Corporate Bonds ETF
ISIN: NL0009690247
- Relatively low level of risk yet with investment return
- Diversified exposure to brand name corporate bonds
- Corporate Bonds ETF is also euro-denominated
- Access to diversification across sectors, countries and maturities
- Investment grade
- ESG-adjusted weighting (SFDR Article 8)
Risk: You may lose money up to the total loss of your investment due to Credit risk and Liquidity risk as described in the Main Risk Factors, KID and prospectus.
Corporate Bonds ETF as a Vital Part of Your Portfolio
Are you looking for a relatively low level of risk yet with some investment return? If so, think about corporate bonds via this Fund. They have become an increasingly important part of an investors’ portfolios in recent years simply because they still provide a reasonable return in a yield starved world.
Risk of Corporate Bonds ETF: Investors should consider risks before investing. See dedicated risk factors section on this website.
What are Corporate Bonds?
Big companies need to raise capital regularly to grow, and they do so regularly through the bond markets. They use capital to invest in innovation and expansion – it’s vital fuel for any business. In return, companies normally commit to reward investors by paying a coupon, or interest, on the bond, as well as to repay it at maturity after a set number of years.
So, by investing in corporate bonds you help companies to finance their growth.
Three Reasons to Invest in Corporate Bonds ETF
Corporate bonds are part of a well-diversified investment portfolio. Their coupon payments generally are a source of cash flow while their risk profiles add diversification to a portfolio.
Why VanEck’s Corporate Bonds ETF?
Quite candidly, Corporate Bonds ETF delivers a blend of low cost and high quality.
This is one of the lowest cost ETFs to buy corporate bonds (0.15% total expense ratio).
Source: VanEck.
Unlike some other ETF managers, we buy the underlying bonds (physical replication) and we do currently not lend out securities.
Source: VanEck.
Corporate Bonds ETF invests in 40 different bonds issued by some of the world’s best-known companies, from different industries and countries all over the world. That means we reduce your risk. The companies include names such as Anheuser-Busch (beer), Novartis (pharmaceutical), Danaher (life sciences), Daimler (automobile) and IBM (information technology).
Source: VanEck.
To reduce currency risk, we only invest in bonds issued in euros.
Source: VanEck.
The underlying index assigns higher weights to companies with better Sustainable Development Key Performance Indicator (SD-KPI) scores. SD-KPIs are three particularly material environmental, social and governance (ESG) indicators for the expected business development of companies in 68 different sectors. The SD-KPI Standard was developed by SD-M on behalf of the German Environment Ministry and supported by the Sustainability Accounting Standards Board (SASB).
Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.
VanEck iBoxx EUR Corporates UCITS ETF
ISIN: NL0009690247
- Euro-denominated
- Diversified exposure to brand name corporate bonds
- Diversification across sectors, countries and maturities via Corporate Bonds ETF
- Promotion of environmental and social characteristics (SFDR Article 8) by the Fund
- Investment grade
Risk indication: 3 out of 7
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Main Risk Factors of Corporate Bonds ETF
Changes in interest rates have a significant influence on the results of fixed-income securities issued by companies. Potential or actual downgrades in the credit rating can increase the assumed risk level.
The issuer of the security held by this ETF may be unable to pay interest that has fallen due or repay capital.
Lower liquidity means there are not enough buyers or sellers to allow Corporate Bonds ETF to easily trade the investments.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
Why Invest in VanEck ETFs?
- Since we were founded in 1955 we have constantly been at the forefront of innovation, giving you access to new opportunities like gold funds, emerging market funds and ETFs.
- We are privately-held, allowing us to focus on our clients’ long-term interests.
- Our ETFs are transparent: they acquire the underlying securities (no synthetic replication). Securities are not lent out.*
