NYSE What’s the Fund – MORT with Ed Lopez
December 22, 2020
Judy: I’m Judy Shaw for “What’s The Fund”. Joining me today is Ed Lopez. Ed is the Head of ETF Product at VanEck. Ed, it’s great to see you. Thanks for joining me.
Ed: Hi, Judy. Thank you.
Judy: Quick note to viewers: This interview is for informational purposes only. The NYSE doesn’t recommend any investments or investment strategies.
Ed, tell me, what’s the fund you’re talking about today?
Ed: Today, we’re talking about the Van Eck Vectors Mortgage REIT Income ETF, ticker symbol MORT.
Judy: All right. Tell me about this fund, and tell me about the strategy behind the fund.
Ed: Yes, certainly. MORT seeks to track an index of publicly traded US mortgage REITs, which are essentially companies that provide financing for real estate by either buying or originating mortgages and mortgage-backed securities, and then earning income on the interest on those investments. Now, we think REITs may be an attractive option, particularly in this environment, as they have historically provided higher dividends compared to many other income-oriented securities that are out there. So, exposure to interest rate and credit-sensitive assets in combination with leverage is what allows mortgage REITs to offer the attractive yields that they do. And this also subjects them to a little bit more volatility that investors should consider, though the funding cost for REITs right now are really low. And the Federal Reserve has indicated it will continue to keep rates low, and has also indicated it will support the industry through the purchases of mortgage-backed securities worth billions of dollars as part of its quantitative easing program. So, with the expectation that interest rates will remain low for the foreseeable future, now, we view this strategy as an attractive option for investors looking to boost income in their portfolio.
Judy: Okay. Now, where can we learn more about this fund?
Ed: You can go to our website at vaneck.com, or go directly to the fund page at vaneck.com/MORT.
Judy: Ed, great to have you on “What’s the Fund”. Thanks for joining me.
Ed: Thank you very much.
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The views and opinions expressed are those of the speaker and are current as of the video’s posting date. Video commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. All performance information is historical and is not a guarantee of future results. For more information about VanEck Funds, VanEck Vectors ETFs or fund performance, visit vaneck.com. Any discussion of specific securities mentioned in the video commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index. Information on holdings, performance and indices can be found at vaneck.com.
An investment in the Fund may be subject to risk which includes, among others, mortgage REITs, equity securities, financial, small- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, issuer-specific changes, non-diversified and concentration risks, all of which may adversely affect the Fund. Small- and medium-capitalization companies may be subject to elevated risks.
MVIS US Mortgage REITs Index is the exclusive property of MV Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards MV Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. The VanEck Vectors Mortgage REIT Income ETF is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus , which contains this and other information, call 800.826.2333 or visit vaneck.com/etfs . Please read the prospectus and summary prospectus carefully before investing.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Securities Corporation. © Van Eck Securities Corporation.
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