MIG and MBBB utilize Moody\u2019s Analytics credit risk data to look beyond traditional fixed income risk measures in selecting investment grade and BBB-rated bonds with the most attractive valuations<\/i><\/p>\n
NEW YORK–(BUSINESS WIRE<\/a>)–VanEck<\/a> today announced the launch of two new corporate bond exchange-traded funds (ETFs) designed to provide investors with important new tools to enhance their investment grade bond exposures. The VanEck Vectors\u00ae<\/sup> Moody\u2019s Analytics\u00ae<\/sup> IG Corporate Bond ETF (MIG)<\/a> and the VanEck Vectors\u00ae<\/sup> Moody\u2019s Analytics\u00ae<\/sup> BBB Corporate Bond ETF (MBBB)<\/a> both began trading today on the CBOE BZX Exchange, and join VanEck\u2019s highly diversified family of income-focused ETF offerings.\n<\/p>\n \nBonds are selected for the underlying indices by applying a Moody\u2019s Analytics quantitative credit risk model, which provides investors with forward looking credit risk metrics, including a bond\u2019s EDF\u2122 (Expected Default Frequency) from which a fair value spread can be determined. The index methodology uses the model to identify bonds that offer attractive spreads relative to their embedded credit risk, and also uses the model to help identify bonds that are at a high risk of being downgraded to non-investment grade.\n<\/p>\n \n\u201cThe corporate bond universe is expansive and there can be a great deal of dispersion in terms of where the market is pricing risk and a bond\u2019s fair value. Finding bonds with attractive valuations and achieving outperformance is built upon accurately evaluating a bond\u2019s expected credit risk going forward. Incorporating market implied information into the selection process to evaluate credit risk allows you to do that, particularly in volatile markets,\u201d said Fran Rodilosso, Head of Fixed Income ETF Portfolio Management at VanEck.\n<\/p>\n \nMoody\u2019s Analytics, a subsidiary of Moody\u2019s Corporation, is a leading provider of award-winning quantitative credit risk analysis tools. Moody\u2019s Analytics CreditEdge\u00ae<\/sup> platform<\/a>, which provides key inputs for the funds\u2019 underlying indices, combines the industry\u2019s leading probability of default model with cutting edge credit analytics to deliver a tool that can identify relative value and provide early warnings of credit deterioration.\n<\/p>\n \n\u201cWe have established a comprehensive set of metrics for early warning detection of credit defaults and downgrades,\u201d said Nihil Patel, Managing Director at Moody\u2019s Analytics. \u201cOur research shows our credit risk metrics can help identify undervalued securities. We are thrilled to be able to offer our credit risk metrics for use in the indices underlying VanEck\u2019s funds.\u201d\n<\/p>\n \nMIG, which has an expense ratio of 20 bps, seeks to track the MVIS Moody\u2019s Analytics US Investment Grade Corporate Bond Index (US IG Index)<\/a>. MBBB, which has an expense ratio of 25 bps, seeks to track the MVIS Moody\u2019s Analytics US BBB Corporate Bond Index (BBB Index)<\/a>. Both indexes are rules-based and are the first U.S. investment grade bond indexes to be driven by Moody\u2019s Analytics credit risk modeling. The indices rebalance monthly.\n<\/p>\n \n\u201cMoody\u2019s Analytics is the recognized industry leader in credit risk modeling so we are excited to be using their credit risk models and data to power these two new funds,\u201d added William Sokol, Senior ETF Product Manager at VanEck. \u201cWe believe that these funds can offer investors the income potential and outperformance they are looking for without having to assume excessive risk, which is particularly important in this prolonged low yield environment.\u201d\n<\/p>\n \nMIG and MBBB join a VanEck corporate bond ETF lineup that also includes the VanEck Vectors\u00ae<\/sup> Fallen Angel High Yield Bond ETF (ANGL\u00ae<\/sup>)<\/a>, which targets \u201cfallen angel\u201d high yield bonds and is ranked #1 out of 392 funds within the Morningstar High Yield Bond Category since inception1<\/sup>, and the VanEck Vectors\u00ae<\/sup> Investment Grade Floating Rate ETF (FLTR\u00ae<\/sup>)<\/a>, which focuses on U.S. dollar denominated floating rate notes issues by corporate issuers and rated investment grade and has a unique methodology that seeks to enhance yield potential without increasing interest rate risk.\n<\/p>\n \n###\n<\/p>\n About VanEck<\/b><\/p>\n \nVanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm\u2019s drive to identify asset classes and trends \u2013 including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 \u2013 that subsequently shaped the investment management industry.\n<\/p>\n \nToday, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of October 31, 2020, VanEck managed approximately $60.2 billion in assets, including mutual funds, ETFs and institutional accounts. The firm\u2019s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck\u2019s passive strategies.\n<\/p>\n \nSince our founding in 1955, putting our clients\u2019 interests first, in all market environments, has been at the heart of the firm\u2019s mission.\n<\/p>\n About Moody\u2019s Analytics<\/b><\/p>\n \nMoody\u2019s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody\u2019s Analytics, visit our website<\/a> or connect with us on Twitter<\/a> or LinkedIn<\/a>.\n<\/p>\n \nMoody’s Analytics, Inc. is a subsidiary of Moody’s Corporation (NYSE: MCO). Moody\u2019s Corporation reported revenue of $4.8 billion in 2019, employs approximately 11,400 people worldwide and maintains a presence in more than 40 countries.\n<\/p>\n \n###\n<\/p>\n Important Disclosures <\/b><\/p>\n 1<\/sup> Source: \u00a92020 Morningstar, Inc. All Rights Reserved. Data as of 9\/30\/2020. 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.\n<\/p>\n \nAn investment in of the VanEck Vectors Moody\u2019s Analytics IG Corporate Bond ETF or VanEck Vectors Moody\u2019s Analytics BBB Corporate Bond ETF (the \u201cFunds\u201d) may be subject to risks which include, among others, investing in European issuers, foreign securities, BBB-rated bond, credit, interest rate, liquidity, restricted securities, consumer staples sector, financials sector, energy sector, communications sector, market, operational, high portfolio turnover, call, sampling, index tracking, authorized participant concentration, absence of prior active market, trading issues, passive management, non-diversified, and trading, premium\/discount and liquidity of fund shares risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.\n<\/p>\n \nAn investment in VanEck Vectors Fallen Angel High Yield Bond ETF may be subject to risk which includes, among others, high yield securities, foreign securities, foreign currency, credit, interest rate, restricted securities, market, operational, call, sampling, basic materials, energy, financial services, telecommunications, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium\/discount and liquidity of fund shares and concentration risks, all of which may adversely affect the Fund.\n<\/p>\n An investment in VanEck Vectors Investment Grade Floating Rate ETF may be subject to risk which includes, among others, foreign securities, foreign currency, credit, interest rate, restricted securities, financial services, market, operational, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium\/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. <\/span><\/p>\n \nMoody\u2019s Analytics is a registered trademark of Moody\u2019s Analytics, Inc. and\/or its affiliates and is used under license.\n<\/p>\n \nThe Funds are not sponsored, promoted, sold or supported in any manner by Moody\u2019s Analytics nor does Moody\u2019s Analytics offer any express or implicit guarantee or assurance either with regard to the results of using the US IG Index and BBB Index (together, the \u201cIndices\u201d) and\/or the Moody\u2019s Analytics trademark or data at any time or in any other respect. Certain quantitative financial data used in calculating and publishing the Indices is licensed to the Funds manager by Moody\u2019s Analytics. Moody\u2019s Analytics has no obligation to point out errors in the data to third parties including but not limited to investors and\/or financial intermediaries of the Funds. The licensing of data or the Moody\u2019s Analytics trademark for the purpose of use in connection with the Indices and Funds does not constitutes a recommendation by Moody\u2019s Analytics to invest capital in the Funds nor does it in any way represent an assurance or opinion of Moody\u2019s Analytics with regard to any investment in this financial instrument.\n<\/p>\n \nMVIS does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide and investment return based on the performance of any index. MVIS makes no assurance that investment products based on the index will accurately track index performance or provide positive investment returns. MVIS is not an investment advisor, and it makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this document. MVIS is the index business of VanEck, a U.S. based investment management firm and provider of VanEck Vectors\u00ae<\/sup> ETFs.\n<\/p>\n 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.<\/b><\/p>\n 1<\/sup> Source: Moody\u2019s Analytics based on various industry awards including Risk Technology Awards 2020 Winner (Best credit data provider, Best wholesale credit modelling software), Risk Technology Awards 2019 Winner (Best credit data provider, Best wholesale credit modelling software), and Data Management Awards 2018 Winner (Best risk data aggregation platform)\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20201202005742\/en\/<\/a><\/span><\/p>\n \nChris Sullivan\/Julia Stoll KEYWORDS:<\/b> United States North America New York<\/p>\n INDUSTRY KEYWORDS:<\/b> Banking Professional Services Finance<\/p>\n
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MacMillan Communications
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chris@macmillancom.com<\/a><\/p>\n
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