VanEck® Investments Ltd. today announces it is expanding its product spectrum to include two new UCITS exchange-traded funds . The ETFs are available by start of trading today on the London Stock Exchange in both USD and GBP currencies. …
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Philip Schlegel, Director of International Business Development at VanEck
VanEck Vectors® Preferred US Equity UCITS ETF invests in US preferred stocks and hybrid securities
VanEck Vectors® Natural Resources UCITS ETF offers access to global commodities and commodity-related products and services
The first is the VanEck Vectors Preferred US Equity UCITS ETF (USD ticker: PRF; GBP ticker: PRGB) that invests in US preferred stocks & hybrid securities.
The second fund launched is the VanEck Vectors Natural Resources UCITS ETF (USD ticker: HAP; GBP ticker: HAGB), which offers investors access to global commodities equities.
VanEck is a US based investment manager with around $42.5 billion in assets, including mutual funds, ETFs, and institutional accounts.
Preferred US Securities – Subordinated US Preferred Stocks Offer High Earnings Potential
The VanEck Vectors Preferred US Equity UCITS ETF tracks the performance of the Wells Fargo® Hybrid and Preferred Securities Aggregate Index (WAGG). The index is composed of so-called “preferred stocks and hybrid securities” of companies that are listed at US stock exchanges with an investment-grade rating. Preferred stocks are fixed or floating rate securities with coupon payments subordinated to bonds.
With its combination of stock and bond features, this hybrid type of securities gives investors seniority over holders of ordinary stocks in the context of dividend pay-outs and in the event of a company’s liquidation in return for waiving their voting rights.
Natural Resources – Global Commodities Stocks as One-Stop Service
The VanEck Vectors Natural Resources UCITS ETF is based on the VanEck Natural Resources Index (RVEIT). The index provides comprehensive exposure to worldwide companies that are involved in the production and distribution of commodities and commodityrelated products and services. It provides balanced exposure to agriculture, base and industrial metals, energy, forest products, and precious metals sectors, and it was one of the first commodity equity indices to include alternatives, such as water and renewable energy.
Philip Schlegel, Director of International Business Development at VanEck, said: “These new funds listed today on the LSE add to the already varied and diverse range of products we offer to help investors meet their goals. The VanEck Vectors Preferred US Equity UCITS ETF offers investors access to US preferred stocks which have higher income potential than ordinary stocks and senior corporate bonds with investment-grade rating. VanEck Vectors Natural Resources UCITS ETF gives investors the opportunity to buy into a broadbased portfolio that tracks the biggest and best-known companies in the global commodities sector, such as Monsanto and ExxonMobil.”
The two new ETFs are physically replicated. The VanEck Vectors Preferred US Equity UCITS ETF is reconstituted monthly and has a total expense ratio of 0.41%. The VanEck Vectors Natural Resources UCITS ETF is reconstituted quarterly and has a total expense ratio of 0.50