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Expect More from Your Munis

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HYD
VanEck Vectors High Yield Muni ETF

Market Updates*

  • While spreads have tightened since the March 2020 sell-off, we believe there is room to tighten given the prospects of a faster-than-expected recovery.
  • The current recovery is already well under way, helped by a stronger economic and financial foundation, more immediate fiscal and monetary response, and some direct aid to state and local governments.
  • Names and sectors that were more affected by the pandemic—such as corporate-backed munis, healthcare and special tax—are likely to drive performance, while tobacco and COFINA (Puerto Rico’s Sales Tax Financing Corporation) may continue to provide good carry and marginal price appreciation.

Fund Description

The VanEck Vectors® High Yield Muni ETF (HYD®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index (LMEHTR), which is intended to track the overall performance of the U.S. dollar denominated high yield long-term tax-exempt bond market.

 
 

  • Fund Ticker

    HYD
  • Exchange

    Cboe
  • ETF Structure

    Physical
  • Administrator

    Van Eck Associates
  • Custodian

    State Street Bank and Trust Company
  • Index Ticker

    LMEHTR
  • Index Rebalancing

    Monthly
  • 2020 Preliminary NAIC
    Designation7

    4.C

 
as of 04/14/21

  • 30-Day SEC Yield1

    2.86%
  • Total Net Assets

    $3.4B
  • Number of Holdings

    1884
  • Options

    Available
  • Gross Expense Ratio2

    0.35%
  • Net Expense Ratio/TER2

    0.35%
  • Distribution Frequency

    Monthly

1, 2, 7 See Important Disclosure

Why Invest?

Index Key Points

The Bloomberg Barclays Municipal Custom High Yield Composite Index (LMEHTR) comprises:

More than 4,000 bonds drawn primarily from revenue sector, but also from general obligation sector.

Issues eligible for inclusion in Index:

  • Outstanding par value of at least $3 million for non-investment grade and $7 million for investment grade.
  • Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa and the Northern Mariana Islands, each individually capped from exceeding 4%.
  • Targeted 75% weight in noninvestment grade municipal bonds, a targeted 25% weight in triple-B rated investment grade municipal bonds.
  • Nominal maturity greater than 1 year.

Index Provider: Bloomberg Index Services Limited

Index Profile

  • Ticker

    LMEHTR
  • Inception Date

    06/30/2008
  • Rebalance Frequency

    Monthly

Index Fundamentals4
as of 04/14/21

  • Yield to Worst

    2.85%
  • Yield to Maturity

    3.99%
  • Effective Duration (yrs)

    5.92
  • Duration to Worst (yrs)

    5.25
  • Modified Duration (yrs)

    6.85
  • Spread Duration (yrs)

    6.08
  • Years to Maturity

    18.29
  • Coupon

    5.14%
  • AMT

    12.13%
 4 See Important Disclosure for definitions.

Top 10 Constituents (%) as of 03/31/21

Total Constituents: 7696
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full data
Issuer Name State Weighting (%)
Chicago Ill Brd Ed
IL
4.60
New Jersey St Transn Tr Fd Auth
NJ
3.86
New York Transn Dev Corp Spl Fac Rev
NY
3.13
Illinois St
IL
3.02
Buckeye Ohio Tob Settlement Fing Auth
OH
2.62
Puerto Rico Sales Tax Fing Corp Sales Tax Rev
PR
2.53
Golden St Tob Securitization Corp Calif Tob Settlement Rev
CA
2.04
New Jersey Economic Dev Auth Rev
NJ
1.86
Metropolitan Pier & Exposition Auth Ill Rev
IL
1.70
California Statewide Cmntys Dev Auth Rev
CA
1.66
Top 10 Total (%) 27.02
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index Geographical Weightings (%) as of 03/31/21

  • State

    % of Net Assets
  • Illinois

    13.2
  • California

    13.1
  • New York

    8.5
  • New Jersey

    8.2
  • Florida

    5.3
  • Texas

    4.9
  • Ohio

    4.8
  • Pennsylvania

    3.9
  • Puerto Rico

    3.6
  • Colorado

    3.6
  • Wisconsin

    2.9
  • Arizona

    2.4
  • Alabama

    1.9
  • Virginia

    1.8
  • Maryland

    1.4
  • Iowa

    1.4
  • Dist. of Columbia

    1.1
  • District of Columbia

    1.1
  • Washington

    1.1
  • Oklahoma

    1.1

Index Sector Weightings (%) as of 03/31/21

  • Sector

    % of Net Assets
  • IDR/PCR

    26.7
  • Health Care Facilities

    19.5
  • Special Tax

    11.4
  • Education

    9.8
  • Leasing

    8.7
  • Transportation

    8.0
  • Local General

    8.0
  • State General

    2.9
  • Housing

    2.6
  • Water Utilities

    2.0
  • Power Utilities

    0.5
  • Resource Recovery

    0.1

Index Credit Quality (%) as of 03/31/21

Composite % of Net Assets
Investment Grade AAA 0.05
AA 0.03
A 0.07
BBB 24.77
Non-Investment Grade BB 24.84
B 7.27
CCC 2.85
CC 0.44
C 0.04
Total Investment Grade -- 24.92
Total Non-Investment Grade -- 35.44
Not Rated -- 39.64
Source: Barclays. Rating is a proprietary composite of various rating agencies.

Maturity (%) as of 03/31/21

 Average Maturity: 18.25 Years