CBONVanEck Vectors ChinaAMC China Bond ETF
Market Updates*
- Chinese bonds currently offer attractive yields, with the 10-year China government bond yielding nearly 235 basis points above the 10-year U.S. Treasury yield.1
- CNY has been appreciating against the U.S. dollar since July, supported by relatively constrained monetary policy, growing FX reserves and a strong economic recovery compared to most other countries worldwide.
- Foreign interest in onshore bonds continues to increase, driven by their attractive yield and diversification potential, with inflows expected to continue as onshore bonds are gradually included in global bond indexes.
1Source: Bloomberg as of 12/17/2020.
Fund Description
The VanEck Vectors® ChinaAMC China Bond ETF (CBON®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ChinaBond China High Quality Bond Index (CHQU01TR), which is comprised of fixed-rate, Renminbi ("RMB")-denominated bonds issued in the People's Republic of China by Chinese credit, governmental and quasi-governmental (e.g., policy banks) issuers.
-
Fund Ticker
CBON -
Exchange
NYSE Arca -
ETF Structure
Physical -
Administrator
Van Eck Associates -
Custodian
State Street Bank and Trust Company -
Index Ticker
CHQU01TR -
Index Rebalancing
Monthly
as of 04/09/21
-
30-Day SEC Yield1
2.79% -
Total Net Assets
$99.6M -
Number of Holdings
86 -
Options
Expected -
Gross Expense Ratio2
3.53% -
Net Expense Ratio/TER2
0.50% -
Distribution Frequency
Monthly
Key Points
- Yield Premium
Attractive yield pickup over developed markets bonds
- Portfolio Diversifier
RMB denominated bonds have historically exhibited low correlation to other asset classes*
- Access to the world’s second largest bond market
Broad exposure to bonds issued by the central government, policy banks and corporations
Yields
as of 04/09/21
-
30-Day SEC Yield1
2.79% -
Distribution Yield1
3.23% -
12-Month Yield1
2.80%
Fees & Expenses2
-
Management Fee
0.40% -
Other Expenses
3.13% -
Acquired Fund Fees and Expenses
-- -
Gross Expense Ratio
3.53% -
Fee Waivers andExpense Reimbursement
-3.03% -
Net Expense Ratio/TER2
0.50%
Trading Information
-
Fund Ticker
CBON -
Index Total Return Ticker
CHQU01TR -
NAV
CBONNV -
Intraday NAV (IIV)5
CBONIV -
Shares Outstanding
4,200,000 -
Estimated Cash
CBONEU -
Total Cash
CBONTC -
CUSIP
92189F379 -
ISIN
US92189F3799
Fundamentals4
as of 04/09/21
-
Yield to Maturity
3.67% -
Coupon
3.94% -
Modified Duration (yrs)
3.32 -
Years to Maturity
3.00
Investment Professionals
Francis G. Rodilosso, CFA
- Portfolio Manager and Head of Fixed Income ETFs
- Responsible for portfolio strategies as well as credit and market analysis; specializes in international bond markets
- Joined VanEck in 2012
- Prior to VanEck, Managing Director of Global Emerging Markets with The Seaport Group; launched the firm’s emerging markets fixed income sales and trading business
- Previously, held portfolio management positions at Greylock Capital and Soundbrook Capital; focused on corporate high-yield and distressed bonds with an emphasis on emerging markets
- CFA charterholder; member of CFA Society New York
- MBA (with distinction), Finance, University of Pennsylvania
- AB, History, Princeton University
Daniel Cho
- Associate Portfolio Manager for Fixed Income ETFs
- Joined VanEck in 2013
- Prior to his current role, held a portfolio administration position for the firm’s alternative investment funds
- MS, Finance, University of Rochester
- BS, Information Sciences and Technology, Pennsylvania State University
Stephanie Wang
- Associate Portfolio Manager for Fixed Income ETFs
- Joined VanEck in 2016
- MS, Financial Engineering, Baruch College
- BBA, Finance, Baruch College
Jared Model
- Senior Trader, Portfolio Analyst for Fixed Income ETFs
- Joined VanEck in 2017
- Previously, Trader at Beck, Mack & Oliver LLC and monitored markets and executed equity and fixed income trades and Fixed Income Operations at Gleacher & Company Securities, Inc.
- MBA, Finance, Montclair State University
- BS, concentration in Accounting and Finance, minor in Computer Science, University of Vermont
Prices as of 04/09/21
Performance History: Average Annual Total Returns* (%)
1 MO | 3 MO | YTD | 1 YR | 3 YR | 5 YR | 10 YR | LIFE 11/10/14 |
|
---|---|---|---|---|---|---|---|---|
CBON (NAV) | -0.32 | -0.31 | -0.31 | 10.24 | 2.91 | 2.57 | -- | 2.34 |
CBON (Share Price) | -0.35 | -0.47 | -0.47 | 11.18 | 3.09 | 2.78 | -- | 2.36 |
CHQU01TR (Index) | -0.61 | -0.11 | -0.11 | 9.34 | 3.70 | 3.27 | -- | 3.22 |
Performance Differential (NAV - Index) | 0.29 | -0.20 | -0.20 | 0.90 | -0.79 | -0.70 | -- | -0.88 |
1 MO | 3 MO | YTD | 1 YR | 3 YR | 5 YR | 10 YR | LIFE 11/10/14 |
|
---|---|---|---|---|---|---|---|---|
CBON (NAV) | -0.32 | -0.31 | -0.31 | 10.24 | 2.91 | 2.57 | -- | 2.34 |
CBON (Share Price) | -0.35 | -0.47 | -0.47 | 11.18 | 3.09 | 2.78 | -- | 2.36 |
CHQU01TR (Index) | -0.61 | -0.11 | -0.11 | 9.34 | 3.70 | 3.27 | -- | 3.22 |
Performance Differential (NAV - Index) | 0.29 | -0.20 | -0.20 | 0.90 | -0.79 | -0.70 | -- | -0.88 |
Top 10 Holdings (%) as of 03/31/21 Daily Holdings
to view
full data
Holding Name |
Coupon
|
Maturity |
Country†
|
Currency
|
% of Net Assets |
|
---|---|---|---|---|---|---|
CHINA GOVERNMENT BOND |
3.400
|
04/17/2023
|
China
|
CNY
|
9.96 | |
CHINA DEVELOPMENT BANK |
3.910
|
04/06/2022
|
China
|
CNY
|
4.82 | |
CHINA GOVERNMENT BOND |
3.270
|
08/22/2046
|
China
|
CNY
|
4.82 | |
CHINA DEVELOPMENT BANK |
3.870
|
08/01/2023
|
China
|
CNY
|
3.32 | |
SHANDONG HI-SPEED GROUP CO LTD |
4.000
|
10/21/2024
|
China
|
CNY
|
2.74 | |
CHINA DEVELOPMENT BANK |
4.590
|
08/01/2038
|
China
|
CNY
|
2.70 | |
SHENWAN HONGYUAN GROUP CO LTD |
4.800
|
07/17/2023
|
China
|
CNY
|
2.50 | |
ANSHAN IRON AND STEEL GROUP CO LTD |
4.280
|
07/30/2169
|
China
|
CNY
|
2.38 | |
BEIJING PUBLIC HOUSING CENTER |
3.190
|
04/16/2040
|
China
|
CNY
|
2.37 | |
GUANGZHOU ASSET MANAGEMENT CO LTD |
3.790
|
01/22/2024
|
China
|
CNY
|
2.36 | |
Top 10 Total (%) | 37.97 |
These are not recommendations to buy or to sell any security. Securities and holdings may vary.
Country Weightings (%) as of 03/31/21
-
Country
% of Net Assets -
■
China
91.94 -
■
Other/Cash
8.06
Currency Exposure (%)
as of 03/31/21
-
Chinese Renminbi
91.94 -
Other/Cash
8.06
Sector Weightings (%) as of 03/31/21
-
Sector
% of Net Assets -
■
Financials
34.1 -
■
Government Activity
16.8 -
■
Utilities
11.6 -
■
Industrials
10.5 -
■
Basic Materials
6.6 -
■
Consumer Cyclicals
5.8 -
■
Real Estate
3.1 -
■
Energy
2.7 -
■
Technology
0.8 -
■
Other/Cash
8.1
Maturity (%) as of 03/31/21
Average Portfolio Maturity: 3.02 Years