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LFEQ Resources

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LFEQ
VanEck Vectors NDR CMG Long/Flat Allocation ETF

Fund Description

VanEck Vectors® NDR CMG Long/Flat Allocation ETF (LFEQ®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Ned Davis Research CMG US Large Cap Long/Flat Index (NDRCMGLF). The NDRCMGLF Index follows a proprietary model that determines when, and by how much, it allocates to U.S. equities and/or U.S. Treasury bills to seek to help avoid losses in declining markets or capitalize from rising markets. The model produces daily trade signals to determine the Index's equity allocation percentage (100%, 80%, 40%, or 0%).

 
 

  • Fund Ticker

    LFEQ
  • Exchange

    NYSE Arca
  • Index Total Return Ticker

    NDRCMGLF
  • Index Provider

    Ned Davis Research, Inc.
  • Administrator

    Van Eck Associates
  • Custodian

    Bank of New York Mellon
  • Index Ticker

    NDRCMGLF
  • Commencement

    10/04/2017

 
as of 03/22/19

  • 30-Day SEC Yield1

    1.68%
  • Total Net Assets

    $62.9M
  • Number of Holdings

    2
  • Options

    Expected
  • Gross Expense Ratio2

    0.90%
  • Net Expense Ratio/TER2

    0.60%
  • Distribution Frequency

    Annual
  • Next Distribution Date

    12/20/2019

Index Key Points

Underlying index: Ned Davis Research CMG US Large Cap Long/Flat Index (Ticker: NDRCMGLF)

Index composition: S&P 500 Index (SPTR) and/or Solactive 13-week U.S. T-bill Index (SOL13TBI)

Methodology:

  • Index follows a rules-based model that uses technical analysis to measure U.S. equity market health and produce trade signals to guide the NDRCMGLF Index’s equity allocation.
  • Model first applies price-based trend and mean-reversion indicators to S&P 500 Index industry groups to produce a market breadth composite.
  • Model then produces daily trade signals, based on the market breadth’s composite score and composite direction, to dictate the Index’s “long” equity allocation of either 100%, 80%, 40%, or 0% - in which case the Index is 100% “flat”, or in T-bills, thereby removing equity market risk.

Composite score

  • Market breadth composite is scored 0 - 100 to indicate level of bearishness or bullishness.
  • Scores below 50 = 0% equity; between 50 and 60 = 40% equity.
  • Scores between 60 and 70 = 80% equity; above 70 = 100% equity

Composite direction

  • Determined by the difference between the current score and the score 42 days prior
  • Sell signals for negative (bearish) trends may allocate 80%, 40%, or 0% to equity based on score
  • Buy signals for positive (bullish) trends, always allocate 100% to equity regardless of score

Index provider: Ned Davis Research, Inc.

Index Profile

  • Ticker

    NDRCMGLF
  • Inception Date

    12/27/2016
  • Rebalance Frequency

    May occur intra month based on the model's daily trade signals.

    See chart below for historical allocation changes since inception.

    NDRCMGLF's underlying indexes, SPX and SOL13TBI, are each rebalanced quarterly.

Index Comparative Performance with Model Score and Target Weights

Model Target Allocation (%) as of 03/22/19

  • Long

    42.1
  • Flat

    57.9
  • Total

    100.0

Index Sector Weightings as of 03/22/19

Sector Long (%) Flat (%) Total (%)
Information Technology 8.9 0.0 8.90
Health Care 6.1 0.0 6.10
Financials 5.3 0.0 5.30
Communication Services 4.3 0.0 4.30
Consumer Discretionary 4.2 0.0 4.20
Industrials 3.9 0.0 3.90
Consumer Staples 3.1 0.0 3.10
Energy 2.3 0.0 2.30
Utilities 1.4 0.0 1.40
Real Estate 1.3 0.0 1.30
Materials 1.1 0.0 1.10
U.S. T-Bill 0.0 57.9 57.90
Total 42.1 57.9 100.00