electronic Technology Co. Ltd. # | 2,200 | 12,102 | ||||||
Sunny Optical Technology Group Co. Ltd. # | 19,900 | 326,290 | ||||||
Suntront Techonology Co. Ltd. # | 18,800 | 10,115 | ||||||
Suzhou Etron Technologies Co. Ltd. # | 1,400 | 8,140 | ||||||
Wuxi Xinje Electric Co. Ltd. # | 2,200 | 13,534 |
Number of Shares | Value | |||||||
Technology Hardware & Equipment (continued) | ||||||||
Zhuzhou Hongda Electronics Corp. Ltd. # | 5,400 | $ | 49,335 | |||||
1,441,602 | ||||||||
Transportation: 0.7% | ||||||||
Anhui Expressway Co. Ltd. # | 7,700 | 8,579 | ||||||
Bondex Supply Chain Management Co. Ltd. # | 5,000 | 13,684 | ||||||
COSCO SHIPPING Holdings Co. Ltd. # | 58,700 | 122,051 | ||||||
144,314 | ||||||||
Utilities: 0.1% | ||||||||
Xinjiang Xintai Natural Gas Co. Ltd. # | 4,900 | 15,629 | ||||||
Total Common Stocks (Cost: $18,872,388) | 19,388,430 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.1% (Cost: $20,733) | ||||||||
Money Market Fund: 0.1% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 20,733 | 20,733 | ||||||
Total Investments: 99.5% (Cost: $18,893,121) | 19,409,163 | |||||||
Other assets less liabilities: 0.5% | 101,806 | |||||||
NET ASSETS: 100.0% | $ | 19,510,969 |
Definitions:
ADR | American Depositary Receipt |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $17,074,181 which represents 87.5% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $108,661. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $497,049, or 2.5% of net assets. |
See Notes to Financial Statements
15 |
VANECK CHINA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Communication Services | 10.6 | % | $ | 2,053,611 | ||||
Consumer Discretionary | 10.5 | 2,032,393 | ||||||
Consumer Staples | 16.3 | 3,160,374 | ||||||
Energy | 1.2 | 225,083 | ||||||
Financials | 1.9 | 379,645 | ||||||
Health Care | 11.7 | 2,275,677 | ||||||
Industrials | 8.4 | 1,628,801 | ||||||
Information Technology | 18.0 | 3,499,442 | ||||||
Materials | 18.6 | 3,598,432 | ||||||
Real Estate | 2.7 | 519,343 | ||||||
Utilities | 0.1 | 15,629 | ||||||
100.0 | % | $ | 19,388,430 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Capital Goods | $ | — | $ | 1,370,690 | $ | — | $ | 1,370,690 | ||||||||
Commercial & Professional Services | — | 113,797 | — | 113,797 | ||||||||||||
Consumer Durables & Apparel | — | 908,338 | — | 908,338 | ||||||||||||
Consumer Services | — | 18,007 | — | 18,007 | ||||||||||||
Diversified Financials | 50,654 | 328,991 | — | 379,645 | ||||||||||||
Energy | — | 225,083 | — | 225,083 | ||||||||||||
Food, Beverage & Tobacco | — | 3,142,925 | — | 3,142,925 | ||||||||||||
Health Care Equipment & Services | 24,380 | 808,605 | — | 832,985 | ||||||||||||
Household & Personal Products | — | 17,449 | — | 17,449 | ||||||||||||
Industrials | — | — | — | — | ||||||||||||
Materials | — | 3,598,432 | — | 3,598,432 | ||||||||||||
Media & Entertainment | 1,055,995 | 997,616 | — | 2,053,611 | ||||||||||||
Pharmaceuticals, Biotechnology & Life Sciences | — | 1,442,692 | — | 1,442,692 | ||||||||||||
Real Estate | — | 510,904 | 8,439 | 519,343 | ||||||||||||
Retailing | 1,048,456 | 57,592 | — | 1,106,048 | ||||||||||||
Semiconductors & Semiconductor Equipment | 122,274 | 1,751,731 | — | 1,874,005 | ||||||||||||
Software & Services | — | 183,835 | — | 183,835 | ||||||||||||
Technology Hardware & Equipment | 12,490 | 1,429,112 | — | 1,441,602 | ||||||||||||
Transportation | — | 144,314 | — | 144,314 | ||||||||||||
Utilities | — | 15,629 | — | 15,629 | ||||||||||||
Money Market Fund | 20,733 | — | — | 20,733 | ||||||||||||
Total Investments | $ | 2,334,982 | $ | 17,065,742 | $ | 8,439 | $ | 19,409,163 |
See Notes to Financial Statements
16 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.0% | ||||||||
Capital Goods: 36.8% | ||||||||
Beijing Easpring Material Technology Co. Ltd. # | 19,500 | $ | 263,959 | |||||
Contemporary Amperex Technology Co. Ltd. # | 59,500 | 4,759,647 | ||||||
Dongguan Yiheda Automation Co. Ltd. # * | 1,800 | 21,862 | ||||||
East Group Co. Ltd. # | 49,700 | 60,269 | ||||||
Eve Energy Co. Ltd. # * | 60,396 | 883,447 | ||||||
Ginlong Technologies Co. Ltd. # | 8,450 | 269,707 | ||||||
JL Mag Rare-Earth Co. Ltd. # | 16,200 | 89,101 | ||||||
Luoyang Xinqianglian Slewing Bearing Co. Ltd. # | 7,300 | 96,992 | ||||||
Qingdao TGOOD Electric Co. Ltd. # | 30,100 | 77,855 | ||||||
Shenzhen Inovance Technology Co. Ltd. # | 89,585 | 882,497 | ||||||
Shenzhen Yinghe Technology Co. Ltd. # | 17,200 | 73,118 | ||||||
Sungrow Power Supply Co. Ltd. # | 48,300 | 710,104 | ||||||
Sunwoda Electronic Co. Ltd. # * | 58,500 | 276,851 | ||||||
Suzhou Maxwell Technologies Co. Ltd. # | 4,340 | 319,265 | ||||||
Wuxi Lead Intelligent Equipment Co. Ltd. # | 47,920 | 452,511 | ||||||
Xi’an Triangle Defense Co. Ltd. # * | 13,400 | 96,109 | ||||||
9,333,294 | ||||||||
Commercial & Professional Services: 1.2% | ||||||||
Beijing Originwater Technology Co. Ltd. # | 91,200 | 71,005 | ||||||
Centre Testing International Group Co. Ltd. # | 68,100 | 236,247 | ||||||
307,252 | ||||||||
Consumer Durables & Apparel: 0.3% | ||||||||
Huali Industrial Group Co. Ltd. # | 7,300 | 79,524 | ||||||
Consumer Services: 0.7% | ||||||||
Songcheng Performance Development Co. Ltd. # | 71,221 | 163,392 | ||||||
Diversified Financials: 8.1% | ||||||||
East Money Information Co. Ltd. # | 501,620 | 1,907,749 | ||||||
Hithink RoyalFlush Information Network Co. Ltd. # | 9,800 | 140,998 | ||||||
2,048,747 | ||||||||
Food, Beverage & Tobacco: 3.9% | ||||||||
Ligao Foods Co. Ltd. # | 2,800 | 43,473 | ||||||
Wens Foodstuffs Group Co. Ltd. # | 226,360 | 719,733 | ||||||
Yihai Kerry Arawana Holdings Co. Ltd. # * | 27,300 | 220,347 | ||||||
983,553 | ||||||||
Health Care Equipment & Services: 11.1% | ||||||||
Aier Eye Hospital Group Co. Ltd. # * | 110,811 | 741,512 |
Number of Shares | Value | |||||||
Health Care Equipment & Services (continued) | ||||||||
Dian Diagnostics Group Co. Ltd. # | 22,400 | $ | 103,828 | |||||
Guangzhou Wondfo Biotech Co. Ltd. # | 11,900 | 72,324 | ||||||
Intco Medical Technology Co. Ltd. # | 21,120 | 79,942 | ||||||
Jafron Biomedical Co. Ltd. # | 20,500 | 155,863 | ||||||
Lepu Medical Technology Beijing Co. Ltd. # | 55,413 | 153,684 | ||||||
Ovctek China, Inc. # | 21,500 | 183,849 | ||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. # | 21,400 | 1,001,971 | ||||||
Shenzhen New Industries Biomedical Engineering Co. Ltd. # | 14,000 | 94,409 | ||||||
Tofflon Science & Technology Group Co. Ltd. # | 12,200 | 61,764 | ||||||
Winner Medical Co. Ltd. # | 5,100 | 50,584 | ||||||
Winning Health Technology Group Co. Ltd. # * | 84,866 | 111,435 | ||||||
2,811,165 | ||||||||
Household & Personal Products: 1.2% | ||||||||
By-health Co. Ltd. # | 41,900 | 135,529 | ||||||
Yunnan Botanee Bio-Technology Group Co. Ltd. # | 5,000 | 162,288 | ||||||
297,817 | ||||||||
Materials: 6.7% | ||||||||
CNGR Advanced Material Co. Ltd. # | 9,400 | 174,077 | ||||||
Huabao Flavours & Fragrances Co. Ltd. # | 5,800 | 24,083 | ||||||
Nanjing Hanrui Cobalt Co. Ltd. # | 10,400 | 90,176 | ||||||
Shandong Dongyue Organosilicon Material Co. Ltd. # | 16,300 | 44,899 | ||||||
Shandong Sinocera Functional Material Co. Ltd. # | 36,700 | 196,936 | ||||||
Shenzhen Capchem Technology Co. Ltd. # | 22,800 | 179,305 | ||||||
Shenzhen Dynanonic Co. Ltd. # | 5,160 | 314,836 | ||||||
Shenzhen Senior Technology Material Co. Ltd. # | 48,091 | 209,086 | ||||||
Sinofibers Technology Co. Ltd. # | 14,800 | 106,609 | ||||||
Suzhou TA&A Ultra Clean Technology Co. Ltd. # | 18,900 | 247,800 | ||||||
Weihai Guangwei Composites Co. Ltd. # | 13,600 | 119,645 | ||||||
1,707,452 | ||||||||
Media & Entertainment: 1.6% | ||||||||
Beijing Enlight Media Co. Ltd. # | 51,842 | 73,359 | ||||||
Bluefocus Intelligent Communications Group Co. Ltd. # | 106,500 | 104,118 | ||||||
Kunlun Tech Co. Ltd. # | 36,700 | 87,796 |
See Notes to Financial Statements
17 |
VANECK CHINEXT ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
Media & Entertainment (continued) | ||||||||
Mango Excellent Media Co. Ltd. # * | 29,970 | $ | 149,747 | |||||
415,020 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 13.3% | ||||||||
Anhui Anke Biotechnology Group Co. Ltd. # | 52,000 | 78,455 | ||||||
Betta Pharmaceuticals Co. Ltd. # | 11,900 | 108,142 | ||||||
BGI Genomics Co. Ltd. # | 11,200 | 119,869 | ||||||
Chengdu Kanghua Biological Products Co. Ltd. # | 2,800 | 48,368 | ||||||
China Resources Boya Bio-pharmaceutical Group Co. Ltd. # | 13,700 | 73,604 | ||||||
Chongqing Zhifei Biological Products Co. Ltd. # | 36,469 | 604,782 | ||||||
Hainan Poly Pharm Co. Ltd. # | 12,700 | 66,702 | ||||||
Hangzhou Tigermed Consulting Co. Ltd. # | 25,359 | 433,957 | ||||||
Imeik Technology Development Co. Ltd. # | 4,300 | 385,831 | ||||||
PharmaBlock Sciences Nanjing, Inc. # | 7,300 | 107,944 | ||||||
Pharmaron Beijing Co. Ltd. # | 20,550 | 292,049 | ||||||
Porton Pharma Solutions Ltd. # | 15,300 | 178,171 | ||||||
Shenzhen Kangtai Biological Products Co. Ltd. # | 27,620 | 186,519 | ||||||
Sino Biological, Inc. # | 1,600 | 30,933 | ||||||
Walvax Biotechnology Co. Ltd. # | 78,100 | 564,464 | ||||||
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd. # | 12,700 | 98,653 | ||||||
3,378,443 | ||||||||
Semiconductors & Semiconductor Equipment: 5.0% | ||||||||
Goke Microelectronics Co. Ltd. # | 4,600 | 56,235 | ||||||
Hangzhou Chang Chuan Technology Co. Ltd. # | 16,400 | 110,764 | ||||||
Ingenic Semiconductor Co. Ltd. # | 10,500 | 167,156 | ||||||
SG Micro Corp. # | 10,350 | 282,138 | ||||||
Shenzhen SC New Energy Technology Corp. # | 10,900 | 145,740 | ||||||
Yangling Metron New Material, Inc. # * | 5,700 | 79,064 | ||||||
Yangzhou Yangjie Electronic Technology Co. Ltd. # | 12,400 | 132,402 | ||||||
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. # | 28,600 | 289,394 | ||||||
1,262,893 | ||||||||
Software & Services: 2.9% | ||||||||
Beijing E-Hualu Information Technology Co. Ltd. # | 19,600 | 50,964 | ||||||
Beijing Sinnet Technology Co. Ltd. # | 54,400 | 84,781 | ||||||
Lakala Payment Co. Ltd. # * | 24,400 | 69,618 |
Number of Shares | Value | |||||||
Software & Services (continued) | ||||||||
Longshine Technology Group Co. Ltd. # | 18,100 | $ | 68,191 | |||||
Sangfor Technologies, Inc. # | 11,200 | 173,787 | ||||||
Thunder Software Technology Co. Ltd. # | 14,600 | 285,185 | ||||||
732,526 | ||||||||
Technology Hardware & Equipment: 7.2% | ||||||||
Anker Innovations Technology Co. Ltd. # | 6,400 | 63,394 | ||||||
Chaozhou Three-Circle Group Co. Ltd. # | 54,900 | 246,861 | ||||||
Eoptolink Technology, Inc. Ltd. # | 20,500 | 80,338 | ||||||
Lens Technology Co. Ltd. # | 93,868 | 155,624 | ||||||
Leyard Optoelectronic Co. Ltd. # | 97,500 | 106,584 | ||||||
Maxscend Microelectronics Co. Ltd. # | 15,820 | 319,513 | ||||||
Shenzhen Everwin Precision Technology Co. Ltd. # * | 37,800 | 58,306 | ||||||
Shenzhen Sunway Communication Co. Ltd. # | 39,001 | 98,283 | ||||||
Victory Giant Technology Huizhou Co. Ltd. # * | 28,200 | 77,450 | ||||||
Wuhan DR Laser Technology Corp. Ltd. # | 3,800 | 98,353 | ||||||
Wuhan Raycus Fiber Laser Technologies Co. Ltd. # | 10,700 | 62,177 | ||||||
Wuhu Token Science Co. Ltd. # | 98,700 | 109,621 | ||||||
Yealink Network Technology Corp. Ltd. # | 15,100 | 171,785 | ||||||
Zhongji Innolight Co. Ltd. # | 27,400 | 127,061 | ||||||
Zhuzhou Hongda Electronics Corp. Ltd. # | 5,600 | 51,162 | ||||||
1,826,512 | ||||||||
Total Common Stocks (Cost: $18,225,378) | 25,347,590 | |||||||
Total Investments: 100.0% (Cost: $18,225,378) | 25,347,590 | |||||||
Other assets less liabilities: 0.0% | 5,787 | |||||||
NET ASSETS: 100.0% | $ | 25,353,377 |
See Notes to Financial Statements
18 |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $25,347,590 which represents 100.0% of net assets. |
* | Non-income producing |
Summary of Investments by Sector | % of Investments | Value | ||||||
Communication Services | 1.6 | % | $ | 415,020 | ||||
Consumer Discretionary | 1.0 | 242,916 | ||||||
Consumer Staples | 5.1 | 1,281,370 | ||||||
Financials | 8.1 | 2,048,747 | ||||||
Health Care | 24.4 | 6,189,608 | ||||||
Industrials | 38.0 | 9,640,546 | ||||||
Information Technology | 15.1 | 3,821,931 | ||||||
Materials | 6.7 | 1,707,452 | ||||||
100.0 | % | $ | 25,347,590 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks * | $ | — | $ | 25,347,590 | $ | — | $ | 25,347,590 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
19 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.1% | ||||||||
Capital Goods: 0.6% | ||||||||
IndiaMart InterMesh Ltd. 144A # | 177 | $ | 8,578 | |||||
Commercial & Professional Services: 1.6% | ||||||||
L&T Technology Services Ltd. 144A # | 609 | 23,471 | ||||||
Consumer Durables & Apparel: 1.1% | ||||||||
Dixon Technologies India Ltd. # | 342 | 15,546 | ||||||
Consumer Services: 1.8% | ||||||||
MakeMyTrip Ltd. * | 1,016 | 26,091 | ||||||
Diversified Financials: 1.4% | ||||||||
ICICI Securities Ltd. 144A # | 1,861 | 10,135 | ||||||
Indian Energy Exchange Ltd. 144A # | 5,182 | 10,458 | ||||||
20,593 | ||||||||
Energy: 7.9% | ||||||||
Reliance Industries Ltd. 144A (GDR) # * | 1,744 | 114,017 | ||||||
Insurance: 1.3% | ||||||||
PB Fintech Ltd. # * | 2,592 | 18,858 | ||||||
Media & Entertainment: 5.5% | ||||||||
Affle India Ltd. # * | 768 | 10,353 | ||||||
Info Edge India Ltd. # | 1,452 | 69,336 | ||||||
79,689 | ||||||||
Retailing: 2.2% | ||||||||
Zomato Ltd. # * | 45,394 | 31,145 | ||||||
Software & Services: 62.6% | ||||||||
Coforge Ltd. # | 351 | 15,789 | ||||||
Cyient Ltd. # | 1,802 | 17,332 | ||||||
Happiest Minds Technologies Ltd. # | 847 | 8,946 |
Number of Shares | Value | |||||||
Software & Services (continued) | ||||||||
HCL Technologies Ltd. # | 6,949 | $ | 86,042 | |||||
Infosys Ltd. (ADR) | 6,408 | 118,613 | ||||||
KPIT Technologies Ltd. # | 3,952 | 26,096 | ||||||
Larsen & Toubro Infotech Ltd. 144A # | 1,011 | 51,153 | ||||||
Mastek Ltd. # | 353 | 9,647 | ||||||
Mindtree Ltd. # | 1,545 | 56,766 | ||||||
Mphasis Ltd. # | 1,988 | 58,016 | ||||||
One 97 Communications Ltd. # * | 3,741 | 32,172 | ||||||
Oracle Financial Services Software Ltd. # | 498 | 19,600 | ||||||
Persistent Systems Ltd. # | 900 | 38,934 | ||||||
Tanla Platforms Ltd. # | 1,607 | 20,574 | ||||||
Tata Consultancy Services Ltd. # | 2,453 | 101,864 | ||||||
Tata Elxsi Ltd. # | 359 | 37,323 | ||||||
Tech Mahindra Ltd. # | 5,306 | 67,498 | ||||||
Wipro Ltd. (ADR) | 14,140 | 75,083 | ||||||
WNS Holdings Ltd. (ADR) * | 775 | 57,846 | ||||||
899,294 | ||||||||
Technology Hardware & Equipment: 1.4% | ||||||||
Redington India Ltd. # | 12,580 | 20,068 | ||||||
Telecommunication Services: 12.7% | ||||||||
Bharti Airtel Ltd. # * | 11,692 | 101,699 | ||||||
Indus Towers Ltd. # | 15,541 | 41,310 | ||||||
Tata Communications Ltd. # | 1,643 | 19,087 | ||||||
Vodafone Idea Ltd. # * | 185,217 | 19,827 | ||||||
181,923 | ||||||||
Total Common Stocks (Cost: $1,807,150) | 1,439,273 | |||||||
Total Investments: 100.1% (Cost: $1,807,150) | 1,439,273 | |||||||
Liabilities in excess of other assets: (0.1)% | (974 | ) | ||||||
NET ASSETS: 100.0% | $ | 1,438,299 |
Definitions:
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,161,640 which represents 80.8% of net assets. |
* | Non-income producing |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $217,812, or 15.1% of net assets. |
See Notes to Financial Statements
20 |
Summary of Investments by Sector | % of Investments | Value | ||||||
Communication Services | 18.2 | % | $ | 261,611 | ||||
Consumer Discretionary | 5.1 | 72,782 | ||||||
Energy | 7.9 | 114,017 | ||||||
Financials | 2.7 | 39,452 | ||||||
Industrials | 2.2 | 32,049 | ||||||
Information Technology | 63.9 | 919,362 | ||||||
100.0 | % | $ | 1,439,273 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Capital Goods | $ | — | $ | 8,578 | $ | — | $ | 8,578 | ||||||||
Commercial & Professional Services | — | 23,471 | — | 23,471 | ||||||||||||
Consumer Durables & Apparel | — | 15,546 | — | 15,546 | ||||||||||||
Consumer Services | 26,091 | — | — | 26,091 | ||||||||||||
Diversified Financials | — | 20,593 | — | 20,593 | ||||||||||||
Energy | — | 114,017 | — | 114,017 | ||||||||||||
Insurance | — | 18,858 | — | 18,858 | ||||||||||||
Media & Entertainment | — | 79,689 | — | 79,689 | ||||||||||||
Retailing | — | 31,145 | — | 31,145 | ||||||||||||
Software & Services | 251,542 | 647,752 | — | 899,294 | ||||||||||||
Technology Hardware & Equipment | — | 20,068 | — | 20,068 | ||||||||||||
Telecommunication Services | — | 181,923 | — | 181,923 | ||||||||||||
Total Investments | $ | 277,633 | $ | 1,161,640 | $ | — | $ | 1,439,273 |
See Notes to Financial Statements
21 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.0% | ||||||||
Banks: 7.4% | ||||||||
Commercial International Bank Egypt SAE (GDR) # | 643,926 | $ | 1,063,528 | |||||
Capital Goods: 4.2% | ||||||||
ElSewedy Electric Co. # * | 1,852,167 | 597,042 | ||||||
Consumer Durables & Apparel: 2.2% | ||||||||
Oriental Weavers # | 894,725 | 313,830 | ||||||
Consumer Services: 5.9% | ||||||||
Cairo Investment & Real Estate Development Co. SAE # | 1,067,096 | 638,648 | ||||||
Taaleem Management Services Co. SAE # * | 1,227,946 | 197,723 | ||||||
836,371 | ||||||||
Diversified Financials: 6.3% | ||||||||
Egyptian Financial Group-Hermes Holding Co. * | 733,021 | 465,156 | ||||||
Egyptian Financial Group-Hermes Holding Co. (GDR) * | 268,183 | 429,093 | ||||||
894,249 | ||||||||
Energy: 3.2% | ||||||||
TransGlobe Energy Corp. | 136,682 | 463,352 | ||||||
Food, Beverage & Tobacco: 10.4% | ||||||||
Eastern Co. SAE # | 1,923,397 | 1,052,393 | ||||||
Juhayna Food Industries # | 1,125,697 | 433,677 | ||||||
1,486,070 | ||||||||
Health Care Equipment & Services: 5.7% | ||||||||
Cleopatra Hospital # * | 2,554,592 | 638,016 | ||||||
Ibnsina Pharma SAE # | 2,218,140 | 173,099 | ||||||
811,115 |
Number of Shares | Value | |||||||
Materials: 25.9% | ||||||||
Abou Kir Fertilizers & Chemical Industries # | 756,550 | $ | 912,482 | |||||
Alexandria Mineral Oils Co. # | 1,689,109 | 319,188 | ||||||
Centamin Plc # | 690,542 | 658,646 | ||||||
Egypt Kuwait Holding Co. SAE # | 972,697 | 1,242,220 | ||||||
Ezz Steel Co. SAE # | 548,114 | 326,290 | ||||||
Sidi Kerir Petrochemicals Co. # * | 612,081 | 234,868 | ||||||
3,693,694 | ||||||||
Real Estate: 16.0% | ||||||||
Emaar Misr for Development SAE # * | 2,200,256 | 272,682 | ||||||
Heliopolis Housing # | 1,396,890 | 364,877 | ||||||
Medinet Nasr Housing # * | 3,990,555 | 532,459 | ||||||
Palm Hills Developments SAE # | 5,453,746 | 346,630 | ||||||
Real Estate Egyptian Consortium SAE * | 330,283 | 12,509 | ||||||
Talaat Moustafa Group # | 2,042,973 | 761,394 | ||||||
2,290,551 | ||||||||
Software & Services: 8.3% | ||||||||
E-Finance for Digital & Financial Investments # | 955,156 | 686,062 | ||||||
Fawry for Banking & Payment Technology Services SAE * | 2,615,712 | 493,924 | ||||||
1,179,986 | ||||||||
Telecommunication Services: 4.5% | ||||||||
Telecom Egypt Co. # | 878,038 | 646,198 | ||||||
Total Common Stocks (Cost: $17,358,052) | 14,275,986 | |||||||
Total Investments: 100.0% (Cost: $17,358,052) | 14,275,986 | |||||||
Liabilities in excess of other assets: 0.0% | (4,100) | |||||||
NET ASSETS: 100.0% | $ | 14,271,886 |
Definitions:
GDR | Global Depositary Receipt |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $12,411,952 which represents 87.0% of net assets. |
* | Non-income producing |
Summary of Investments by Sector | % of Investments | Value | ||||||
Communication Services | 4.5 | % | $ | 646,198 | ||||
Consumer Discretionary | 8.1 | 1,150,201 | ||||||
Consumer Staples | 10.4 | 1,486,070 | ||||||
Energy | 3.2 | 463,352 | ||||||
Financials | 13.7 | 1,957,777 | ||||||
Health Care | 5.7 | 811,115 | ||||||
Industrials | 4.2 | 597,042 | ||||||
Information Technology | 8.3 | 1,179,986 | ||||||
Materials | 25.9 | 3,693,694 | ||||||
Real Estate | 16.0 | 2,290,551 | ||||||
100.0 | % | $ | 14,275,986 |
See Notes to Financial Statements
22 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Banks | $ | — | $ | 1,063,528 | $ | — | $ | 1,063,528 | ||||||||
Capital Goods | — | 597,042 | — | 597,042 | ||||||||||||
Consumer Durables & Apparel | — | 313,830 | — | 313,830 | ||||||||||||
Consumer Services | — | 836,371 | — | 836,371 | ||||||||||||
Diversified Financials | 894,249 | — | — | 894,249 | ||||||||||||
Energy | 463,352 | — | — | 463,352 | ||||||||||||
Food, Beverage & Tobacco | — | 1,486,070 | — | 1,486,070 | ||||||||||||
Health Care Equipment & Services | — | 811,115 | — | 811,115 | ||||||||||||
Materials | — | 3,693,694 | — | 3,693,694 | ||||||||||||
Real Estate | 12,509 | 2,278,042 | — | 2,290,551 | ||||||||||||
Software & Services | 493,924 | 686,062 | — | 1,179,986 | ||||||||||||
Telecommunication Services | — | 646,198 | — | 646,198 | ||||||||||||
Total Investments | $ | 1,864,034 | $ | 12,411,952 | $ | — | $ | 14,275,986 |
See Notes to Financial Statements
23 |
VANECK INDIA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 100.1% | ||||||||
Automobiles & Components: 2.2% | ||||||||
Balkrishna Industries Ltd. # | 37,770 | $ | 1,032,719 | |||||
Capital Goods: 6.6% | ||||||||
Ashoka Buildcon Ltd. # * | 63,545 | 59,189 | ||||||
Astral Ltd. # | 38,904 | 818,225 | ||||||
Bharat Electronics Ltd. # | 571,511 | 1,696,041 | ||||||
Data Patterns India Ltd. # * | 4,710 | 38,272 | ||||||
LG Balakrishnan & Bros Ltd. # | 10,772 | 81,735 | ||||||
Prince Pipes & Fittings Ltd. # | 15,724 | 119,261 | ||||||
Tega Industries Ltd. # * | 6,589 | 38,487 | ||||||
Timken India Ltd. # | 11,800 | 356,367 | ||||||
3,207,577 | ||||||||
Consumer Durables & Apparel: 1.5% | ||||||||
Filatex India Ltd. # | 29,517 | 34,973 | ||||||
KPR Mill Ltd. # | 45,626 | 298,540 | ||||||
LUX Industries Ltd. # | 3,935 | 87,747 | ||||||
Mirza International Ltd. # * | 19,057 | 55,782 | ||||||
Rupa & Co. Ltd. # | 9,625 | 42,421 | ||||||
Vardhman Textiles Ltd. # | 50,586 | 170,246 | ||||||
689,709 | ||||||||
Consumer Services: 0.1% | ||||||||
Easy Trip Planners Ltd. # | 14,006 | 69,714 | ||||||
Diversified Financials: 2.5% | ||||||||
Angel One Ltd. # | 16,780 | 258,058 | ||||||
Central Depository Services India Ltd. # | 47,978 | 680,598 | ||||||
ICICI Securities Ltd. 144A # | 43,793 | 238,507 | ||||||
IIFL Securities Ltd. # | 60,195 | 53,457 | ||||||
1,230,620 | ||||||||
Energy: 3.1% | ||||||||
Oil India Ltd. # | 159,961 | 508,648 | ||||||
Petronet LNG Ltd. # | 354,778 | 977,803 | ||||||
1,486,451 | ||||||||
Food, Beverage & Tobacco: 0.1% | ||||||||
Dwarikesh Sugar Industries Ltd. # | 46,214 | 59,398 | ||||||
Radico Khaitan Ltd. # | 100 | 1,110 | ||||||
60,508 | ||||||||
Health Care Equipment & Services: 0.6% | ||||||||
Krishna Institute of Medical Sciences Ltd. 144A # * | 20,745 | 311,724 | ||||||
Materials: 33.2% | ||||||||
Balaji Amines Ltd. # | 4,658 | 169,965 | ||||||
BASF India Ltd. # | 5,249 | 182,137 | ||||||
Carborundum Universal Ltd. # | 54,232 | 494,525 | ||||||
Chemplast Sanmar Ltd. # * | 30,764 | 183,962 | ||||||
Coromandel International Ltd. # | 57,926 | 701,345 | ||||||
Deepak Nitrite Ltd. # | 35,547 | 784,597 | ||||||
Everest Kanto Cylinder Ltd. # | 16,645 | 38,359 | ||||||
Fineotex Chemical Ltd. # | 19,748 | 46,601 | ||||||
Gravita India Ltd. # | 7,515 | 27,762 | ||||||
Greenpanel Industries Ltd. # | 25,088 | 138,206 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. # | 39,346 | 285,980 | ||||||
Gujarat State Fertilizers & Chemicals Ltd. # | 104,799 | 175,826 |
Number of Shares | Value | |||||||
Materials (continued) | ||||||||
Hindustan Zinc Ltd. # | 663,072 | $ | 2,099,655 | |||||
Jindal Poly Films Ltd. # | 3,482 | 43,637 | ||||||
Jindal Stainless Ltd. # * | 68,818 | 87,286 | ||||||
JSW Steel Ltd. # | 339,406 | 2,436,633 | ||||||
National Aluminium Co. Ltd. # | 409,032 | 358,164 | ||||||
NMDC Ltd. # | 512,891 | 705,028 | ||||||
PCBL Ltd. | 85,155 | 112,951 | ||||||
PI Industries Ltd. # | 39,571 | 1,286,384 | ||||||
Polyplex Corp. Ltd. # | 6,378 | 178,488 | ||||||
Sharda Cropchem Ltd. # | 11,074 | 89,083 | ||||||
Steel Authority of India Ltd. # | 676,515 | 590,551 | ||||||
Sumitomo Chemical India Ltd. # | 60,513 | 325,946 | ||||||
Supreme Industries Ltd. # | 28,654 | 642,911 | ||||||
Tata Metaliks Ltd. # | 5,458 | 46,733 | ||||||
Tata Steel Long Products Ltd. # | 5,288 | 38,718 | ||||||
Tata Steel Ltd. # | 168,393 | 1,856,688 | ||||||
Thirumalai Chemicals Ltd. # | 29,809 | 93,309 | ||||||
Tinplate Co. of India Ltd./The # | 11,649 | 46,792 | ||||||
Vedanta Ltd. # | 543,980 | 1,540,654 | ||||||
15,808,876 | ||||||||
Media & Entertainment: 4.9% | ||||||||
Brightcom Group Ltd. # | 817,646 | 326,444 | ||||||
Chennai Super Kings Cricket Ltd. # * ∞ | 1,298,085 | 1,635,499 | ||||||
Sun TV Network Ltd. # | 41,395 | 216,861 | ||||||
TV18 Broadcast Ltd. # * | 315,599 | 156,342 | ||||||
2,335,146 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 16.7% | ||||||||
Ajanta Pharma Ltd. # | 18,815 | 294,503 | ||||||
Alkem Laboratories Ltd. # | 14,138 | 537,626 | ||||||
Divi's Laboratories Ltd. # | 51,336 | 2,366,260 | ||||||
Gland Pharma Ltd. 144A # * | 23,603 | 809,611 | ||||||
Laurus Labs Ltd. 144A # | 165,722 | 978,250 | ||||||
Pfizer Ltd. # | 7,423 | 383,801 | ||||||
Sun Pharmaceutical Industries Ltd. # | 250,029 | 2,633,466 | ||||||
8,003,517 | ||||||||
Software & Services: 26.5% | ||||||||
eClerx Services Ltd. # | 6,115 | 149,416 | ||||||
Happiest Minds Technologies Ltd. # | 17,239 | 182,068 | ||||||
Infosys Ltd. (ADR) | 119,193 | 2,206,262 | ||||||
Larsen & Toubro Infotech Ltd. 144A # | 20,087 | 1,016,336 | ||||||
Mastek Ltd. # | 6,078 | 166,106 | ||||||
Mindtree Ltd. # | 26,559 | 975,825 | ||||||
NIIT Ltd. # | 30,709 | 161,870 | ||||||
Oracle Financial Services Software Ltd. # | 11,119 | 437,613 | ||||||
Persistent Systems Ltd. # | 22,954 | 992,985 | ||||||
Tanla Platforms Ltd. # | 35,218 | 450,892 | ||||||
Tata Consultancy Services Ltd. # | 59,382 | 2,465,949 | ||||||
Tata Elxsi Ltd. # | 16,281 | 1,692,617 | ||||||
Wipro Ltd. # | 363,902 | 1,926,090 | ||||||
12,824,029 |
See Notes to Financial Statements
24 |
Number of Shares | Value | |||||||
Telecommunication Services: 1.9% | ||||||||
Indus Towers Ltd. # | 349,563 | $ | 929,176 | |||||
Transportation: 0.2% | ||||||||
Allcargo Logistics Ltd. # | 33,190 | 110,632 | ||||||
Total Common Stocks (Cost: $46,035,537) | 48,100,398 | |||||||
Total Investments: 100.1% (Cost: $46,035,537) | 48,100,398 | |||||||
Liabilities in excess of other assets: (0.1)% | (67,030) | |||||||
NET ASSETS: 100.0% | $ | 48,033,368 |
Definitions: | |
ADR | American Depositary Receipt |
Footnotes: | |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $45,781,185 which represents 95.3% of net assets. |
* | Non-income producing |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy |
ø | Restricted Security – the aggregate value of restricted securities is $1,635,499, or 3.4% of net assets |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $3,354,428, or 7.0% of net assets. |
Restricted securities held by the Fund as of June 30, 2022 are as follows:
Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | |||||
Chennai Super Kings Cricket Ltd. | 10/08/2015 | 1,298,085 | $35,108 | $1,635,499 | 3.4% |
Summary of Investments by Sector | % of Investments | Value | ||||||
Communication Services | 6.8 | % | $ | 3,264,323 | ||||
Consumer Discretionary | 3.6 | 1,792,142 | ||||||
Consumer Staples | 0.1 | 60,508 | ||||||
Energy | 3.1 | 1,486,451 | ||||||
Financials | 2.6 | 1,230,620 | ||||||
Health Care | 17.3 | 8,315,241 | ||||||
Industrials | 6.9 | 3,318,208 | ||||||
Information Technology | 26.7 | 12,824,029 | ||||||
Materials | 32.9 | 15,808,876 | ||||||
100.0 | % | $ | 48,100,398 |
See Notes to Financial Statements
25 |
VANECK INDIA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund's investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Automobiles & Components | $ | — | $ | 1,032,719 | $ | — | $ | 1,032,719 | ||||||||
Capital Goods | — | 3,207,577 | — | 3,207,577 | ||||||||||||
Consumer Durables & Apparel | — | 689,709 | — | 689,709 | ||||||||||||
Consumer Services | — | 69,714 | — | 69,714 | ||||||||||||
Diversified Financials | — | 1,230,620 | — | 1,230,620 | ||||||||||||
Energy | — | 1,486,451 | — | 1,486,451 | ||||||||||||
Food, Beverage & Tobacco | — | 60,508 | — | 60,508 | ||||||||||||
Health Care Equipment & Services | — | 311,724 | — | 311,724 | ||||||||||||
Materials | 112,951 | 15,695,925 | — | 15,808,876 | ||||||||||||
Media & Entertainment | — | 699,647 | 1,635,499 | 2,335,146 | ||||||||||||
Pharmaceuticals, Biotechnology & Life Sciences | — | 8,003,517 | — | 8,003,517 | ||||||||||||
Software & Services | 2,206,262 | 10,617,767 | — | 12,824,029 | ||||||||||||
Telecommunication Services | — | 929,176 | — | 929,176 | ||||||||||||
Transportation | — | 110,632 | — | 110,632 | ||||||||||||
Total Investments | $ | 2,319,213 | $ | 44,145,686 | $ | 1,635,499 | $ | 48,100,398 |
The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2022:
Common Stock | |||
Media & Entertainment | |||
Balance as of December 31, 2021 | $1,021,381 | ||
Realized gain (loss) | – | ||
Net change in unrealized appreciation (depreciation) | 614,118 | ||
Purchases | – | ||
Sales | – | ||
Transfers in/out of level 3 | – | ||
Balance as of June 30, 2022 | $1,635,499 |
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2022:
Value as of June 30, 2022 | Valuation Technique | Unobservable Input Description(1) | Unobservable Input | Impact to Valuation from an Increase in Input(2) | Fair Value Price | |||||||
Common Stock | ||||||||||||
Media & Entertainment | $1,635,499 | Market Approach | Revenue Multiple | 10.8x – 12.1x | Increase | $1.26 | ||||||
Discount for lack of marketability | 17½% | Decrease | ||||||||||
Discount for lack of control | 20% | Decrease |
(1) In determining certain of these inputs, management evaluates a variety of factors including economic condition, industry and market developments, market valuations of comparable companies and company specific developments.
(2) This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases or decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.
See Notes to Financial Statements
26 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.9% | ||||||||
Automobiles & Components: 5.4% | ||||||||
Astra International Tbk PT # | 5,938,500 | $ | 2,646,590 | |||||
Banks: 28.0% | ||||||||
Allo Bank Indonesia Tbk PT * | 1,403,800 | 358,076 | ||||||
Bank Aladin Syariah Tbk PT * | 2,285,500 | 293,790 | ||||||
Bank Central Asia Tbk PT # | 8,154,800 | 3,970,895 | ||||||
Bank Jago Tbk PT # * | 1,671,000 | 1,028,504 | ||||||
Bank Mandiri Persero Tbk PT # | 5,533,602 | 2,955,029 | ||||||
Bank Negara Indonesia Persero Tbk PT # | 3,212,532 | 1,696,986 | ||||||
Bank Neo Commerce Tbk PT # * | 1,988,200 | 131,794 | ||||||
Bank Rakyat Indonesia Persero Tbk PT # | 12,131,633 | 3,387,947 | ||||||
13,823,021 | ||||||||
Capital Goods: 1.7% | ||||||||
Jardine Cycle & Carriage Ltd. # | 42,388 | 862,531 | ||||||
Diversified Financials: 0.5% | ||||||||
BFI Finance Indonesia Tbk PT # | 3,507,000 | 258,279 | ||||||
Energy: 8.0% | ||||||||
Adaro Energy Indonesia Tbk PT # | 6,887,800 | 1,326,476 | ||||||
Banpu PCL (NVDR) # | 2,768,229 | 988,875 | ||||||
Bukit Asam Tbk PT # | 1,687,100 | 433,211 | ||||||
United Tractors Tbk PT # | 642,469 | 1,226,994 | ||||||
3,975,556 | ||||||||
Food & Staples Retailing: 2.3% | ||||||||
Sumber Alfaria Trijaya Tbk PT # | 8,405,200 | 1,152,392 | ||||||
Food, Beverage & Tobacco: 8.3% | ||||||||
Charoen Pokphand Indonesia Tbk PT # | 3,107,300 | 1,252,074 | ||||||
First Pacific Co. Ltd. # | 771,250 | 299,783 | ||||||
Golden Agri-Resources Ltd. # | 2,021,000 | 363,180 | ||||||
Gudang Garam Tbk PT # | 198,800 | 416,218 | ||||||
Indofood CBP Sukses Makmur Tbk PT # | 954,200 | 612,219 | ||||||
Indofood Sukses Makmur Tbk PT # | 1,890,900 | 895,656 | ||||||
Japfa Comfeed Indonesia Tbk PT # | 2,272,500 | 235,203 | ||||||
4,074,333 | ||||||||
Health Care Equipment & Services: 0.9% | ||||||||
Mitra Keluarga Karyasehat Tbk PT # | 2,318,397 | 428,228 | ||||||
Household & Personal Products: 1.6% | ||||||||
Unilever Indonesia Tbk PT # | 2,464,600 | 790,244 | ||||||
Materials: 14.9% | ||||||||
Aneka Tambang Tbk # | 3,622,200 | 437,349 | ||||||
Avia Avian Tbk PT | 6,670,600 | 364,930 | ||||||
Barito Pacific Tbk PT # | 11,708,800 | 594,078 | ||||||
Berkah Beton Sadaya Tbk PT | 1,899,300 | 471,717 | ||||||
Bumi Resources Minerals Tbk PT * | 34,806,100 | 574,747 | ||||||
Chandra Asri Petrochemical Tbk PT # | 1,117,659 | 676,054 |
Number of Shares | Value | |||||||
Materials (continued) | ||||||||
Indah Kiat Pulp & Paper Tbk PT # | 1,107,300 | $ | 565,985 | |||||
Indocement Tunggal Prakarsa Tbk PT # | 777,000 | 494,979 | ||||||
Merdeka Copper Gold Tbk PT # * | 5,607,295 | 1,501,776 | ||||||
Nickel Industries Ltd. # | 729,306 | 490,019 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk PT # | 536,400 | 232,547 | ||||||
Semen Indonesia Persero Tbk PT # | 1,251,900 | 599,773 | ||||||
Vale Indonesia Tbk PT # * | 898,600 | 341,961 | ||||||
7,345,915 | ||||||||
Media & Entertainment: 1.4% | ||||||||
Elang Mahkota Teknologi Tbk PT # * | 6,330,200 | 683,984 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences: 1.9% | ||||||||
Kalbe Farma Tbk PT # | 8,479,000 | 945,812 | ||||||
Real Estate: 1.7% | ||||||||
Bumi Serpong Damai Tbk PT # * | 3,829,600 | 234,259 | ||||||
Ciputra Development Tbk PT | 3,756,795 | 216,872 | ||||||
Pakuwon Jati Tbk PT # * | 6,429,900 | 203,861 | ||||||
Summarecon Agung Tbk PT # * | 4,677,900 | 179,442 | ||||||
834,434 | ||||||||
Retailing: 9.9% | ||||||||
Ace Hardware Indonesia Tbk PT # | 2,954,500 | 152,692 | ||||||
Bukalapak.com PT Tbk # * | 23,968,800 | 455,219 | ||||||
GoTo Gojek Tokopedia Tbk PT * | 163,956,600 | 4,270,191 | ||||||
4,878,102 | ||||||||
Telecommunication Services: 11.3% | ||||||||
Indosat Tbk PT # | 486,200 | 214,030 | ||||||
Sarana Menara Nusantara Tbk PT # | 10,106,600 | 746,667 | ||||||
Smartfren Telecom Tbk PT # * | 38,731,500 | 216,004 | ||||||
Telkom Indonesia Persero Tbk PT (ADR) | 119,332 | 3,226,737 | ||||||
Tower Bersama Infrastructure Tbk PT # | 4,293,500 | 848,929 | ||||||
XL Axiata Tbk PT # | 1,801,475 | 315,120 | ||||||
5,567,487 | ||||||||
Transportation: 1.1% | ||||||||
Jasa Marga Persero Tbk PT # * | 937,550 | 222,930 | ||||||
Transcoal Pacific Tbk PT * | 430,700 | 305,010 | ||||||
527,940 | ||||||||
Utilities: 1.0% | ||||||||
Perusahaan Gas Negara Tbk PT # | 4,489,400 | 479,948 | ||||||
Total Common Stocks (Cost: $58,105,028) | 49,274,796 | |||||||
Total Investments: 99.9% (Cost: $58,105,028) | 49,274,796 | |||||||
Other assets less liabilities: 0.1% | 51,350 | |||||||
NET ASSETS: 100.0% | $ | 49,326,146 |
See Notes to Financial Statements
27 |
VANECK INDONESIA INDEX ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions: | |
ADR | American Depositary Receipt |
NVDR | Non-Voting Depositary Receipt |
Footnotes: | |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $39,192,726 which represents 79.5% of net assets. |
* | Non-income producing |
Summary of Investments by Sector | % of Investments | Value | ||||||
Communication Services | 12.7 | % | $ | 6,251,471 | ||||
Consumer Discretionary | 15.3 | 7,524,692 | ||||||
Consumer Staples | 12.2 | 6,016,969 | ||||||
Energy | 8.1 | 3,975,556 | ||||||
Financials | 28.5 | 14,081,300 | ||||||
Health Care | 2.8 | 1,374,040 | ||||||
Industrials | 2.8 | 1,390,471 | ||||||
Materials | 14.9 | 7,345,915 | ||||||
Real Estate | 1.7 | 834,434 | ||||||
Utilities | 1.0 | 479,948 | ||||||
100.0 | % | $ | 49,274,796 |
The summary of inputs used to value the Fund's investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Automobiles & Components | $ | — | $ | 2,646,590 | $ | — | $ | 2,646,590 | ||||||||
Banks | 651,866 | 13,171,155 | — | 13,823,021 | ||||||||||||
Capital Goods | — | 862,531 | — | 862,531 | ||||||||||||
Diversified Financials | — | 258,279 | — | 258,279 | ||||||||||||
Energy | — | 3,975,556 | — | 3,975,556 | ||||||||||||
Food & Staples Retailing | — | 1,152,392 | — | 1,152,392 | ||||||||||||
Food, Beverage & Tobacco | — | 4,074,333 | — | 4,074,333 | ||||||||||||
Health Care Equipment & Services | — | 428,228 | — | 428,228 | ||||||||||||
Household & Personal Products | — | 790,244 | — | 790,244 | ||||||||||||
Materials | 1,411,394 | 5,934,521 | — | 7,345,915 | ||||||||||||
Media & Entertainment | — | 683,984 | — | 683,984 | ||||||||||||
Pharmaceuticals, Biotechnology & Life Sciences | — | 945,812 | — | 945,812 | ||||||||||||
Real Estate | 216,872 | 617,562 | — | 834,434 | ||||||||||||
Retailing | 4,270,191 | 607,911 | — | 4,878,102 | ||||||||||||
Telecommunication Services | 3,226,737 | 2,340,750 | — | 5,567,487 | ||||||||||||
Transportation | 305,010 | 222,930 | — | 527,940 | ||||||||||||
Utilities | — | 479,948 | — | 479,948 | ||||||||||||
Total Investments | $ | 10,082,070 | $ | 39,192,726 | $ | — | $ | 49,274,796 |
See Notes to Financial Statements
28 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.8% | ||||||||
Banks: 16.1% | ||||||||
Bank Hapoalim BM # | 331,148 | $ | 2,773,419 | |||||
Bank Leumi Le-Israel BM # | 379,617 | 3,387,141 | ||||||
First International Bank Of Israel Ltd. # | 13,277 | 496,203 | ||||||
Israel Discount Bank Ltd. # | 331,605 | 1,731,861 | ||||||
Mizrahi Tefahot Bank Ltd. # | 46,143 | 1,532,091 | ||||||
9,920,715 | ||||||||
Capital Goods: 5.1% | ||||||||
Ashtrom Group Ltd. # | 8,587 | 189,621 | ||||||
Elbit Systems Ltd. | 6,919 | 1,586,804 | ||||||
Elco Ltd. # | 2,506 | 161,553 | ||||||
Electra Ltd. # | 324 | 180,256 | ||||||
Kornit Digital Ltd. * † | 15,679 | 497,024 | ||||||
RADA Electronic Industries Ltd. * † | 13,663 | 126,246 | ||||||
Shapir Engineering and Industry Ltd. # | 25,458 | 208,101 | ||||||
Shikun & Binui Ltd. # * | 56,146 | 229,653 | ||||||
3,179,258 | ||||||||
Commercial & Professional Services: 0.3% | ||||||||
Danel Adir Yeoshua Ltd. # | 1,304 | 164,764 | ||||||
Consumer Durables & Apparel: 0.7% | ||||||||
Delta Galil Industries Ltd. # | 3,049 | 149,987 | ||||||
Electra Consumer Products 1970 Ltd. # | 2,066 | 86,981 | ||||||
Maytronics Ltd. # | 12,975 | 183,327 | ||||||
420,295 | ||||||||
Consumer Services: 0.6% | ||||||||
888 Holdings Plc # | 109,046 | 222,117 | ||||||
Fattal Holdings 1998 Ltd. # * | 1,370 | 143,029 | ||||||
365,146 | ||||||||
Diversified Financials: 1.5% | ||||||||
Altshuler Shaham Penn Ltd. | 20,060 | 52,960 | ||||||
Isracard Ltd. # | 55,038 | 196,483 | ||||||
Plus500 Ltd. # | 28,673 | 582,980 | ||||||
Tel Aviv Stock Exchange Ltd. # | 27,830 | 126,769 | ||||||
959,192 | ||||||||
Energy: 2.2% | ||||||||
Delek Group Ltd. # * | 3,166 | 410,250 | ||||||
Energean Plc # * | 36,249 | 483,787 | ||||||
Oil Refineries Ltd. # | 663,552 | 237,804 | ||||||
Paz Oil Co. Ltd. # * | 1,840 | 220,739 | ||||||
1,352,580 | ||||||||
Food & Staples Retailing: 0.7% | ||||||||
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. # | 2,431 | 173,797 | ||||||
Shufersal Ltd. # | 38,762 | 254,643 | ||||||
428,440 | ||||||||
Food, Beverage & Tobacco: 0.5% | ||||||||
Strauss Group Ltd. # | 13,416 | 329,548 | ||||||
Health Care Equipment & Services: 3.4% | ||||||||
Inmode Ltd. * | 25,373 | 568,609 | ||||||
Nano-X Imaging Ltd. * † | 15,905 | 179,726 | ||||||
Novocure Ltd. * | 13,486 | 937,277 |
Number of Shares | Value | |||||||
Health Care Equipment & Services (continued) | ||||||||
OPKO Health, Inc. * † | 159,679 | $ | 403,988 | |||||
2,089,600 | ||||||||
Insurance: 3.0% | ||||||||
Clal Insurance Enterprises Holdings Ltd. # * | 19,602 | 349,812 | ||||||
Harel Insurance Investments & Financial Services Ltd. # | 34,637 | 338,364 | ||||||
IDI Insurance Co. Ltd. # | 2,540 | 66,155 | ||||||
Lemonade, Inc. * † | 12,998 | 237,343 | ||||||
Menora Mivtachim Holdings Ltd. # * | 8,105 | 149,027 | ||||||
Migdal Insurance & Financial Holdings Ltd. # | 128,744 | 191,713 | ||||||
Phoenix Holdings Ltd. # | 52,020 | 515,175 | ||||||
1,847,589 | ||||||||
Materials: 3.6% | ||||||||
ICL Group Ltd. | 187,810 | 1,705,315 | ||||||
Israel Corp. Ltd. # * | 1,149 | 507,970 | ||||||
2,213,285 | ||||||||
Media & Entertainment: 1.3% | ||||||||
Perion Network Ltd. * | 15,073 | 274,027 | ||||||
Playtika Holding Corp. * | 20,991 | 277,921 | ||||||
Taboola.com Ltd. * | 52,746 | 133,447 | ||||||
Tremor International Ltd. (ADR) * † | 12,712 | 110,340 | ||||||
795,735 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 4.2% | ||||||||
Taro Pharmaceutical Industries Ltd. * | 2,806 | 101,465 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) * | 331,562 | 2,493,346 | ||||||
2,594,811 | ||||||||
Real Estate: 5.9% | ||||||||
AFI Properties Ltd. # | 2,821 | 135,906 | ||||||
Airport City Ltd. # * | 15,630 | 267,672 | ||||||
Alony Hetz Properties & Investments Ltd. # | 31,957 | 401,547 | ||||||
Amot Investments Ltd. # | 51,000 | 307,415 | ||||||
Azrieli Group Ltd. # | 12,345 | 866,830 | ||||||
Big Shopping Centers Ltd. # | 2,371 | 292,674 | ||||||
G City Ltd. # | 18,063 | 103,129 | ||||||
Gav-Yam Lands Corp. Ltd. # | 9,462 | 78,592 | ||||||
Israel Canada T.R Ltd. # | 27,764 | 107,429 | ||||||
Isras Investment Co. Ltd. # | 422 | 80,723 | ||||||
Mega Or Holdings Ltd. # | 3,462 | 104,585 | ||||||
Melisron Ltd. # * | 4,833 | 323,299 | ||||||
Mivne Real Estate KD Ltd. # | 119,931 | 349,847 | ||||||
Summit Real Estate Holdings Ltd. # | 7,772 | 124,214 | ||||||
YH Dimri Construction & Development Ltd. # | 1,143 | 87,656 | ||||||
3,631,518 | ||||||||
Retailing: 2.0% | ||||||||
Delek Automotive Systems Ltd. # | 10,574 | 115,153 | ||||||
Fiverr International Ltd. * † | 10,728 | 368,936 |
See Notes to Financial Statements
29 |
VANECK ISRAEL ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
Retailing (continued) | ||||||||
Fox Wizel Ltd. # | 1,385 | $ | 157,720 | |||||
Global-e Online Ltd. * † | 22,300 | 449,791 | ||||||
Tadiran Group Ltd. # | 903 | 120,610 | ||||||
1,212,210 | ||||||||
Semiconductors & Semiconductor Equipment: 11.8% | ||||||||
Camtek Ltd. * † | 9,083 | 225,803 | ||||||
CEVA, Inc. * | 5,749 | 192,937 | ||||||
Nova Ltd. * | 8,174 | 723,644 | ||||||
SolarEdge Technologies, Inc. * | 17,291 | 4,732,201 | ||||||
Tower Semiconductor Ltd. * | 30,351 | 1,401,609 | ||||||
7,276,194 | ||||||||
Software & Services: 28.3% | ||||||||
Amdocs Ltd. | 31,679 | 2,639,178 | ||||||
Check Point Software Technologies Ltd. * | 31,735 | 3,864,688 | ||||||
Cognyte Software Ltd. * | 16,945 | 72,016 | ||||||
CyberArk Software Ltd. * | 12,573 | 1,608,841 | ||||||
Formula Systems 1985 Ltd. # | 1,453 | 131,447 | ||||||
Hilan Ltd. # | 3,032 | 159,955 | ||||||
ironSource Ltd. * | 174,680 | 415,738 | ||||||
JFrog Ltd. * | 19,445 | 409,706 | ||||||
LivePerson, Inc. * | 12,884 | 182,180 | ||||||
Magic Software Enterprises Ltd. | 6,161 | 109,481 | ||||||
Matrix IT Ltd. # | 7,683 | 178,567 | ||||||
Monday.com Ltd. * † | 4,726 | 487,534 | ||||||
Nice Ltd. (ADR) * † | 17,878 | 3,440,621 | ||||||
One Software Technologies Ltd. # | 7,523 | 118,931 | ||||||
Payoneer Global, Inc. * † | 48,989 | 192,037 | ||||||
Sapiens International Corp. NV | 7,287 | 176,273 | ||||||
SentinelOne, Inc. * † | 52,051 | 1,214,350 | ||||||
Varonis Systems, Inc. * | 23,795 | 697,670 | ||||||
Verint Systems, Inc. * | 11,632 | 492,615 | ||||||
Wix.com Ltd. * | 13,064 | 856,345 | ||||||
17,448,173 | ||||||||
Technology Hardware & Equipment: 1.8% | ||||||||
AudioCodes Ltd. | 7,470 | 164,639 | ||||||
Gilat Satellite Networks Ltd. * † | 14,581 | 88,069 | ||||||
Number of Shares | Value | |||||||
Technology Hardware & Equipment (continued) | ||||||||
Ituran Location and Control Ltd. | 2,578 | $ | 63,135 | |||||
Nano Dimension Ltd. (ADR) * † | 73,456 | 230,652 | ||||||
Radware Ltd. * | 11,056 | 239,584 | ||||||
Stratasys Ltd. * | 17,126 | 320,941 | ||||||
1,107,020 | ||||||||
Telecommunication Services: 2.1% | ||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. # | 685,053 | 1,065,019 | ||||||
Cellcom Israel Ltd. # * | 20,027 | 98,836 | ||||||
Partner Communications Co. Ltd. # * | 23,247 | 165,587 | ||||||
1,329,442 | ||||||||
Transportation: 2.1% | ||||||||
ZIM Integrated Shipping Services Ltd. † | 27,646 | 1,305,721 | ||||||
Utilities: 2.6% | ||||||||
Energix-Renewable Energies Ltd. # | 63,596 | 193,326 | ||||||
Enlight Renewable Energy Ltd. # * | 155,815 | 297,481 | ||||||
Kenon Holdings Ltd. # | 5,120 | 206,330 | ||||||
OPC Energy Ltd. # * | 13,726 | 134,875 | ||||||
Ormat Technologies, Inc. † | 9,894 | 775,195 | ||||||
1,607,207 | ||||||||
Total Common Stocks (Cost: $52,265,248) | 61,578,443 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.8% (Cost: $2,935,848) | ||||||||
Money Market Fund: 4.8% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 2,935,848 | 2,935,848 | ||||||
Total Investments: 104.6% (Cost: $55,201,096) | 64,514,291 | |||||||
Liabilities in excess of other assets: (4.6)% | (2,846,815) | |||||||
NET ASSETS: 100.0% | $ | 61,667,476 |
Definitions: | |
ADR | American Depositary Receipt |
Footnotes: | |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $23,750,475 which represents 38.5% of net assets. |
† | Security fully or partially on loan. Total market value of securities on loan is $6,021,624. |
* | Non-income producing |
See Notes to Financial Statements
30 |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Communication Services | 3.5 | % | $ | 2,125,177 | ||||
Consumer Discretionary | 3.3 | 1,997,651 | ||||||
Consumer Staples | 1.2 | 757,988 | ||||||
Energy | 2.2 | 1,352,580 | ||||||
Financials | 20.6 | 12,727,496 | ||||||
Health Care | 7.6 | 4,684,411 | ||||||
Industrials | 7.6 | 4,649,743 | ||||||
Information Technology | 41.9 | 25,831,387 | ||||||
Materials | 3.6 | 2,213,285 | ||||||
Real Estate | 5.9 | 3,631,518 | ||||||
Utilities | 2.6 | 1,607,207 | ||||||
100.0 | % | $ | 61,578,443 |
The summary of inputs used to value the Fund's investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Banks | $ | — | $ | 9,920,715 | $ | — | $ | 9,920,715 | ||||||||
Capital Goods | 2,210,074 | 969,184 | — | 3,179,258 | ||||||||||||
Commercial & Professional Services | — | 164,764 | — | 164,764 | ||||||||||||
Consumer Durables & Apparel | — | 420,295 | — | 420,295 | ||||||||||||
Consumer Services | — | 365,146 | — | 365,146 | ||||||||||||
Diversified Financials | 52,960 | 906,232 | — | 959,192 | ||||||||||||
Energy | — | 1,352,580 | — | 1,352,580 | ||||||||||||
Food & Staples Retailing | — | 428,440 | — | 428,440 | ||||||||||||
Food, Beverage & Tobacco | — | 329,548 | — | 329,548 | ||||||||||||
Health Care Equipment & Services | 2,089,600 | — | — | 2,089,600 | ||||||||||||
Insurance | 237,343 | 1,610,246 | — | 1,847,589 | ||||||||||||
Materials | 1,705,315 | 507,970 | — | 2,213,285 | ||||||||||||
Media & Entertainment | 795,735 | — | — | 795,735 | ||||||||||||
Pharmaceuticals, Biotechnology & Life Sciences | 2,594,811 | — | — | 2,594,811 | ||||||||||||
Real Estate | — | 3,631,518 | — | 3,631,518 | ||||||||||||
Retailing | 818,727 | 393,483 | — | 1,212,210 | ||||||||||||
Semiconductors & Semiconductor Equipment | 7,276,194 | — | — | 7,276,194 | ||||||||||||
Software & Services | 16,859,273 | 588,900 | — | 17,448,173 | ||||||||||||
Technology Hardware & Equipment | 1,107,020 | — | — | 1,107,020 | ||||||||||||
Telecommunication Services | — | 1,329,442 | — | 1,329,442 | ||||||||||||
Transportation | 1,305,721 | — | — | 1,305,721 | ||||||||||||
Utilities | 775,195 | 832,012 | — | 1,607,207 | ||||||||||||
Money Market Fund | 2,935,848 | — | — | 2,935,848 | ||||||||||||
Total Investments | $ | 40,763,816 | $ | 23,750,475 | $ | — | $ | 64,514,291 |
See Notes to Financial Statements
31 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.7% | ||||||||
Banks: 8.2% | ||||||||
Bank for Foreign Trade of Vietnam JSC # | 3,960,845 | $ | 12,738,579 | |||||
Saigon - Hanoi Commercial Joint Stock Bank # * | 5,818,000 | 3,377,687 | ||||||
Saigon Thuong Tin Commercial JSB # * | 15,778,100 | 14,592,540 | ||||||
30,708,806 | ||||||||
Capital Goods: 7.7% | ||||||||
Bamboo Capital JSC # * | 3,159,300 | 1,914,467 | ||||||
Development Investment Construction JSC # * | 2,050,100 | 3,123,211 | ||||||
Gelex Group JSC # * | 4,560,964 | 3,831,687 | ||||||
Ha Do Group JSC # | 1,023,600 | 2,490,073 | ||||||
Hoang Huy Investment Financial Services JSC # * | 3,579,220 | 1,648,580 | ||||||
IDICO Corp. JSC # | 1,822,810 | 3,936,585 | ||||||
JAKS Resources Bhd # * | 14,529,000 | 906,455 | ||||||
Tan Tao Investment & Industry JSC # * | 4,869,000 | 1,600,162 | ||||||
Tasco JSC # * | 2,713,600 | 2,919,514 | ||||||
Thaiholdings JSC * | 2,197,000 | 5,354,391 | ||||||
Vietnam Construction and Import-Export JSC # | 1,875,390 | 1,409,312 | ||||||
29,134,437 | ||||||||
Consumer Durables & Apparel: 10.3% | ||||||||
Eclat Textile Co. Ltd. # | 1,092,160 | 15,297,813 | ||||||
Feng TAY Enterprise Co. Ltd. # | 2,804,000 | 16,545,309 | ||||||
Hansae Co. Ltd. # † | 137,258 | 1,798,409 | ||||||
Taiwan Paiho Ltd. # | 2,294,000 | 5,314,589 | ||||||
38,956,120 | ||||||||
Diversified Financials: 4.2% | ||||||||
Sai Gon-Ha Noi Securities JSC | 2,703,000 | 1,580,090 | ||||||
SSI Securities Corp. # | 5,733,072 | 4,635,491 | ||||||
Viet Capital Securities JSC # | 1,850,500 | 2,632,964 | ||||||
VIX Securities JSC # * | 3,493,300 | 1,342,898 | ||||||
VNDirect Securities Corp. # | 7,542,580 | 5,644,137 | ||||||
15,835,580 | ||||||||
Energy: 0.9% | ||||||||
PetroVietnam Drilling & Well Services JSC # * | 2,114,780 | 1,506,474 | ||||||
PetroVietnam Technical Services Corp. # | 1,960,100 | 2,013,388 | ||||||
3,519,862 | ||||||||
Food, Beverage & Tobacco: 15.5% | ||||||||
Hoang Anh Gia Lai International Agriculture JSC # * | 5,845,100 | 1,257,352 | ||||||
KIDO Group Corp. | 1,095,130 | 3,054,973 | ||||||
Masan Group Corp. # | 5,268,076 | 25,395,375 | ||||||
Saigon Beer Alcohol Beverage Corp. # | 536,700 | 3,567,179 | ||||||
Thanh Thanh Cong - Bien Hoa JSC # * | 2,527,481 | 2,028,682 | ||||||
Vietnam Dairy Products JSC # | 6,297,041 | 19,549,950 | ||||||
Vinh Hoan Corp. # | 868,000 | 3,492,487 | ||||||
58,345,998 |
Number of Shares | Value | |||||||
Health Care Equipment & Services: 1.6% | ||||||||
Mani, Inc. # | 626,300 | $ | 6,088,255 | |||||
Insurance: 0.5% | ||||||||
Bao Viet Holdings # | 807,696 | 1,825,486 | ||||||
Materials: 11.2% | ||||||||
An Phat Holdings JSC # * | 1,388,000 | 716,818 | ||||||
Duc Giang Chemicals JSC # | 2,143,932 | 10,720,671 | ||||||
Hoa Phat Group JSC # | 26,743,797 | 25,632,194 | ||||||
Hoa Sen Group # * | 3,428,000 | 2,376,118 | ||||||
Petrovietnam Fertilizer & Chemicals JSC # | 1,310,100 | 2,870,803 | ||||||
42,316,604 | ||||||||
Real Estate: 30.5% | ||||||||
CEO Group JSC * | 1,572,300 | 1,777,412 | ||||||
Dat Xanh Group JSC # * | 4,220,300 | 3,543,826 | ||||||
Khang Dien House Trading and Investment JSC # * | 1,022,400 | 1,710,739 | ||||||
Kinh Bac City Development Share Holding Corp. # * | 4,946,799 | 6,966,742 | ||||||
No Va Land Investment Group Corp. # * | 7,016,958 | 22,470,916 | ||||||
Phat Dat Real Estate Development Corp. # * | 2,248,500 | 5,008,419 | ||||||
Van Phu - Invest Investment JSC # * | 810,200 | 2,193,513 | ||||||
Vincom Retail JSC # * | 7,797,322 | 9,582,401 | ||||||
Vingroup JSC # * | 9,904,149 | 31,311,356 | ||||||
Vinhomes JSC 144A # | 11,292,167 | 30,179,727 | ||||||
114,745,051 | ||||||||
Technology Hardware & Equipment: 4.8% | ||||||||
BH Co. Ltd. # † | 225,487 | 4,243,107 | ||||||
Dreamtech Co. Ltd. # | 247,982 | 1,838,660 | ||||||
INTOPS Co. Ltd. # | 97,889 | 1,968,134 | ||||||
KH Vatec Co. Ltd. # † | 152,588 | 2,194,887 | ||||||
Mcnex Co. Ltd. # | 109,834 | 2,647,356 | ||||||
Seojin System Co. Ltd. # † | 217,024 | 2,503,873 | ||||||
Synopex, Inc. # * | 570,090 | 1,356,935 | ||||||
UTI, Inc. # | 100,375 | 1,295,602 | ||||||
18,048,554 | ||||||||
Transportation: 3.7% | ||||||||
Vietjet Aviation JSC * | 2,493,140 | 13,931,150 | ||||||
Utilities: 0.6% | ||||||||
PetroVietnam Power Corp. # | 3,920,010 | 2,289,335 | ||||||
Total Common Stocks (Cost: $365,837,888) | 375,745,238 | |||||||
RIGHTS: 0.1% (Cost: $0) | ||||||||
Diversified Financials: 0.1% | ||||||||
SSI Securities Corp., VND 15,000.00, exp. 07/25/22 # | 5,733,072 | 468,207 | ||||||
EXCHANGE TRADED FUND: 0.0% (Cost: $42,158) |
See Notes to Financial Statements
32 |
Number of Shares | Value | |||||||
DCVFMVN Diamond ETF # | 62,610 | $ | 74,243 | |||||
Total Investments: 99.8% (Cost: $365,880,046) | 376,287,688 | |||||||
Other assets less liabilities: 0.2% | 692,856 | |||||||
NET ASSETS: 100.0% | $ | 376,980,544 |
Footnotes: | |
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $350,589,672 which represents 93.0% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $1,570,439. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $30,179,727, or 8.0% of net assets. |
Summary of Investments by Sector | % of Investments | Value | ||||||
Consumer Discretionary | 10.4 | % | $ | 38,956,120 | ||||
Consumer Staples | 15.5 | 58,345,998 | ||||||
Energy | 0.9 | 3,519,862 | ||||||
Exchange Traded Fund | 0.0 | 74,244 | ||||||
Financials | 13.0 | 48,838,079 | ||||||
Health Care | 1.6 | 6,088,255 | ||||||
Industrials | 11.4 | 43,065,587 | ||||||
Information Technology | 4.8 | 18,048,553 | ||||||
Materials | 11.3 | 42,316,604 | ||||||
Real Estate | 30.5 | 114,745,051 | ||||||
Utilities | 0.6 | 2,289,335 | ||||||
100.0 | % | $ | 376,287,688 |
The summary of inputs used to value the Fund's investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Banks | $ | — | $ | 30,708,806 | $ | — | $ | 30,708,806 | ||||||||
Capital Goods | 5,354,391 | 23,780,046 | — | 29,134,437 | ||||||||||||
Consumer Durables & Apparel | — | 38,956,120 | — | 38,956,120 | ||||||||||||
Diversified Financials | 1,580,090 | 14,255,490 | — | 15,835,580 | ||||||||||||
Energy | — | 3,519,862 | — | 3,519,862 | ||||||||||||
Food, Beverage & Tobacco | 3,054,973 | 55,291,025 | — | 58,345,998 | ||||||||||||
Health Care Equipment & Services | — | 6,088,255 | — | 6,088,255 | ||||||||||||
Insurance | — | 1,825,486 | — | 1,825,486 | ||||||||||||
Materials | — | 42,316,604 | — | 42,316,604 | ||||||||||||
Real Estate | 1,777,412 | 112,967,639 | — | 114,745,051 | ||||||||||||
Technology Hardware & Equipment | — | 18,048,554 | — | 18,048,554 | ||||||||||||
Transportation | 13,931,150 | — | — | 13,931,150 | ||||||||||||
Utilities | — | 2,289,335 | — | 2,289,335 | ||||||||||||
Rights * | — | 468,207 | — | 468,207 | ||||||||||||
Exchange Traded Fund | — | 74,243 | — | 74,243 | ||||||||||||
Total Investments | $ | 25,698,016 | $ | 350,589,672 | $ | — | $ | 376,287,688 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
33 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Africa Index ETF | Brazil Small-Cap ETF | China Growth Leaders ETF | ChiNext ETF | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 50,165,008 | $ | 24,435,069 | $ | 19,388,430 | $ | 25,347,590 | ||||||||
Short-term investments held as collateral for securities loaned (3) | 733,800 | 321,617 | 20,733 | — | ||||||||||||
Cash | 8,834 | 10,966 | 824,693 | — | ||||||||||||
Cash denominated in foreign currency, at value (4) | 3,334,231 | 49,937 | 70,435 | 764,900 | (a) | |||||||||||
Receivables: | ||||||||||||||||
Due from Adviser | — | — | 11,815 | 341 | ||||||||||||
Dividends and interest | 167,660 | 111,446 | 20,459 | 929 | ||||||||||||
Prepaid expenses | 115 | 105 | 79 | 97 | ||||||||||||
Total assets | 54,409,648 | 24,929,140 | 20,336,644 | 26,113,857 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Collateral for securities loaned | 733,800 | 321,617 | 20,733 | — | ||||||||||||
Line of credit | 4,136,479 | — | 665,244 | 640,045 | ||||||||||||
Due to Adviser | 19,586 | 3,281 | — | — | ||||||||||||
Due to custodian | — | — | — | 24,555 | ||||||||||||
Deferred Trustee fees | 11,997 | 32,487 | 5,238 | 1,134 | ||||||||||||
Accrued expenses | 111,822 | 103,806 | 134,460 | 94,746 | ||||||||||||
Total liabilities | 5,013,684 | 461,191 | 825,675 | 760,480 | ||||||||||||
NET ASSETS | $ | 49,395,964 | $ | 24,467,949 | $ | 19,510,969 | $ | 25,353,377 | ||||||||
Shares outstanding | 2,950,000 | 1,750,000 | 600,000 | 650,000 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 16.74 | $ | 13.98 | $ | 32.52 | $ | 39.01 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 116,939,182 | $ | 193,696,214 | $ | 20,979,697 | $ | 21,639,223 | ||||||||
Total distributable earnings (loss) | (67,543,218 | ) | (169,228,265 | ) | (1,468,728 | ) | 3,714,154 | |||||||||
NET ASSETS | $ | 49,395,964 | $ | 24,467,949 | $ | 19,510,969 | $ | 25,353,377 | ||||||||
(1) Value of securities on loan | $ | 4,412,253 | $ | 760,212 | $ | 108,661 | $ | — | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 51,093,400 | $ | 32,729,582 | $ | 18,872,388 | $ | 18,225,378 | ||||||||
(3) Cost of short-term investments held as collateral for securities loaned | $ | 733,800 | $ | 321,617 | $ | 20,733 | $ | — | ||||||||
(4) Cost of cash denominated in foreign currency | $ | 3,631,217 | $ | 50,027 | $ | 71,949 | $ | 762,846 |
(a) Includes $24,068 on foreign investor minimum settlement reserve funds (see Note 2H).
See Notes to Financial Statements
34
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Digital India ETF | Egypt Index ETF | India Growth Leaders ETF (a) | Indonesia Index ETF | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value | ||||||||||||||||
Unaffiliated issuers (1) | $ | 1,439,273 | $ | 14,275,986 | $ | 48,100,398 | $ | 49,274,796 | ||||||||
Cash | — | 1,376,256 | — | 13,351 | ||||||||||||
Cash denominated in foreign currency, at value (2) | — | 158,330 | 318,961 | 50,816 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | — | — | 987,748 | ||||||||||||
Dividends and interest | 705 | 27,983 | 126,109 | 140,292 | ||||||||||||
Prepaid expenses | — | 43 | 150 | 73 | ||||||||||||
Total assets | 1,439,978 | 15,838,598 | 48,545,618 | 50,467,076 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Shares of beneficial interest redeemed | — | — | — | 986,522 | ||||||||||||
Line of credit | — | 1,486,176 | 273,134 | — | ||||||||||||
Due to Adviser | 914 | 2,993 | 21,377 | 18,746 | ||||||||||||
Due to custodian | 765 | — | 10,122 | — | ||||||||||||
Deferred Trustee fees | — | 5,305 | 13,672 | 27,155 | ||||||||||||
Accrued expenses | — | 72,238 | 193,945 | 108,507 | ||||||||||||
Total liabilities | 1,679 | 1,566,712 | 512,250 | 1,140,930 | ||||||||||||
NET ASSETS | $ | 1,438,299 | $ | 14,271,886 | $ | 48,033,368 | $ | 49,326,146 | ||||||||
Shares outstanding | 50,000 | 799,974 | 1,524,967 | 2,500,000 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 28.77 | $ | 17.84 | $ | 31.50 | $ | 19.73 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 1,815,466 | $ | 56,673,100 | $ | 126,927,826 | $ | 169,905,589 | ||||||||
Total distributable earnings (loss) | (377,167 | ) | (42,401,214 | ) | (78,894,458 | ) | (120,579,443 | ) | ||||||||
NET ASSETS | $ | 1,438,299 | $ | 14,271,886 | $ | 48,033,368 | $ | 49,326,146 | ||||||||
(1) Cost of investments - Unaffiliated issuers | $ | 1,807,150 | $ | 17,358,052 | $ | 46,035,537 | $ | 58,105,028 | ||||||||
(2) Cost of cash denominated in foreign currency | $ | — | $ | 158,918 | $ | 324,782 | $ | 50,936 |
(a) Consolidated Statement of Assets and Liabilities
See Notes to Financial Statements
35
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Israel ETF | Vietnam ETF | |||||||
Assets: | ||||||||
Investments, at value (1) | ||||||||
Unaffiliated issuers (2) | $ | 61,578,443 | $ | 376,287,688 | ||||
Short-term investments held as collateral for securities loaned (3) | 2,935,848 | — | ||||||
Cash | 115,853 | — | ||||||
Cash denominated in foreign currency, at value (4) | — | 1,472,066 | ||||||
Receivables: | ||||||||
Dividends and interest | 91,985 | 640,582 | ||||||
Prepaid expenses | 159 | 1,013 | ||||||
Total assets | 64,722,288 | 378,401,349 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Investment securities purchased | 9,389 | — | ||||||
Collateral for securities loaned | 2,935,848 | — | ||||||
Line of credit | — | 1,043,982 | ||||||
Due to Adviser | 23,483 | 163,898 | ||||||
Due to custodian | 12 | 3,215 | ||||||
Deferred Trustee fees | 4,146 | 47,914 | ||||||
Accrued expenses | 81,934 | 161,796 | ||||||
Total liabilities | 3,054,812 | 1,420,805 | ||||||
NET ASSETS | $ | 61,667,476 | $ | 376,980,544 | ||||
Shares outstanding | 1,650,000 | 25,900,000 | ||||||
Net asset value, redemption and offering price per share | $ | 37.37 | $ | 14.56 | ||||
Net Assets consist of: | ||||||||
Aggregate paid in capital | $ | 60,527,287 | $ | 661,018,611 | ||||
Total distributable earnings (loss) | 1,140,189 | (284,038,067 | ) | |||||
NET ASSETS | $ | 61,667,476 | $ | 376,980,544 | ||||
(1) Value of securities on loan | $ | 6,021,624 | $ | 1,570,439 | ||||
(2) Cost of investments - Unaffiliated issuers | $ | 52,265,248 | $ | 365,880,046 | ||||
(3) Cost of short-term investments held as collateral for securities loaned | $ | 2,935,848 | $ | — | ||||
(4) Cost of cash denominated in foreign currency | $ | — | $ | 1,474,752 |
See Notes to Financial Statements
36
VANECK ETF TRUST
For the Period Ended June 30, 2022 (unaudited)
Africa Index ETF | Brazil Small-Cap ETF | China Growth Leaders ETF | ChiNext ETF | |||||||||||||
Income: | ||||||||||||||||
Dividends | $ | 1,522,985 | $ | 553,858 | $ | 322,550 | $ | 92,871 | ||||||||
Interest | 5 | — | 3,691 | 2,203 | ||||||||||||
Securities lending income | 31,082 | 17,547 | 1,681 | — | ||||||||||||
Foreign taxes withheld | (147,584 | ) | (24,362 | ) | (23,570 | ) | (9,344 | ) | ||||||||
Total income | 1,406,488 | 547,043 | 304,352 | 85,730 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 145,998 | 80,505 | 51,019 | 70,308 | ||||||||||||
Professional fees | 24,813 | 25,366 | 24,170 | 38,123 | ||||||||||||
Custody and accounting fees | 44,537 | 29,771 | 23,057 | 24,544 | ||||||||||||
Reports to shareholders | 9,529 | 6,147 | 5,550 | 6,214 | ||||||||||||
Trustees' fees and expenses | 725 | 521 | 354 | 590 | ||||||||||||
Registration fees | 2,968 | 2,968 | 2,589 | 3,866 | ||||||||||||
Insurance | 1,584 | 1,568 | 850 | 1,562 | ||||||||||||
Interest | 17,870 | 734 | 19,629 | 5,828 | ||||||||||||
Other | 1,297 | 427 | 632 | 1,094 | ||||||||||||
Total expenses | 249,321 | 148,007 | 127,850 | 152,129 | ||||||||||||
Waiver of management fees | (3,694 | ) | (52,278 | ) | (51,019 | ) | (60,728 | ) | ||||||||
Expenses assumed by the Adviser | — | — | (15,609 | ) | — | |||||||||||
Net expenses | 245,627 | 95,729 | 61,222 | 91,401 | ||||||||||||
Net investment income (loss) | 1,160,861 | 451,314 | 243,130 | (5,671 | ) | |||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (520,009 | ) | (1,278,477 | ) | (1,931,350 | ) | (3,004,795 | ) | ||||||||
In-kind redemptions | — | 47,871 | (182,451 | ) | — | |||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (16,034 | ) | 11,203 | 2,658 | (42,927 | ) | ||||||||||
Net realized loss | (536,043 | ) | (1,219,403 | ) | (2,111,143 | ) | (3,047,722 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (10,163,731 | ) | (2,842,276 | ) | (2,018,054 | ) | (5,002,648 | ) | ||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (254,137 | ) | (8,262 | ) | (8,904 | ) | (1,454 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (10,417,868 | ) | (2,850,538 | ) | (2,026,958 | ) | (5,004,102 | ) | ||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (9,793,050 | ) | $ | (3,618,627 | ) | $ | (3,894,971 | ) | $ | (8,057,495 | ) |
See Notes to Financial Statements
37
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2022 (unaudited)
Digital India ETF (a) | Egypt Index ETF | India Growth Leaders ETF (b) | Indonesia Index ETF | |||||||||||||
Income: | ||||||||||||||||
Dividends | $ | 9,536 | $ | 400,084 | $ | 713,192 | $ | 1,684,117 | ||||||||
Interest | — | — | 50 | 139 | ||||||||||||
Securities lending income | — | — | — | 95 | ||||||||||||
Foreign taxes withheld | (1,764 | ) | (18,394 | ) | (147,362 | ) | (312,467 | ) | ||||||||
Total income | 7,772 | 381,690 | 565,880 | 1,371,884 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 4,597 | 45,258 | 158,272 | 177,800 | ||||||||||||
Professional fees | — | 23,389 | 37,212 | 24,071 | ||||||||||||
Custody and accounting fees | — | 24,338 | 31,090 | 16,308 | ||||||||||||
Reports to shareholders | — | 4,319 | 7,148 | 5,348 | ||||||||||||
Trustees' fees and expenses | — | 326 | 1,333 | 483 | ||||||||||||
Registration fees | — | 2,968 | 2,452 | 2,968 | ||||||||||||
Insurance | — | 771 | 1,647 | 824 | ||||||||||||
Interest and taxes | — | 11,781 | 18,791 | 431 | ||||||||||||
Other | — | 533 | 4,695 | 514 | ||||||||||||
Total expenses | 4,597 | 113,683 | 262,640 | 228,747 | ||||||||||||
Waiver of management fees | — | (16,817 | ) | (6,441 | ) | (25,624 | ) | |||||||||
Net expenses | 4,597 | 96,866 | 256,199 | 203,123 | ||||||||||||
Net investment income | 3,175 | 284,824 | 309,681 | 1,168,761 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (20,075 | ) | (551,271 | ) | 1,708,074 | (3,741,599 | ) | |||||||||
In-kind redemptions | — | — | 334,750 | 4,647,940 | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | 7,616 | (172,396 | ) | (148,757 | ) | (13,421 | ) | |||||||||
Net realized gain (loss) | (12,459 | ) | (723,667 | ) | 1,894,067 | 892,920 | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (367,877 | ) | (6,959,319 | ) | (21,117,000 | ) | (2,909,682 | ) | ||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (6 | ) | (1,011 | ) | (8,998 | ) | (246 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (367,883 | ) | (6,960,330 | ) | (21,125,998 | ) | (2,909,928 | ) | ||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (377,167 | ) | $ | (7,399,173 | ) | $ | (18,922,250 | ) | $ | (848,247 | ) |
(a) For the period February 16, 2022 (commencement of operations) through June 30, 2022. (b) Consolidated Statement of Operations
See Notes to Financial Statements
38
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2022 (unaudited)
Israel ETF | Vietnam ETF | |||||||
Income: | ||||||||
Dividends | $ | 917,888 | $ | 3,072,041 | ||||
Interest | 117 | 18 | ||||||
Securities lending income | 68,463 | 60,665 | ||||||
Foreign taxes withheld | (202,746 | ) | (84,830 | ) | ||||
Total income | 783,722 | 3,047,894 | ||||||
Expenses: | ||||||||
Management fees | 178,081 | 1,213,670 | ||||||
Professional fees | 24,720 | 25,005 | ||||||
Custody and accounting fees | 18,782 | 182,827 | ||||||
Reports to shareholders | 5,613 | 21,905 | ||||||
Trustees' fees and expenses | 904 | 4,549 | ||||||
Registration fees | 2,968 | 2,037 | ||||||
Insurance | 1,661 | 5,171 | ||||||
Interest | 120 | 26,789 | ||||||
Other | 377 | 1,670 | ||||||
Total expenses | 233,226 | 1,483,623 | ||||||
Waiver of management fees | (22,971 | ) | — | |||||
Net expenses | 210,255 | 1,483,623 | ||||||
Net investment income | 573,467 | 1,564,271 | ||||||
Net realized gain (loss) on: | ||||||||
Investments | (1,060,197 | ) | (2,907,816 | ) | ||||
In-kind redemptions | 474,851 | 180,010 | ||||||
Foreign currency transactions and foreign denominated assets and liabilities | (2,679 | ) | (218,085 | ) | ||||
Net realized loss | (588,025 | ) | (2,945,891 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | (18,920,378 | ) | (181,234,118 | ) | ||||
Foreign currency transactions and foreign denominated assets and liabilities | (340 | ) | (10,247 | ) | ||||
Net change in unrealized appreciation (depreciation) | (18,920,718 | ) | (181,244,365 | ) | ||||
Net Decrease in Net Assets Resulting from Operations | $ | (18,935,276 | ) | $ | (182,625,985 | ) |
See Notes to Financial Statements
39
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Africa Index ETF | Brazil Small-Cap ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 1,160,861 | $ | 1,512,749 | $ | 451,314 | $ | 1,031,653 | ||||||||
Net realized gain (loss) | (536,043 | ) | 607,063 | (1,219,403 | ) | 4,567,945 | ||||||||||
Net change in unrealized appreciation (depreciation) | (10,417,868 | ) | (935,663 | ) | (2,850,538 | ) | (14,729,558 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | (9,793,050 | ) | 1,184,149 | (3,618,627 | ) | (9,129,960 | ) | |||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (2,475,050 | ) | — | (951,015 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | — | 13,099,656 | — | 976,221 | ||||||||||||
Cost of shares redeemed | — | (5,051,376 | ) | (3,800,241 | ) | (13,670,320 | ) | |||||||||
Increase (decrease) in net assets resulting from share transactions | — | 8,048,280 | (3,800,241 | ) | (12,694,099 | ) | ||||||||||
Total increase (decrease) in net assets | (9,793,050 | ) | 6,757,379 | (7,418,868 | ) | (22,775,074 | ) | |||||||||
Net Assets, beginning of period | 59,189,014 | 52,431,635 | 31,886,817 | 54,661,891 | ||||||||||||
Net Assets, end of period | $ | 49,395,964 | $ | 59,189,014 | $ | 24,467,949 | $ | 31,886,817 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | — | 600,000 | — | 50,000 | ||||||||||||
Shares redeemed | — | (250,000 | ) | (200,000 | ) | (650,000 | ) | |||||||||
Net increase (decrease) | — | 350,000 | (200,000 | ) | (600,000 | ) |
See Notes to Financial Statements
40
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
China Growth Leaders ETF | ChiNext ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 243,130 | $ | 209,347 | $ | (5,671 | ) | $ | (56,408 | ) | ||||||
Net realized gain (loss) | (2,111,143 | ) | 2,246,096 | (3,047,722 | ) | 15,492,912 | ||||||||||
Increase from payment from Advisor (See Note 3) | — | — | — | 19,569 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (2,026,958 | ) | (7,717,109 | ) | (5,004,102 | ) | (11,688,824 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | (3,894,971 | ) | (5,261,666 | ) | (8,057,495 | ) | 3,767,249 | |||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (1,404,410 | ) | — | (3,198,624 | ) | ||||||||||
Return of capital | — | — | — | (601,386 | ) | |||||||||||
Total distributions | — | (1,404,410 | ) | — | (3,800,010 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Cost of shares redeemed | (3,158,818 | ) | (18,287,121 | ) | (7,788,438 | ) | (7,716,947 | ) | ||||||||
Decrease in net assets resulting from share transactions | (3,158,818 | ) | (18,287,121 | ) | (7,788,438 | ) | (7,716,947 | ) | ||||||||
Total decrease in net assets | (7,053,789 | ) | (24,953,197 | ) | (15,845,933 | ) | (7,749,708 | ) | ||||||||
Net Assets, beginning of period | 26,564,758 | 51,517,955 | 41,199,310 | 48,949,018 | ||||||||||||
Net Assets, end of period | $ | 19,510,969 | $ | 26,564,758 | $ | 25,353,377 | $ | 41,199,310 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares redeemed | (100,000 | ) | (400,000 | ) | (200,000 | ) | (150,000 | ) | ||||||||
Net decrease | (100,000 | ) | (400,000 | ) | (200,000 | ) | (150,000 | ) |
See Notes to Financial Statements
41
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Digital India ETF | Egypt Index ETF | |||||||||||
Period Ended June 30, 2022 (a) | Period Ended June 30, 2022 | Year Ended December 31, 2021 | ||||||||||
(unaudited) | (unaudited) | |||||||||||
Operations: | ||||||||||||
Net investment income | $ | 3,175 | $ | 284,824 | $ | 629,784 | ||||||
Net realized loss | (12,459 | ) | (723,667 | ) | (1,215,585 | ) | ||||||
Net change in unrealized appreciation (depreciation) | (367,883 | ) | (6,960,330 | ) | 2,368,154 | |||||||
Net increase (decrease) in net assets resulting from operations | (377,167 | ) | (7,399,173 | ) | 1,782,353 | |||||||
Distributions to shareholders from: | ||||||||||||
Distributable earnings | — | — | (565,063 | ) | ||||||||
Share transactions*: | ||||||||||||
Proceeds from sale of shares | 1,815,466 | — | 10,557,639 | |||||||||
Cost of shares redeemed | — | — | (9,316,583 | ) | ||||||||
Increase in net assets resulting from share transactions | 1,815,466 | — | 1,241,056 | |||||||||
Total increase (decrease) in net assets | 1,438,299 | (7,399,173 | ) | 2,458,346 | ||||||||
Net Assets, beginning of period | — | 21,671,059 | 19,212,713 | |||||||||
Net Assets, end of period | $ | 1,438,299 | $ | 14,271,886 | $ | 21,671,059 | ||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||
Shares sold | 50,000 | — | 425,000 | |||||||||
Shares redeemed | — | — | (375,000 | ) | ||||||||
Net increase | 50,000 | — | 50,000 |
(a) For the period February 16, 2022 (commencement of operations) through June 30, 2022.
See Notes to Financial Statements
42
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
India Growth Leaders ETF (a) | Indonesia Index ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 309,681 | $ | 163,405 | $ | 1,168,761 | $ | 521,549 | ||||||||
Net realized gain (loss) | 1,894,067 | 14,403,480 | 892,920 | (5,923,730 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | (21,125,998 | ) | 4,822,915 | (2,909,928 | ) | 4,485,428 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (18,922,250 | ) | 19,389,800 | (848,247 | ) | (916,753 | ) | |||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | — | — | (570,015 | ) | |||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | — | 2,036,081 | 36,448,757 | 26,398,550 | ||||||||||||
Cost of shares redeemed | (11,385,474 | ) | (11,443,172 | ) | (40,098,582 | ) | (6,936,585 | ) | ||||||||
Increase (decrease) in net assets resulting from share transactions | (11,385,474 | ) | (9,407,091 | ) | (3,649,825 | ) | 19,461,965 | |||||||||
Total increase (decrease) in net assets | (30,307,724 | ) | 9,982,709 | (4,498,072 | ) | 17,975,197 | ||||||||||
Net Assets, beginning of period | 78,341,092 | 68,358,383 | 53,824,218 | 35,849,021 | ||||||||||||
Net Assets, end of period | $ | 48,033,368 | $ | 78,341,092 | $ | 49,326,146 | $ | 53,824,218 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | — | 50,000 | 1,750,000 | 1,300,000 | ||||||||||||
Shares redeemed | (300,000 | ) | (300,000 | ) | (1,950,000 | ) | (350,000 | ) | ||||||||
Net increase (decrease) | (300,000 | ) | (250,000 | ) | (200,000 | ) | 950,000 |
(a) Consolidated Statement of Changes in Net Assets
See Notes to Financial Statements
43
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Israel ETF | Vietnam ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 573,467 | $ | 463,888 | $ | 1,564,271 | $ | 3,102,974 | ||||||||
Net realized gain (loss) | (588,025 | ) | 5,192,896 | (2,945,891 | ) | 48,603,835 | ||||||||||
Net change in unrealized appreciation (depreciation) | (18,920,718 | ) | 1,978,244 | (181,244,365 | ) | 56,165,880 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (18,935,276 | ) | 7,635,028 | (182,625,985 | ) | 107,872,689 | ||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (1,025,145 | ) | — | (2,850,715 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 1,155,251 | 5,887,632 | — | 41,690,264 | ||||||||||||
Cost of shares redeemed | (1,016,637 | ) | (7,100,586 | ) | (31,077,686 | ) | (13,317,449 | ) | ||||||||
Increase (decrease) in net assets resulting from share transactions | 138,614 | (1,212,954 | ) | (31,077,686 | ) | 28,372,815 | ||||||||||
Total increase (decrease) in net assets | (18,796,662 | ) | 5,396,929 | (213,703,671 | ) | 133,394,789 | ||||||||||
Net Assets, beginning of period | 80,464,138 | 75,067,209 | 590,684,215 | 457,289,426 | ||||||||||||
Net Assets, end of period | $ | 61,667,476 | $ | 80,464,138 | $ | 376,980,544 | $ | 590,684,215 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 25,000 | 125,000 | — | 2,200,000 | ||||||||||||
Shares redeemed | (25,000 | ) | (150,000 | ) | (1,750,000 | ) | (650,000 | ) | ||||||||
Net increase (decrease) | — | (25,000 | ) | (1,750,000 | ) | 1,550,000 |
See Notes to Financial Statements
44
VANECK ETF TRUST
For a share outstanding throughout each period:
Africa Index ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $20.06 | $20.17 | $20.50 | $20.08 | $24.81 | $20.09 | ||||||||||||||||||
Net investment income (a) | 0.39 | 0.53 | 0.52 | 1.09 | 0.57 | 0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.71) | 0.20(b) | (0.05) | 0.62 | (4.96) | 4.82 | ||||||||||||||||||
Total from investment operations | (3.32) | 0.73 | 0.47 | 1.71 | (4.39) | 5.21 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.84 | ) | (0.80 | ) | (1.29 | ) | (0.34 | ) | (0.49 | ) | |||||||||||||
Net asset value, end of period | $16.74 | $20.06 | $20.17 | $20.50 | $20.08 | $24.81 | ||||||||||||||||||
Total return (c) | (16.57)% | (d) | 3.69 | % | 2.29 | % | 8.52 | % | (17.70) | % | 26.02 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.85% | (e) | 0.77 | % | 0.92 | % | 0.90 | % | 0.91 | % | 0.87 | % | ||||||||||||
Net expenses | 0.84% | (e) | 0.77 | % | 0.79 | % | 0.79 | % | 0.78 | % | 0.84 | % | ||||||||||||
Net expenses excluding interest | 0.78% | (e) | 0.77 | % | 0.78 | % | 0.78 | % | 0.78 | % | 0.78 | % | ||||||||||||
Net investment income | 3.98% | (e) | 2.50 | % | 3.00 | % | 5.13 | % | 2.44 | % | 1.73 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $49 | $59 | $52 | $50 | $55 | $76 | ||||||||||||||||||
Portfolio turnover rate (f) | 19% | (d) | 37 | % | 37 | % | 46 | % | 23 | % | 38 | % |
(a) | Calculated based upon average shares outstanding |
(b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
45 |
VANECK ETF TRUST
For a share outstanding throughout each period:
Brazil Small-Cap ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $16.35 | $21.44 | $27.50 | $20.09 | $23.33 | $16.10 | ||||||||||||||||||
Net investment income (a) | 0.24 | 0.48 | 0.33 | 0.58 | 0.68 | 0.48 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.61) | (5.08) | (6.04) | 7.42 | (3.34) | 7.81 | ||||||||||||||||||
Payment from Adviser | — | — | — | 0.11(b) | — | — | ||||||||||||||||||
Total from investment operations | (2.37) | (4.60) | (5.71) | 8.11 | (2.66) | 8.29 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.49 | ) | (0.35 | ) | (0.70 | ) | (0.58 | ) | (1.06 | ) | |||||||||||||
Net asset value, end of period | $13.98 | $16.35 | $21.44 | $27.50 | $20.09 | $23.33 | ||||||||||||||||||
Total return (c) | (14.50)% | (d) | (21.38) | % | (20.75) | % | 40.81% | (b) | (11.66) | % | 51.71 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.92%(e) | (f) | 0.84% | (f) | 0.84 | % | 0.73 | % | 0.73 | % | 0.68 | % | ||||||||||||
Net expenses | 0.59%(e) | (f) | 0.59% | (f) | 0.60 | % | 0.63 | % | 0.60 | % | 0.60 | % | ||||||||||||
Net expenses excluding interest | 0.59%(e) | (f) | 0.59% | (f) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Net investment income | 2.80%(e) | (f) | 2.32% | (f) | 1.73 | % | 2.52 | % | 3.25 | % | 2.24 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $24 | $32 | $55 | $98 | $88 | $108 | ||||||||||||||||||
Portfolio turnover rate (g) | 19% | (d) | 56 | % | 31 | % | 38 | % | 45 | % | 53 | % |
(a) | Calculated based upon average shares outstanding |
(b) | For the year ended December 31, 2019, 0.55% of total return, representing $0.11 per share, consisted of a payment from the Adviser (See Note 3). |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
46 |
VANECK ETF TRUST
For a share outstanding throughout each period:
China Growth Leaders ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $37.95 | $46.83 | $42.14 | $31.58 | $48.37 | $37.08 | ||||||||||||||||||
Net investment income (a) | 0.38 | 0.26 | 0.38 | 0.63 | 0.41 | 0.41 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.81) | (7.13) | 10.29 | 10.55 | (14.35) | 11.40 | ||||||||||||||||||
Payment from Adviser | — | — | 0.05(b) | — | — | — | ||||||||||||||||||
Total from investment operations | (5.43) | (6.87) | 10.72 | 11.18 | (13.94) | 11.81 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.36 | ) | (0.07 | ) | (0.62 | ) | (0.31 | ) | (0.52 | ) | |||||||||||||
Net realized capital gains | — | (1.65 | ) | (5.96 | ) | — | (2.54 | ) | — | |||||||||||||||
Total distributions | — | (2.01) | (6.03) | (0.62) | (2.85) | (0.52) | ||||||||||||||||||
Net asset value, end of period | $32.52 | $37.95 | $46.83 | $42.14 | $31.58 | $48.37 | ||||||||||||||||||
Total return (c) | (14.31)% | (d) | (14.67) | % | 25.95% | (b) | 35.40 | % | (28.79) | % | 31.86 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.25% | (e) | 1.40 | % | 1.27 | % | 1.07 | % | 1.17 | % | 0.82 | % | ||||||||||||
Net expenses | 0.60% | (e) | 0.60 | % | 0.60 | % | 0.61 | % | 0.85 | % | 0.78 | % | ||||||||||||
Net expenses excluding interest (f) | 0.60% | (e) | 0.60 | % | 0.60 | % | 0.61 | % | 0.72 | % | 0.72 | % | ||||||||||||
Net investment income | 2.38% | (e) | 0.57 | % | 0.90 | % | 1.60 | % | 0.95 | % | 0.96 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $20 | $27 | $52 | $67 | $54 | $94 | ||||||||||||||||||
Portfolio turnover rate (g) | 32% | (d) | 59 | % | 199 | % | 42 | % | 34 | % | 37 | % |
(a) | Calculated based upon average shares outstanding |
(b) | For the year ended December 31, 2020, 0.12% of total return, representing $0.05 per share, consisted of a payment from the Adviser (See Note 3). |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Effective January 10, 2019, the Fund includes interest expense in the calculation of the expense limitation. The ratio only excludes interest expense accrued prior to January 10, 2019 and not waived under the expense limit agreement. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
47 |
VANECK ETF TRUST
For a share outstanding throughout each period:
ChiNext ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $48.47 | $48.95 | $29.81 | $20.97 | $34.79 | $29.20 | ||||||||||||||||||
Net investment income (loss) (a) | (0.01) | (0.06) | 0.03 | 0.10 | 0.03 | (0.01) | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (9.45) | 4.03 | 19.09 | 8.88 | (13.85) | 5.67 | ||||||||||||||||||
Payment from Adviser | — | 0.02(b) | 0.02(c) | — | — | — | ||||||||||||||||||
Total from investment operations | (9.46) | 3.99 | 19.14 | 8.98 | (13.82) | 5.66 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | (d) | (0.14 | ) | — | (0.07 | ) | |||||||||||||||
Net realized capital gains | — | (3.74 | ) | — | — | — | — | |||||||||||||||||
Return of capital | — | (0.73 | ) | — | — | — | — | |||||||||||||||||
Total distributions | — | (4.47) | — | (0.14) | — | (0.07 | ) | |||||||||||||||||
Net asset value, end of period | $39.01 | $48.47 | $48.95 | $29.81 | $20.97 | $34.79 | ||||||||||||||||||
Total return (e) | (19.53)% | (f) | 8.21% | (b) | 64.23% | (c) | 42.80 | % | (39.72) | % | 19.37 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.08% | (g) | 0.89 | % | 1.15 | % | 1.08 | % | 1.33 | % | 1.38 | % | ||||||||||||
Net expenses | 0.65% | (g) | 0.65 | % | 0.65 | % | 0.65 | % | 0.82 | % | 0.82 | % | ||||||||||||
Net expenses excluding interest (h) | 0.65% | (g) | 0.65 | % | 0.65 | % | 0.65 | % | 0.78 | % | 0.78 | % | ||||||||||||
Net investment income (loss) | (0.04)% | (g) | (0.12) | % | 0.07 | % | 0.39 | % | 0.09 | % | (0.04) | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $25 | $41 | $49 | $30 | $16 | $23 | ||||||||||||||||||
Portfolio turnover rate (i) | 5% | (f) | 59 | % | 96 | % | 43 | % | 36 | % | 34 | % |
(a) | Calculated based upon average shares outstanding |
(b) | For the year ended December 31, 2021, 0.04% of total return, representing $0.02 per share, consisted of a payment from the Adviser (See Note 3). |
(c) | For the year ended December 31, 2020, 0.07% of total return, representing $0.02 per share, consisted of a payment from the Adviser (See Note 3). |
(d) | Amount represents less than $0.005 per share. |
(e) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(f) | Not Annualized |
(g) | Annualized |
(h) | Effective January 10, 2019, the Fund includes interest expense in the calculation of the expense limitation. The ratio only excludes interest expense accrued prior to January 10, 2019 and not waived under the expense limit agreement. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
48 |
VANECK ETF TRUST
For a share outstanding throughout each period:
Digital India ETF | ||||
Period Ended June 30, 2022(a) | ||||
(unaudited) | ||||
Net asset value, beginning of period | $36.25 | |||
Net investment income (b) | 0.06 | |||
Net realized and unrealized loss on investments | (7.54) | |||
Total from investment operations | (7.48) | |||
Net asset value, end of period | $28.77 | |||
Total return (c) | (20.64)% | (d) | ||
Ratios to average net assets | ||||
Expenses | 0.75% | (e) | ||
Net investment income | 0.52% | (e) | ||
Supplemental data | ||||
Net assets, end of period (in millions) | $1 | |||
Portfolio turnover rate (f) | 11% | (d) |
(a) | For the period February 16, 2022 (commencement of operations) through June 30, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
49 |
VANECK ETF TRUST
For a share outstanding throughout each period:
Egypt Index ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $27.09 | $25.62 | $29.20 | $28.28 | $32.89 | $26.02 | ||||||||||||||||||
Net investment income (a) | 0.36 | 0.75 | 0.61 | 0.59 | 0.60 | 0.81 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (9.61) | 1.38 | (3.56) | 0.93(b) | (4.73) | 6.31 | ||||||||||||||||||
Total from investment operations | (9.25) | 2.13 | (2.95) | 1.52 | (4.13) | 7.12 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.66 | ) | (0.63 | ) | (0.60 | ) | (0.48 | ) | (0.25 | ) | |||||||||||||
Net asset value, end of period | $17.84 | $27.09 | $25.62 | $29.20 | $28.28 | $32.89 | ||||||||||||||||||
Total return (c) | (34.14)% | (d) | 8.36 | % | (10.09) | % | 5.42 | % | (12.56) | % | 27.39 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.26% | (e) | 1.10 | % | 1.11 | % | 1.11 | % | 1.19 | % | 1.09 | % | ||||||||||||
Net expenses | 1.07% | (e) | 1.02 | % | 0.98 | % | 1.01 | % | 0.98 | % | 0.94 | % | ||||||||||||
Net expenses excluding interest | 0.94% | (e) | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | ||||||||||||
Net investment income | 3.15% | (e) | 2.92 | % | 2.43 | % | 1.88 | % | 1.73 | % | 2.82 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $14 | $22 | $19 | $31 | $33 | $76 | ||||||||||||||||||
Portfolio turnover rate (f) | 22% | (d) | 73 | % | 27 | % | 76 | % | 41 | % | 41 | % |
(a) | Calculated based upon average shares outstanding |
(b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
50 |
VANECK ETF TRUST
For a share outstanding throughout each period:
India Growth Leaders ETF(a) | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $42.93 | $32.94 | $32.76 | $42.36 | $68.40 | $41.03 | ||||||||||||||||||
Net investment income (loss) (b) | 0.18 | 0.08 | 0.15 | 0.50 | (0.02 | ) | 0.02 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (11.61) | 9.91 | 0.11(c) | (9.68) | (25.97 | ) | 27.42 | |||||||||||||||||
Total from investment operations | (11.43) | 9.99 | 0.26 | (9.18) | (25.99 | ) | 27.44 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.08 | ) | (0.42 | ) | (0.05 | ) | (0.07 | ) | ||||||||||||||
Net asset value, end of period | $31.50 | $42.93 | $32.94 | $32.76 | $42.36 | $68.40 | ||||||||||||||||||
Total return (d) | (26.63)% | (e) | 30.30 | % | 0.80 | % | (21.65) | % | (38.00) | % | 66.88 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.83% | (f) | 1.00 | % | 1.24 | % | 0.86 | % | 0.83 | % | 0.72 | % | ||||||||||||
Net expenses | 0.81% | (f) | 0.90 | % | 1.05 | % | 0.86 | % | 0.83 | % | 0.72 | % | ||||||||||||
Net expenses excluding interest and taxes . | 0.75% | (f) | 0.83 | % | 0.85 | % | 0.83 | % | 0.80 | % | 0.70 | % | ||||||||||||
Net investment income (loss) | 0.98% | (f) | 0.22 | % | 0.55 | % | 1.35 | % | (0.03) | % | 0.04 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $48 | $78 | $68 | $122 | $187 | $405 | ||||||||||||||||||
Portfolio turnover rate (g) | 47% | (e) | 67 | % | 133 | % | 51 | % | 39 | % | 42 | % |
(a) | Consolidated Financial Highlights |
(b) | Calculated based upon average shares outstanding |
(c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
51 |
VANECK ETF TRUST
For a share outstanding throughout each period:
Indonesia Index ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $19.93 | $20.49 | $22.68 | $21.85 | $24.75 | $21.31 | ||||||||||||||||||
Net investment income (a) | 0.34 | 0.27 | 0.36 | 0.40 | 0.36 | 0.35 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.54) | (0.61) | (2.21) | 0.90 | (2.78) | 3.55 | ||||||||||||||||||
Total from investment operations | (0.20) | (0.34) | (1.85) | 1.30 | (2.42) | 3.90 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.22 | ) | (0.34 | ) | (0.47 | ) | (0.48 | ) | (0.46 | ) | |||||||||||||
Net asset value, end of period | $19.73 | $19.93 | $20.49 | $22.68 | $21.85 | $24.75 | ||||||||||||||||||
Total return (b) | (1.03)% | (c) | (1.65) | % | (8.20) | % | 5.97 | % | (9.79) | % | 18.35 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.64% | (d) | 0.82 | % | 0.97 | % | 0.80 | % | 0.75 | % | 0.73 | % | ||||||||||||
Net expenses | 0.57% | (d) | 0.57 | % | 0.57 | % | 0.57 | % | 0.57 | % | 0.57 | % | ||||||||||||
Net investment income | 3.29% | (d) | 1.38 | % | 2.03 | % | 1.78 | % | 1.61 | % | 1.53 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $49 | $54 | $36 | $41 | $45 | $62 | ||||||||||||||||||
Portfolio turnover rate (e) | 13% | (c) | 36 | % | 13 | % | 10 | % | 14 | % | 14 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
52 |
VANECK ETF TRUST
For a share outstanding throughout each period:
Israel ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $48.77 | $44.82 | $35.03 | $28.05 | $30.37 | $26.84 | ||||||||||||||||||
Net investment income (a) | 0.35 | 0.27 | 0.08 | 0.19 | 0.27 | 0.30 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (11.75) | 4.30 | 9.79 | 7.27 | (2.38) | 3.71 | ||||||||||||||||||
Total from investment operations | (11.40) | 4.57 | 9.87 | 7.46 | (2.11) | 4.01 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.62 | ) | (0.08 | ) | (0.48 | ) | (0.21 | ) | (0.48 | ) | |||||||||||||
Net asset value, end of period | $37.37 | $48.77 | $44.82 | $35.03 | $28.05 | $30.37 | ||||||||||||||||||
Total return (b) | (23.37)% | (c) | 10.20 | % | 28.14 | % | 26.64 | % | (6.94) | % | 14.96 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.65% | (d) | 0.71 | % | 0.80 | % | 0.94 | % | 1.02 | % | 0.92 | % | ||||||||||||
Net expenses | 0.59% | (d) | 0.59 | % | 0.60 | % | 0.62 | % | 0.60 | % | 0.59 | % | ||||||||||||
Net expenses excluding interest | 0.59% | (d) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Net investment income | 1.61% | (d) | 0.57 | % | 0.24 | % | 0.60 | % | 0.85 | % | 1.04 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $62 | $80 | $75 | $58 | $46 | $43 | ||||||||||||||||||
Portfolio turnover rate (e) | 7% | (c) | 32 | % | 22 | % | 14 | % | 23 | % | 21 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
53 |
VANECK ETF TRUST
For a share outstanding throughout each period:
Vietnam ETF | ||||||||||||||||||||||||
Period | Year Ended December 31, | |||||||||||||||||||||||
Ended June 30, 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $21.36 | $17.52 | $16.05 | $14.84 | $17.45 | $12.97 | ||||||||||||||||||
Net investment income (a) | 0.06 | 0.11 | 0.08 | 0.14 | 0.17 | 0.20 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (6.86) | 3.83 | 1.46 | 1.19 | (2.66) | 4.46 | ||||||||||||||||||
Total from investment operations | (6.80) | 3.94 | 1.54 | 1.33 | (2.49) | 4.66 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.10 | ) | (0.06 | ) | (0.12 | ) | (0.12 | ) | (0.18 | ) | |||||||||||||
Return of capital | — | — | (0.01 | ) | — | — | — | (b) | ||||||||||||||||
Total distributions | — | (0.10) | (0.07) | (0.12) | (0.12) | (0.18) | ||||||||||||||||||
Net asset value, end of period | $14.56 | $21.36 | $17.52 | $16.05 | $14.84 | $17.45 | ||||||||||||||||||
Total return (c) | (31.87)% | (d) | 22.52 | % | 9.72 | % | 8.86 | % | (14.15) | % | 35.76 | % | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Expenses | 0.61%(e) | (f) | 0.59% | (f) | 0.61 | % | 0.66 | % | 0.68 | % | 0.66 | % | ||||||||||||
Expenses excluding interest | 0.60%(e) | (f) | 0.58% | (f) | 0.60 | % | 0.63 | % | 0.64 | % | 0.63 | % | ||||||||||||
Net investment income | 0.64%(e) | (f) | 0.58% | (f) | 0.55 | % | 0.89 | % | 0.98 | % | 1.37 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $377 | $591 | $457 | $443 | $318 | $349 | ||||||||||||||||||
Portfolio turnover rate (g) | 21% | (d) | 57 | % | 33 | % | 33 | % | 49 | % | 50 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Amount represents less than $0.005 per share. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
54 |
VANECK ETF TRUST
June 30, 2022 (unaudited)
Note 1—Fund Organization—VanEck ETF Trust (the “Trust”) (formerly known as VanEck Vectors ETF Trust) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust. These financial statements relate only to the investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
Fund | Diversification Classification |
Africa Index ETF | Diversified |
Brazil Small-Cap ETF | Diversified |
China Growth Leaders ETF | Diversified |
ChiNext ETF | Diversified |
Digital India ETF | Non-Diversified |
Egypt Index ETF | Non-Diversified |
India Growth Leaders ETF | Diversified |
Indonesia Index ETF | Non-Diversified |
Israel ETF | Non-Diversified |
Vietnam ETF | Non-Diversified |
Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in approximately the same weighting as their index. China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) is the sub-adviser to China Growth Leaders ETF and ChiNext ETF. China Growth Leaders ETF and ChiNext ETF seek to achieve their investment objectives by primarily investing directly in A-shares through the Hong Kong-Shanghai Stock Connect program and via the A-share quota granted to the Sub-Adviser.
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Funds are investment companies and follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
A. | Security Valuation— The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are categorized as Level 1 in the fair value hierarchy. The Pricing Committee of Van Eck Associates Corporation (the “Adviser”) provides oversight of the Funds’ valuation policies and procedures, |
55 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes they do not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis. | |
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments. | |
The Funds utilize various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels of the fair value hierarchy are described below: | |
Level 1 — Quoted prices in active markets for identical securities. | |
Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments). | |
A summary of the inputs and the levels used to value the Funds’ investments are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments. | |
B. | Basis for Consolidation—The Subsidiary, an Indian exempted company, was incorporated on February 25, 2010 and acts as an investment vehicle for the India Growth Leaders ETF (the “Fund”) in order to effect certain investments on behalf of the Fund. The Fund is the sole shareholder of the Subsidiary, and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary. The consolidated financial statements of the Fund include the financial results of its wholly owned subsidiary. All material interfund account balances and transactions have been eliminated in consolidation. |
C. | Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
D. | Distributions to Shareholders— Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. |
56 |
E. | Currency Translation— Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statements of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) and net change in unrealized appreciation (depreciation) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. |
F. | Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. |
G. | Offsetting Assets and Liabilities— In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of offset in those agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at June 30, 2022 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
H. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. Interest income, including amortization of premiums and discounts, is accrued as earned. |
The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. | |
At June 30, 2022, ChiNext ETF included $24,068 in cash, at value on the Statements of Assets and Liabilities, which represents foreign investor minimum settlement reserve funds required by China Securities Depository and Clearing Corporation Limited. |
Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of each Fund’s average daily net assets. The Adviser has agreed, until at least May 1, 2023, to waive management fees and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding the expense limitations for the funds listed in the table below. Effective January 10, 2019, China Growth Leaders ETF and ChiNext ETF no longer exclude interest expense from their expense limitations. Refer to the Statements of Operations for the amounts waived/assumed by the Adviser for the period ended June 30, 2022.
57 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The management fee rates and expense limitations for the period ended June 30, 2022, are as follows:
Fund | Management Fees | Expense Limitations | ||||||
Africa Index ETF | 0.50 | % | 0.78 | % | ||||
Brazil Small-Cap ETF | 0.50 | 0.59 | ||||||
China Growth Leaders ETF | 0.50 | 0.60 | ||||||
ChiNext ETF | 0.50 | 0.65 | ||||||
Egypt Index ETF | 0.50 | 0.94 | ||||||
India Growth Leaders ETF | 0.50 | 0.75 | ||||||
Indonesia Index ETF | 0.50 | 0.57 | ||||||
Israel ETF | 0.50 | 0.59 | ||||||
Vietnam ETF | 0.50 | 0.76 |
Digital India ETF utilizes a unitary management fee structure where the Adviser will pay all Fund expenses, except for the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.
Fund | Unitary Management Fee Rate | |||
Digital India ETF | 0.75 | % |
During the year ended December 31, 2019, the Adviser reimbursed the Brazil Small-Cap ETF $372,975 for an investment loss. The per share and total return impact to the Fund is reflected in the Financial Highlights.
During the year ended December 31, 2020, the Adviser reimbursed the China Growth Leaders ETF and ChiNext ETF $57,732 and $17,518, respectively, for transactional losses. The per share and total return impacts to the Funds are reflected in the Financial Highlights.
During the year ended December 31, 2021, the Adviser reimbursed the ChiNext ETF $19,569 for an investment loss. This reimbursement is reflected in the Statement of Changes in Net Assets as a net increase from payment from Adviser. The per share and total return impact to the Fund is reflected in the Financial Highlights.
In addition, Van Eck Securities Corporation (the “Distributor”), an affiliate of the Adviser, acts as the Funds’ distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
Note 4—Capital Share Transactions—As of June 30, 2022, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”).
The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 115% of the daily marked to market value of the missing Deposit Securities.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Funds may impose variable fees on the purchase or redemption of Creation
58 |
Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
Note 5—Investments—For the period ended June 30, 2022, purchases and sales of investments (excluding short-term investments and in-kind capital share transactions) and the purchases and sales of investments resulting from in-kind capital share transactions (excluding short-term investments) were as follows:
In-Kind Capital Share Transactions | ||||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Africa Index ETF | $ | 13,031,941 | $ | 11,313,858 | $ | — | $ | — | ||||||||
Brazil Small-Cap ETF | 6,067,833 | 8,789,813 | — | 531,094 | ||||||||||||
China Growth Leaders ETF | 6,683,021 | 8,856,277 | — | 882,020 | ||||||||||||
ChiNext ETF | 1,388,547 | 9,209,035 | — | — | ||||||||||||
Digital India ETF | 1,516,451 | 183,532 | 496,307 | — | ||||||||||||
Egypt Index ETF | 4,627,193 | 3,965,510 | — | — | ||||||||||||
India Growth Leaders ETF | 30,098,482 | 40,670,540 | — | 575,577 | ||||||||||||
Indonesia Index ETF | 10,163,838 | 9,156,928 | 36,449,594 | 40,059,266 | ||||||||||||
Israel ETF | 5,396,580 | 4,715,383 | 1,155,545 | 1,016,499 | ||||||||||||
Vietnam ETF | 101,454,402 | 128,861,717 | — | 597,212 |
Note 6—Income Taxes—As of June 30, 2022, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments owned were as follows:
Fund | Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Africa Index ETF | $52,814,748 | $6,132,966 | $(8,048,906 | ) | $(1,915,940 | ) | ||||||||||
Brazil Small-Cap ETF | 37,801,331 | 2,543,792 | (15,588,437 | ) | (13,044,645 | ) | ||||||||||
China Growth Leaders ETF | 18,955,581 | 3,425,348 | (2,971,766 | ) | 453,582 | |||||||||||
ChiNext ETF | 18,580,778 | 9,593,258 | (2,826,446 | ) | 6,766,812 | |||||||||||
Digital India ETF | 1,807,150 | 7,520 | (375,397 | ) | (367,877 | ) | ||||||||||
Egypt Index ETF | 20,601,059 | 1,260,122 | (7,585,195 | ) | (6,325,073 | ) | ||||||||||
India Growth Leaders ETF | 46,077,446 | 8,989,107 | (6,966,155 | ) | 2,022,952 | |||||||||||
Indonesia Index ETF | 58,584,750 | 846,554 | (10,156,508 | ) | (9,309,954 | ) | ||||||||||
Israel ETF | 56,560,387 | 18,984,957 | (11,031,053 | ) | 7,953,904 | |||||||||||
Vietnam ETF | 383,543,936 | 82,813,058 | (90,069,306 | ) | (7,256,248 | ) |
The tax character of dividends paid to shareholders will be determined at the end of the current fiscal year.
At December 31, 2021, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
Fund | Short-Term Capital Losses with No Expiration | Long-Term Capital Losses with No Expiration | Total | |||||||||
Africa Index ETF | (11,902,643 | ) | (54,028,747 | ) | (65,931,390 | ) | ||||||
Brazil Small-Cap ETF | (21,054,589 | ) | (134,423,828 | ) | (155,478,417 | ) | ||||||
Egypt Index ETF | (12,961,222 | ) | (22,659,874 | ) | (35,621,096 | ) | ||||||
India Growth Leaders ETF | (11,884,171 | ) | (71,205,664 | ) | (83,089,835 | ) | ||||||
Indonesia Index ETF | (37,861,382 | ) | (75,446,065 | ) | (113,307,447 | ) | ||||||
Israel ETF | (296,343 | ) | (6,671,627 | ) | (6,967,970 | ) | ||||||
Vietnam ETF | (74,923,618 | ) | (201,883,414 | ) | (276,807,032 | ) |
59 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2022, the Funds did not incur any interest or penalties.
Investments in China: Uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-Shares could result in unexpected tax liabilities for the China Growth Leaders ETF and ChiNext ETF (the "Funds"). China generally imposes withholding income tax (“WHT”) at a rate of 10% on dividends derived by non-PRC resident enterprises (including a Qualified Foreign Institutional Investor (“QFII”) and a Renminbi Qualified Foreign Institutional Investor (“RQFII”)) from issuers resident in China. China imposes WHT at a rate of 10% on capital gains derived by non-PRC resident enterprises from the disposal in shares of PRC enterprises. Effective November 17, 2014, investments through the Hong Kong-Shanghai Stock Connect program, QFIIs and RQFIIs, which includes these Funds, were exempted temporarily from WHT with respect to gains derived from the trading of equity investments (including A-shares). However, uncertainties remain regarding the taxation of capital gains in China. PRC rules for taxation of RQFIIs (and QFIIs) and the PRC tax regulations to be issued by the PRC State Administration of Taxation and/or PRC MOF to clarify the subject matter may apply retrospectively, even if such rules are adverse to the nonresident investors. If the PRC tax authorities were to issue differing formal guidance or tax rules regarding the taxation of capital gains derived by QFIIs, RQFIIs and other nonresident investors WHT on gains from such investments the Funds could be subject to additional tax liabilities.
Investments in India: As a result of renegotiation of the India Mauritius Tax treaty, India commenced taxation on capital gains arising from disposition of shares acquired on or after April 1, 2017 in a company resident in India, with shares acquired on or before March 31, 2017 being grandfathered as exempt from capital gains taxation subject to treaty relief. India currently assesses a capital gains tax on shares sold on the exchange of 15% on short term capital gains and 10% on long term capital gains (plus applicable surcharge and cess). Further, long-term capital gains on certain shares that were held as of January 31, 2018, may be eligible for a step up in cost basis which may reduce realized taxable gains. Existing Indian capital loss carryforwards may be utilized to offset capital gains realized on securities sold.
Note 7—Principal Risks—Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse economic developments and political conflicts, or natural or other disasters, such as the coronavirus outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets. Certain securities of Chinese issuers are, or may in the future become restricted, and the Funds may be forced to sell such restricted securities and incur a loss.
60 |
Should the Chinese government impose restrictions on the ability of China Growth Leaders ETF and ChiNext ETF to repatriate funds associated with direct investment in A-Shares, the Funds may be unable to satisfy distribution requirements applicable to regulated investment companies (“RICs”) under the Internal Revenue Code of 1986, as amended, and the Funds may therefore be subject to Fund-level U.S. federal taxes.
Economies and financial markets throughout the world have experienced periods of increased volatility, uncertainty and distress as a result of conditions associated with the COVID-19 pandemic. To the extent these conditions continue, the risks associated with an investment in a Fund could be heightened and the Fund’s investments (and thus a shareholder’s investment in a Fund) may be particularly susceptible to sudden and substantial losses, reduced yield or income or other adverse developments.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds of the Trust as directed by the Trustees.
The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities. Digital India ETF commenced operations with a unitary management fee and therefore bears no costs or liabilities relative to the Plan.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Fund securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related cash collateral, if any, at June 30, 2022 is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of June 30, 2022:
Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
Africa Index ETF | $ | 4,412,253 | $ | 733,800 | $ | 4,043,257 | $ | 4,777,057 | ||||||||
Brazil Small-Cap ETF | 760,212 | 321,617 | 561,589 | 883,206 | ||||||||||||
China Growth Leaders ETF | 108,661 | 20,733 | 104,707 | 125,440 | ||||||||||||
Israel ETF | 6,021,624 | 2,935,848 | 3,368,116 | 6,303,964 | ||||||||||||
Vietnam ETF | 1,570,439 | – | 1,655,443 | 1,655,443 |
61 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The following table presents money market fund investments held as collateral by type of security on loan as of June 30, 2022:
Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||
Fund | Equity Securities | |||
Africa Index ETF | $ | 733,800 | ||
Brazil Small-Cap ETF | 321,617 | |||
China Growth Leaders ETF | 20,733 | |||
Israel ETF | 2,935,848 |
* | Remaining contractual maturity: overnight and continuous |
Note 10—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The participating Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2022, the following Funds borrowed under this Facility:
Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate | |||||||||
Africa Index ETF | 179 | $ | 1,500,197 | 1.79 | % | |||||||
Brazil Small-Cap ETF | 35 | 143,575 | 2.12 | |||||||||
China Growth Leaders ETF | 164 | 980,464 | 1.81 | |||||||||
ChiNext ETF | 172 | 648,693 | 1.78 | |||||||||
Egypt Index ETF | 175 | 1,266,996 | 1.79 | |||||||||
India Growth Leaders ETF | 108 | 607,147 | 2.03 | |||||||||
Indonesia Index ETF | 29 | 255,067 | 1.97 | |||||||||
Israel ETF | 6 | 97,337 | 1.68 | |||||||||
Vietnam ETF | 173 | 2,801,608 | 1.79 |
Outstanding loan balances as of June 30, 2022, if any, are reflected in the Statements of Assets and Liabilities.
Note 11—Subsequent Event Review—The Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
62 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited)
At a meeting held on June 7, 2022 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Africa Index ETF, Agribusiness ETF, Brazil Small-Cap ETF, China Growth Leaders ETF, ChiNext ETF, Digital India ETF, Egypt Index ETF, Gold Miners ETF, Green Metals ETF, India Growth Leaders ETF, Indonesia Index ETF, Israel ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Steel ETF, Uranium + Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck China Growth Leaders ETF and ChiNext ETF (together, the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”
The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In preparation for the Renewal Meeting, the Trustees held a meeting on May 6, 2022. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses of the Funds and the Funds’ peer funds (certain other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. They also considered the fact that each of the VanEck Digital India ETF and Green Metals ETF had only recently commenced operations and therefore each had a limited operational history that could be used for comparative purposes, since tracking error measurements and the performance comparisons provided by Broadridge were not available for each Fund. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds. The Trustees also considered the Adviser’s efforts to navigate significant regulatory restrictions and other operational challenges in managing the VanEck Russia ETF and Russia Small-Cap ETF during recent periods.
The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 6, 2022 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including, where applicable, (i) (with respect to the VanEck Digital India ETF, Green Metals ETF, Natural Resources ETF and Oil Services ETF) (the “Unitary Funds”) the Adviser’s agreement to pay all of the direct expenses of the Funds (excluding the fee payment under the Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) and (ii) (with respect to all other Funds) (the “Non-Unitary Funds”) the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds
63 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited) (continued)
to the extent necessary to prevent the operating expenses of each of the Funds from exceeding agreed upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Foreign Institutional Investors Scheme funds. The Trustees also noted that the Sub-Adviser is a wholly-owned subsidiary of China Asset Management Co., Ltd., one of China’s largest asset management companies measured by fund assets under management.
The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance of each Fund, the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Funds was satisfactory.
The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Funds’ expenses and performance to that of certain other ETFs. The Trustees noted that the information provided showed that each Fund (except as noted) had management fees (after the effect of any applicable fee waiver) below the average and median of its respective peer group of funds, each of the VanEck Gold Miners ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Rare Earth/Strategic Metals ETF and Steel ETF had management fees (after the effect of any applicable fee waiver) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF, Agribusiness ETF, Oil Services ETF, Russia ETF and Vietnam ETF had management fees (after the effect of any applicable fee waiver) above the average and equal to the median of its respective peer group of funds, and each of the VanEck Digital India ETF, Green Metals ETF and Natural Resources ETF had management fees above the average and median of its respective peer group of funds. The Trustees also noted that the information provided showed that each Fund (except as noted) had a total expense ratio (after the effect of any applicable expense limitation) below the average and median of its respective peer group of funds, each of the VanEck Brazil Small-Cap ETF, Gold Miners ETF, Indonesia Index ETF and Oil Services ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and equal to the median of its respective peer group of funds, each of the VanEck Israel ETF and Vietnam ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and above the median of its respective peer group of funds, and Junior Gold Miners ETF had a total expense ratio (after the effect of any applicable expense limitation) equal to the average and above the median of its respective peer group of funds, each of ChiNext ETF, Digital India ETF, Green Metals ETF, India Growth Leaders ETF and Oil Refiners ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and equal to the median of its respective peer group of funds, and each of the VanEck Africa Index ETF, Egypt Index ETF, Russia Small-Cap ETF and Uranium + Nuclear Energy ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and median of its respective peer group of funds. The Trustees reviewed the amount by which certain Funds’ management fees and/or total expense ratios (after the effect of any applicable fee waivers and/or expense limitations) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. With respect to the VanEck Russia ETF and Russia Small-Cap ETF, the Trustees noted that the Adviser had voluntarily agreed to waive all of the Funds’ management fees beginning March 11, 2022 (although such waiver could be terminated at any time). The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Funds were reasonable in light of the performance of the Funds and the quality of services received.
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The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds and the fact that the Sub-Adviser had not identified any such monetary benefits.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap, as applicable, and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Funds invest, potential variability in the net assets of the Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Funds effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders of the Unitary Funds and noted that the Adviser has capped expenses on each of the Non-Unitary Funds since its inception, although the cap was not necessarily exceeded each year. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the profits earned by the Adviser with respect to the Funds that were profitable to the Adviser were reasonable in light of the nature and quality of the services received by such Funds.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 6, 2022 meeting as part of their consideration of the Agreements.
In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that, at the time of their considerations, each Agreement is in the best interest of each Fund and such Fund’s shareholders.
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VANECK ETF TRUST
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for most funds redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2021 to December 31, 2021 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
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This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) prospectus and summary prospectus, which includes more complete information. 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.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | ||
Distributor: | VanEck Securities Corporation | ||
666 Third Avenue, New York, NY 10017 | |||
vaneck.com | |||
Account Assistance: | 800.826.2333 | INTLSAR |
SEMI-ANNUAL REPORT June 30, 2022 (unaudited) | |
CLO ETF | CLOI |
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Fund’s holdings, the Fund’s performance, and the views of the investment adviser are as of June 30, 2022.
VANECK CLO ETF
June 30, 2022 (unaudited)
Dear Fellow Shareholders:
When will market volatility be over? The short answer: not yet. Financial tightening by central banks is never good for financial assets. And while the first half of 2022 has already been painful, we are only now, in mid-summer, experiencing the onset of “quantitative tightening,” when the central banks stop buying bonds. This, to me, is the final act in this process and it may take a few months to work itself out. I am hoping that there are no implosions by major, indebted countries, or major dislocations in fixed income or banking markets.
The second signal that will imply less pressure on financial markets—stocks and bonds—is weaker labor markets, because only that, I believe, will slow wage pressure and therefore inflation. While there will likely be many minor signals and headlines, we may not have confirmation of cooling wage pressure until year-end or later.
For over a year, I’ve been saying that we would be in a better position to gauge inflation persistence in the second half of 2022, because only now would we know whether inflationary psychology had affected wages. Well, here we are. Despite a cooling U.S. economy, the labor market is still hot. There is a strong relationship between wages and inflation, which historically becomes more pronounced during periods of high inflation. Based on the fact that the record-setting spending stimulus has led to wage inflation, our view now is that inflation will be higher for longer.
Rising Correlation: Upward Pressure on Wages Leads to Upward Pressure on Inflation
While we expect to be in an elevated inflation regime for an extended period of time, there should be some temporary relief on the horizon from the negative wealth effect from declining asset values, a recent pullback in commodity prices and improving supply chains. But asset values can still fall further from here, commodity prices are still high by historical standards, and supply chain pressures are still at last summer’s levels.
Consumers are being squeezed from high inflation and more restrictive, yet still accommodative, monetary policy. We estimate the evisceration of over $40 trillion from the global stock, bond and crypto markets as a result of the current macro-economic conditions. That equates to nearly half of the world’s GDP!
Multi-Year Investment Themes: Resources Transition and Blockchain Disruption
So, we continue to focus on two multi-year investment themes.
Commodities have broken out of their prolonged bear market to reach record highs, driven by forces—primarily, the supply-demand imbalance—that have been in place even before Russia’s invasion of Ukraine. The Russia-Ukraine crisis has, however, accelerated efforts to reduce dependency on Russian energy supply in Europe, and part of that plan includes a shift towards renewable energy.
Commodity prices have more than doubled from their COVID-19 lows. Yet, the supply response across all industries has been limited due to the emphasis on capital discipline and environmental, social and governance constraints. If we are in the early stages of an economic slowdown, then it is very unlikely that we will see an increase in capital expenditures leading to additional supply. This should lead to a swift rebound in prices when economic growth resumes.
We still like commodity equities, particularly companies involved in green metals used in electric vehicle and clean energy components and, perhaps with a longer-term horizon, agribusiness companies looking to innovate for more efficient, climate-friendly and sustainable food production. Fears of global recession have hurt these investments, but I believe the longer-term trends will prevail.
The fallout from the Terra ecosystem’s collapse in May on the broader digital assets market cannot be understated. It caused major damage, and bankruptcies and liquidations of borrowing/lending firms are likely ahead, not to mention litigation from retail investors. Volatility is a given with crypto, with Bitcoin and Ethereum under the most pressure from their status as the “reserve” holdings for many in the crypto world. However, while I used to think Bitcoin’s drawdown risk was 90% back in 2017, I expected the drawdowns to
1 |
VANECK CLO ETF
PRESIDENT’S LETTER
(unaudited) (continued)
be more muted in current times. This is because the underlying blockchain technology is being used to gain efficiency and reduce risk in the financial system, and I believe adoption will keep expanding.
Growth is Less Rich Relative to Value
For much of 2021, many growth stocks were very richly valued. At the end of 2021, the price-to-earnings (“P/E”) ratio of the Russell 1000 Growth Index was hovering around 40. By comparison, during that same period, the P/E ratio of the Russell 1000 Value Index was below 20. That equated to a valuation spread of roughly 20.
We hadn’t seen such a big dislocation between growth and value stocks since the tech bubble in the early 2000s. That is why, at the start of 2022, we said to wait to buy growth. We could be getting closer, but investors should be cautious. The current spread between the P/E ratios of growth and value stocks is over 11 and the long-term average is 8. If inflation remains persistently high, as we expect, then this spread may go even lower.
We thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for the fund for the period ended June 30, 2022. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
CEO and President
VanEck ETF Trust
July 12, 2022
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
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VANECK CLO ETF
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2022 to June 30, 2022.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022 | |||||||||||||
Actual (a) | $ | 1,000.00 | $ | 1,000.80 | 0.40 | % | $ | 0.10 | ||||||||
Hypothetical (b)(c) | $ | 1,000.00 | $ | 1,022.81 | 0.40 | % | $ | 2.01 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the period from June 22, 2022 (commencement of operations) to June 30, 2022) multiplied by the average account value over the period, multiplied by the number of days since the commencement of operations divided by the number of days in the fiscal year. |
(b) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2022), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(c) | Assumes annual return of 5% before expenses |
3 |
VANECK CLO ETF
June 30, 2022 (unaudited)
Par (000’s | ) | Value | ||||||
COLLATERALIZED LOAN OBLIGATIONS: 99.0% | ||||||||
Ares LXI CLO Ltd. 144A 2.71% (ICE LIBOR USD 3 Month+1.65%), 10/20/34 | $ | 2,750 | $ | 2,620,205 | ||||
Bain Capital Credit CLO 2021-4 Ltd. 144A 2.71% (ICE LIBOR USD 3 Month+1.65%), 10/20/34 | 1,750 | 1,655,062 | ||||||
Carlyle US CLO 2019-3 LTD 144A 4.26% (ICE LIBOR USD 3 Month+3.20%), 10/20/32 | 1,250 | 1,175,175 | ||||||
Cedar Funding VIII Clo Ltd. 144A 2.69% (ICE LIBOR USD 3 Month+1.65%), 10/17/34 | 1,750 | 1,647,042 | ||||||
CIFC Funding 2014-III Ltd. 144A 2.59% (ICE LIBOR USD 3 Month+1.45%), 10/22/31 | 1,250 | 1,205,440 | ||||||
Dryden 45 Senior Loan Fund 144A 2.44% (ICE LIBOR USD 3 Month+1.40%), 10/15/30 | 1,250 | 1,198,381 | ||||||
Dryden 80 CLO Ltd. 144A 2.60% (Term SOFR USD 3 Month+1.75%), 01/17/33 | 1,250 | 1,189,269 | ||||||
Dryden 93 CLO Ltd. 144A 2.64% (ICE LIBOR USD 3 Month+1.60%), 01/15/34 | 1,750 | 1,664,452 | ||||||
Dryden Senior Loan Fund 144A 3.03% (Term SOFR USD 3 Month+2.00%), 04/20/35 | 1,250 | 1,201,933 | ||||||
Elmwood CLO 15 Ltd. 144A |
Par | ||||||||
(000’s | ) | Value | ||||||
COLLATERALIZED LOAN OBLIGATIONS: 99.0% (continued) | ||||||||
1.98% (Term SOFR USD 3 Month+1.34%), 04/22/35 | $ | 1,250 | $ | 1,208,428 | ||||
Generate CLO 8 Ltd. 144A 4.56% (ICE LIBOR USD 3 Month+3.50%), 10/20/34 | 1,250 | 1,168,035 | ||||||
GoldenTree Loan Opportunities IX Ltd. 144A 2.54% (ICE LIBOR USD 3 Month+1.30%), 10/29/29 | 1,250 | 1,213,023 | ||||||
Gulf Stream Meridian 1 Ltd. 144A 2.41% (ICE LIBOR USD 3 Month+1.37%), 04/15/33 | 1,250 | 1,222,853 | ||||||
Gulf Stream Meridian 4 Ltd. 144A 2.24% (ICE LIBOR USD 3 Month+1.20%), 07/15/34 | 1,250 | 1,219,388 | ||||||
Myers Park CLO Ltd. 144A 2.46% (ICE LIBOR USD 3 Month+1.40%), 10/20/30 | 1,250 | 1,206,049 | ||||||
OCP CLO 2020-19 Ltd. 144A 2.76% (ICE LIBOR USD 3 Month+1.70%), 10/20/34 | 1,750 | 1,647,543 | ||||||
OCP CLO 2021-22 Ltd. 144A 2.24% (ICE LIBOR USD 3 Month+1.18%), 12/02/34 | 1,250 | 1,213,560 | ||||||
Signal Peak CLO 4 Ltd. 144A 4.41% (ICE LIBOR USD 3 Month+3.20%), 10/26/34 | 1,250 | 1,124,166 | ||||||
24,780,004 | ||||||||
Total Collateralized Loan Obligations (Cost: $24,773,725) | 24,780,004 | |||||||
Total Investments: 99.0% (Cost: $24,773,725) | 24,780,004 | |||||||
Other assets less liabilities: 1.0% | 240,341 | |||||||
NET ASSETS: 100.0% | $ | 25,020,345 |
Definitions:
USD | United States Dollar |
Footnotes:
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $24,780,004, or 99.0% of net assets. |
Summary of Investments by Sector | % of Investments | Value | ||||||
Financials | 100.0 | % | $ | 24,780,004 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 2 | Level 3 | |||||||||||||||
Level 1 | Significant | Significant | ||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||
Prices | Inputs | Inputs | Value | |||||||||||||
Collateralized Loan Obligations | $ | — | $ | 24,780,004 | $ | — | $ | 24,780,004 |
See Notes to Financial Statements
4 |
VANECK CLO ETF
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Assets: | ||||
Investments, at value | ||||
Unaffiliated issuers (1) | $ | 24,780,004 | ||
Cash | 94,466 | |||
Receivables: | ||||
Interest | 148,342 | |||
Total assets | 25,022,812 | |||
Liabilities: | ||||
Payables: | ||||
Due to Adviser | 2,467 | |||
Total liabilities | 2,467 | |||
NET ASSETS | $ | 25,020,345 | ||
Shares outstanding | 500,000 | |||
Net asset value, redemption and offering price per share | $ | 50.04 | ||
Net Assets consist of: | ||||
Aggregate paid in capital | $ | 25,000,000 | ||
Total distributable earnings (loss) | 20,345 | |||
NET ASSETS | $ | 25,020,345 | ||
(1) Cost of investments - Unaffiliated issuers | $ | 24,773,725 |
See Notes to Financial Statements
5 |
VANECK CLO ETF
For the Period Ended June 30, 2022 (a) (unaudited)
Income: | ||||
Interest | $ | 16,533 | ||
Total income | 16,533 | |||
Expenses: | ||||
Management fees | 2,467 | |||
Total expenses | 2,467 | |||
Net investment income | 14,066 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 6,279 | |||
Net Increase in Net Assets Resulting from Operations | $ | 20,345 |
(a) | For the period June 22, 2022 (commencement of operations) through June 30, 2022. |
See Notes to Financial Statements
6 |
VANECK CLO ETF
STATEMENT OF CHANGES IN NET ASSETS
Period | ||||
Ended | ||||
June 30, | ||||
2022 (a) | ||||
(unaudited) | ||||
Operations: | ||||
Net investment income | $ | 14,066 | ||
Net change in unrealized appreciation (depreciation) | 6,279 | |||
Net increase in net assets resulting from operations | 20,345 | |||
Share transactions*: | ||||
Proceeds from sale of shares | 25,000,000 | |||
Increase in net assets resulting from share transactions | 25,000,000 | |||
Total increase in net assets | 25,020,345 | |||
Net Assets, beginning of period | — | |||
Net Assets, end of period | $ | 25,020,345 | ||
* Shares of Common Stock Issued (no par value): | ||||
Shares sold | 500,000 | |||
Net increase | 500,000 |
(a) | For the period June 22, 2022 (commencement of operations) through June 30, 2022. |
See Notes to Financial Statements
7 |
VANECK CLO ETF
For a share outstanding throughout each period:
Period | ||||
Ended | ||||
June 30, | ||||
2022(a) | ||||
(unaudited) | ||||
Net asset value, beginning of period | $50.00 | |||
Net investment income (b) | 0.03 | |||
Net realized and unrealized gain on investments | 0.01 | |||
Total from investment operations | 0.04 | |||
Net asset value, end of period | $50.04 | |||
Total return (c) | 0.08% | (d) | ||
Ratios to average net assets | ||||
Expenses | 0.40% | (e) | ||
Net investment income | 2.28% | (e) | ||
Supplemental data | ||||
Net assets, end of period (in millions) | $25 | |||
Portfolio turnover rate(f) | —% | (d) |
(a) | For the period June 22, 2022 (commencement of operations) through June 30, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
8 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2022 (unaudited)
Note 1—Fund Organization—VanEck ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust.
These financial statements relate to the CLO ETF (the “Fund”). The Fund is actively managed and seeks to achieve its investment objective by primarily investing in investment-grade debt tranches of collateralized loan obligations (“CLOs”). The Fund is classified as non-diversified, as defined in the 1940 Act. Van Eck Associates Corporation (the “Adviser”) serves as the investment adviser for the Fund.
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Fund is an investment company and follows accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Fund’s significant accounting policies.
A. | Security Valuation— The Fund values its investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Debt securities are valued on the basis of evaluated prices furnished by an independent pricing service approved by the Fund’s Board of Trustees or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date and or (ii) quotations from bond dealers to determine current value, and are categorized as Level 2 in the fair value hierarchy (described below). Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. The Pricing Committee of the Adviser provides oversight of the Fund’s valuation policies and procedures, which are approved by the Fund’s Board of Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes they do not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Fund’s valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis. |
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Fund may realize upon sale of an investment may differ materially from the value presented in the Schedule of Investments. | |
The Fund utilizes various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels of the fair value hierarchy are described below: |
9 |
VANECK CLO ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Level 1 — Quoted prices in active markets for identical securities.
Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).
A summary of the inputs and the levels used to value the Fund’s investments are located in the Schedule of Investments. Additionally, tables that reconcile the valuation of the Fund’s Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments.
B. | Federal Income Taxes—It is the Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
C. | Distributions to Shareholders— Dividends to shareholders from net investment income, if any, are declared and paid monthly by the Fund. Distributions of net realized capital gains, if any, are generally declared and paid annually. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. Dividends and distributions that exceed earnings and profit for tax purposes are reported for tax purposes as a return of capital. |
D. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Interest income, including amortization of premiums and discounts, is accrued as earned.
The Fund earns interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statement of Operations.
In the normal course of business, the Fund enters into contracts that contain a variety of general indemnifications. The Fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.
|
Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Fund. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.40% of the Fund’s average daily net assets. The Adviser has agreed to pay all expenses of the Fund except for the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes, and extraordinary expenses, until at least May 1, 2024.
In addition, Van Eck Securities Corporation (the “Distributor”), an affiliate of the Adviser, acts as the Fund’s distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor. At June 30, 2022, the Adviser owned approximately 40% of the Fund.
Note 4—Capital Share Transactions—As of June 30, 2022, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”).
The consideration for the purchase or redemption of Creation Units of the Fund generally consists of the in-kind contribution or distribution of securities constituting the Fund’s underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Fund may issue
10 |
Creation Units in advance of receipt of Deposit Securities subject to various conditions, including, for the benefit of the Fund, a requirement to maintain cash collateral on deposit at the custodian equal to at least 115% of the daily marked to market value of the missing Deposit Securities.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Fund may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statement of Changes in Net Assets.
Note 5—Investments—For the period ended June 30, 2022, the cost of purchases and proceeds from sales of investments, excluding U.S. government securities and short-term investments, aggregated to $24,773,725 and $0, respectively.
Note 6—Income Taxes—As of June 30, 2022, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments owned were as follows:
Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||
$ | 24,773,725 | $ | 71,615 | $ | (65,336 | ) | $ | 6,279 |
The tax character of current year distributions will be determined at the end of the current fiscal year.
The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Fund may be subject to foreign taxes on the appreciation in value of certain investments. The Fund provides for such taxes, if any, on both realized and unrealized appreciation.
The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended June 30, 2022, the Fund did not incur any interest or penalties.
Note 7—Principal Risks— Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. Investments in debt instruments involve risks, including market fluctuations caused by factors such as economic and political developments, changes in interest rates and perceived trends in security prices.
The Fund’s assets are concentrated in CLO securities, organized as trusts or other special purpose vehicles that are typically collateralized by a pool of loans which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans, and including “covenant lite” loans, which have few or no financial maintenance covenants. CLOs include both the economic risks of the underlying loans combined with the risks associated with the CLO structure governing the priority of payments. The degree of such risk will generally correspond to the specific tranche in which the Fund is invested. The Fund invests primarily in investment grade-rated tranches of CLOs; however, the rating does not constitute a guarantee of credit quality and may be downgraded, and in stressed market environments it is possible that even senior CLO debt tranches could experience losses due to actual defaults, increased sensitivity to defaults due to collateral default and the disappearance of the subordinated/ equity tranches, market anticipation of defaults, as well as negative market sentiment with respect to CLO securities as an asset class. The Fund’s portfolio managers may not be able to accurately predict how specific CLOs or the portfolio of underlying loans for such CLO securities will react to changes or stresses in the market, including changes in interest
11 |
VANECK CLO ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
rates. The most common risks associated with investing in CLO securities are liquidity risk, interest rate risk, credit risk, call risk, and the risk of default of the underlying asset.
CLOs are generally privately-issued securities, and are normally purchased pursuant to Rule144A or Regulation S under the Securities Act of 1933, as amended. Privately-issued securities typically may be resold only to qualified institutional buyers, in a privately negotiated transaction, to a limited number of purchasers, or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. A decline in interest rates may result in a reduction of income received from floating rate securities held by the Fund and may adversely affect the value of the Fund’s shares. Generally, floating rate securities carry lower yields than fixed notes of the same maturity.
The Fund invests in certain financial instruments that may pay interest based on, or otherwise have payments tied to, the London Inter-bank Offered Rate (“LIBOR”). At the end of 2021, certain LIBORs were discontinued, but the most widely used LIBORs may continue to be provided on a representative basis until June 30, 2023. Although the transition process away from LIBOR has become increasingly well-defined, there remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rates. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could adversely impact (i) volatility and liquidity in markets that are tied to LIBOR, (ii) the market for, or value of, specific securities or payments linked to those reference rates resulting in a reduction in the value of certain instruments held by the Fund, (iii) availability or terms of borrowing or refinancing, or (iv) the effectiveness of hedging strategies. For these and other reasons, the elimination of LIBOR or changes to other interest rates may adversely affect the Fund’s performance and/or net asset value. Alternatives to LIBOR are established or in development in most major currencies including the Secured Overnight Financing Rate (“SOFR”) that is intended to replace the U.S. dollar LIBOR.
Economies and financial markets throughout the world have experienced periods of increased volatility, uncertainty and distress as a result of conditions associated with the COVID-19 pandemic. To the extent these conditions continue, the risks associated with an investment in a Fund could be heightened and the Fund’s investments (and thus a shareholder’s investment in a Fund) may be particularly susceptible to sudden and substantial losses, reduced yield or income or other adverse developments.
A more complete description of risks is included in the Fund’s Prospectus and Statement of Additional Information.
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds of the Trust as directed by the Trustees. The Adviser is responsible for paying the expenses associated with the Plan.
Note 9—Subsequent Event Review—Management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
12 |
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited)
At a meeting held on June 7, 2022 (the “Meeting”), the Board of Trustees (the “Board”) of VanEck ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), considered and approved the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck CLO ETF, VanEck Green Infrastructure ETF, VanEck Muni ETF and VanEck Morningstar SMID Moat ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and PineBridge Investments LLC (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to VanEck CLO ETF. The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”
The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In advance of the Meeting, the Trustees received materials from the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF), including expense information for other funds. The Adviser and the Sub- Adviser (with respect to the VanEck CLO ETF) provided the Trustees with information regarding, among other things, the various aspects of the Funds’ proposed investment programs, fee arrangements and service provider arrangements, as well as the rationale for retaining a sub-adviser to manage the VanEck CLO ETF’s investments in collateralized loan obligation (“CLO”) securities. The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF) at the Meeting regarding the management of the Funds, information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF), including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Funds. The Trustees also considered the terms and scope of services that the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF) would provide under each Agreement, including (i) the Adviser’s agreement to pay all of the direct expenses of each of the VanEck CLO ETF, VanEck Green Infrastructure ETF and VanEck Muni ETF (excluding the fee payment under the respective Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses), and (ii) the Adviser’s commitment to waive certain fees and/or pay expenses of the VanEck Morningstar SMID Moat ETF to the extent necessary to prevent the operating expenses of the Fund from exceeding an agreed-upon limit for a period of time. With respect to the VanEck CLO ETF, the Trustees noted the Sub-Adviser’s experience and investment management process with respect to investments in CLO securities and the Sub-Adviser’s experience serving as a sub-adviser for other registered investment companies. The Trustees also considered the sub-advisory fees to be paid to the Sub-Adviser by the Adviser, and the advisory fees to be retained by the Adviser under the Sub-Advisory Agreement.
The Trustees considered the benefits, other than the fees under the Agreements, that the Adviser would receive from serving as adviser to the Funds. The Trustees did not consider historical information about the cost of the services to be provided by the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF) or the profitability of the Funds to the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF) because the Funds had not yet commenced operations. In addition, because the Funds had not yet commenced operations, the Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Funds by the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF), although they concluded that the nature, quality and extent of the services to be provided by the Adviser and the Sub-Adviser (with respect to the VanEck CLO ETF) were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust, as well as the information provided by the Sub-Adviser (with respect to the VanEck CLO ETF) about its personnel and operations.
13 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited) (continued)
The Independent Trustees were advised by and met in executive session with their independent counsel at the Meeting as part of their consideration of the Agreements.
In voting to approve the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of the Agreements are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that the Agreements are in the best interest of the Funds and the Funds’ shareholders.
14 |
FUND’S LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Fund has implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Fund’s investment strategy, liquidity profile, and, importantly, the fact that for most funds redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, the Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to a Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The Fund utilizes data from a third-party vendor to assist with these determinations.
If the Fund does not qualify as an “In-Kind ETF” it is required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2021 to December 31, 2021 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Fund’s liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
15 |
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) prospectus and summary prospectus, which includes more complete information. 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.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | ||
Distributor: | VanEck Securities Corporation | ||
666 Third Avenue, New York, NY 10017 | |||
vaneck.com | |||
Account Assistance: | 800.826.2333 | CLOISAR |
SEMI-ANNUAL REPORT June 30, 2022 (unaudited) | |
BITCOIN STRATEGY ETF | XBTF |
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Fund’s holdings, the Fund’s performance, and the views of the investment adviser are as of June 30, 2022.
VANECK BITCOIN STRATEGY ETF
June 30, 2022 (unaudited)
Dear Fellow Shareholders:
When will market volatility be over? The short answer: not yet. Financial tightening by central banks is never good for financial assets. And while the first half of 2022 has already been painful, we are only now, in mid-summer, experiencing the onset of “quantitative tightening,” when the central banks stop buying bonds. This, to me, is the final act in this process and it may take a few months to work itself out. I am hoping that there are no implosions by major, indebted countries, or major dislocations in fixed income or banking markets.
The second signal that will imply less pressure on financial markets—stocks and bonds—is weaker labor markets, because only that, I believe, will slow wage pressure and therefore inflation. While there will likely be many minor signals and headlines, we may not have confirmation of cooling wage pressure until year-end or later.
For over a year, I’ve been saying that we would be in a better position to gauge inflation persistence in the second half of 2022, because only now would we know whether inflationary psychology had affected wages. Well, here we are. Despite a cooling U.S. economy, the labor market is still hot. There is a strong relationship between wages and inflation, which historically becomes more pronounced during periods of high inflation. Based on the fact that the record-setting spending stimulus has led to wage inflation, our view now is that inflation will be higher for longer.
Rising Correlation: Upward Pressure on Wages Leads to Upward Pressure on Inflation
While we expect to be in an elevated inflation regime for an extended period of time, there should be some temporary relief on the horizon from the negative wealth effect from declining asset values, a recent pullback in commodity prices and improving supply chains. But asset values can still fall further from here, commodity prices are still high by historical standards, and supply chain pressures are still at last summer’s levels.
Consumers are being squeezed from high inflation and more restrictive, yet still accommodative, monetary policy. We estimate the evisceration of over $40 trillion from the global stock, bond and crypto markets as a result of the current macro-economic conditions. That equates to nearly half of the world’s GDP!
Multi-Year Investment Themes: Resources Transition and Blockchain Disruption
So, we continue to focus on two multi-year investment themes.
Commodities have broken out of their prolonged bear market to reach record highs, driven by forces—primarily, the supply-demand imbalance—that have been in place even before Russia’s invasion of Ukraine. The Russia-Ukraine crisis has, however, accelerated efforts to reduce dependency on Russian energy supply in Europe, and part of that plan includes a shift towards renewable energy.
Commodity prices have more than doubled from their COVID-19 lows. Yet, the supply response across all industries has been limited due to the emphasis on capital discipline and environmental, social and governance constraints. If we are in the early stages of an economic slowdown, then it is very unlikely that we will see an increase in capital expenditures leading to additional supply. This should lead to a swift rebound in prices when economic growth resumes.
We still like commodity equities, particularly companies involved in green metals used in electric vehicle and clean energy components and, perhaps with a longer-term horizon, agribusiness companies looking to innovate for more efficient, climate-friendly and sustainable food production. Fears of global recession have hurt these investments, but I believe the longer-term trends will prevail.
The fallout from the Terra ecosystem’s collapse in May on the broader digital assets market cannot be understated. It caused major damage, and bankruptcies and liquidations of borrowing/lending firms are likely ahead, not to mention litigation from retail investors. Volatility is a given with crypto, with Bitcoin and Ethereum under the most pressure from their status as the “reserve” holdings for many in the crypto world. However, while I used to think Bitcoin’s drawdown risk was 90% back in 2017, I expected the drawdowns to
1 |
VANECK BITCOIN STRATEGY ETF
PRESIDENT’S LETTER
(unaudited) (continued)
be more muted in current times. This is because the underlying blockchain technology is being used to gain efficiency and reduce risk in the financial system, and I believe adoption will keep expanding.
Growth is Less Rich Relative to Value
For much of 2021, many growth stocks were very richly valued. At the end of 2021, the price-to-earnings (“P/E”) ratio of the Russell 1000 Growth Index was hovering around 40. By comparison, during that same period, the P/E ratio of the Russell 1000 Value Index was below 20. That equated to a valuation spread of roughly 20.
We hadn’t seen such a big dislocation between growth and value stocks since the tech bubble in the early 2000s. That is why, at the start of 2022, we said to wait to buy growth. We could be getting closer, but investors should be cautious. The current spread between the P/E ratios of growth and value stocks is over 11 and the long-term average is 8. If inflation remains persistently high, as we expect, then this spread may go even lower.
We thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for the period ended June 30, 2022. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
CEO and President
VanEck ETF Trust
July 12, 2022
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
2 |
VANECK BITCOIN STRATEGY ETF
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2022 to June 30, 2022.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022 (a) | |||||||||||||
Actual | $ | 1,000.00 | $404.00 | 0.65 | % | $ | 2.26 | |||||||||
Hypothetical(b) | $ | 1,000.00 | $1,021.57 | 0.65 | % | $ | 3.26 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2022), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(b) | Assumes annual return of 5% before expenses |
3 |
VANECK BITCOIN STRATEGY ETF
June 30, 2022 (unaudited)
Par (000’s | ) | Value | ||||||
Short-Term Investments: 78.9% | ||||||||
United States Treasury Obligations: 78.9% | ||||||||
United States Treasury Bills | ||||||||
0.00%, 09/06/22 (a) | $ | 2,000 | $ | 1,994,324 | ||||
0.00%, 09/27/22 | 3,000 | 2,988,523 | ||||||
0.00%, 10/25/22 | 2,000 | 1,987,124 | ||||||
0.61%, 07/14/22 (a) | 3,000 | 2,998,851 | ||||||
0.90%, 08/04/22 (a) | 3,000 | 2,996,664 | ||||||
12,965,486 | ||||||||
Total Short-Term Investments: 78.9% (Cost: $12,969,506) | 12,965,486 | |||||||
Other assets less liabilities: 21.1% | 3,462,736 | |||||||
NET ASSETS: 100.0% | $ | 16,428,222 |
Futures Contracts
Long Exposure
Value and | ||||||||||||
Unrealized | ||||||||||||
Reference | Number of | Notional | Appreciation/ | |||||||||
Entity | Contracts | Expiration Date | Amount | (Depreciation) | ||||||||
CME BITCOIN | 176 | 07/29/22 | 16,508,800 | $(1,435,783) |
(a) | All or a portion of these securities are held at the broker for futures collateral. Total value of securities held at the broker is $7,090,840. |
Summary of Investments by Sector | % of Investments | Value | ||||||
Government Activity | 100.0 | % | $ | 12,965,486 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 2 | Level 3 | |||||||||||||||
Level 1 | Significant | Significant | ||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||
Prices | Inputs | Inputs | Value | |||||||||||||
United States Treasury Obligations | $ | — | $ | 12,965,486 | $ | — | $ | 12,965,486 | ||||||||
Other Financial Instruments: | ||||||||||||||||
Futures Contracts | $ | (1,435,783) | $ | — | $ | — | $ | (1,435,783) |
See Notes to Financial Statements
4 |
VANECK BITCOIN STRATEGY ETF
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Assets: | ||||
Investments, at value | ||||
Unaffiliated issuers (1) | $ | 12,965,486 | ||
Cash | 3,212,156 | |||
Cash on deposit with broker for futures contracts | 1,690,931 | |||
Net deferred tax | — | |||
Total assets | 17,868,573 | |||
Liabilities: | ||||
Payables: | ||||
Due to Adviser | 7,826 | |||
Variation margin on futures contracts | 1,432,525 | |||
Total liabilities | 1,440,351 | |||
NET ASSETS | $ | 16,428,222 | ||
Shares outstanding | 900,000 | |||
Net asset value, redemption and offering price per share | $ | 18.25 | ||
Net Assets consist of: | ||||
Aggregate paid in capital | $ | 40,685,313 | ||
Total distributable earnings (loss) | (24,257,091 | ) | ||
NET ASSETS | $ | 16,428,222 | ||
(1) Cost of investments - Unaffiliated issuers | $ | 12,969,506 |
See Notes to Financial Statements
5 |
VANECK BITCOIN STRATEGY ETF
For the Period Ended June 30, 2022 (unaudited)
Income: | ||||
Interest | $ | 31,440 | ||
Total income | 31,440 | |||
Expenses: | ||||
Management fees | 76,551 | |||
Interest | 84 | |||
FCM fees | 10,905 | |||
Total expenses | 87,540 | |||
Reimbursement by the Adviser | (10,905 | ) | ||
Net expenses | 76,635 | |||
Net investment loss, before income taxes | (45,195 | ) | ||
Net current and deferred tax benefit/(expense) (See Note 6) | — | |||
Net investment loss, net of income taxes | (45,195 | ) | ||
Net realized (loss) on: | ||||
Investments | (1,336 | ) | ||
Futures contracts | (19,050,024 | ) | ||
Current and deferred tax benefit/(expense) (See Note 6) | — | |||
Net realized loss, net of income taxes | (19,051,360 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (4,069 | ) | ||
Futures contracts | (395,047 | ) | ||
Current and deferred tax benefit/(expense) (See Note 6) | — | |||
Net change in unrealized appreciation (depreciation), net of income taxes | (399,116 | ) | ||
Net Decrease in Net Assets Resulting from Operations | $ | (19,495,671 | ) |
See Notes to Financial Statements
6 |
VANECK BITCOIN STRATEGY ETF
STATEMENT OF CHANGES IN NET ASSETS
Period | ||||||||
Ended | ||||||||
Period Ended | December 31, | |||||||
June 30, 2022 | 2021 (a) | |||||||
(unaudited) | ||||||||
Operations: | ||||||||
Net investment loss | $ | (45,195 | ) | $ | (11,326 | ) | ||
Net realized loss | (19,051,360 | ) | (3,709,407 | ) | ||||
Net change in unrealized appreciation (depreciation) | (399,116 | ) | (1,040,687 | ) | ||||
Net decrease in net assets resulting from operations | (19,495,671 | ) | (4,761,420 | ) | ||||
Share transactions*: | ||||||||
Proceeds from sale of shares | 20,112,032 | 20,573,281 | ||||||
Increase in net assets resulting from share transactions | 20,112,032 | 20,573,281 | ||||||
Total increase in net assets | 616,361 | 15,811,861 | ||||||
Net Assets, beginning of period | 15,811,861 | — | ||||||
Net Assets, end of period | $ | 16,428,222 | $ | 15,811,861 | ||||
* Shares of Common Stock Issued (no par value): | ||||||||
Shares sold | 550,000 | 350,000 | ||||||
Net increase | 550,000 | 350,000 |
(a) | For the period November 16, 2021 (commencement of operations) through December 31, 2021. |
See Notes to Financial Statements
7 |
VANECK BITCOIN STRATEGY ETF
For a share outstanding throughout each period:
Period | Period | |||||||
Ended | Ended | |||||||
June 30, | December | |||||||
2022 | 31, 2021(a) | |||||||
(unaudited) | ||||||||
Net asset value, beginning of period | $45.18 | $63.91 | ||||||
Net investment loss (b) | (0.07 | ) | (0.04 | ) | ||||
Net realized and unrealized loss on investments | (26.86 | ) | (18.69 | ) | ||||
Total from investment operations | (26.93 | ) | (18.73 | ) | ||||
Net asset value, end of period | $18.25 | $45.18 | ||||||
Total return (c) | (59.60)% | (d) | (29.31)% | (d) | ||||
Ratios to average net assets | ||||||||
Gross expenses | 0.74% | (e) | 0.65% | (e) | ||||
Net expenses | 0.65% | (e) | 0.65% | (e) | ||||
Net investment loss | (0.38)% | (e) | (0.62)% | (e) | ||||
Supplemental data | ||||||||
Net assets, end of period (in millions) | $16 | $16 | ||||||
Portfolio turnover rate(f) | —% | (d) | —% | (d) |
(a) | For the period November 16, 2021 (commencement of operations) through December 31, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
8 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2022 (unaudited)
Note 1—Fund Organization—VanEck ETF Trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust.
These financial statements relate to the Bitcoin Strategy ETF (the “Fund”). The Fund is actively managed and seeks to achieve its investment objective by investing in standardized, cash-settled bitcoin futures contracts (“Bitcoin Futures”) traded on the Chicago Mercantile Exchange. The Fund is classified as “non-diversified”. This means that the Fund may invest more of its assets in securities of a single issuer than that of a diversified fund. Van Eck Absolute Return Advisers Corporation (the “Adviser”) serves as the investment adviser for the Fund and is subject to the supervision of the Board of Trustees (the “Board”).
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Fund is an investment company and follows accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies.
The following summarizes the Fund’s significant accounting policies.
A. | Security Valuation— The Fund values its investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Futures contracts are generally valued at the official settlement price on the primary exchange on which they trade and are categorized as Level 1 in the fair value hierarchy (described below). Debt securities are valued on the basis of evaluated prices furnished by an independent pricing service approved by the Funds’ Board of Trustees or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date and or (ii) quotations from bond dealers to determine current value, and are categorized as Level 2 in the fair value hierarchy. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value (“NAV”) and are categorized as Level 1 in the fair value hierarchy. The Pricing Committee of the Adviser provides oversight of the Fund’s valuation policies and procedures, which are approved by the Fund’s Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes they do not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Fund’s valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis.
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Fund may realize upon sale of an investment may differ materially from the value presented in the Schedule of Investments.
The Fund utilizes various methods to measure the fair value of its investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and |
9 |
VANECK BITCOIN STRATEGY ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The three levels of the fair value hierarchy are described below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
A summary of the inputs and the levels used to value the Fund’s investments are located in the Schedule of Investments. Additionally, tables that reconcile the valuation of the Fund’s Level 3 investments and that present additional information about the valuation methodologies and unobservable inputs, if applicable, are located in the Schedule of Investments.
B. | Federal and Other Income Taxes— The Fund intends to invest primarily in Bitcoin Futures, which generally are treated as futures contracts on property for federal income tax purposes. As such, they do not generate qualifying income for the purpose of qualifying as a Regulated Investment Company (“RIC”) for tax purposes. Accordingly, the Fund does not intend to qualify, and will not qualify as a RIC pursuant to Subchapter M of the Internal Revenue Code and will be taxed as a C-corporation. As a C-corporation, the Fund is obligated to pay federal, state and local income tax on its taxable income. The amount of taxes currently payable by the Fund will vary depending on the amount of income and gains derived from investments and such taxes will reduce the return on an investment in the Fund. Since the Fund will be subject to taxation on its taxable income, the NAV of the Fund’s shares will be reduced by the accrual of any current or deferred tax liabilities.
The tax expense or benefit attributable to certain components of income will be included in the Statement of Operations. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for federal income tax purposes. Deferred tax assets and liabilities are calculated utilizing effective tax rates expected to be applied to taxable income in the years the temporary differences are realized or settled. A valuation allowance will be recognized if, based on the available evidence, it is more likely than not that some or all of a deferred tax asset will not be realizable. In the assessment for a valuation allowance, consideration is given to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods and the associated risk that operating and capital loss carryforwards may expire unused. It is the Fund’s policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on the Statement of Operations.
|
C. | Distributions to Shareholders— Distributions to shareholders from net investment income and net realized capital gains, if any, are declared and paid annually. Because the Fund is taxed as a C corporation, all of the distributions paid by the Fund will be treated as dividend income for U.S. federal income tax purposes. Unlike a RIC, the Fund will not pay capital gain dividends. |
D. | Use of Derivative Instruments— The Fund invests in futures contracts, which are derivative instruments. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments or commodities at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The |
10 |
use of derivative instruments also involves the risk of loss if the investment adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument. GAAP requires enhanced disclosures about the Fund’s derivative instruments and hedging activities. Details of this disclosure are found below as well as in the Schedule of Investments.
Futures Contracts— Futures contracts are financial contracts, the value of which depends on, or is derived from, the underlying reference asset. In the case of cash-settled Bitcoin Futures, the underlying reference asset is bitcoin. “Cash-settled” means that when the relevant futures contract expires, if the value of the underlying asset exceeds the futures contract price, the seller pays to the purchaser cash in the amount of that excess, and if the futures contract price exceeds the value of the underlying asset, the purchaser pays to the seller cash in the amount of that excess. In a cash-settled futures contract on bitcoin, the amount of cash to be paid is equal to the difference between the value of the bitcoin underlying the futures contract at the close of the last trading day of the contract and the futures contract price specified in the agreement.
Upon entering into a futures contract, the Fund is required to deliver to a broker an amount of cash and/or government securities equal to a certain percentage of the contract amount. This amount is known as the “initial margin”. Subsequent payments, known as “variation margin”, are generally made or received by the Fund each day depending on the fluctuations in the value of the Bitcoin Futures. Such variation margin is recorded for financial statement purposes on a daily basis as an unrealized gain or loss on futures, until the futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures. Bitcoin Strategy ETF held futures contracts for six months during the period ended June 30, 2022, of which the average notional amount for the period was $20,879,584. Futures contracts held by Bitcoin Strategy ETF at June 30, 2022 are reflected in the Schedule of Investments.
At June 30, 2022, the Fund held the following derivatives (not designated as hedging instruments under GAAP):
Liabilities Derivatives | ||||
Digital Assets Risk | ||||
Futures contracts1 | $ | 1,432,525 |
1 | Statement of Assets and Liabilities location: Variation margin on futures contracts |
The impact of transactions in derivative instruments during the period ended June 30, 2022, was as follows:
Digital Assets Risk | ||||
Realized gain (loss): | ||||
Futures contracts1 | $ | (19,050,024 | ) | |
Net change in unrealized appreciation (depreciation): | ||||
Futures contracts2 | $(395,047 | ) |
1 | Statements of Operations location: Net realized gain (loss) on futures contracts |
2 | Statements of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts |
E. | Offsetting Assets and Liabilities— In the ordinary course of business, the Fund enters into transactions subject to enforceable master netting agreements or other similar agreements. Generally, the right of |
11 |
VANECK BITCOIN STRATEGY ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
offset in those agreements allows the Fund to offset any exposure to a specific counterparty with any collateral received from or delivered to that counterparty based on the terms of the agreements. The Fund may pledge or receive cash and/or securities as collateral for derivative instruments. Collateral held for derivative instruments at June 30, 2022 is presented in the Statement of Assets and Liabilities. For financial reporting purposes, the Fund presents derivative instruments on a gross basis in the Statement of Assets and Liabilities.
Futures contracts held by the Fund are not subject to a master netting agreements or another similar arrangements. In general, collateral received or pledged exceeds the net amount of the unrealized gain/loss or market value of financial instruments. Refer to the Schedules of Investments and Statements of Assets and Liabilities for collateral received or pledged as of June 30, 2022.
F. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Interest income, including amortization of premiums and discounts, is accrued as earned. Dividend income is recorded on the ex-dividend date. |
The Fund earns interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statement of Operations.
In the normal course of business, the Fund enters into contracts that contain a variety of general indemnifications. The Fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.
Note 3—Investment Management and Other Agreements— The Adviser is the investment adviser to the Fund. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.65% of the Fund’s average daily net assets. The Adviser has agreed to pay all expenses incurred by the Fund except for the advisory fee, acquired fund fees and expenses, interest expense, offering costs, trading expenses (except that the Adviser will pay any net account or similar fees charged by futures commission merchants), taxes, extraordinary expenses. Notwithstanding the foregoing, the Adviser has agreed to pay the offering costs and trading expenses that are net account or similar fees charged by futures commission merchants (“FCMs”) until at least May 1, 2023.
Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Fund’s distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and distributor.
Note 4— Capital Share Transactions — As of June 30, 2022, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”). Due to various legal and operational constraints, Creation Units of the Fund are issued principally for cash.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Fund may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statement of Changes in Net Assets.
Note 5—Investments—During the period ended June 30, 2022, the Fund had no purchases and sales of investments, other than U.S. government securities and short-term obligations.
Note 6—Income Taxes— The income tax expense/(benefit) for the respective categories on the Statement of Operations for the period ended June 30, 2022 are as follows:
12 |
Net Investment Loss | Net Realized Loss | Change in Net Unrealized Depreciation | Total | |||||||||||||
Current tax expense (benefit) | $— | $— | $— | $— | ||||||||||||
Deferred tax expense (benefit) | (10,011) | (4,219,876) | (88,404) | (4,318,291) | ||||||||||||
Change in Valuation Allowance | 10,011 | 4,219,876 | 88,404 | 4,318,291 | ||||||||||||
Total | $— | $— | $— | $— |
The Fund is currently using an estimated 22.15% tax rate for federal, state and local tax which is composed of a 21% federal tax rate and an assumed 1.15% rate attributable to state taxes (net of federal benefit). The Fund’s federal and state income tax expense/(benefit) consists of the following:
Federal | State | Total | ||||||||||
Current tax expense (benefit) | $— | $— | $— | |||||||||
Deferred tax expense (benefit) | (4,094,090) | (224,201) | (4,318,291) | |||||||||
Change in Valuation Allowance | 4,094,090 | 224,201 | 4,318,291 | |||||||||
Total | $— | $— | $— |
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes.
There were no differences between the Fund’s income tax expense/(benefit) (current and deferred) calculated by applying the federal statutory income tax rates to net investment income/(loss) and realized and unrealized gain/(loss) on investments as follows:
June 30, 2022 | ||||||||
Amount | Rate | |||||||
Income tax expense/(benefit) at statutory rates | $(4,094,090) | 21.00 | % | |||||
State income tax, net of federal benefit | (224,201) | 1.15 | ||||||
Change in Valuation Allowance | 4,318,291 | (22.15) | ||||||
Net income tax expense/(benefit) | — | — |
Components of the Fund’s deferred tax assets and liabilities are as follows:
For the Period Ended June 30, 2022 | ||||
Deferred Tax Assets: | ||||
Capital loss carryforward | $ | 5,359,536 | ||
Net operating loss carryforward | 12,519 | |||
Unrealized gain on investments | 890 | |||
Net Deferred Tax Asset/(Liability) before valuation allowance | 5,372,945 | |||
Less Valuation Allowance | (5,372,945) | |||
Net Deferred Tax Asset/(Liability) | $ | — |
13 |
VANECK BITCOIN STRATEGY ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The Fund reviews the recoverability of its deferred tax asset based upon the weight of the available evidence. When assessing the recoverability of its deferred tax assets, management considers available carrybacks, reversing temporary taxable differences, projections of future taxable income and tax planning (if any). The Fund has recorded a valuation allowance of $5,372,945 against its net deferred tax asset at June 30, 2022 as the Fund believes it is more-likely-than-not the asset will not be realized within the relevant carryforward periods. The Fund may be required to modify the estimates or assumptions it uses regarding the deferred tax asset or liability as new information becomes available. Since the Fund will be subject to taxation on its taxable income, the NAV of the Fund’s shares will also be reduced by the accrual of any deferred tax liabilities.
The Fund recognizes the tax benefits of uncertain positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on U.S. and State tax returns filed or expected to be filed since inception of the Fund. The Fund’s tax years are open for examination by U.S. and state tax authorities for all applicable periods. The Fund is not aware of any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will change materially in the next year.
As of June 30, 2022, the Fund had the following estimated net operating loss carryforward:
Period Generated | Amount | Expiration | ||||||
12/31/2021 | $ | (11,326 | ) | |||||
06/30/2022 | (45,195 | ) | ||||||
$ | (56,521 | ) | No Expiration |
Under current tax law, net operating loss carryforwards (“NOLs”) cannot be carried back but can be carried forward indefinitely. Additionally, the utilization of NOLs is limited to the lesser of the aggregate of available NOLs or 80% of taxable income.
As of June 30, 2022, the Fund had the following estimated capital loss carryforward:
Period Generated | Amount | Expiration | ||||||
12/31/2021 | $ | (4,750,143 | ) | 12/31/2026 | ||||
06/30/2022 | (19,446,407 | ) | 12/31/2027 | |||||
$ | (24,196,550 | ) |
For corporations, capital losses can only be used to offset capital gains and cannot be used to offset ordinary income. Therefore, the use of this capital loss carryforward is dependent upon the Fund generating sufficient net capital gains prior to the expiration of the loss carryforward.
There are no differences between the book and tax unrealized appreciation / depreciation on the Fund’s investments.
Note 7—Principal Risks—The Fund’s assets are concentrated in Bitcoin Futures. By concentrating the Fund’s assets, the Fund is subject to the risk that economic, political or other conditions that have a negative effect on bitcoin or the digital asset industry will negatively impact the Fund to a greater extent than if the Fund’s net assets were invested in a wider variety of sectors or industries.
Bitcoin and Bitcoin Futures are relatively new asset classes and therefore the Fund’s investments in Bitcoin Futures are subject to unique and substantial risks, including the risk that the value of the Fund’s investments could decline rapidly, including to zero. Bitcoin and Bitcoin Futures have historically been more volatile than traditional asset classes.
Economies and financial markets throughout the world have experienced periods of increased volatility, uncertainty and distress as a result of conditions associated with the COVID-19 pandemic. To the extent these conditions continue, the risks associated with an investment in the Fund could be heightened and the Fund’s
14 |
investments (and thus a shareholder’s investment in the Fund) may be particularly susceptible to sudden and substantial losses, reduced yield or income or other adverse developments.
The rules dealing with U.S. federal income taxation and the rates themselves are constantly under review in the legislative process and by the Internal Revenue Service (“IRS”) and the U.S. Treasury Department. Changes in tax laws or regulations or future interpretations of such laws or regulations could adversely affect the Fund and/or the Fund’s shareholders. Changes in the laws or regulations of the United States, including any changes to applicable tax laws and regulations, could impair the ability of the Fund to achieve its investment objective and could increase the operating expenses of the Fund.
A more complete description of risks is included in the Fund’s Prospectus and Statement of Additional Information
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of trustee fees until retirement, disability or termination from the Board. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Fund as directed by the Trustees. The Adviser is responsible for paying the expenses associated with the Plan.
Note 9—Subsequent Event Review—The Fund has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
15 |
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited)
At a meeting held on June 7, 2022 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of the investment management agreement between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Bitcoin Strategy ETF (the “Fund”).
The Board’s approval of the Investment Management Agreement was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In preparation for the Renewal Meeting, the Trustees held a meeting on May 6, 2022. At that meeting, the Trustees discussed the information the Adviser and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses of the Fund and the Fund’s peer funds (certain other exchange-traded funds (“ETFs”)), information about the advisory services provided to the Fund and the personnel providing those services, and the profitability (or the absence of profitability) and the benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. In addition, as noted below, the Trustees reviewed certain performance information for the Fund which was not provided by Broadridge and which did not compare the Fund’s performance to the performance of its peer group. The Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Fund.
The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 6, 2022 meeting regarding the management of the Fund and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser, including the background and experience of the portfolio manager and others involved in the management and administration of the Fund. The Trustees also considered the terms of, and scope of services that the Adviser provides under, the Investment Management Agreement, including the Adviser’s agreement to pay all of the expenses of the Fund (excluding the fee payment under the Investment Management Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses).
In evaluating the performance of the Fund, the Trustees reviewed various performance metrics, including various data from Broadridge comparing the Fund’s performance to that of certain other ETFs. The Trustees also considered information from the Adviser regarding the performance of the Fund against its benchmark and the Adviser’s statement that the Fund’s performance against its benchmark is more relevant than performance against its peer group, given the small number of funds with directly competing strategies. The Trustees noted that the Fund had slightly underperformed its benchmark for the period since its inception on November 16, 2021 through December 31, 2021, a relatively short period. The Trustees observed that the Fund’s exposure to bitcoin futures contracts detracted from performance as the price of bitcoin declined significantly during this period, resulting in the Fund’s investments in bitcoin futures contracts to decline significantly as well. Based on the foregoing, the Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.
The Trustees also considered information relating to the financial condition of the Adviser and the current status, as they understood it, of the Adviser’s compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Fund’s expenses and performance to that of certain other ETFs. The Trustees noted that the information provided showed that the Fund had management fees below the average and median of its peer group of funds. The Trustees also noted that the information provided showed that the Fund had a total expense ratio below the average and median of its peer group of funds. The Trustees concluded, in light of this information
16 |
and the other information available to them, that the fees paid by the Fund were reasonable in light of the performance of the Fund and the quality of services received.
The Trustees also considered the benefits, other than the fees under the Investment Management Agreement, received by the Adviser from serving as adviser to the Fund.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and the fact that the Adviser did not earn any profits from managing the Fund. The Trustees reviewed the Fund’s asset size and expense ratio and noted that the Investment Management Agreement does not include breakpoints in the advisory fee rates as asset levels in the Fund increase. The Trustees considered the volatility of the asset classes in which the Fund invests, potential variability in the net assets of the Fund and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Fund effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for the Fund is reasonable and appropriate in relation to the current asset size of the Fund and the other factors discussed above and that the advisory fee rate for the Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 6, 2022 meeting as part of their consideration of the Investment Management Agreement.
In voting to approve the continuation of the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that, at the time of their considerations, the Investment Management Agreement is in the best interest of the Fund and the Fund’s shareholders.
17 |
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Fund has implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Fund’s investment strategy, liquidity profile, and, importantly, the fact that for most funds redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, the Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to a Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The Fund utilizes data from a third-party vendor to assist with these determinations.
If the Fund does not qualify as an “In-Kind ETF” it is required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2021 to December 31, 2021 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Fund’s liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
18 |
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) prospectus and summary prospectus, which includes more complete information. 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.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Fund’s complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | ||
Distributor: | VanEck Securities Corporation | ||
666 Third Avenue, New York, NY 10017 | |||
vaneck.com | |||
Account Assistance: | 800.826.2333 | XBTFSAR |
SEMI-ANNUAL REPORT June 30, 2022 (unaudited) | |
Russia ETF | RSX® |
Russia Small-Cap ETF | RSXJ® |
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2022.
PRESIDENT’S LETTER
June 30, 2022 (unaudited)
Dear Fellow Shareholders:
Following Russia’s large-scale invasion of Ukraine on February 24, 2022, governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced and may continue to experience significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but significant trading limitations have remained. There is no assurance that these disruptions will not continue.
In light of these circumstances, since March 2, 2022, VanEck Russia Small-Cap ETF (RSXJ) has temporarily suspended new creations of its shares until further notice and since March 3, 2022, VanEck Russia ETF (RSX) has temporarily suspended new creations of its shares until further notice.
In addition, since March 4, 2022, Cboe BZX Exchange, Inc., the listing exchange for VanEck Russia ETF (RSX) and VanEck Russia Small-Cap ETF (RSXJ) (together, the “Funds”), has halted trading of shares of the Funds. There can be no assurance that trading of shares of the Funds will resume.
Under current circumstances, it is not expected that the Funds will meet their investment objectives or investment strategies, and the Funds may experience increased tracking error, and, if or when trading in shares of the Funds’ resume, significant premiums or discounts to their NAVs and wider bid-ask spreads.
Needless to say, neither Fund has had an easy six-month period and many challenges remain. We are constantly assessing current market conditions and monitoring developments.
We encourage all shareholders to discuss their financial situation with their financial advisors. Should you have additional questions concerning this letter, please contact us at 1.800.826.2333.
Despite the foregoing, we thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each fund for the six-month period ended June 30, 2022. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
CEO and President
VanEck ETF Trust
August 9, 2022
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
1 |
EXPLANATION OF EXPENSES
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2022 to June 30, 2022.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2022 - June 30, 2022(a) | |||||||||||||
Russia ETF | ||||||||||||||||
Actual | $1,000.00 | $15.10 | 0.61% | $1.54 | ||||||||||||
Hypothetical (b) | $1,000.00 | $1,021.77 | 0.61% | $3.06 | ||||||||||||
Russia Small-Cap ETF | ||||||||||||||||
Actual | $1,000.00 | $19.40 | 0.75% | $1.90 | ||||||||||||
Hypothetical (b) | $1,000.00 | $1,021.08 | 0.75% | $3.76 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2022), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(b) | Assumes annual return of 5% before expenses |
2 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 14.7% | ||||||||
Banks: 0.0% | ||||||||
Sberbank of Russia PJSC # *∞ ø | 46,050,016 | $ | 0 | |||||
TCS Group Holding Plc (GDR) # *∞ | 1,390,470 | 0 | ||||||
VTB Bank PJSC #∞ ø | 66,877,350,000 | 0 | ||||||
0 | ||||||||
Diversified Financials: 0.0% | ||||||||
Moscow Exchange MICEX-RTS PJSC # *∞ | 17,946,312 | 0 | ||||||
Energy: 0.0% | ||||||||
Gazprom PJSC (ADR) #∞ | 22,886,069 | 0 | ||||||
LUKOIL PJSC (ADR) #∞ | 2,063,982 | 0 | ||||||
Novatek PJSC (GDR) #∞ | 745,294 | 0 | ||||||
Rosneft Oil Co. PJSC (GDR) #∞ | 16,922,345 | 0 | ||||||
Surgutneftegas PJSC (ADR) #∞ | 13,963,457 | 0 | ||||||
Tatneft PJSC (ADR) #∞ | 3,393,156 | 0 | ||||||
0 | ||||||||
Food & Staples Retailing: 0.0% | ||||||||
Magnit PJSC (GDR) #∞ | 6,131,826 | 0 | ||||||
X5 Retail Group NV (GDR) #∞ | 1,970,269 | 0 | ||||||
0 | ||||||||
Materials: 0.0% | ||||||||
Alrosa PJSC #∞ ø | 33,188,190 | 0 | ||||||
Evraz Plc #∞ | 266,000 | 0 | ||||||
MMC Norilsk Nickel PJSC (ADR) #∞ | 5,291,784 | 0 | ||||||
Novolipetsk Steel PJSC (GDR) #∞ | 2,227,246 | 0 | ||||||
PhosAgro PJSC (GDR) #∞ | 2,131,566 | 0 | ||||||
Polymetal International Plc # | 2,980 | 6,472 | ||||||
Polyus PJSC (GDR) #∞ | 1,155,875 | 0 | ||||||
Raspadskaya OJSC #∞ | 745,520 | 0 | ||||||
Severstal PAO (GDR) #∞ ø | 3,409,691 | 0 | ||||||
6,472 | ||||||||
Media & Entertainment: 0.0% | ||||||||
VK Co. Ltd. (GDR) # *∞ | 2,338,938 | 0 |
Number of Shares | Value | |||||||
Media & Entertainment (continued) | ||||||||
Yandex NV # *∞ | 1,754,686 | $ | 0 | |||||
0 | ||||||||
Retailing: 0.0% | ||||||||
Ozon Holdings Plc (ADR) # * †∞ | 1,881,257 | 0 | ||||||
Telecommunication Services: 14.7% | ||||||||
Mobile TeleSystems PJSC (ADR) #∞ | 7,426,519 | 0 | ||||||
Rostelecom PJSC #∞ | 14,011,581 | 0 | ||||||
VEON Ltd. (ADR) * | 12,299,567 | 5,657,801 | ||||||
5,657,801 | ||||||||
Utilities: 0.0% | ||||||||
Inter RAO UES PJSC #∞ | 482,502,010 | 0 | ||||||
Irkutsk Electronetwork Co. JSC # *∞ | 7,410,870 | 0 | ||||||
0 | ||||||||
Total Common Stocks (Cost: $1,845,370,895) | 5,664,273 | |||||||
PREFERRED SECURITIES: 0.0% (Cost: $46,213,635) | ||||||||
Energy: 0.0% | ||||||||
Transneft PJSC | 21,070 | 0 | ||||||
Total Investments Before Collateral for Securities Loaned: 14.7% (Cost: $1,891,584,530) | 5,664,273 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 5.5% (Cost: $2,115,505) | ||||||||
Money Market Fund: 5.5% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 2,115,505 | 2,115,505 | ||||||
Total Investments: 20.2% (Cost: $1,893,700,035) | 7,779,778 | |||||||
Other assets less liabilities: 79.8% | 30,679,246 | |||||||
NET ASSETS: 100.0% | $ | 38,459,024 |
Definitions:
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $6,472 which represents 0.0% of net assets. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
ø | Restricted Security – the aggregate value of restricted securities is $0, or 0.0% of net assets |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is less than $1. |
See Notes to Financial Statements
3 |
VANECK RUSSIA ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Restricted securities held by the Fund as of June 30, 2022 are as follows:
Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | |||||||||||||
Alrosa PJSC | 03/18/2015 | 33,188,190 | $47,849,866 | $0 | 0.0% | |||||||||||||
Sberbank of Russia PJSC | 11/09/2010 | 46,050,016 | 134,853,997 | 0 | 0.0% | |||||||||||||
Severstal PAO | 10/03/2007 | 3,409,691 | 55,652,204 | 0 | 0.0% | |||||||||||||
VTB Bank PJSC | 01/24/2008 | 66,877,350,000 | 51,496,596 | 0 | 0.0% | |||||||||||||
$289,852,663 | $0 | 0.0% | ||||||||||||||||
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Communication Services | 99.9 | % | $ | 5,657,801 | ||||
Consumer Discretionary | 0.0 | 0 | ||||||
Consumer Staples | 0.0 | 0 | ||||||
Energy | 0.0 | 0 | ||||||
Financials | 0.0 | 0 | ||||||
Materials | 0.1 | 6,472 | ||||||
Utilities | 0.0 | 0 | ||||||
100.0 | % | $ | 5,664,273 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Banks | $ | — | $ | — | $ | 0 | $ | 0 | ||||||||
Diversified Financials | — | — | 0 | 0 | ||||||||||||
Energy | — | — | 0 | 0 | ||||||||||||
Food & Staples Retailing | — | — | 0 | 0 | ||||||||||||
Materials | — | 6,472 | 0 | 6,472 | ||||||||||||
Media & Entertainment | — | — | 0 | 0 | ||||||||||||
Retailing | — | — | 0 | 0 | ||||||||||||
Telecommunication Services | 5,657,801 | — | 0 | 5,657,801 | ||||||||||||
Utilities | — | — | 0 | 0 | ||||||||||||
Preferred Securities * | — | — | 0 | 0 | ||||||||||||
Money Market Fund | 2,115,505 | — | — | 2,115,505 | ||||||||||||
Total Investments | $ | 7,773,306 | $ | 6,472 | $ | 0 | $ | 7,779,778 |
* | See Schedule of Investments for industry sector breakouts. |
Management has elected to apply a 100% discount for lack of marketability to all investments fair valued Level 3 due to the political conditions surrounding Russia. The following tables reconcile the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2022:
Common Stock | ||||
Banks | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 4,674,687 | |||
Net change in unrealized appreciation (depreciation) | (269,150,290) | |||
Purchases | 263,903,779 | |||
Sales | (202,329,699) | |||
Transfers in/out of level 3 | 202,901,523 | |||
Balance as of June 30, 2022 | $0 |
Common Stock | ||||
Diversified Financials | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 205,077 | |||
Net change in unrealized appreciation (depreciation) | (33,262,019) | |||
Purchases | 10,209,933 | |||
Sales | (2,213,326) | |||
Transfers in/out of level 3 | 25,060,335 | |||
Balance as of June 30, 2022 | $0 |
See Notes to Financial Statements
4 |
Common Stock | ||||
Energy | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 11,410,019 | |||
Net change in unrealized appreciation (depreciation) | (750,496,616) | |||
Purchases | 289,513,701 | |||
Sales | (45,200,371) | |||
Transfers in/out of level 3 | 494,773,267 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Food & Staples Retailing | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (39,899) | |||
Net change in unrealized appreciation (depreciation) | (112,566,173) | |||
Purchases | 43,529,370 | |||
Sales | (6,875,408) | |||
Transfers in/out of level 3 | 75,952,110 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Materials | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (38,263,295) | |||
Net change in unrealized appreciation (depreciation) | (442,543,113) | |||
Purchases | 234,201,089 | |||
Sales | (70,309,230) | |||
Transfers in/out of level 3 | 316,914,549 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Media & Entertainment | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 1,264,392 | |||
Net change in unrealized appreciation (depreciation) | (97,182,050) | |||
Purchases | 31,457,241 | |||
Sales | (5,788,153) | |||
Transfers in/out of level 3 | 70,248,570 | |||
Balance as of June 30, 2022 | $0 |
Common Stock | ||||
Retailing | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (279,706) | |||
Net change in unrealized appreciation (depreciation) | (40,723,657) | |||
Purchases | 13,957,983 | |||
Sales | (2,320,574) | |||
Transfers in/out of level 3 | 29,365,954 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Telecommunication Services | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (71,562) | |||
Net change in unrealized appreciation (depreciation) | (66,079,554) | |||
Purchases | 27,541,024 | |||
Sales | (3,872,531) | |||
Transfers in/out of level 3 | 42,482,623 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Utilities | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (50,575) | |||
Net change in unrealized appreciation (depreciation) | (24,435,188) | |||
Purchases | 7,382,442 | |||
Sales | (1,696,888) | |||
Transfers in/out of level 3 | 18,800,209 | |||
Balance as of June 30, 2022 | $0 | |||
Preferred Securities | ||||
Energy | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 180,310 | |||
Net change in unrealized appreciation (depreciation) | (41,881,115) | |||
Purchases | 13,831,862 | |||
Sales | (2,781,681) | |||
Transfers in/out of level 3 | 30,650,624 | |||
Balance as of June 30, 2022 | $0 |
See Notes to Financial Statements
5 |
SCHEDULE OF INVESTMENTS
June 30, 2022 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 0.0% | ||||||||
Banks: 0.0% | ||||||||
Credit Bank of Moscow PJSC # *∞ | 21,005,200 | $ | 0 | |||||
Commercial & Professional Services: 0.0% | ||||||||
HeadHunter Group Plc (ADR) #∞ | 31,919 | 0 | ||||||
Diversified Financials: 0.0% | ||||||||
SFI PJSC # *∞ | 2,663 | 0 | ||||||
Energy: 0.0% | ||||||||
Sovcomflot PJSC #∞ | 989,960 | 0 | ||||||
Food & Staples Retailing: 0.0% | ||||||||
Lenta International Co. PJSC (GDR) # *∞ ø | 263,199 | 0 | ||||||
Food, Beverage & Tobacco: 0.0% | ||||||||
Beluga Group PJSC #∞ | 11,235 | 0 | ||||||
Ros Agro Plc (GDR) #∞ | 77,690 | 0 | ||||||
0 | ||||||||
Materials: 0.0% | ||||||||
Mechel PJSC # *∞ | 438,883 | 0 | ||||||
Raspadskaya OJSC #∞ | 703,205 | 0 | ||||||
Segezha Group PJSC 144A #∞ | 8,945,900 | 0 | ||||||
0 | ||||||||
Real Estate: 0.0% | ||||||||
Etalon Group Plc (GDR) #∞ | 394,873 | 0 | ||||||
LSR Group PJSC # *∞ | 103,574 | 0 | ||||||
Samolet Group #∞ | 16,988 | 0 | ||||||
0 |
Number of Shares | Value | |||||||
Retailing: 0.0% | ||||||||
Detsky Mir PJSC 144A #∞ | 1,155,798 | $ | 0 | |||||
M.Video PJSC #∞ | 110,194 | 0 | ||||||
0 | ||||||||
Telecommunication Services: 0.0% | ||||||||
Sistema PJSFC (GDR) #∞ | 330,632 | 0 | ||||||
Transportation: 0.0% | ||||||||
Aeroflot PJSC # *∞ | 1,885,382 | 0 | ||||||
Globaltrans Investment Plc (GDR) #∞ | 182,773 | 0 | ||||||
Novorossiysk Commercial Sea Port PJSC #∞ | 8,972,400 | 0 | ||||||
0 | ||||||||
Utilities: 0.0% | ||||||||
Mosenergo PJSC #∞ | 19,492,800 | 0 | ||||||
OGK-2 PJSC #∞ | 51,450,600 | 0 | ||||||
TGC-1 PJSC #∞ | 1,701,100,000 | 0 | ||||||
Unipro PJSC #∞ | 24,734,000 | 0 | ||||||
0 | ||||||||
Total Common Stocks (Cost: $24,419,120) | 0 | |||||||
PREFERRED SECURITIES: 0.0% (Cost: $341,612) | ||||||||
Utilities: 0.0% | ||||||||
Rosseti Lenenergo PJSC | 171,506 | 0 | ||||||
Total Investments: 0.0% (Cost: $24,760,732) | 0 | |||||||
Other assets less liabilities: 100.0% | 565,906 | |||||||
NET ASSETS: 100.0% | $ | 565,906 |
Definitions:
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $0 which represents 0.0% of net assets. |
∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
* | Non-income producing |
ø | Restricted Security – the aggregate value of restricted securities is $0, or 0.0% of net assets |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $0, or 0% of net assets. |
Restricted securities held by the Fund as of June 30, 2022 are as follows:
Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | ||||
Lenta International Co. PJSC | 09/21/2018 | 263,199 | $853,436 | $0 | 0.0% |
See Notes to Financial Statements
6 |
Summary of Investments by Sector | % of Investments | Value | ||||||
Communication Services | 4.1 | % | $ | 0 | ||||
Consumer Discretionary | 8.3 | 0 | ||||||
Consumer Staples | 12.5 | 0 | ||||||
Energy | 4.2 | 0 | ||||||
Financials | 8.4 | 0 | ||||||
Industrials | 16.7 | 0 | ||||||
Materials | 12.5 | 0 | ||||||
Real Estate | 12.5 | 0 | ||||||
Utilities | 20.8 | 0 | ||||||
100.0 | % | $ | 0 |
The summary of inputs used to value the Fund’s investments as of June 30, 2022 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks * | $ | — | $ | — | 0 | $ | 0 | |||||||||
Preferred Securities * | — | — | 0 | 0 | ||||||||||||
Total Investments | $ | — | $ | — | $ | 0 | $ | 0 |
* | See Schedule of Investments for industry sector breakouts. |
Management has elected to apply a 100% discount for lack of marketability to all investments fair valued Level 3 due to the political conditions surrounding Russia. The following tables reconcile the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2022:
Common Stock | ||||
Banks | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 6,048 | |||
Net change in unrealized appreciation (depreciation) | (1,903,109) | |||
Purchases | 344,048 | |||
Sales | (259,994) | |||
Transfers in/out of level 3 | 1,813,007 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Commercial & Professional Services | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (42,997) | |||
Net change in unrealized appreciation (depreciation) | (1,547,548) | |||
Purchases | 234,109 | |||
Sales | (186,431) | |||
Transfers in/out of level 3 | 1,542,867 | |||
Balance as of June 30, 2022 | $0 |
Common Stock | ||||
Diversified Financials | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | – | |||
Net change in unrealized appreciation (depreciation) | (18,689) | |||
Purchases | – | |||
Sales | – | |||
Transfers in/out of level 3 | 18,689 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Energy | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (45,076) | |||
Net change in unrealized appreciation (depreciation) | (916,307) | |||
Purchases | 175,558 | |||
Sales | (126,686) | |||
Transfers in/out of level 3 | 912,511 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Food & Staples Retailing | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (63,239) | |||
Net change in unrealized appreciation (depreciation) | (592,247) | |||
Purchases | 103,444 | |||
Sales | (81,919) | |||
Transfers in/out of level 3 | 633,961 | |||
Balance as of June 30, 2022 | $0 |
See Notes to Financial Statements
7 |
VANECK RUSSIA SMALL-CAP ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Common Stock | ||||
Food, Beverage & Tobacco | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (30,196) | |||
Net change in unrealized appreciation (depreciation) | (1,657,032) | |||
Purchases | 286,627 | |||
Sales | (222,244) | |||
Transfers in/out of level 3 | 1,622,845 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Materials | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (12,468) | |||
Net change in unrealized appreciation (depreciation) | (6,219,723) | |||
Purchases | 3,683,257 | |||
Sales | (273,554) | |||
Transfers in/out of level 3 | 2,822,488 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Real Estate | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (194,710) | |||
Net change in unrealized appreciation (depreciation) | (2,152,412) | |||
Purchases | 456,600 | |||
Sales | (350,409) | |||
Transfers in/out of level 3 | 2,240,931 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Retailing | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (77,967) | |||
Net change in unrealized appreciation (depreciation) | (2,422,097) | |||
Purchases | 389,034 | |||
Sales | (312,558) | |||
Transfers in/out of level 3 | 2,423,588 | |||
Balance as of June 30, 2022 | $0 |
Common Stock | ||||
Telecommunication Services | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (140,603) | |||
Net change in unrealized appreciation (depreciation) | (1,878,888) | |||
Purchases | 326,633 | |||
Sales | (243,618) | |||
Transfers in/out of level 3 | 1,936,476 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Transportation | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (127,268) | |||
Net change in unrealized appreciation (depreciation) | (3,631,399) | |||
Purchases | 610,743 | |||
Sales | (488,585) | |||
Transfers in/out of level 3 | 3,636,509 | |||
Balance as of June 30, 2022 | $0 | |||
Common Stock | ||||
Utilities | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | (23,548) | |||
Net change in unrealized appreciation (depreciation) | (2,019,159) | |||
Purchases | 356,705 | |||
Sales | (268,080) | |||
Transfers in/out of level 3 | 1,954,082 | |||
Balance as of June 30, 2022 | $0 | |||
Preferred Securities | ||||
Utilities | ||||
Balance as of December 31, 2021 | $– | |||
Realized gain (loss) | 1,992 | |||
Net change in unrealized appreciation (depreciation) | (381,457) | |||
Purchases | 63,913 | |||
Sales | (50,575) | |||
Transfers in/out of level 3 | 366,127 | |||
Balance as of June 30, 2022 | $0 |
See Notes to Financial Statements
8 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2022 (unaudited)
Russia ETF | Russia Small-Cap ETF | |||||||
Assets: | ||||||||
Investments, at value (1) | ||||||||
Unaffiliated issuers (2) | $ | 5,664,273 | $ | — | ||||
Short-term investments held as collateral for securities loaned (3) | 2,115,505 | — | ||||||
Cash | 33,787,824 | 776,608 | ||||||
Cash denominated in foreign currency, at value (4) | 14,662 | 568 | ||||||
Receivables: | ||||||||
Due from Adviser | — | 4,736 | ||||||
Dividends and interest | 1,674 | — | ||||||
Prepaid expenses | 3,375 | 66 | ||||||
Total assets | 41,587,313 | 781,978 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Collateral for securities loaned | 2,115,505 | — | ||||||
Due to Adviser | 180,902 | — | ||||||
Deferred Trustee fees | 172,783 | 3,221 | ||||||
Accrued expenses | 659,099 | 212,851 | ||||||
Total liabilities | 3,128,289 | 216,072 | ||||||
NET ASSETS | $ | 38,459,024 | $ | 565,906 | ||||
Shares outstanding | 95,900,000 | 883,318 | ||||||
Net asset value, redemption and offering price per share | $ | 0.40 | $ | 0.64 | ||||
Net Assets consist of: | ||||||||
Aggregate paid in capital | $ | 3,583,031,670 | $ | 43,637,908 | ||||
Total distributable earnings (loss) | (3,544,572,646 | ) | (43,072,002 | ) | ||||
NET ASSETS | $ | 38,459,024 | $ | 565,906 | ||||
(1) Value of securities on loan | $ | — | $ | — | ||||
(2) Cost of investments - Unaffiliated issuers | $ | 1,891,584,530 | $ | 24,760,732 | ||||
(3) Cost of short-term investments held as collateral for securities loaned | $ | 2,115,505 | $ | — | ||||
(4) Cost of cash denominated in foreign currency | $ | 15,023 | $ | 613 |
See Notes to Financial Statements
9 |
VANECK ETF TRUST
For the Period Ended June 30, 2022 (unaudited)
Russia ETF | Russia Small-Cap ETF | |||||||
Income: | ||||||||
Dividends | $ | 6,029,128 | $ | 124,416 | ||||
Interest | 38,348 | 1,196 | ||||||
Securities lending income | 18,176 | 4,137 | ||||||
Foreign taxes withheld | (931,036 | ) | (18,453 | ) | ||||
Total income | 5,154,616 | 111,296 | ||||||
Expenses: | ||||||||
Management fees | 1,089,445 | 20,102 | ||||||
Professional fees | 25,336 | 23,505 | ||||||
Custody and accounting fees | 205,397 | 27,123 | ||||||
Reports to shareholders | 30,014 | 4,245 | ||||||
Trustees’ fees and expenses | 16,082 | 472 | ||||||
Registration fees | 1,722 | 2,037 | ||||||
Insurance | 12,584 | 812 | ||||||
Interest | 8,375 | 0 | ||||||
Other | 4,334 | 563 | ||||||
Total expenses | 1,393,289 | 78,859 | ||||||
Waiver of management fees | — | (20,102 | ) | |||||
Expenses assumed by the Adviser | — | (27,208 | ) | |||||
Net expenses | 1,393,289 | 31,549 | ||||||
Net investment income | 3,761,327 | 79,747 | ||||||
Net realized gain (loss) on: | ||||||||
Investments | (126,365,592 | ) | (2,282,770 | ) | ||||
In-kind redemptions | 22,896,653 | — | ||||||
Foreign currency transactions and foreign denominated assets and liabilities | 8,318 | 4,421 | ||||||
Net realized loss | (103,460,621 | ) | (2,278,349 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | (1,877,508,334 | ) | (25,625,540 | ) | ||||
Foreign currency transactions and foreign denominated assets and liabilities | 88 | 2,553 | ||||||
Net change in unrealized appreciation (depreciation) | (1,877,508,246 | ) | (25,622,987 | ) | ||||
Net Decrease in Net Assets Resulting from Operations | $ | (1,977,207,540 | ) | $ | (27,821,589 | ) |
See Notes to Financial Statements
10 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Russia ETF | Russia Small-Cap ETF | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 3,761,327 | $ | 84,131,813 | $ | 79,747 | $ | 946,084 | ||||||||
Net realized gain (loss) | (103,460,621 | ) | 203,235,534 | (2,278,349 | ) | (508,274 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (1,877,508,246 | ) | 678,586 | (25,622,987 | ) | (1,125,055 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (1,977,207,540 | ) | 288,045,933 | (27,821,589 | ) | (687,245 | ) | |||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | — | (80,501,120 | ) | — | (1,464,299 | ) | ||||||||||
Return of capital | — | — | — | (60,709 | ) | |||||||||||
Total distributions | — | (80,501,120 | ) | — | (1,525,008 | ) | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 762,309,618 | 378,385,798 | 4,207,919 | — | ||||||||||||
Cost of shares redeemed | (122,926,443 | ) | (830,831,688 | ) | — | (5,605,927 | ) | |||||||||
Increase (decrease) in net assets resulting from share transactions | 639,383,175 | (452,445,890 | ) | 4,207,919 | (5,605,927 | ) | ||||||||||
Total decrease in net assets | (1,337,824,365 | ) | (244,901,077 | ) | (23,613,670 | ) | (7,818,180 | ) | ||||||||
Net Assets, beginning of period | 1,376,283,389 | 1,621,184,466 | 24,179,576 | 31,997,756 | ||||||||||||
Net Assets, end of period | $ | 38,459,024 | $ | 1,376,283,389 | $ | 565,906 | $ | 24,179,576 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 49,250,000 | 12,900,000 | 150,000 | — | ||||||||||||
Shares redeemed | (4,800,000 | ) | (29,500,000 | ) | — | (150,000 | ) | |||||||||
Net increase (decrease) | 44,450,000 | (16,600,000 | ) | 150,000 | (150,000 | ) |
See Notes to Financial Statements
11 |
VANECK ETF TRUST
For the Period Ended June 30, 2022 (unaudited)
Russia ETF | Russia Small-cap ETF | ||||||||
Cash Flows from Operating Activities | |||||||||
Net decrease in net assets resulting from operations | $ | (1,977,207,540 | ) | $ | (27,821,589 | ) | |||
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used in operating activities: | |||||||||
Investment securities purchased | (13,865,249 | ) | (1) | (3,227,428 | ) | (2) | |||
Investment securities sold | 20,512,578 | (3) | 3,747,112 | ||||||
Decrease in dividends and interest receivable | 12,124,356 | 68,930 | |||||||
Decrease in prepaid expenses | 3,560 | 635 | |||||||
Decrease in investment securities sold | — | 24,138 | |||||||
Decrease in investment securities purchased | (516,151 | ) | — | ||||||
Decrease in due to Adviser | (434,866 | ) | (31,993 | ) | |||||
Decrease in accrued expenses | (221,198 | ) | (11,389 | ) | |||||
Decrease in deferred trustee fees | (30,964 | ) | (591 | ) | |||||
Net change in unrealized depreciation from investments | 1,877,508,334 | 25,625,541 | |||||||
Net realized loss on investments in securities | 126,380,310 | 2,282,770 | |||||||
Net realized gain on in-kind redemptions | (22,896,653 | ) | — | ||||||
Net cash used in operating activities | 21,356,517 | 656,136 | |||||||
Cash Flows from Financing Activities | |||||||||
Decrease in line of credit borrowing | (6,501,506 | ) | — | ||||||
Proceeds from shares sold | 19,054,506 | (1) | 596 | (2) | |||||
Cost of shares redeemed | (108,456 | ) | (3) | — | |||||
Net cash provided by financing activities | 12,444,544 | 596 | |||||||
Net change in cash | 33,801,061 | 656,732 | |||||||
Cash at beginning of year (including foreign currency) | 1,425 | 120,444 | |||||||
Cash at end of year (including foreign currency) | $ | 33,802,486 | $ | 777,176 | |||||
Supplemental disclosure of cash flow information | |||||||||
Interest expense paid during the period | $ | 8,375 | $ | — |
(1) | Amount shown excludes in-kind subscriptions of $743,255,112 |
(2) | Amount shown excludes in-kind subscriptions of $4,207,323 |
(3) | Amount shown excludes in-kind redemptions of $122,817,987 |
See Notes to Financial Statements
12 |
VANECK ETF TRUST
For a share outstanding throughout each period:
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Ratio excludes depositary receipt fees in excess of 0.10% of average daily net assets (See Note 3). |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
13 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Ratio excludes depositary receipt fees in excess of 0.08% of average daily net assets (See Note 3). |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
14 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 2022 (unaudited)
Note 1—Fund Organization—VanEck ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust. These financial statements relate only to the investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
Fund | Diversification Classification |
Russia | ETF Non-Diversified |
Russia Small-Cap ETF | Non-Diversified |
Russia’s large-scale invasion of Ukraine on February 24, 2022, and the geo-political events that followed have significantly adversely impacted the Funds’ operations. As a result, the fair value of Russian securities held by the Funds were valued near or at zero since shortly after the invasion and have rendered virtually all of the Funds’ investments in equity securities, including depositary receipts, illiquid.
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Funds are investment companies and follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
A. | Security Valuation— The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are categorized as Level 1 in the fair value hierarchy. The Pricing Committee of Van Eck Associates Corporation (the “Adviser”) provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes they do not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis. |
15 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments. | |
The holdings of the Funds at June 30, 2022 are restricted from trading and any currency denominated in Rubles cannot be repatriated, therefore the Pricing Committee is currently fair valuing these securities and Ruble currency as represented in the Schedule of Investments and deeming all these holdings as a Level 3 in the fair value hierarchy. | |
The Funds utilize various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels of the fair value hierarchy are described below: | |
Level 1 — Quoted prices in active markets for identical securities. | |
Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments). | |
A summary of the inputs and the levels used to value the Funds’ investments are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments. | |
B. | Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
C. | Distributions to Shareholders— Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. |
D. | Currency Translation— Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statements of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) and net change in unrealized appreciation (depreciation) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. |
16 |
E. | Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. |
F. | Offsetting Assets and Liabilities— In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of offset in those agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at June 30, 2022 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
G. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. |
The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. |
Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of each Fund’s average daily net assets. Effective March 11, 2022, the Adviser voluntarily agreed to waive all of its management fee payable by each Fund. The Adviser may eliminate such management fee waiver in its sole discretion at any time. In addition, the Adviser has temporarily agreed to waive and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses; and for Russia ETF and Russia Small-Cap ETF, depositary receipt fees up to 0.10% and 0.08% of average daily net assets, respectively) from exceeding the expense limitations listed in the table below. Refer to the Statements of Operations for the amounts waived/ assumed by the Adviser for the period ended June 30, 2022.
The management fee rates and expense limitations for the period ended June 30, 2022, are as follows:
Fund | Management Fees | Expense Limitations | ||||||
Russia ETF | 0.50 | % | 0.62 | % | ||||
Russia Small-Cap ETF | 0.50 | 0.67 |
In addition, Van Eck Securities Corporation (the “Distributor”), an affiliate of the Adviser, acts as the Funds’ distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
Note 4—Capital Share Transactions—As of June 30, 2022, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”).
17 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 115% of the daily marked to market value of the missing Deposit Securities.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Funds may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
Since March 2, 2022, VanEck Russia Small-Cap ETF has temporarily suspended new creations of its shares until further notice and since March 3, 2022, VanEck Russia ETF has temporarily suspended new creations of its shares until further notice in light of current circumstances.
Note 5—Investments—For the period ended June 30, 2022, purchases and sales of investments (excluding short-term investments and in-kind capital share transactions) and the purchases and sales of investments resulting from in-kind capital share transactions (excluding short-term investments) were as follows:
In-Kind Capital Share Transactions | ||||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Russia ETF | $ | 13,865,249 | $ | 20,512,578 | $ | 743,255,112 | $ | 122,817,987 | ||||||||
Russia Small-Cap ETF | 3,227,428 | 3,747,112 | 4,207,323 | — |
Note 6—Income Taxes—As of June 30, 2022, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments owned were as follows:
Fund | Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Russia ETF | $ | 1,900,362,243 | $– | $ | (1,892,582,465) | $ | (1,892,582,465) | |||||||||
Russia Small-Cap ETF | 25,357,439 | – | (25,357,439) | (25,357,439) |
The tax character of dividends paid to shareholders will be determined at the end of the current fiscal year.
At December 31, 2021, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
Fund | Short-Term Capital Losses with No Expiration | Long-Term Capital Losses with No Expiration | Total | |||||||||
Russia ETF | $ | (223,502,010 | ) | $ | (1,333,419,868 | ) | $ | (1,556,921,878 | ) | |||
Russia Small-Cap ETF | (4,154,961 | ) | (11,353,927 | ) | (15,508,888 | ) |
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have
18 |
exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2022, the Funds did not incur any interest or penalties.
Note 7—Principal Risks—Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse economic developments and political conflicts, or natural or other disasters, such as the coronavirus outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.
Economies and financial markets throughout the world have experienced periods of increased volatility, uncertainty and distress as a result of conditions associated with the COVID-19 pandemic. To the extent these conditions continue, the risks associated with an investment in a Fund could be heightened and the Fund’s investments (and thus a shareholder’s investment in a Fund) may be particularly susceptible to sudden and substantial losses, reduced yield or income or other adverse developments.
Following Russia’s large-scale invasion of Ukraine on February 24, 2022, governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced and may continue to experience significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but significant trading limitations have remained. There is no assurance that these disruptions will not continue.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds of the Trust as directed by the Trustees.
The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of securities loaned. Daily market fluctuations could cause
19 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Fund securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related cash collateral, if any, at June 30, 2022 is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ remaining securities on loan and related collateral as of June 30, 2022:
Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
Russia ETF | $ | – | $ | 2,115,505 | $ | 6,185,744 | $ | 8,301,249 |
The following table presents money market fund investments held as collateral by type of security on loan as of June 30, 2022:
Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||
Fund | Equity Securities | |||
Russia ETF | $ | 2,115,505 | ||
* *Remaining contractual maturity: overnight and continuous |
Note 10—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The participating Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds based on prevailing market rates in effect at the time of borrowings. As of February 25, 2022 the Funds ceased participation in the Facility. Activity below represents activity from January 1, 2022 through February 25, 2022:
Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate | |||||||||
Russia ETF | 38 | $ | 4,898,797 | 1.43 | % |
Note 11—Subsequent Event Review—The Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
20 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited)
At a meeting held on June 7, 2022 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Africa Index ETF, Agribusiness ETF, Brazil Small-Cap ETF, China Growth Leaders ETF, ChiNext ETF, Digital India ETF, Egypt Index ETF, Gold Miners ETF, Green Metals ETF, India Growth Leaders ETF, Indonesia Index ETF, Israel ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Steel ETF, Uranium + Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck China Growth Leaders ETF and ChiNext ETF (together, the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”
The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In preparation for the Renewal Meeting, the Trustees held a meeting on May 6, 2022. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses of the Funds and the Funds’ peer funds (certain other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. They also considered the fact that each of the VanEck Digital India ETF and Green Metals ETF had only recently commenced operations and therefore each had a limited operational history that could be used for comparative purposes, since tracking error measurements and the performance comparisons provided by Broadridge were not available for each Fund. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds. The Trustees also considered the Adviser’s efforts to navigate significant regulatory restrictions and other operational challenges in managing the VanEck Russia ETF and Russia Small-Cap ETF during recent periods.
The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 6, 2022 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including, where applicable, (i) (with respect to the VanEck Digital India ETF, Green Metals ETF, Natural Resources ETF and Oil Services ETF) (the “Unitary Funds”) the Adviser’s agreement to pay all of the direct expenses of the Funds (excluding the fee payment under the Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) and (ii) (with respect to all other Funds) (the “Non-Unitary Funds”) the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds
21 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2022 (unaudited) (continued)
to the extent necessary to prevent the operating expenses of each of the Funds from exceeding agreed upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Foreign Institutional Investors Scheme funds. The Trustees also noted that the Sub- Adviser is a wholly-owned subsidiary of China Asset Management Co., Ltd., one of China’s largest asset management companies measured by fund assets under management.
The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance of each Fund, the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Funds was satisfactory.
The Trustees also considered information relating to the financial condition of the Adviser and the Sub- Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Funds’ expenses and performance to that of certain other ETFs. The Trustees noted that the information provided showed that each Fund (except as noted) had management fees (after the effect of any applicable fee waiver) below the average and median of its respective peer group of funds, each of the VanEck Gold Miners ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Rare Earth/Strategic Metals ETF and Steel ETF had management fees (after the effect of any applicable fee waiver) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF, Agribusiness ETF, Oil Services ETF, Russia ETF and Vietnam ETF had management fees (after the effect of any applicable fee waiver) above the average and equal to the median of its respective peer group of funds, and each of the VanEck Digital India ETF, Green Metals ETF and Natural Resources ETF had management fees above the average and median of its respective peer group of funds. The Trustees also noted that the information provided showed that each Fund (except as noted) had a total expense ratio (after the effect of any applicable expense limitation) below the average and median of its respective peer group of funds, each of the VanEck Brazil Small-Cap ETF, Gold Miners ETF, Indonesia Index ETF and Oil Services ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and equal to the median of its respective peer group of funds, each of the VanEck Israel ETF and Vietnam ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and above the median of its respective peer group of funds, and Junior Gold Miners ETF had a total expense ratio (after the effect of any applicable expense limitation) equal to the average and above the median of its respective peer group of funds, each of ChiNext ETF, Digital India ETF, Green Metals ETF, India Growth Leaders ETF and Oil Refiners ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and equal to the median of its respective peer group of funds, and each of the VanEck Africa Index ETF, Egypt Index ETF, Russia Small-Cap ETF and Uranium + Nuclear Energy ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and median of its respective peer group of funds. The Trustees reviewed the amount by which certain Funds’ management fees and/or total expense ratios (after the effect of any applicable fee waivers and/or expense limitations) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. With respect to the VanEck Russia ETF and Russia Small-Cap ETF, the Trustees noted that the Adviser had voluntarily agreed to waive all of the Funds’ management fees beginning March 11, 2022 (although such waiver could be terminated at any time). The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Funds were reasonable in light of the performance of the Funds and the quality of services received.
22 |
The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds and the fact that the Sub-Adviser had not identified any such monetary benefits.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap, as applicable, and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Funds invest, potential variability in the net assets of the Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Funds effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders of the Unitary Funds and noted that the Adviser has capped expenses on each of the Non-Unitary Funds since its inception, although the cap was not necessarily exceeded each year. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the profits earned by the Adviser with respect to the Funds that were profitable to the Adviser were reasonable in light of the nature and quality of the services received by such Funds.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 6, 2022 meeting as part of their consideration of the Agreements.
In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that, at the time of their considerations, each Agreement is in the best interest of each Fund and such Fund’s shareholders.
23 |
VANECK ETF TRUST
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for most funds redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2021 to December 31, 2021 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
24 |
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) prospectus and summary prospectus, which includes more complete information. 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.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | |
Distributor: | VanEck Securities Corporation | |
666 Third Avenue, New York, NY 10017 | ||
vaneck.com | ||
Account Assistance: | 800.826.2333 | RUSSIASAR |
Item 2. | CODE OF ETHICS. |
Not applicable.
Item 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
Item 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
Item 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
Item 6. | SCHEDULE OF INVESTMENTS. |
Information included in Item 1.
Item 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
Item 8. | PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
Item 9. | PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
Item 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
Not applicable.
Item 11. | CONTROLS AND PROCEDURES. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c)) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. | EXHIBITS. |
(a)(1) | Not applicable. |
(a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) is attached as Exhibit 99.CERT. |
(a)(3) | Ernst & Young LLP (EY) served as the independent registered public accounting firm for the Funds of the VanEck ETF Trust (comprising of Africa Index ETF, Brazil Small-Cap ETF, China Growth Leaders ETF, ChiNext ETF, Egypt Index ETF, India Growth Leaders, Indonesia Index ETF, Israel ETF, Russia ETF, Russia Small-Cap ETF, Vietnam ETF, Agribusiness ETF, Future of Food ETF, Gold Miners ETF, Green Metals ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Steel ETF, Uranium+Nuclear Energy ETF and Bitcoin Strategy ETF) for the fiscal years ended December 31, 2020 and December 31, 2021. EY’s reports on the financial statements for the fiscal years ended December 31, 2020 and December 31, 2021 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principle. Through June 7, 2022, the date of dismissal, and during such fiscal year-ends, (i) there were no disagreements with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which agreements, if not resolved to the satisfaction of EY, would have caused them to make reference to the subject matter of the disagreements in connection with their reports on the Funds’ financial statements for period, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
On June 7, 2022, the Audit Committee and the Trust’s Board of Trustees approved the engagement of PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Funds’ fiscal year ending December 31, 2022, thereby replacing EY effective upon completion of their December 31, 2021 audits and issuance of their reports thereon. Through June 7, 2022 and during the Funds’ fiscal years ended December 31, 2020 and December 31, 2021, neither the Trust nor the Funds’, nor anyone in their behalf, consulted with PwC on items which: (1) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of said Item 304).
The Funds have requested that Ernst & Young furnish it with a letter addressed to the U.S. Securities and Exchange Commission stating whether or not it agrees with the above statements. A copy of such letter is filed as an Exhibit to this Form N-CSR |
(a)(4) |
(b) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is furnished as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) VANECK ETF TRUST
By (Signature and Title) | /s/ John J. Crimmins, Treasurer & Chief Financial Officer |
Date September 8, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Jan F. van Eck, Chief Executive Officer |
Date September 8, 2022
By (Signature and Title) | /s/ John J. Crimmins, Treasurer & Chief Financial Officer |
Date September 8, 2022