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Rozemuller Martijn VanEck ETF

VanEck lists two new ETFs on LSE

VanEck launches ETF on strategic and rare earth metals and ESG ETF on the new economy in China

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Martijn Rozemuller, CEO at VanEck Europe


– Strategic and rare earth metals play a key role in modern technologies and products.

– Growing efforts to decarbonise the economy are leading to high demand and strong competition for these raw materials.

– The VanEck Vectors Rare Earths and Strategic Metals UCITS ETF invests selectively in companies worldwide that generate at least 50 per cent of their revenue from these metals.

Asset manager VanEck today lists Europe’s first ETF (Exchange Traded Fund) that gives investors access to companies that mine and process rare earths or so-called strategic metals, the VanEck Vectors Rare Earths and Strategic Metals UCITS ETF on London Stock Exchange.

Whether electric cars, wind turbines, satellite components, microchips or LCD televisions:  modern technologies are inconceivable without strategic metals, which include rare earths. “Especially for technologies like these, which are crucial for combating climate change, these raw materials play a major role,” explains Martijn Rozemuller, CEO at VanEck Europe. “Strong magnets, such as those installed in wind turbines or electric motors, require, among other things, neodymium, which belongs to the rare earths . Lithium is a fundamental raw material for modern batteries used in electric cars. As the decarbonisation of the economy continues, there is now fierce competition for these raw materials. The demand is already high and will certainly increase in the future.”

Investment opportunities arise for investors from the companies that mine and process rare earths and strategic metals. The VanEck Vectors Rare Earths and Strategic Metals UCITS ETF now gives investors in Europe simplified and diversified access to these companies whose products play a key role in the technological and environmental future.

The ETF offers an investment to specialised companies

Currently, about 44 elements in the periodic table are considered rare earths or strategic metals, including cobalt, manganese, tungsten or titanium, which is used in smartphones as well as in airplanes and rockets. “While rare earths are found all over the world, their “rarity” stems from the fact that they are difficult to mine – they never occur in high concentrations and are usually mixed with other elements,” Rozemuller says. “That’s why this industry is also about companies that are very specialised and might be rather unknown and inaccessible to most investors. With our ETF, they can bring these companies into the portfolio in a diversified way and benefit from the continued growing importance of these key commodities.”

The ETF’s assets may be concentrated in one or more particular sectors or industries. The ETF may be subject to the risk that economic, political or other conditions adversely affecting the relevant sectors or industries may adversely affect the performance of the Fund to a greater extent than if the Fund’s assets were invested in a wider variety of sectors or industries.

The physically replicating ETF includes a global selection of companies that derive at least 50 per cent of their revenue from rare earths and strategic metals. The selection is adjusted quarterly. The VanEck Vectors Rare Earths and Strategic Metals UCITS ETF is accumulating and has a total expense ratio (TER) of 0.59 percent.

ETF VanEck Vectors Rare Earths and Strategic
Metals UCITS ETF
ISIN IE0002PG6CA6
Ticker LSE GBP/ LSE USD REGB/ REMX
Capital management company VanEck Asset Management B.V.
Domicile of the capital management company Ireland
Base currency USD
Reweighting Quarterly
Product structure Physically replicating
Launch date 29 September 2021
Total expense ratio (TER) 0.59% p.a.
Appropriation of earnings Retention

– The growing middle class in China is leading to changing consumer behaviour and new opportunities for further growth.

– The ETF gives investors access to the 100 strongest companies in China’s new economy.

– Only companies that meet the demanding ESG criteria of OWL Analytics are included in the ETF.

Asset manager VanEck today lists Europe’s first ETF (Exchange Traded Fund) that provides access to Chinese companies from the new economy, taking ESG criteria into account, the VanEck Vectors New China ESG UCITS ETF on London Stock Exchange and Xetra Deutsche Börse. The ETF is also available at CEINEX, a platform of Deutsche Börse for China-related financial products in Europe.

China is one of the world’s fastest growing major economies, and has a rapidly growing middle class. Currently, it includes around 400 million people, which is already larger than the total population of the United States. With growth, GDP per capita is also rising significantly, which is bringing about a change in the consumption patterns of China’s middle class.

“It’s a new kind of consumer that is behind China’s amazing growth,” explains Martijn Rozemuller, CEO at VanEck Europe. “They spend their money on innovative technologies, healthcare services, pharmaceuticals, consumer and luxury goods. China’s economy continues to develop and companies in the country are adapting to the new consumer realities. Chinese companies that are part of the new economy are likely to outpace the country’s overall growth.”

With the new VanEck Vectors™ New China ESG UCITS ETF, investors can invest in a targeted selection of the strongest companies in this dynamic new economy, filtered according to ESG criteria, and profit from the comprehensive transformation of the Chinese economy. But increased spending on consumer and consumer staples is not just impacting manufacturers.

 “Today, e-commerce platforms also play a very big role in China,” Rozemuller says. “People in China are fundamentally very digital-savvy; globally, China’s consumers rank first in online spending. China’s online retail market is larger than the next largest ten markets combined.2 At the same time, China’s population is aging much faster than that of many other countries, according to the World Health Organization; by 2035, one in five Chinese could be 65 and older. As a result, overall spending on healthcare in China, for example on pharmaceuticals or telemedicine services, is growing – companies in the healthcare sector will benefit from this.

The new ETF tracks the MarketGrader New China ESG Index, which includes only companies from four sectors: non-consumer staples, consumer staples, healthcare and technology. The index selects the 100 companies with the most solid fundamentals and continuously evaluates them based on four factors: growth, valuation, profitability and cash flow. In addition, companies must exceed the regional median ESG score, which is regularly determined by OWL Analytics using the OWL Analytics Consensus ESG Score. It covers over 25,000 companies worldwide and publishes monthly metrics aggregated from hundreds of independent ESG data sources. In addition to ratings and rankings of all companies in its covered universe, OWL ESG quantifies corporate behavior against thirty core metrics, including twelve KPIs, related to environmental, social and governance factors. The VanEck Vectors™ New China ESG UCITS ETF is accumulating and has a total expense ratio (TER) of 0.60 per cent.

ETF VanEck Vectors New China ESG UCITS ETF 
ISIN IE0000H445G8 
Ticker LSE USD/ Ticker LSE GBP CNEW / CEGB
Capital management company VanEck Asset Management B.V.
Domicile of the capital management company Ireland
Base currency USD
Reweighting Halfyearly
Product structure Physically replicating
Launch date 29 September 2021
Total expense ratio (TER) 0.60% p.a.
Appropriation of earnings Retention

Source: ETFWorld

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