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HYEM
VanEck Emerging Markets High Yield Bond ETF

Fund Description

The VanEck Emerging Markets High Yield Bond ETF (HYEM®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index (EMLH), which is comprised of U.S. dollar-denominated bonds issued by non-sovereign emerging markets issuers that are rated below investment grade and that are issued in the major domestic and Eurobond markets.

 
 

  • Fund Ticker

    HYEM
  • Exchange

    NYSE Arca
  • Inception Date

    05/08/2012
  • ETF Structure

    Physical
  • Administrator

    Van Eck Associates
  • Index Ticker

    EMLH
  • Index Rebalancing

    Monthly
  • 2022 Preliminary NAIC Designation9

    4.B

 
as of 09/30/22

  • 30-Day SEC Yield1

    9.67%
  • Total Net Assets

    $389.5M
  • Number of Holdings

    642
  • Options

    No
  • Gross Expense Ratio2

    0.40%
  • Net Expense Ratio/TER2

    0.40%
  • Distribution Frequency

    Monthly
  • Next Distribution Date

    10/31/2022
1, 2, 9 See Important Disclosure

Morningstar™ Ratings3
as of 08/31/2022

Category Overall 3 Year 5 Year
Emerging Markets Bond
5 stars of 248 funds
4 stars of 248 funds
4 stars of 215 funds

Morningstar Ratings: When applicable, ratings shown when the ETF is rated three stars or more for any given period. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.

© Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Key Points

  • Focuses solely on the non-sovereign segment of the high yield emerging markets bond market

  • Yield pickup and currently lower duration versus U.S. high yield corporate bonds7

  • Adds issuer and country diversification to a U.S.-only high yield exposure8

Yield
as of 09/30/22

  • 30-Day SEC Yield1

    9.67%
  • Distribution Yield1

    5.22%
  • 12-Month Yield1

    7.16%
 1 See Important Disclosure for definitions.

Fees and Expenses2

  • Management Fee

    0.40%
  • Other Expenses

    --
  • Acquired Fund Fees and Expenses

    --
  • Gross Expense Ratio

    0.40%
  • Fee Waivers and
    Expense Reimbursement

    --
  • Net Expense Ratio/TER2

    0.40%

2Van Eck Associates Corporation (the “Adviser”) will 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. Notwithstanding the foregoing, the Adviser has agreed to pay the offering costs until at least September 1, 2023.

Trading Information

  • Fund Ticker

    HYEM
  • Index Total Return Ticker

    EMLH
  • NAV

    HYEMNV
  • Intraday NAV (IIV)5

    HYEMIV
  • Shares Outstanding

    22,800,000
  • Estimated Cash

    HYEMEU
  • Total Cash

    HYEMTC
  • CUSIP

    92189F353
  • ISIN

    US92189F3534
5See IIV Details. Source: Bloomberg

Fundamentals4
as of 09/30/22

  • Yield to Worst

    12.62%
  • Yield to Maturity

    12.66%
  • Effective Duration (yrs)

    3.53
  • Years to Maturity

    9.54
  • Modified Duration (yrs)

    3.97
  • Coupon

    5.21%
 4See Important Disclosure for definitions.

Investment Professionals

  • Head of Fixed Income ETF Portfolio Management
  • 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
  • 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
  • Associate Portfolio Manager for Fixed Income ETFs
  • Joined VanEck in 2016
  • MS, Financial Engineering, Baruch College
  • BBA, Finance, Baruch College
  • 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 09/30/22

NAV/
Market
Price
Volume
30-Day Avg./
Last Trading Day
Daily Change
NAV/
Last Price
YTD Change NAV/
Last Price
Premium/
Discount
30-Day
Median
Bid Ask
Spread
NAV
Chart
HYEM $17.08
$16.86
197,679
114,229
$0.03 / +0.17%
$-0.02 / -0.12%
-19.83%
-21.49%
$-0.22
-1.31%
0.23%

Premium/Discount History as of 09/30/22

Calendar Year 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Premium/Discount Charts NAV & Prem/Discount History
Days closed at a premium 213 36 34 16 0
HYEM Days closed at NAV 5 2 7 0 1
Days closed at a discount 34 26 21 46 63

Performance History: Average Annual Total Returns* (%)

  1 MO 3 MO YTD 1 YR 3 YR 5 YR 10 YR LIFE
05/08/12**
HYEM (NAV) 1.45 -4.02 -15.76 -18.90 -2.13 -0.53 2.66 2.89
HYEM (Share Price) 0.27 -5.10 -17.92 -20.70 -2.90 -0.91 2.19 2.71
EMLH (Index)** 1.60 -4.11 -17.11 -20.44 -2.48 -0.64 2.95 3.22
Performance Differential (NAV - Index) -0.15 0.09 1.35 1.54 0.35 0.11 -0.29 -0.33
  1 MO 3 MO YTD 1 YR 3 YR 5 YR 10 YR LIFE
05/08/12**
HYEM (NAV) -5.92 -9.24 -17.43 -20.29 -3.58 -0.58 2.94 2.73
HYEM (Share Price) -5.94 -10.37 -18.65 -21.30 -4.05 -0.68 2.70 2.66
EMLH (Index)** -6.01 -9.20 -18.76 -21.74 -3.93 -0.66 3.24 3.07
Performance Differential (NAV - Index) 0.09 -0.04 1.33 1.45 0.35 0.08 -0.30 -0.34

Top 10 Holdings (%) as of 08/31/22 Daily Holdings

Total Holdings: 638
Swipe
to view
full data
Holding Name
Coupon
Maturity
Country
Currency
% of Net
Assets
Industrial & Commercial Bank Of China L
3.200
03/24/2072
China
USD
1.84
Bank Of Communications Co Ltd
3.800
11/18/2169
China
USD
0.88
Teva Pharmaceutical Finance Netherlands
3.150
10/01/2026
Israel
USD
0.84
Southern Gas Corridor Cjsc
6.875
03/24/2026
Azerbaijan
USD
0.75
Tullow Oil Plc
10.250
05/15/2026
United Kingdom
USD
0.60
Ecopetrol Sa
6.875
04/29/2030
Colombia
USD
0.57
Dp World Salaam
6.000
07/01/2169
United Arab Emirates
USD
0.56
Sasol Financing Usa Llc
5.875
03/27/2024
South Africa
USD
0.55
Petroleos Del Peru Sa
5.625
06/19/2047
Peru
USD
0.53
Ecopetrol Sa
5.875
09/18/2023
Colombia
USD
0.51
Top 10 Total (%) 7.63

These are not recommendations to buy or to sell any security. Securities and holdings may vary.

‡See Country of Risk disclosure.

Country Weightings (%) as of 08/31/22

  • Country

    % of Net Assets
  • China

    12.89
  • Brazil

    8.73
  • Mexico

    7.00
  • Turkey

    6.37
  • Colombia

    5.83
  • India

    5.53
  • United Kingdom

    4.08
  • Argentina

    4.01
  • United States

    3.91
  • Israel

    3.06
  • South Africa

    2.61
  • Peru

    2.60
  • Indonesia

    2.40
  • Luxembourg

    2.39
  • United Arab Emirates

    2.24
  • Singapore

    2.23
  • Mauritius

    2.17
  • Oman

    1.83
  • Zambia

    1.67
  • Bahrain

    1.55
  • Other/Cash

    16.89

Currency Exposure (%)
as of 08/31/22

  • U.S. Dollar

    99.36
  • Other/Cash

    0.64

Sector Weightings (%) as of 08/31/22

  • Sector

    % of Net Assets
  • Financials

    34.4
  • Energy

    18.6
  • Basic Materials

    10.6
  • Industrials

    8.8
  • Utilities

    7.9
  • Consumer Cyclicals

    3.9
  • Consumer Non-Cyclicals

    3.8
  • Technology

    3.7
  • Healthcare

    3.3
  • Real Estate

    3.2
  • Government Activity

    1.1
  • Other/Cash

    0.6

Credit Quality (%) as of 08/31/22

Composite % of Net Assets
Investment Grade BBB 3.43
Non-Investment Grade BB 55.70
B 28.30
CCC 6.14
CC 0.87
D 0.35
Total Investment Grade -- 3.43
Total Non-Investment Grade -- 91.35
Not Rated -- 5.22

Maturity (%) as of 08/31/22

Average Portfolio Maturity: 9.78 Years