SEMI-ANNUAL
REPORT March 31, 2022 (unaudited) |
Inflation Allocation ETF | RAAX® |
Long/Flat Trend ETF | LFEQ® |
Morningstar Durable Dividend ETF | DURA® |
Morningstar ESG Moat ETF | MOTE |
Morningstar Global Wide Moat ETF | MOTG |
Morningstar International Moat ETF | MOTI® |
Morningstar Wide Moat ETF | MOAT® |
Social Sentiment ETF | BUZZ |
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of March 31, 2022.
VANECK ETF TRUST
March 31, 2022 (unaudited)
Dear Fellow Shareholders:
The world has certainly changed since I wrote you at the end of September 2021. Our market outlook then was: growth investments (including crypto) were overvalued, value (especially commodity equities) was attractive and the U.S. Federal Reserve (Fed) would tap the brakes and not slam them so as precipitate a recession. And that stocks would be “OK” in 2022. My view has not changed much.
The Economy
The global economy remains “hot”, fueled by the biggest stimulus seen since WWII. While commodity price inflation matters, the real concern about inflation and financial markets is wage inflation, a key driver of persistent inflation. It tends to be longer-lasting and may affect long-term interest rates. I believe that the tight labor conditions we have today will persist, even as the economy slows down, and we won’t really know the answer to the inflation-persistency question until the second half of 2022.
While China has been a large driver of global growth over the past 20 years, its economy has slowed. The jury remains out on just how long China’s slow-down may last and its depth. The question, then, is will Chinese policymakers stimulate the economy if growth slows too much? And, if they do, will they stimulate enough to keep being a driver of global growth.
Turning to the Fed, the question revolves around its possible actions. Short term, markets do not like Fed uncertainty and may continue to correct. However, I do not think the Fed will hit the brakes too hard by raising rates further than they have already indicated. If market seizes up, though, we may see positive Fed statements and a relief rally. We live in an era in which the Fed keeps an eye on the financial markets. We still see little reason why that would change.
Multi-Year Investment Themes
We continue to focus on two multi-year investment themes.
Energy and crypto were two of the best performing assets in 2021 and are two of the most interesting multi-year investment themes.
The first theme is the energy transition away from fossil fuels. We see this not only as being driven by government policy, but also by innovation in the private sector. In our resources portfolios, we’re looking for disruptive companies in the sectors that need to be more energy efficient. One is agriculture (which emits about as much CO2 as the energy sector). AgTech businesses are embracing technology to modernize agriculture, leading to higher crop yields, safer crop chemicals and other innovations in food production to provide healthy diets for the world’s growing population.
As the economy and demand for commodities grows, increasing supply has become harder. This is in part due to environmental, social and governance (ESG) policies in place, causing “greenflation” and a multi-year trend of price pressure. Finding supply sources like new copper, lithium or gold mines is harder because of, to a certain extent, the environmental impact of these activities. I think this supply issue will continue to underpin commodity prices, and this is why I believe that commodity equities remain an interesting investment that people should have in their portfolios.
The second theme is crypto, in particular, the use of blockchain in a large variety of industries and most especially in the field of “smart contracts.” New open source database technology is enabling incredibly rapid adoption and at much lower cost than traditional companies using prior generation technology. The fintech revolution that goes hand in hand with crypto is something we find really exciting. Of course, as with all growth, there are some over-valued companies, but we think it’s another interesting multi-year trend that investors should consider.
We thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each the funds for the six month period ended March 31, 2022. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
1 |
VANECK ETF TRUST
PRESIDENT’S LETTER
(unaudited) (continued)
Jan F.
van Eck
CEO and President
VanEck ETF Trust
April 6, 2022
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
2 |
VANECK ETF TRUST
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, October 1, 2021 to March 31, 2022.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value October 1, 2021 |
Ending Account Value March 31, 2022 |
Annualized Expense Ratio During Period |
Expenses
Paid During the Period October 1, 2021 - March 31, 2022(a) |
||||||
Inflation Allocation ETF | |||||||||
Actual | $1,000.00 | $1,193.90 | 0.55% | $3.01 | |||||
Hypothetical (b) | $1,000.00 | $1,022.19 | 0.55% | $2.77 | |||||
Long/Flat Trend ETF | |||||||||
Actual | $1,000.00 | $1,056.80 | 0.55% | $2.82 | |||||
Hypothetical (b) | $1,000.00 | $1,022.19 | 0.55% | $2.77 | |||||
Morningstar Durable Dividend ETF | |||||||||
Actual | $1,000.00 | $1,080.10 | 0.29% | $1.50 | |||||
Hypothetical (b) | $1,000.00 | $1,023.49 | 0.29% | $1.46 | |||||
Morningstar ESG Moat ETF | |||||||||
Actual (c) | $1,000.00 | $986.20 | 0.49% | $2.36 | |||||
Hypothetical (b) | $1,000.00 | $1,022.49 | 0.49% | $2.47 | |||||
Morningstar Global Wide Moat ETF | |||||||||
Actual | $1,000.00 | $1,006.60 | 0.52% | $2.60 | |||||
Hypothetical (b) | $1,000.00 | $1,022.34 | 0.52% | $2.62 | |||||
Morningstar International Moat ETF | |||||||||
Actual | $1,000.00 | $991.20 | 0.57% | $2.83 | |||||
Hypothetical (b) | $1,000.00 | $1,022.09 | 0.57% | $2.87 | |||||
Morningstar Wide Moat ETF | |||||||||
Actual | $1,000.00 | $1,029.10 | 0.46% | $2.33 | |||||
Hypothetical (b) | $1,000.00 | $1,022.64 | 0.46% | $2.32 |
3 |
VANECK ETF TRUST
EXPLANATION OF EXPENSES
(unaudited) (continued)
Beginning Account Value October 1, 2021 |
Ending Account Value March 31, 2022 |
Annualized Expense Ratio During Period |
Expenses
Paid During the Period October 1, 2021 - March 31, 2022(a) |
||||||
Social Sentiment ETF | |||||||||
Actual | $1,000.00 | $785.60 | 0.75% | $3.34 | |||||
Hypothetical (b) | $1,000.00 | $1,021.19 | 0.75% | $3.78 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended March 31, 2022), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(b) | Assumes annual return of 5% before expenses |
(c) | Expenses are equal to the Fund’s annualized expense ratio (for the period from October 6, 2021 (commencement of operations) to March 31, 2022) multiplied by the average account value over the period, multiplied by the number of days since the commencement of operations divided by the number of days in the fiscal year. |
4 |
VANECK INFLATION ALLOCATION ETF
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
EXCHANGE TRADED FUNDS: 99.9% (a) | ||||||||
Energy Select Sector SPDR Fund † | 51,657 | $ | 3,948,661 | |||||
First Trust NASDAQ Clean Edge Green Energy Index Fund | 11,992 | 774,923 | ||||||
Global X US Infrastructure Development ETF | 138,748 | 3,923,793 | ||||||
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 963,612 | 16,998,116 | ||||||
Invesco Solar ETF | 9,336 | 704,495 | ||||||
iShares Global Infrastructure ETF † | 79,133 | 4,024,704 | ||||||
iShares Gold Strategy ETF | 12,081 | 713,016 | ||||||
iShares Gold Trust | 6,254 | 230,335 | ||||||
iShares MSCI Global Metals & Mining Producers ETF | 43,101 | 2,207,633 | ||||||
Nuveen Short-Term REIT ETF | 22,235 | 869,389 | ||||||
Purpose Bitcoin ETF | 173,029 | 1,475,937 | ||||||
SPDR Gold MiniShares Trust | 5,993 | 230,551 | ||||||
SPDR S&P Oil & Gas Exploration & Production ETF † | 26,808 | 3,607,016 | ||||||
VanEck Agribusiness ETF † ‡ | 33,041 | 3,454,106 | ||||||
VanEck Energy Income ETF ‡ | 69,323 | 4,478,827 | ||||||
VanEck Gold Miners ETF ‡ | 104,187 | 3,995,571 |
Number of Shares |
Value | |||||||
VanEck Junior Gold Miners ETF ‡ | 30,903 | $ | 1,448,424 | |||||
VanEck Low Carbon Energy ETF † ‡ | 10,254 | 1,488,234 | ||||||
VanEck Merk Gold Shares | 493,541 | 9,293,377 | ||||||
VanEck Mortgage REIT Income ETF † ‡ | 37,986 | 648,801 | ||||||
VanEck Oil Services ETF † ‡ | 9,440 | 2,667,272 | ||||||
VanEck Steel ETF † ‡ | 36,387 | 2,468,494 | ||||||
Vanguard Real Estate ETF † | 91,657 | 9,932,869 | ||||||
Total
Exchange Traded Funds (Cost: $73,731,970) |
79,584,544 | |||||||
SHORT-TERM
INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 9.4% (Cost: $7,517,472) |
||||||||
Money Market Fund: 9.4% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 7,517,472 | 7,517,472 | ||||||
Total
Investments: 109.3% (Cost: $81,249,442) |
87,102,016 | |||||||
Liabilities in excess of other assets: (9.3)% | (7,395,282) | |||||||
NET ASSETS: 100.0% | $ | 79,706,734 |
Footnotes:
(a) | Each underlying fund’s shareholder reports and registration documents are available free of charge on the SEC’s website at https:// www.sec.gov. |
† | Security fully or partially on loan. Total market value of securities on loan is $18,993,329. |
‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned |
% of Investments |
Value | ||||||
Agribusiness | 4.3 | % | $ | 3,454,106 | ||||
Digital Currency | 1.8 | 1,475,937 | ||||||
Diversified Commodities Futures | 21.4 | 16,998,116 | ||||||
Energy | 14.3 | 11,395,140 | ||||||
Global Metals and Mining | 2.8 | 2,207,633 | ||||||
Gold Bullion | 15.0 | 11,915,702 | ||||||
Gold Mining | 5.0 | 3,995,572 | ||||||
Industrials | 4.9 | 3,923,793 | ||||||
Oil Services | 7.9 | 6,274,288 | ||||||
Real Estate Investment Trusts | 14.4 | 11,451,059 | ||||||
Steel | 3.1 | 2,468,494 | ||||||
Utilities | 5.1 | 4,024,704 | ||||||
100.0 | % | $ | 79,584,544 |
See Notes to Financial Statements
5 |
VANECK INFLATION ALLOCATION ETF
CONSOLIDATED SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Transactions in securities of affiliates for the period ended March 31, 2022:
Value 9/30/2021 |
Purchases | Sales Proceeds |
Realized Gain (Loss) |
Dividend Income |
Net Change in Unrealized Appreciation (Depreciation) |
Value 3/31/2022 | ||||||||||||||||||||||
VanEck Agribusiness ETF | $ | 784,573 | $ | 2,579,485 | $ | (191,863 | ) | $ | (2,828 | ) | $ | 17,661 | $ | 284,739 | $ | 3,454,106 | ||||||||||||
VanEck Energy Income ETF | 980,050 | 3,289,302 | (255,004 | ) | (17,816 | ) | 30,569 | 482,295 | 4,478,827 | |||||||||||||||||||
VanEck Gold Miners ETF | 687,476 | 2,943,145 | (119,934 | ) | (25,048 | ) | 25,551 | 509,932 | 3,995,571 | |||||||||||||||||||
VanEck Junior Gold Miners ETF | – | 1,463,858 | (46,784 | ) | (7,707 | ) | 10,559 | 39,057 | 1,448,424 | |||||||||||||||||||
VanEck Low Carbon Energy ETF | 398,697 | 1,180,559 | (96,661 | ) | (13,251 | ) | 3,493 | 18,890 | 1,488,234 | |||||||||||||||||||
VanEck Mortgage REIT Income ETF | 189,021 | 530,887 | (48,292 | ) | (4,718 | ) | 12,027 | (18,097 | ) | 648,801 | ||||||||||||||||||
VanEck Oil Services ETF | 480,310 | 1,874,454 | (118,877 | ) | (15,438 | ) | 8,069 | 446,823 | 2,667,272 | |||||||||||||||||||
VanEck Steel ETF | 488,167 | 1,783,342 | (119,249 | ) | (16,073 | ) | 61,126 | 332,307 | 2,468,494 | |||||||||||||||||||
VanEck Vectors Unconventional Oil & Gas ETF | 667,902 | 194,648 | (951,584 | ) | 249,119 | – | (160,085 | ) | – | |||||||||||||||||||
$ | 4,676,196 | $ | 15,839,680 | $ | (1,948,248 | ) | $ | 146,240 | $ | 169,055 | $ | 1,935,861 | $ | 20,649,729 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Exchange Traded Funds | $ | 79,584,544 | $ | — | $ | — | $ | 79,584,544 | ||||||||
Money Market Fund | 7,517,472 | — | — | 7,517,472 | ||||||||||||
Total Investments | $ | 87,102,016 | $ | — | $ | — | $ | 87,102,016 |
See Notes to Financial Statements
6 |
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
EXCHANGE
TRADED FUND: 99.8% (a) (Cost: $37,813,594) |
||||||||
Vanguard S&P 500 ETF | 103,658 | $ | 43,035,692 | |||||
Total
Investments: 99.8% (Cost: $37,813,594) |
43,035,692 | |||||||
Other assets less liabilities: 0.2% | 93,143 | |||||||
NET ASSETS: 100.0% | $ | 43,128,835 |
Footnotes:
(a) | The underlying fund’s shareholder reports and registration documents are available free of charge on the SEC’s website at https://www. sec.gov. |
Summary of Investments by Sector | %
of Investments |
Value | ||||
Exchanged Traded Fund | 100.0% | $ | 43,035,692 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Exchange Traded Funds | $ | 43,035,692 | $ | — | $ | — | $ | 43,035,692 |
See Notes to Financial Statements
7 |
VANECK MORNINGSTAR DURABLE DIVIDEND ETF
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
COMMON STOCKS: 99.4% | ||||||||
Automobiles & Components: 0.1% | ||||||||
Gentex Corp. | 1,464 | $ | 42,705 | |||||
Banks: 4.9% | ||||||||
JPMorgan Chase & Co. | 22,331 | 3,044,162 | ||||||
Capital Goods: 8.9% | ||||||||
3M Co. | 8,521 | 1,268,607 | ||||||
Cummins, Inc. | 1,500 | 307,665 | ||||||
Donaldson Co., Inc. | 771 | 40,038 | ||||||
Eaton Corp. Plc | 2,970 | 450,727 | ||||||
Emerson Electric Co. | 4,765 | 467,208 | ||||||
Hubbell, Inc. | 449 | 82,513 | ||||||
Illinois Tool Works, Inc. | 2,370 | 496,278 | ||||||
Lincoln Electric Holdings, Inc. | 358 | 49,336 | ||||||
Lockheed Martin Corp. | 2,175 | 960,045 | ||||||
Masco Corp. | 1,626 | 82,926 | ||||||
MSC Industrial Direct Co., Inc. | 657 | 55,983 | ||||||
Raytheon Technologies Corp. | 11,349 | 1,124,345 | ||||||
Rockwell Automation, Inc. | 684 | 191,541 | ||||||
5,577,212 | ||||||||
Consumer Durables & Apparel: 0.2% | ||||||||
Garmin Ltd. | 1,313 | 155,735 | ||||||
Consumer Services: 4.4% | ||||||||
McDonald’s Corp. | 6,596 | 1,631,059 | ||||||
Starbucks Corp. | 9,264 | 842,746 | ||||||
Wendy’s Co. | 1,297 | 28,495 | ||||||
Yum! Brands, Inc. | 1,926 | 228,289 | ||||||
2,730,589 | ||||||||
Diversified Financials: 5.4% | ||||||||
BlackRock, Inc. | 1,243 | 949,863 | ||||||
Blackstone, Inc. | 8,790 | 1,115,803 | ||||||
CME Group, Inc. | 2,067 | 491,657 | ||||||
Cohen & Steers, Inc. | 212 | 18,209 | ||||||
Evercore, Inc. | 345 | 38,405 | ||||||
Federated Hermes, Inc. | 1,246 | 42,439 | ||||||
Franklin Resources, Inc. | 4,094 | 114,304 | ||||||
Invesco Ltd. | 4,225 | 97,429 | ||||||
Janus Henderson Group Plc | 2,971 | 104,044 | ||||||
T Rowe Price Group, Inc. | 2,557 | 386,593 | ||||||
3,358,746 | ||||||||
Energy: 2.7% | ||||||||
Coterra Energy, Inc. | 5,205 | 140,379 | ||||||
Kinder Morgan, Inc. | 42,015 | 794,503 | ||||||
The Williams Companies, Inc. | 22,553 | 753,496 | ||||||
1,688,378 | ||||||||
Food & Staples Retailing: 2.5% | ||||||||
Sysco Corp. | 4,379 | 357,545 | ||||||
Walmart, Inc. | 8,269 | 1,231,420 | ||||||
1,588,965 | ||||||||
Food, Beverage & Tobacco: 18.8% | ||||||||
Altria Group, Inc. | 46,644 | 2,437,149 | ||||||
Campbell Soup Co. | 2,568 | 114,456 | ||||||
Conagra Brands, Inc. | 6,823 | 229,048 | ||||||
General Mills, Inc. | 7,055 | 477,765 | ||||||
J M Smucker Co. | 1,184 | 160,325 | ||||||
Mondelez International, Inc. | 11,135 | 699,055 | ||||||
PepsiCo, Inc. | 13,711 | 2,294,947 |
Number of Shares |
Value | |||||||
Food, Beverage & Tobacco (continued) | ||||||||
Philip Morris International, Inc. | 29,941 | $ | 2,812,658 | |||||
The Coca-Cola Co. | 40,780 | 2,528,360 | ||||||
11,753,763 | ||||||||
Health Care Equipment & Services: 2.2% | ||||||||
Medtronic Plc | 11,717 | 1,300,001 | ||||||
Quest Diagnostics, Inc. | 821 | 112,362 | ||||||
1,412,363 | ||||||||
Household & Personal Products: 1.8% | ||||||||
Colgate-Palmolive Co. | 7,394 | 560,687 | ||||||
Kimberly-Clark Corp. | 4,537 | 558,777 | ||||||
1,119,464 | ||||||||
Insurance: 1.2% | ||||||||
Allstate Corp. | 2,826 | 391,429 | ||||||
Travelers Cos, Inc. | 1,843 | 336,772 | ||||||
728,201 | ||||||||
Materials: 2.2% | ||||||||
Air Products and Chemicals, Inc. | 2,139 | 534,558 | ||||||
Amcor Plc | 23,977 | 271,659 | ||||||
International Flavors & Fragrances, Inc. | 2,407 | 316,111 | ||||||
PPG Industries, Inc. | 1,642 | 215,217 | ||||||
Sensient Technologies Corp. | 317 | 26,612 | ||||||
1,364,157 | ||||||||
Media & Entertainment: 2.7% | ||||||||
Comcast Corp. | 36,158 | 1,692,917 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences: 16.6% | ||||||||
Amgen, Inc. | 6,471 | 1,564,817 | ||||||
Bristol-Myers Squibb Co. | 24,126 | 1,761,922 | ||||||
Gilead Sciences, Inc. | 22,060 | 1,311,467 | ||||||
Johnson & Johnson | 17,701 | 3,137,148 | ||||||
Merck & Co., Inc. | 31,575 | 2,590,729 | ||||||
10,366,083 | ||||||||
Semiconductors & Semiconductor Equipment: 7.4% | ||||||||
Analog Devices, Inc. | 3,653 | 603,402 | ||||||
Broadcom, Inc. | 3,760 | 2,367,597 | ||||||
Skyworks Solutions, Inc. | 982 | 130,881 | ||||||
Texas Instruments, Inc. | 8,543 | 1,567,470 | ||||||
4,669,350 | ||||||||
Software & Services: 1.0% | ||||||||
Broadridge Financial Solutions, Inc. | 703 | 109,464 | ||||||
Paychex, Inc. | 2,535 | 345,951 | ||||||
Western Union Co. | 7,767 | 145,554 | ||||||
600,969 | ||||||||
Technology Hardware & Equipment: 3.7% | ||||||||
Cisco Systems, Inc. | 41,025 | 2,287,554 | ||||||
National Instruments Corp. | 1,334 | 54,147 | ||||||
2,341,701 | ||||||||
Telecommunication Services: 4.6% | ||||||||
Cogent Communications Holdings, Inc. | 770 | 51,089 | ||||||
Verizon Communications, Inc. | 55,784 | 2,841,637 | ||||||
2,892,726 | ||||||||
Utilities: 8.1% | ||||||||
American Electric Power Co., Inc. | 5,925 | 591,137 |
See Notes to Financial Statements
8 |
Number of Shares |
Value | |||||||
Utilities (continued) | ||||||||
Avangrid, Inc. | 999 | $ | 46,693 | |||||
Dominion Energy, Inc. | 9,278 | 788,352 | ||||||
Duke Energy Corp. | 10,526 | 1,175,333 | ||||||
NiSource, Inc. | 4,358 | 138,584 | ||||||
PPL Corp. | 17,176 | 490,547 | ||||||
Public Service Enterprise Group, Inc. | 5,734 | 401,380 | ||||||
Southern Co. | 15,357 | 1,113,536 | ||||||
WEC Energy Group, Inc. | 3,464 | 345,742 | ||||||
5,091,304 | ||||||||
Total
Common Stocks (Cost: $58,996,227) |
62,219,490 | |||||||
Total Investments:
99.4% (Cost: $58,996,227) |
62,219,490 | |||||||
Other assets less liabilities: 0.6% | 371,053 | |||||||
NET ASSETS: 100.0% | $ | 62,590,543 |
Summary of Investments by Sector | % of Investments |
Value | ||||||
Communication Services | 7.3 | % | $ | 4,585,643 | ||||
Consumer Discretionary | 4.7 | 2,929,029 | ||||||
Consumer Staples | 23.2 | 14,462,192 | ||||||
Energy | 2.7 | 1,688,378 | ||||||
Financials | 11.5 | 7,131,109 | ||||||
Health Care | 18.9 | 11,778,446 | ||||||
Industrials | 9.0 | 5,577,212 | ||||||
Information Technology | 12.3 | 7,612,020 | ||||||
Materials | 2.2 | 1,364,157 | ||||||
Utilities | 8.2 | 5,091,304 | ||||||
100.0 | % | $ | 62,219,490 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Common Stocks * | $ | 62,219,490 | $ | — | $ | — | $ | 62,219,490 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
9 |
VANECK MORNINGSTAR ESG MOAT ETF
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
COMMON STOCKS: 99.7% | ||||||||
Capital Goods: 2.4% | ||||||||
Masco Corp. | 364 | $ | 18,564 | |||||
Roper Technologies, Inc. | 53 | 25,028 | ||||||
43,592 | ||||||||
Commercial & Professional Services: 2.3% | ||||||||
Equifax, Inc. | 85 | 20,154 | ||||||
TransUnion | 215 | 22,218 | ||||||
42,372 | ||||||||
Consumer Durables & Apparel: 3.6% | ||||||||
NIKE, Inc. | 185 | 24,894 | ||||||
Polaris, Inc. | 405 | 42,655 | ||||||
67,549 | ||||||||
Consumer Services: 5.9% | ||||||||
McDonald’s Corp. | 97 | 23,986 | ||||||
Starbucks Corp. | 431 | 39,208 | ||||||
Yum! Brands, Inc. | 396 | 46,938 | ||||||
110,132 | ||||||||
Diversified Financials: 14.3% | ||||||||
American Express Co. | 149 | 27,863 | ||||||
BlackRock, Inc. | 55 | 42,029 | ||||||
CME Group, Inc. | 112 | 26,640 | ||||||
Intercontinental Exchange, Inc. | 392 | 51,791 | ||||||
S&P Global, Inc. | 60 | 24,611 | ||||||
State Street Corp. | 306 | 26,659 | ||||||
T Rowe Price Group, Inc. | 123 | 18,596 | ||||||
The Bank of New York Mellon Corp. | 934 | 46,354 | ||||||
264,543 | ||||||||
Energy: 1.8% | ||||||||
Cheniere Energy, Inc. | 238 | 32,999 | ||||||
Food & Staples Retailing: 1.9% | ||||||||
Costco Wholesale Corp. | 63 | 36,279 | ||||||
Food, Beverage & Tobacco: 9.7% | ||||||||
Constellation Brands, Inc. | 213 | 49,058 | ||||||
Kellogg Co. | 405 | 26,118 | ||||||
Mondelez International, Inc. | 796 | 49,973 | ||||||
PepsiCo, Inc. | 151 | 25,274 | ||||||
The Coca-Cola Co. | 456 | 28,272 | ||||||
178,695 | ||||||||
Health Care Equipment & Services: 3.0% | ||||||||
Medtronic Plc | 191 | 21,191 | ||||||
Veeva Systems, Inc. * | 168 | 35,693 | ||||||
56,884 | ||||||||
Household & Personal Products: 1.2% | ||||||||
Colgate-Palmolive Co. | 292 | 22,142 | ||||||
Materials: 2.2% | ||||||||
Ecolab, Inc. | 108 | 19,068 | ||||||
International Flavors & Fragrances, Inc. | 169 | 22,195 | ||||||
41,263 | ||||||||
Media & Entertainment: 8.6% | ||||||||
Alphabet, Inc. * | 18 | 50,064 | ||||||
Comcast Corp. | 935 | 43,777 | ||||||
John Wiley & Sons, Inc. | 858 | 45,500 | ||||||
Walt Disney Co. * | 135 | 18,517 | ||||||
157,858 |
Number of Shares |
Value | |||||||
Pharmaceuticals, Biotechnology & Life Sciences: 5.7% | ||||||||
Gilead Sciences, Inc. | 360 | $ | 21,402 | |||||
Johnson & Johnson | 153 | 27,116 | ||||||
Merck & Co., Inc. | 343 | 28,143 | ||||||
Thermo Fisher Scientific, Inc. | 48 | 28,351 | ||||||
105,012 | ||||||||
Retailing: 1.4% | ||||||||
Lowe’s Companies, Inc. | 127 | 25,678 | ||||||
Semiconductors & Semiconductor Equipment: 11.6% | ||||||||
Applied Materials, Inc. | 339 | 44,680 | ||||||
Intel Corp. | 485 | 24,037 | ||||||
KLA Corp. | 137 | 50,150 | ||||||
Lam Research Corp. | 73 | 39,246 | ||||||
Monolithic Power Systems, Inc. | 67 | 32,541 | ||||||
Texas Instruments, Inc. | 131 | 24,036 | ||||||
214,690 | ||||||||
Software & Services: 19.5% | ||||||||
Adobe, Inc. * | 80 | 36,450 | ||||||
Aspen Technology, Inc. * | 340 | 56,227 | ||||||
Blackbaud, Inc. * | 320 | 19,158 | ||||||
Intuit, Inc. | 50 | 24,042 | ||||||
Mastercard, Inc. | 64 | 22,872 | ||||||
Microsoft Corp. | 166 | 51,179 | ||||||
Salesforce.com, Inc. * | 192 | 40,765 | ||||||
ServiceNow, Inc. * | 82 | 45,665 | ||||||
Tyler Technologies, Inc. * | 47 | 20,910 | ||||||
Western Union Co. | 995 | 18,646 | ||||||
Workday, Inc. * | 99 | 23,707 | ||||||
359,621 | ||||||||
Transportation: 4.6% | ||||||||
CH Robinson Worldwide, Inc. | 503 | 54,178 | ||||||
Union Pacific Corp. | 110 | 30,053 | ||||||
84,231 | ||||||||
Total Common
Stocks (Cost: $1,920,252) |
1,843,540 | |||||||
Total Investments: 99.7% (Cost: $1,920,252) |
1,843,540 | |||||||
Other assets less liabilities: 0.3% | 5,975 | |||||||
NET ASSETS: 100.0% | $ | 1,849,515 |
See Notes to Financial Statements
10 |
Footnotes:
* | Non-income producing |
Summary of Investments by Sector | % of Investments |
Value | ||||||
Communication Services | 8.5 | % | $ | 157,857 | ||||
Consumer Discretionary | 11.1 | 203,358 | ||||||
Consumer Staples | 12.9 | 237,117 | ||||||
Energy | 1.8 | 32,999 | ||||||
Financials | 14.3 | 264,544 | ||||||
Health Care | 8.8 | 161,897 | ||||||
Industrials | 9.3 | 170,195 | ||||||
Information Technology | 31.1 | 574,310 | ||||||
Materials | 2.2 | 41,263 | ||||||
100.0 | % | $ | 1,843,540 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Common Stocks * | $ | 1,843,540 | $ | — | $ | — | $ | 1,843,540 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
11 |
VANECK MORNINGSTAR GLOBAL WIDE MOAT ETF
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
COMMON STOCKS: 100.0% | ||||||||
Australia: 5.5% | ||||||||
Australia & New Zealand Banking Group Ltd. # | 9,329 | $ | 191,837 | |||||
Brambles Ltd. # | 24,422 | 180,864 | ||||||
National Australia Bank Ltd. # | 8,885 | 214,663 | ||||||
Westpac Banking Corp. # | 22,980 | 416,640 | ||||||
1,004,004 | ||||||||
Belgium: 1.0% | ||||||||
Anheuser-Busch InBev SA # | 3,021 | 181,665 | ||||||
Brazil: 2.2% | ||||||||
Ambev SA | 124,600 | 403,800 | ||||||
Canada: 2.2% | ||||||||
Royal Bank of Canada | 1,797 | 198,022 | ||||||
Toronto-Dominion Bank | 2,493 | 197,975 | ||||||
395,997 | ||||||||
China: 1.7% | ||||||||
Inner Mongolia Yili Industrial Group Co. Ltd. # | 29,800 | 172,486 | ||||||
JD.com, Inc. (HKD) # * | 5,100 | 144,951 | ||||||
317,437 | ||||||||
France: 4.0% | ||||||||
Airbus SE # * † | 2,954 | 358,517 | ||||||
Safran SA # | 1,497 | 177,269 | ||||||
Sanofi # | 1,837 | 188,901 | ||||||
724,687 | ||||||||
Germany: 1.9% | ||||||||
Bayer AG # | 2,910 | 200,193 | ||||||
GEA Group AG # * | 3,417 | 140,864 | ||||||
341,057 | ||||||||
Ireland: 2.2% | ||||||||
Medtronic Plc (USD) | 3,543 | 393,096 | ||||||
Japan: 0.9% | ||||||||
Japan Tobacco, Inc. # | 9,900 | 169,576 | ||||||
Netherlands: 1.0% | ||||||||
ASML Holding NV # | 281 | 188,857 | ||||||
Sweden: 1.0% | ||||||||
Assa Abloy AB # | 7,049 | 191,162 | ||||||
Switzerland: 4.9% | ||||||||
Julius Baer Group Ltd. # | 6,038 | 351,010 | ||||||
Novartis AG # | 2,117 | 186,622 | ||||||
Roche Holding AG # | 895 | 355,580 | ||||||
893,212 | ||||||||
Taiwan: 1.9% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. # | 17,000 | 348,730 | ||||||
United Kingdom: 9.6% | ||||||||
AstraZeneca Plc # | 1,440 | 191,399 | ||||||
BAE Systems Plc # | 27,642 | 260,191 | ||||||
British American Tobacco Plc # | 9,254 | 389,530 | ||||||
GlaxoSmithKline Plc # | 8,493 | 184,182 | ||||||
Imperial Brands Plc # | 17,222 | 363,605 | ||||||
Meggitt Plc # * | 19,009 | 189,600 | ||||||
Unilever Plc # | 3,825 | 174,062 | ||||||
1,752,569 |
Number of Shares |
Value | |||||||
United States: 60.0% | ||||||||
3M Co. | 1,065 | $ | 158,557 | |||||
Adobe, Inc. * | 383 | 174,502 | ||||||
Alphabet, Inc. * | 128 | 356,013 | ||||||
Altria Group, Inc. | 3,882 | 202,835 | ||||||
Amazon.com, Inc. * | 116 | 378,154 | ||||||
Applied Materials, Inc. | 1,344 | 177,139 | ||||||
Aspen Technology, Inc. * | 1,238 | 204,728 | ||||||
Berkshire Hathaway, Inc. * | 626 | 220,922 | ||||||
Biogen, Inc. * | 790 | 166,374 | ||||||
Blackbaud, Inc. * | 2,268 | 135,785 | ||||||
BlackRock, Inc. | 249 | 190,278 | ||||||
Comcast Corp. | 3,851 | 180,304 | ||||||
Compass Minerals International, Inc. | 2,908 | 182,593 | ||||||
Constellation Brands, Inc. | 1,579 | 363,675 | ||||||
Corteva, Inc. | 3,959 | 227,563 | ||||||
Emerson Electric Co. | 3,885 | 380,924 | ||||||
Equifax, Inc. | 768 | 182,093 | ||||||
Gilead Sciences, Inc. | 5,552 | 330,066 | ||||||
Intel Corp. | 3,698 | 183,273 | ||||||
Intercontinental Exchange, Inc. | 1,362 | 179,947 | ||||||
International Flavors & Fragrances, Inc. | 1,430 | 187,802 | ||||||
Kellogg Co. | 5,712 | 368,367 | ||||||
Lam Research Corp. | 334 | 179,562 | ||||||
Lockheed Martin Corp. | 546 | 241,004 | ||||||
Masco Corp. | 5,932 | 302,532 | ||||||
McDonald’s Corp. | 1,495 | 369,684 | ||||||
Merck & Co., Inc. | 2,453 | 201,269 | ||||||
Meta Platforms, Inc. * | 539 | 119,852 | ||||||
Microchip Technology, Inc. | 2,438 | 183,191 | ||||||
Microsoft Corp. | 1,153 | 355,481 | ||||||
Philip Morris International, Inc. | 3,854 | 362,045 | ||||||
Polaris, Inc. | 3,289 | 346,398 | ||||||
Roper Technologies, Inc. | 780 | 368,339 | ||||||
Salesforce.com, Inc. * | 1,552 | 329,521 | ||||||
ServiceNow, Inc. * | 591 | 329,122 | ||||||
T Rowe Price Group, Inc. | 1,244 | 188,080 | ||||||
Teradyne, Inc. | 1,546 | 182,784 | ||||||
The Bank of New York Mellon Corp. | 3,312 | 164,375 | ||||||
The Boeing Co. * | 1,916 | 366,914 | ||||||
The Coca-Cola Co. | 3,235 | 200,570 | ||||||
The Walt Disney Co. * | 1,244 | 170,627 | ||||||
TransUnion | 1,823 | 188,389 | ||||||
Tyler Technologies, Inc. * | 413 | 183,740 | ||||||
Veeva Systems, Inc. * | 704 | 149,572 | ||||||
Wells Fargo & Co. | 7,215 | 349,639 | ||||||
10,964,584 | ||||||||
Total Common
Stocks (Cost: $15,939,393) |
18,270,433 | |||||||
Total Investments: 100.0% (Cost: $15,939,393) |
18,270,433 | |||||||
Liabilities in excess of other assets: 0.0% | (7,555) | |||||||
NET ASSETS: 100.0% | $ | 18,262,878 |
See Notes to Financial Statements
12 |
Definitions:
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $6,112,956 which represents 33.5% of net assets. |
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $340,555. |
Summary of Investments by Sector | % of Investments |
Value | ||||||
Communication Services | 4.5 | % | $ | 826,796 | ||||
Consumer Discretionary | 6.8 | 1,239,187 | ||||||
Consumer Staples | 17.3 | 3,179,730 | ||||||
Financials | 15.7 | 2,863,389 | ||||||
Health Care | 14.0 | 2,547,253 | ||||||
Industrials | 21.1 | 3,859,705 | ||||||
Information Technology | 17.3 | 3,156,414 | ||||||
Materials | 3.3 | 597,959 | ||||||
100.0 | % | $ | 18,270,433 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 1,004,004 | $ | — | $ | 1,004,004 | ||||||||
Belgium | — | 181,665 | — | 181,665 | ||||||||||||
Brazil | 403,800 | — | — | 403,800 | ||||||||||||
Canada | 395,997 | — | — | 395,997 | ||||||||||||
China | — | 317,437 | — | 317,437 | ||||||||||||
France | — | 724,687 | — | 724,687 | ||||||||||||
Germany | — | 341,057 | — | 341,057 | ||||||||||||
Ireland | 393,096 | — | — | 393,096 | ||||||||||||
Japan | — | 169,576 | — | 169,576 | ||||||||||||
Netherlands | — | 188,857 | — | 188,857 | ||||||||||||
Sweden | — | 191,162 | — | 191,162 | ||||||||||||
Switzerland | — | 893,212 | — | 893,212 | ||||||||||||
Taiwan | — | 348,730 | — | 348,730 | ||||||||||||
United Kingdom | — | 1,752,569 | — | 1,752,569 | ||||||||||||
United States | 10,964,584 | — | — | 10,964,584 | ||||||||||||
Total Investments | $ | 12,157,477 | $ | 6,112,956 | $ | — | $ | 18,270,433 |
See Notes to Financial Statements
13 |
VANECK MORNINGSTAR INTERNATIONAL MOAT ETF
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
COMMON STOCKS: 98.8% | ||||||||
Australia: 5.2% | ||||||||
Brambles Ltd. # | 108,977 | $ | 807,059 | |||||
Link Administration Holdings Ltd. # | 232,893 | 900,030 | ||||||
Pendal Group Ltd. # † | 198,455 | 686,814 | ||||||
Pinnacle Investment Management Group Ltd. # | 109,641 | 859,718 | ||||||
Westpac Banking Corp. # | 53,548 | 970,854 | ||||||
4,224,475 | ||||||||
Belgium: 1.0% | ||||||||
Anheuser-Busch InBev SA # | 13,366 | 803,751 | ||||||
Canada: 0.9% | ||||||||
CI Financial Corp. | 48,508 | 771,281 | ||||||
China: 20.4% | ||||||||
ANTA Sports Products Ltd. (HKD) # | 122,200 | 1,516,258 | ||||||
Bank of China Ltd. (HKD) # | 2,357,000 | 940,802 | ||||||
Beijing Enterprises Holdings Ltd. (HKD) # | 235,000 | 741,818 | ||||||
BOC Hong Kong Holdings Ltd. (HKD) # | 484,000 | 1,821,630 | ||||||
China Education Group Holdings Ltd. (HKD) # † | 494,000 | 425,165 | ||||||
China Resources Gas Group Ltd. (HKD) # | 210,000 | 884,078 | ||||||
CSPC Pharmaceutical Group Ltd. (HKD) # | 804,000 | 921,483 | ||||||
Innovent Biologics, Inc. (HKD) 144A # * | 128,000 | 430,841 | ||||||
JD.com, Inc. (HKD) # * | 22,450 | 638,069 | ||||||
NetEase, Inc. (HKD) # | 85,900 | 1,550,250 | ||||||
Samsonite International SA (HKD) 144A # * | 855,300 | 1,914,100 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd. (HKD) # | 447,600 | 859,644 | ||||||
Shenzhou International Group Holdings Ltd. (HKD) # | 57,300 | 756,659 | ||||||
Sinopharm Group Co. Ltd. (HKD) # | 719,600 | 1,633,926 | ||||||
Sun Hung Kai Properties Ltd. (HKD) # | 70,000 | 833,025 | ||||||
Sunny Optical Technology Group Co. Ltd. (HKD) # | 41,300 | 656,058 | ||||||
16,523,806 | ||||||||
Denmark: 2.0% | ||||||||
Danske Bank A/S # | 94,953 | 1,588,706 | ||||||
France: 10.0% | ||||||||
Accor SA # * | 25,619 | 830,200 | ||||||
Airbus SE # * † | 6,293 | 763,760 | ||||||
Amundi SA 144A # | 20,864 | 1,434,952 | ||||||
Dassault Aviation SA # | 8,297 | 1,317,818 | ||||||
Safran SA # | 6,625 | 784,510 | ||||||
Sanofi # | 8,044 | 827,174 | ||||||
Sodexo SA # | 9,858 | 806,845 | ||||||
Thales SA # | 10,336 | 1,301,924 | ||||||
8,067,183 |
Number of Shares |
Value | |||||||
Germany: 6.6% | ||||||||
BASF SE # | 12,634 | $ | 725,074 | |||||
Bayer AG # | 14,498 | 997,387 | ||||||
Bayerische Motoren Werke AG # | 16,787 | 1,459,084 | ||||||
Fresenius SE & Co. KGaA # | 23,078 | 852,245 | ||||||
HeidelbergCement AG # | 23,658 | 1,348,555 | ||||||
5,382,345 | ||||||||
Israel: 0.9% | ||||||||
Nice Ltd. # * | 3,517 | 769,222 | ||||||
Italy: 2.5% | ||||||||
Leonardo SpA # * | 203,052 | 2,029,437 | ||||||
Japan: 8.6% | ||||||||
Asahi Group Holdings Ltd. # | 21,900 | 800,007 | ||||||
Japan Tobacco, Inc. # | 44,000 | 753,673 | ||||||
KDDI Corp. # | 27,500 | 904,343 | ||||||
MEIJI Holdings Co. Ltd. # † | 13,300 | 723,454 | ||||||
Mitsubishi Electric Corp. # | 69,500 | 799,482 | ||||||
Nippon Telegraph & Telephone Corp. # | 28,900 | 842,182 | ||||||
Rakuten Group, Inc. # † | 84,700 | 667,976 | ||||||
Taiyo Yuden Co. Ltd. # † | 33,400 | 1,499,735 | ||||||
6,990,852 | ||||||||
Mexico: 3.4% | ||||||||
Fomento Economico Mexicano SAB de CV | 104,400 | 865,690 | ||||||
Grupo Televisa SAB | 792,300 | 1,857,785 | ||||||
2,723,475 | ||||||||
Netherlands: 3.7% | ||||||||
ABN AMRO Bank NV 144A # † | 113,314 | 1,455,372 | ||||||
Akzo Nobel NV # | 8,875 | 766,972 | ||||||
ING Groep NV # | 73,181 | 768,498 | ||||||
2,990,842 | ||||||||
Singapore: 3.3% | ||||||||
CapitaLand Integrated Commercial Trust # | 560,508 | 928,641 | ||||||
Oversea-Chinese Banking Corp. Ltd. # | 96,700 | 878,544 | ||||||
Singapore Technologies Engineering Ltd. # | 299,800 | 909,450 | ||||||
2,716,635 | ||||||||
South Korea: 4.1% | ||||||||
KT Corp. # | 59,615 | 1,746,151 | ||||||
Samsung Electro-Mechanics Co. Ltd. # | 11,452 | 1,541,954 | ||||||
3,288,105 | ||||||||
Spain: 2.9% | ||||||||
Banco Santander SA # | 480,583 | 1,643,400 | ||||||
Industria de Diseno Textil SA # | 30,575 | 670,544 | ||||||
2,313,944 | ||||||||
Sweden: 1.0% | ||||||||
Swedbank AB # † | 52,000 | 783,570 | ||||||
Switzerland: 1.0% | ||||||||
Julius Baer Group Ltd. # | 14,517 | 843,925 | ||||||
Taiwan: 4.3% | ||||||||
MediaTek, Inc. # | 44,000 | 1,369,303 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. # | 76,000 | 1,559,027 |
See Notes to Financial Statements
14 |
Number of Shares |
Value | |||||||
Taiwan (continued) | ||||||||
Win Semiconductors Corp. # | 61,000 | $ | 561,358 | |||||
3,489,688 | ||||||||
United Kingdom: 14.1% | ||||||||
British American Tobacco Plc # | 40,724 | 1,714,200 | ||||||
HSBC Holdings Plc # | 252,205 | 1,726,637 | ||||||
Imperial Brands Plc # | 75,811 | 1,600,585 | ||||||
Lloyds Banking Group Plc # | 2,517,769 | 1,536,738 | ||||||
Pearson Plc # | 96,922 | 952,494 | ||||||
Swire Properties Ltd. (HKD) # | 309,800 | 765,764 | ||||||
Vodafone Group Plc # | 1,009,379 | 1,658,945 | ||||||
WPP Plc # | 111,993 | 1,469,123 | ||||||
11,424,486 | ||||||||
United States: 2.9% | ||||||||
BRP, Inc. (CAD) † | 12,443 | 1,019,707 | ||||||
Yum China Holdings, Inc. | 31,128 | 1,293,057 | ||||||
2,312,764 | ||||||||
Total Common
Stocks (Cost: $80,387,506) |
80,038,492 |
Number of Shares |
Value | |||||||
PREFERRED
SECURITIES: 0.9% (Cost: $732,360) |
||||||||
Germany: 0.9% | ||||||||
Henkel AG & Co. KGaA, # | 10,562 | $ | 711,023 | |||||
Total Investments Before Collateral for Securities Loaned:
99.7% (Cost: $81,119,866) |
80,749,515 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON
LOAN: 1.1% (Cost: $896,745) |
||||||||
Money Market Fund: 1.1% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 896,745 | 896,745 | ||||||
Total
Investments: 100.8% (Cost: $82,016,611) |
81,646,260 | |||||||
Liabilities in excess of other assets: (0.8)% | (664,499) | |||||||
NET ASSETS: 100.0% | $ | 80,981,761 |
Definitions:
CAD | Canadian Dollar |
HKD | Hong Kong Dollar |
Footnotes:
# | Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $74,941,995 which represents 92.5% of net assets. |
† | Security fully or partially on loan. Total market value of securities on loan is $4,833,388. |
* | Non-income producing |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $5,235,265, or 6.5% of net assets. |
Summary
of Investments by Sector Excluding Collateral for Securities Loaned |
% of Investments |
Value | ||||||
Communication Services | 13.6 | % | $ | 10,981,273 | ||||
Consumer Discretionary | 14.8 | 11,997,664 | ||||||
Consumer Staples | 9.9 | 7,972,383 | ||||||
Financials | 23.2 | 18,711,440 | ||||||
Health Care | 8.0 | 6,522,701 | ||||||
Industrials | 10.8 | 8,713,440 | ||||||
Information Technology | 11.0 | 8,856,688 | ||||||
Materials | 3.5 | 2,840,601 | ||||||
Real Estate | 3.2 | 2,527,429 | ||||||
Utilities | 2.0 | 1,625,896 | ||||||
100.0 | % | $ | 80,749,515 |
See Notes to Financial Statements
15 |
VANECK MORNINGSTAR INTERNATIONAL MOAT ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 4,224,475 | $ | — | $ | 4,224,475 | ||||||||
Belgium | — | 803,751 | — | 803,751 | ||||||||||||
Canada | 771,281 | — | — | 771,281 | ||||||||||||
China | — | 16,523,806 | — | 16,523,806 | ||||||||||||
Denmark | — | 1,588,706 | — | 1,588,706 | ||||||||||||
France | — | 8,067,183 | — | 8,067,183 | ||||||||||||
Germany | — | 5,382,345 | — | 5,382,345 | ||||||||||||
Israel | — | 769,222 | — | 769,222 | ||||||||||||
Italy | — | 2,029,437 | — | 2,029,437 | ||||||||||||
Japan | — | 6,990,852 | — | 6,990,852 | ||||||||||||
Mexico | 2,723,475 | — | — | 2,723,475 | ||||||||||||
Netherlands | — | 2,990,842 | — | 2,990,842 | ||||||||||||
Singapore | — | 2,716,635 | — | 2,716,635 | ||||||||||||
South Korea | — | 3,288,105 | — | 3,288,105 | ||||||||||||
Spain | — | 2,313,944 | — | 2,313,944 | ||||||||||||
Sweden | — | 783,570 | — | 783,570 | ||||||||||||
Switzerland | — | 843,925 | — | 843,925 | ||||||||||||
Taiwan | — | 3,489,688 | — | 3,489,688 | ||||||||||||
United Kingdom | — | 11,424,486 | — | 11,424,486 | ||||||||||||
United States | 2,312,764 | — | — | 2,312,764 | ||||||||||||
Preferred Securities * | — | 711,023 | — | 711,023 | ||||||||||||
Money Market Fund | 896,745 | — | — | 896,745 | ||||||||||||
Total Investments | $ | 6,704,265 | $ | 74,941,995 | $ | — | $ | 81,646,260 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
16 |
VANECK MORNINGSTAR WIDE MOAT ETF
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
COMMON STOCKS: 100.0% | ||||||||
Banks: 2.4% | ||||||||
Wells Fargo & Co. | 3,551,066 | $ | 172,084,658 | |||||
Capital Goods: 10.2% | ||||||||
3M Co. | 587,332 | 87,441,988 | ||||||
Boeing Co. * | 943,560 | 180,691,740 | ||||||
Emerson Electric Co. | 1,911,618 | 187,434,145 | ||||||
Honeywell International, Inc. | 439,836 | 85,583,289 | ||||||
Lockheed Martin Corp. | 265,473 | 117,179,782 | ||||||
Masco Corp. | 1,591,255 | 81,154,005 | ||||||
739,484,949 | ||||||||
Commercial & Professional Services: 3.7% | ||||||||
CoStar Group, Inc. * | 1,510,044 | 100,584,031 | ||||||
Equifax, Inc. | 701,218 | 166,258,788 | ||||||
266,842,819 | ||||||||
Consumer Durables & Apparel: 2.4% | ||||||||
Polaris, Inc. † | 1,618,125 | 170,420,925 | ||||||
Diversified Financials: 4.1% | ||||||||
Berkshire Hathaway, Inc. * | 304,346 | 107,406,747 | ||||||
BlackRock, Inc. | 124,201 | 94,910,678 | ||||||
T Rowe Price Group, Inc. | 619,982 | 93,735,079 | ||||||
296,052,504 | ||||||||
Energy: 1.8% | ||||||||
Cheniere Energy, Inc. | 910,675 | 126,265,089 | ||||||
Food, Beverage & Tobacco: 12.7% | ||||||||
Altria Group, Inc. | 1,888,240 | 98,660,540 | ||||||
Campbell Soup Co. | 4,120,833 | 183,665,527 | ||||||
Constellation Brands, Inc. | 777,761 | 179,133,913 | ||||||
Kellogg Co. | 2,811,206 | 181,294,675 | ||||||
Philip Morris International, Inc. | 1,896,551 | 178,162,001 | ||||||
The Coca-Cola Co. | 1,573,533 | 97,559,046 | ||||||
918,475,702 | ||||||||
Health Care Equipment & Services: 7.6% | ||||||||
Medtronic Plc | 1,743,068 | 193,393,395 | ||||||
Veeva Systems, Inc. * | 798,936 | 169,741,942 | ||||||
Zimmer Biomet Holdings, Inc. | 1,475,302 | 188,691,126 | ||||||
551,826,463 | ||||||||
Materials: 5.6% | ||||||||
Compass Minerals International, Inc. † ‡ | 3,208,892 | 201,486,329 | ||||||
Corteva, Inc. | 1,925,680 | 110,688,086 | ||||||
Ecolab, Inc. | 521,772 | 92,124,064 | ||||||
404,298,479 | ||||||||
Media & Entertainment: 6.9% | ||||||||
Alphabet, Inc. * | 62,951 | 175,088,764 | ||||||
Comcast Corp. | 1,873,320 | 87,708,843 | ||||||
Meta Platforms, Inc. * | 695,994 | 154,761,226 | ||||||
Walt Disney Co. * | 605,046 | 82,988,109 | ||||||
500,546,942 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 8.7% | ||||||||
Biogen, Inc. * | 809,742 | 170,531,665 | ||||||
Bristol-Myers Squibb Co. | 1,474,691 | 107,696,684 | ||||||
Gilead Sciences, Inc. | 2,735,373 | 162,617,925 | ||||||
Merck & Co., Inc. | 2,300,130 | 188,725,666 | ||||||
629,571,940 |
Number of Shares |
Value | |||||||
Retailing: 6.2% | ||||||||
Amazon.com, Inc. * | 57,128 | $ | 186,234,424 | |||||
Etsy, Inc. * † | 594,963 | 73,942,002 | ||||||
MercadoLibre, Inc. * | 158,857 | 188,957,224 | ||||||
449,133,650 | ||||||||
Semiconductors & Semiconductor Equipment: 7.5% | ||||||||
Intel Corp. | 3,606,542 | 178,740,222 | ||||||
KLA Corp. | 253,574 | 92,823,298 | ||||||
Lam Research Corp. | 166,445 | 89,482,496 | ||||||
Microchip Technology, Inc. | 1,214,770 | 91,277,818 | ||||||
Teradyne, Inc. | 770,491 | 91,095,151 | ||||||
543,418,985 | ||||||||
Software & Services: 18.8% | ||||||||
Adobe, Inc. * | 190,972 | 87,010,662 | ||||||
Aspen Technology, Inc. * | 602,192 | 99,584,491 | ||||||
Blackbaud, Inc. * | 2,541,975 | 152,188,043 | ||||||
Guidewire Software, Inc. * | 1,733,004 | 163,976,838 | ||||||
Microsoft Corp. | 568,064 | 175,139,812 | ||||||
Salesforce.com, Inc. * | 765,118 | 162,449,854 | ||||||
ServiceNow, Inc. * | 291,212 | 162,173,051 | ||||||
Tyler Technologies, Inc. * | 381,364 | 169,665,030 | ||||||
Western Union Co. | 10,078,382 | 188,868,879 | ||||||
1,361,056,660 | ||||||||
Utilities: 1.4% | ||||||||
Dominion Energy, Inc. | 1,199,736 | 101,941,568 | ||||||
Total Common
Stocks (Cost: $7,044,236,259) |
7,231,421,333 | |||||||
SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR SECURITIES ON LOAN: 0.0% (Cost: $261) |
||||||||
Money Market Fund: 0.0% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 261 | 261 | ||||||
Total Investments: 100.0% (Cost: $7,044,236,520) |
7,231,421,594 | |||||||
Other assets less liabilities: 0.0% | 1,797,433 | |||||||
NET ASSETS: 100.0% | $ | 7,233,219,027 |
See Notes to Financial Statements
17 |
VANECK MORNINGSTAR WIDE MOAT ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Footnotes:
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $79,373,415. |
‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
Summary of Investments
by Sector Excluding Collateral for Securities Loaned |
% of Investments |
Value | ||||||
Communication Services | 6.9 | % | $ | 500,546,942 | ||||
Consumer Discretionary | 8.6 | 619,554,575 | ||||||
Consumer Staples | 12.7 | 918,475,702 | ||||||
Energy | 1.8 | 126,265,089 | ||||||
Financials | 6.5 | 468,137,162 | ||||||
Health Care | 16.3 | 1,181,398,403 | ||||||
Industrials | 13.9 | 1,006,327,768 | ||||||
Information Technology | 26.3 | 1,904,475,645 | ||||||
Materials | 5.6 | 404,298,479 | ||||||
Utilities | 1.4 | 101,941,568 | ||||||
100.0 | % | $ | 7,231,421,333 |
Transactions in securities of affiliates for the period ended March 31, 2022:
Value 9/30/2021 |
Purchases | Sales Proceeds |
Realized Gain (Loss) |
Dividend Income |
Net Change
in Unrealized Appreciation (Depreciation) |
Value 3/31/2022 | ||||||||||||||||||||||
Compass Minerals International, Inc. | $ | 173,938,089 | $ | 69,003,518 | $ | (38,911,698 | ) | $ | (3,537,400 | ) | $ | 895,459 | $ | 993,820 | $ | 201,486,329 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Common Stocks * | $ | 7,231,421,333 | $ | — | $ | — | $ | 7,231,421,333 | ||||||||
Money Market Fund | 261 | — | — | 261 | ||||||||||||
Total Investments | $ | 7,231,421,594 | $ | — | $ | — | $ | 7,231,421,594 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
18 |
SCHEDULE OF INVESTMENTS
March 31, 2022 (unaudited)
Number of Shares |
Value | |||||||
COMMON STOCKS: 100.3% | ||||||||
Automobiles & Components: 5.4% | ||||||||
Ford Motor Co. | 100,797 | $ | 1,704,477 | |||||
QuantumScape Corp. * | 22,515 | 450,075 | ||||||
Tesla, Inc. * | 3,314 | 3,571,166 | ||||||
5,725,718 | ||||||||
Banks: 2.5% | ||||||||
Bank of America Corp. | 16,681 | 687,591 | ||||||
Citigroup, Inc. | 10,629 | 567,589 | ||||||
JPMorgan Chase & Co. | 4,532 | 617,802 | ||||||
Rocket Cos, Inc. | 70,453 | 783,437 | ||||||
2,656,419 | ||||||||
Capital Goods: 4.6% | ||||||||
Boeing Co. * | 7,849 | 1,503,084 | ||||||
ChargePoint Holdings, Inc. * † | 21,970 | 436,764 | ||||||
General Electric Co. | 4,100 | 375,150 | ||||||
Lockheed Martin Corp. | 3,138 | 1,385,113 | ||||||
Plug Power, Inc. * † | 39,188 | 1,121,169 | ||||||
4,821,280 | ||||||||
Consumer Durables & Apparel: 1.4% | ||||||||
Peloton Interactive, Inc. * | 54,334 | 1,435,504 | ||||||
Consumer Services: 5.8% | ||||||||
Airbnb, Inc. * | 5,399 | 927,332 | ||||||
Carnival Corp. * | 34,895 | 705,577 | ||||||
DraftKings, Inc. * | 157,972 | 3,075,715 | ||||||
McDonald’s Corp. | 1,902 | 470,327 | ||||||
Norwegian Cruise Line Holdings Ltd. * | 22,009 | 481,557 | ||||||
Starbucks Corp. | 4,157 | 378,162 | ||||||
6,038,670 | ||||||||
Diversified Financials: 6.4% | ||||||||
Coinbase Global, Inc. * | 8,578 | 1,628,619 | ||||||
Morgan Stanley | 5,132 | 448,537 | ||||||
SoFi Technologies, Inc. * † | 295,126 | 2,788,941 | ||||||
Upstart Holdings, Inc. * | 17,406 | 1,898,821 | ||||||
6,764,918 | ||||||||
Energy: 3.0% | ||||||||
Devon Energy Corp. | 6,129 | 362,408 | ||||||
Exxon Mobil Corp. | 13,107 | 1,082,507 | ||||||
Marathon Oil Corp. | 22,429 | 563,192 | ||||||
Occidental Petroleum Corp. | 23,140 | 1,312,964 | ||||||
3,321,071 | ||||||||
Food & Staples Retailing: 1.9% | ||||||||
Costco Wholesale Corp. | 1,067 | 614,432 | ||||||
Walmart, Inc. | 9,229 | 1,374,383 | ||||||
1,988,815 | ||||||||
Food, Beverage & Tobacco: 0.5% | ||||||||
The Coca-Cola Co. | 7,918 | 490,916 | ||||||
Health Care Equipment & Services: 0.8% | ||||||||
Teladoc Health, Inc. * † | 11,655 | 840,675 | ||||||
Materials: 1.0% | ||||||||
Alcoa Corp. | 4,477 | 403,064 | ||||||
United States Steel Corp. | 16,133 | 608,859 | ||||||
1,011,923 | ||||||||
Media & Entertainment: 18.0% | ||||||||
Alphabet, Inc. * | 562 | 1,563,119 |
Number of Shares |
Value | |||||||
Media & Entertainment (continued) | ||||||||
AMC Entertainment Holdings, Inc. * | 181,276 | $ | 4,466,640 | |||||
Meta Platforms, Inc. * | 14,227 | 3,163,516 | ||||||
Netflix, Inc. * | 2,330 | 872,795 | ||||||
Roblox Corp. * | 63,310 | 2,927,454 | ||||||
Roku, Inc. * | 21,651 | 2,712,221 | ||||||
Snap, Inc. * | 25,286 | 910,043 | ||||||
Twitter, Inc. * | 28,280 | 1,094,153 | ||||||
Walt Disney Co. * | 8,478 | 1,162,842 | ||||||
18,872,783 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 5.8% | ||||||||
Moderna, Inc. * | 17,004 | 2,929,109 | ||||||
Novavax, Inc. * | 28,663 | 2,111,030 | ||||||
Pfizer, Inc. | 19,561 | 1,012,673 | ||||||
6,052,812 | ||||||||
Retailing: 8.5% | ||||||||
Amazon.com, Inc. * | 947 | 3,087,173 | ||||||
GameStop Corp. * † | 27,616 | 4,600,272 | ||||||
Macy’s, Inc. | 21,517 | 524,154 | ||||||
Target Corp. | 2,026 | 429,958 | ||||||
The Home Depot, Inc. | 1,422 | 425,647 | ||||||
9,067,204 | ||||||||
Semiconductors & Semiconductor Equipment: 8.1% | ||||||||
Advanced Micro Devices, Inc. * | 26,086 | 2,852,243 | ||||||
Enphase Energy, Inc. * | 2,076 | 418,895 | ||||||
Intel Corp. | 23,598 | 1,169,517 | ||||||
Micron Technology, Inc. | 9,041 | 704,203 | ||||||
NVIDIA Corp. | 12,257 | 3,344,445 | ||||||
8,489,303 | ||||||||
Software & Services: 20.1% | ||||||||
Affirm Holdings, Inc. * † | 56,949 | 2,635,600 | ||||||
Asana, Inc. * | 9,696 | 387,549 | ||||||
Block, Inc. * | 16,948 | 2,298,149 | ||||||
Cloudflare, Inc. * | 3,817 | 456,895 | ||||||
Crowdstrike Holdings, Inc. * | 3,083 | 700,088 | ||||||
Microsoft Corp. | 4,375 | 1,348,856 | ||||||
Oracle Corp. | 5,796 | 479,503 | ||||||
Palantir Technologies, Inc. * | 233,963 | 3,212,312 | ||||||
PayPal Holdings, Inc. * | 27,152 | 3,140,129 | ||||||
Salesforce.com, Inc. * | 6,440 | 1,367,341 | ||||||
Shopify, Inc. * | 3,204 | 2,165,776 | ||||||
Snowflake, Inc. * | 6,538 | 1,498,052 | ||||||
Trade Desk, Inc. * | 6,184 | 428,242 | ||||||
Zoom Video Communications, Inc. * | 7,523 | 881,921 | ||||||
21,000,413 | ||||||||
Technology Hardware & Equipment: 3.3% | ||||||||
Apple, Inc. | 17,518 | 3,058,818 | ||||||
Cisco Systems, Inc. | 7,312 | 407,717 | ||||||
3,466,535 | ||||||||
Telecommunication Services: 0.9% | ||||||||
AT&T, Inc. | 39,412 | 931,306 | ||||||
Transportation: 2.3% | ||||||||
American Airlines Group, Inc. * † | 47,999 | 875,982 | ||||||
Uber Technologies, Inc. * | 25,216 | 899,707 |
See Notes to Financial Statements
19 |
VANECK SOCIAL SENTIMENT ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares |
Value | |||||||
Transportation (continued) | ||||||||
United Airlines Holdings, Inc. * | 12,595 | $ | 583,904 | |||||
2,359,593 | ||||||||
Total Common
Stocks (Cost: $121,498,225) |
105,335,858 | |||||||
SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR SECURITIES ON LOAN: 3.6% (Cost: $3,815,936) |
||||||||
Money Market Fund: 3.6% | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 3,815,936 | 3,815,936 | ||||||
Total Investments: 103.9% (Cost: $125,314,161) |
109,151,794 | |||||||
Liabilities in excess of other assets: (3.9)% | (4,072,993) | |||||||
NET ASSETS: 100.0% | $ | 105,078,801 |
Footnotes:
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $9,721,652. |
Summary of Investments
by Sector Excluding Collateral for Securities Loaned |
% of Investments |
Value | ||||||
Communication Services | 18.8 | % | $ | 19,804,089 | ||||
Consumer Discretionary | 21.1 | 22,267,097 | ||||||
Consumer Staples | 2.4 | 2,479,731 | ||||||
Energy | 3.2 | 3,321,071 | ||||||
Financials | 8.9 | 9,421,336 | ||||||
Health Care | 6.5 | 6,893,487 | ||||||
Industrials | 6.8 | 7,180,872 | ||||||
Information Technology | 31.3 | 32,956,251 | ||||||
Materials | 1.0 | 1,011,924 | ||||||
100.0 | % | $ | 105,335,858 |
The summary of inputs used to value the Fund’s investments as of March 31, 2022 is as follows:
Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Common Stocks * | $ | 105,335,858 | $ | — | $ | — | $ | 105,335,858 | ||||||||
Money Market Fund | 3,815,936 | — | — | 3,815,936 | ||||||||||||
Total Investments | $ | 109,151,794 | $ | — | $ | — | $ | 109,151,794 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
20 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2022 (unaudited)
Inflation Allocation ETF (a) |
Long/Flat Trend ETF |
Morningstar Durable Dividend ETF |
Morningstar ESG Moat ETF |
|||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 58,934,815 | $ | 43,035,692 | $ | 62,219,490 | $ | 1,843,540 | ||||||||
Affiliated issuers (3) | 20,649,729 | — | — | — | ||||||||||||
Short-term investments held as collateral for securities loaned (4) | 7,517,472 | — | — | — | ||||||||||||
Cash | 836,150 | 149,799 | 55,154 | 29,856 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | — | 159,739 | — | ||||||||||||
Shares of beneficial interest sold | 3,165,644 | — | — | — | ||||||||||||
Due from Adviser | — | — | — | 11,676 | ||||||||||||
Dividends and interest | 4,705 | — | 171,967 | 1,703 | ||||||||||||
Prepaid expenses | 394 | 485 | — | — | ||||||||||||
Total assets | 91,108,909 | 43,185,976 | 62,606,350 | 1,886,775 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 3,688,207 | — | — | — | ||||||||||||
Collateral for securities loaned | 7,517,472 | — | — | — | ||||||||||||
Line of credit | 140,719 | — | — | — | ||||||||||||
Due to Adviser | 17,537 | 11,615 | 15,183 | — | ||||||||||||
Deferred Trustee fees | 453 | 1,189 | 624 | — | ||||||||||||
Accrued expenses | 37,787 | 44,337 | — | 37,260 | ||||||||||||
Total liabilities | 11,402,175 | 57,141 | 15,807 | 37,260 | ||||||||||||
NET ASSETS | $ | 79,706,734 | $ | 43,128,835 | $ | 62,590,543 | $ | 1,849,515 | ||||||||
Shares outstanding | 2,850,000 | 1,025,000 | 1,925,000 | 75,000 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 27.97 | $ | 42.08 | $ | 32.51 | $ | 24.66 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 84,702,285 | $ | 34,806,086 | $ | 61,498,719 | $ | 1,899,350 | ||||||||
Total distributable earnings (loss) | (4,995,551 | ) | 8,322,749 | 1,091,824 | (49,835 | ) | ||||||||||
NET ASSETS | $ | 79,706,734 | $ | 43,128,835 | $ | 62,590,543 | $ | 1,849,515 | ||||||||
(1) Value of securities on loan | $ | 18,993,329 | $ | — | $ | — | $ | — | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 55,202,057 | $ | 37,813,594 | $ | 58,996,227 | $ | 1,920,252 | ||||||||
(3) Cost of investments - Affiliated issuers | $ | 18,529,913 | $ | — | $ | — | $ | — | ||||||||
(4) Cost of short-term investments held as collateral for securities loaned | $ | 7,517,472 | $ | — | $ | — | $ | — |
(a) | Consolidated Statement of Assets and Liabilities |
See Notes to Financial Statements
21 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2022 (unaudited)
Morningstar Global Wide Moat ETF |
Morningstar International Moat ETF |
Morningstar Wide Moat ETF |
Social Sentiment ETF |
|||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 18,270,432 | $ | 80,749,515 | $ | 7,029,935,004 | $ | 105,335,858 | ||||||||
Affiliated issuers (3) | — | — | 201,486,329 | — | ||||||||||||
Short-term investments held as collateral for securities loaned (4) | — | 896,745 | 261 | 3,815,936 | ||||||||||||
Cash | — | 3,830 | — | 6,506 | ||||||||||||
Cash denominated in foreign currency, at value (5) | 11,240 | 256,021 | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | — | — | 991,691 | ||||||||||||
Shares of beneficial interest sold | — | — | 7,568,284 | — | ||||||||||||
Dividends and interest | 34,467 | 481,016 | 9,525,710 | 29,020 | ||||||||||||
Prepaid expenses | 410 | 968 | 174,025 | — | ||||||||||||
Total assets | 18,316,549 | 82,388,095 | 7,248,689,613 | 110,179,011 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | — | — | 7,564,188 | — | ||||||||||||
Shares of beneficial interest redeemed | — | — | — | 991,178 | ||||||||||||
Collateral for securities loaned | — | 896,745 | 261 | 3,815,936 | ||||||||||||
Line of credit | — | 437,609 | 5,037,230 | 229,508 | ||||||||||||
Due to Adviser | 1,398 | 26,938 | 2,720,534 | 63,588 | ||||||||||||
Due to custodian | 16,049 | — | — | — | ||||||||||||
Deferred Trustee fees | 236 | 2,142 | 137,949 | — | ||||||||||||
Accrued expenses | 35,988 | 42,900 | 10,424 | — | ||||||||||||
Total liabilities | 53,671 | 1,406,334 | 15,470,586 | 5,100,210 | ||||||||||||
NET ASSETS | $ | 18,262,878 | $ | 80,981,761 | $ | 7,233,219,027 | $ | 105,078,801 | ||||||||
Shares outstanding | 500,000 | 2,550,000 | 96,950,000 | 5,425,000 | ||||||||||||
Net asset value, redemption and offering price per share | $ | 36.53 | $ | 31.76 | $ | 74.61 | $ | 19.37 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 15,294,841 | $ | 91,236,886 | $ | 6,902,467,728 | $ | 167,654,328 | ||||||||
Total distributable earnings (loss) | 2,968,037 | (10,255,125 | ) | 330,751,299 | (62,575,527 | ) | ||||||||||
NET ASSETS | $ | 18,262,878 | $ | 80,981,761 | $ | 7,233,219,027 | $ | 105,078,801 | ||||||||
(1) Value of securities on loan | $ | 340,555 | $ | 4,833,388 | $ | 79,373,415 | $ | 9,721,652 | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 15,939,392 | $ | 81,119,866 | $ | 6,859,684,642 | $ | 121,498,225 | ||||||||
(3) Cost of investments - Affiliated issuers | $ | — | $ | — | $ | 184,551,617 | $ | — | ||||||||
(4) Cost of short-term investments held as collateral for securities loaned | $ | — | $ | 896,745 | $ | 261 | $ | 3,815,936 | ||||||||
(5) Cost of cash denominated in foreign currency | $ | 11,246 | $ | 255,265 | $ | — | $ | — |
See Notes to Financial Statements
22 |
VANECK ETF TRUST
For the Period Ended March 31, 2022 (unaudited)
Inflation Allocation ETF (a) |
Long/Flat Trend ETF |
Morningstar Durable Dividend ETF |
Morningstar ESG Moat ETF (b) |
|||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 2,328,847 | $ | 309,050 | $ | 963,138 | $ | 12,540 | ||||||||
Dividends - affiliated issuers | 169,055 | — | — | — | ||||||||||||
Interest | 32 | 25 | — | — | ||||||||||||
Securities lending income | 17,013 | 299 | 15 | — | ||||||||||||
Total income | 2,514,947 | 309,374 | 963,153 | 12,540 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 86,774 | 109,631 | 78,522 | 4,177 | ||||||||||||
Professional fees | 33,713 | 27,668 | — | 24,081 | ||||||||||||
Custody and accounting fees | 9,673 | 8,799 | — | 20,576 | ||||||||||||
Reports to shareholders | 5,057 | 3,271 | — | 6,507 | ||||||||||||
Trustees’ fees and expenses | 137 | 287 | — | 694 | ||||||||||||
Registration fees | 2,137 | 2,872 | — | 2,691 | ||||||||||||
Insurance | 717 | 751 | — | — | ||||||||||||
Interest and taxes | 373 | 69 | 525 | — | ||||||||||||
Other | 1,293 | 2,102 | — | 1,794 | ||||||||||||
Total expenses | 139,874 | 155,450 | 79,047 | 60,520 | ||||||||||||
Waiver of management fees | (44,278 | ) | (34,787 | ) | — | (4,177 | ) | |||||||||
Expenses assumed by the Adviser | — | — | — | (51,795 | ) | |||||||||||
Net expenses | 95,596 | 120,663 | 79,047 | 4,548 | ||||||||||||
Net investment income | 2,419,351 | 188,711 | 884,106 | 7,992 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers | (433,673 | ) | — | (958,330 | ) | (30,850 | ) | |||||||||
Investments - affiliated issuers | 146,240 | — | — | — | ||||||||||||
In-kind redemptions - unaffiliated issuers | — | 5,878,718 | 2,762,483 | 53,538 | ||||||||||||
Net realized gain (loss) | (287,433 | ) | 5,878,718 | 1,804,153 | 22,688 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers | 2,854,159 | (3,331,006 | ) | 1,605,023 | (76,712 | ) | ||||||||||
Investments - affiliated issuers | 1,935,861 | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | 4,790,020 | (3,331,006 | ) | 1,605,023 | (76,712 | ) | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 6,921,938 | $ | 2,736,423 | $ | 4,293,282 | $ | (46,032 | ) |
(a) | Consolidated Statement of Operations |
(b) | For the period October 6, 2021 (commencement of operations) through March 31, 2022. |
See Notes to Financial Statements
23 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended March 31, 2022 (unaudited)
Morningstar Global Wide Moat ETF |
Morningstar International Moat ETF |
Morningstar Wide Moat ETF |
Social Sentiment ETF |
|||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 216,285 | $ | 1,980,787 | $ | 58,556,001 | $ | 424,472 | ||||||||
Dividends - affiliated issuers | — | — | 895,459 | — | ||||||||||||
Interest | 19 | — | 1,952 | — | ||||||||||||
Securities lending income | 333 | 9,098 | 13,287 | 24,981 | ||||||||||||
Foreign taxes withheld | (7,317 | ) | (101,876 | ) | — | — | ||||||||||
Total income | 209,320 | 1,888,009 | 59,466,699 | 449,453 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 42,480 | 181,407 | 15,793,074 | 549,797 | ||||||||||||
Professional fees | 24,943 | 30,271 | 25,706 | — | ||||||||||||
Custody and accounting fees | 13,935 | 11,816 | 20,068 | — | ||||||||||||
Reports to shareholders | 3,216 | 4,340 | 92,879 | — | ||||||||||||
Trustees’ fees and expenses | 169 | 567 | 41,212 | — | ||||||||||||
Registration fees | 1,651 | 587 | 33,139 | — | ||||||||||||
Insurance | 722 | 1,492 | 20,862 | — | ||||||||||||
Interest and taxes | 78 | 3,097 | 20,579 | 477 | ||||||||||||
Other | 1,938 | 2,166 | 7,056 | — | ||||||||||||
Total expenses | 89,132 | 235,743 | 16,054,575 | 550,274 | ||||||||||||
Waiver of management fees | (39,965 | ) | (29,470 | ) | — | — | ||||||||||
Net expenses | 49,167 | 206,273 | 16,054,575 | 550,274 | ||||||||||||
Net investment income (loss) | 160,153 | 1,681,736 | 43,412,124 | (100,821 | ) | |||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers | 587,525 | (2,935,527 | ) | (50,706,198 | ) | (35,592,520 | ) | |||||||||
Investments - affiliated issuers | — | — | (5,259,233 | ) | — | |||||||||||
In-kind redemptions - unaffiliated issuers | — | 242,304 | 540,765,669 | 19,294,806 | ||||||||||||
In-kind redemptions - affiliated issuers | — | — | 1,721,833 | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (1,197 | ) | (13,913 | ) | — | — | ||||||||||
Net realized gain (loss) | 586,328 | (2,707,136 | ) | 486,522,071 | (16,297,714 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers | (588,992 | ) | (730,538 | ) | (325,954,250 | ) | (17,318,028 | ) | ||||||||
Investments - affiliated issuers | — | — | 993,820 | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | (61 | ) | 5,837 | — | — | |||||||||||
Net change in unrealized appreciation (depreciation) | (589,053 | ) | (724,701 | ) | (324,960,430 | ) | (17,318,028 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 157,428 | $ | (1,750,101 | ) | $ | 204,973,765 | $ | (33,716,563 | ) |
See Notes to Financial Statements
24 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Inflation Allocation ETF (a) | Long/Flat Trend ETF | |||||||||||||||
Period Ended March 31, 2022 |
Year Ended September 30, 2021 |
Period Ended March 31, 2022 |
Year Ended September 30, 2021 |
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 2,419,351 | $ | 63,810 | $ | 188,711 | $ | 296,261 | ||||||||
Net realized gain (loss) | (287,433 | ) | 2,155,802 | 5,878,718 | 1,967,724 | |||||||||||
Net change in unrealized appreciation (depreciation) | 4,790,020 | 298,367 | (3,331,006 | ) | 5,441,917 | |||||||||||
Net increase in net assets resulting from operations | 6,921,938 | 2,517,979 | 2,736,423 | 7,705,902 | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | (2,650,042 | ) | (870,000 | ) | (175,010 | ) | (625,013 | ) | ||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 58,879,394 | 22,438,966 | 15,768,521 | 10,130,756 | ||||||||||||
Cost of shares redeemed | — | (16,597,432 | ) | (16,160,565 | ) | (7,800,977 | ) | |||||||||
Increase (decrease) in net assets resulting from share transactions | 58,879,394 | 5,841,534 | (392,044 | ) | 2,329,779 | |||||||||||
Total increase in net assets | 63,151,290 | 7,489,513 | 2,169,369 | 9,410,668 | ||||||||||||
Net Assets, beginning of period | 16,555,444 | 9,065,931 | 40,959,466 | 31,548,798 | ||||||||||||
Net Assets, end of period | $ | 79,706,734 | $ | 16,555,444 | $ | 43,128,835 | $ | 40,959,466 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 2,200,000 | 925,000 | 375,000 | 250,000 | ||||||||||||
Shares redeemed | — | (725,000 | ) | (375,000 | ) | (225,000 | ) | |||||||||
Net increase | 2,200,000 | 200,000 | — | 25,000 |
(a) | Consolidated Statement of Changes in Net Assets |
See Notes to Financial Statements
25 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Morningstar Durable Dividend ETF | Morningstar ESG Moat ETF |
|||||||||||
Period Ended March 31, 2022 |
Year Ended September 30, 2021 |
Period Ended March 31, 2022 (a) |
||||||||||
(unaudited) | (unaudited) | |||||||||||
Operations: | ||||||||||||
Net investment income | $ | 884,106 | $ | 1,505,290 | $ | 7,992 | ||||||
Net realized gain | 1,804,153 | 3,695,180 | 22,688 | |||||||||
Net change in unrealized appreciation (depreciation) | 1,605,023 | 1,294,475 | (76,712 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | 4,293,282 | 6,494,945 | (46,032 | ) | ||||||||
Distributions to shareholders from: | ||||||||||||
Distributable earnings | (836,820 | ) | (1,311,545 | ) | (3,803 | ) | ||||||
Share transactions**: | ||||||||||||
Proceeds from sale of shares | 22,137,759 | 38,886,433 | 2,555,392 | |||||||||
Cost of shares redeemed | (14,240,850 | ) | (25,634,055 | ) | (656,042 | ) | ||||||
Increase in net assets resulting from share transactions | 7,896,909 | 13,252,378 | 1,899,350 | |||||||||
Total increase in net assets | 11,353,371 | 18,435,778 | 1,849,515 | |||||||||
Net Assets, beginning of period | 51,237,172 | 32,801,394 | — | |||||||||
Net Assets, end of period | $ | 62,590,543 | $ | 51,237,172 | $ | 1,849,515 | ||||||
**Shares of Common Stock Issued (no par value) | ||||||||||||
Shares sold | 700,000 | 1,300,000 | 100,000 | |||||||||
Shares redeemed | (450,000 | ) | (850,000 | ) | (25,000 | ) | ||||||
Net increase | 250,000 | 450,000 | 75,000 |
(a) | For the period October 6, 2021 (commencement of operations) through March 31, 2022. |
See Notes to Financial Statements
26 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Morningstar Global Wide Moat ETF | Morningstar International Moat ETF | |||||||||||||||
Period Ended March 31, 2022 |
Year Ended September 30, 2021 |
Period Ended March 31, 2022 |
Year Ended September 30, 2021 |
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 160,153 | $ | 226,976 | $ | 1,681,736 | $ | 2,011,501 | ||||||||
Net realized gain (loss) | 586,328 | 832,215 | (2,707,136 | ) | 3,567,957 | |||||||||||
Net change in unrealized appreciation (depreciation) | (589,053 | ) | 1,569,691 | (724,701 | ) | 2,278,041 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 157,428 | 2,628,882 | (1,750,101 | ) | 7,857,499 | |||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | (1,104,550 | ) | (360,080 | ) | (3,150,000 | ) | (1,260,000 | ) | ||||||||
Share transactions**: | ||||||||||||||||
Proceeds from sale of shares | — | 7,288,863 | 18,714,959 | 12,422,953 | ||||||||||||
Cost of shares redeemed | — | — | (3,269,926 | ) | — | |||||||||||
Increase in net assets resulting from share transactions | — | 7,288,863 | 15,445,033 | 12,422,953 | ||||||||||||
Total increase (decrease) in net assets | (947,122 | ) | 9,557,665 | 10,544,932 | 19,020,452 | |||||||||||
Net Assets, beginning of period | 19,210,000 | 9,652,335 | 70,436,829 | 51,416,377 | ||||||||||||
Net Assets, end of period | $ | 18,262,878 | $ | 19,210,000 | $ | 80,981,761 | $ | 70,436,829 | ||||||||
**Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | — | 200,000 | 550,000 | 350,000 | ||||||||||||
Shares redeemed | — | — | (100,000 | ) | — | |||||||||||
Net increase | — | 200,000 | 450,000 | 350,000 |
See Notes to Financial Statements
27 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Morningstar Wide Moat ETF | Social Sentiment ETF | |||||||||||||||
Period Ended March 31, 2022 |
Year Ended September 30, 2021 |
Period Ended March 31, 2022 |
Period Ended September 30, 2021 (a) |
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 43,412,124 | $ | 72,415,469 | $ | (100,821 | ) | $ | (314,808 | ) | ||||||
Net realized gain (loss) | 486,522,071 | 787,975,019 | (16,297,714 | ) | 6,566,363 | |||||||||||
Net change in unrealized appreciation (depreciation) | (324,960,430 | ) | 424,479,685 | (17,318,028 | ) | 1,155,660 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 204,973,765 | 1,284,870,173 | (33,716,563 | ) | 7,407,215 | |||||||||||
Distributions to shareholders from: | ||||||||||||||||
Distributable earnings | (77,004,720 | ) | (58,997,340 | ) | — | — | ||||||||||
Share transactions*: | ||||||||||||||||
Proceeds from sale of shares | 2,706,271,881 | 4,832,747,019 | 68,929,505 | 670,932,819 | ||||||||||||
Cost of shares redeemed | (2,200,239,283 | ) | (2,857,369,614 | ) | (123,068,352 | ) | (485,405,823 | ) | ||||||||
Increase (decrease) in net assets resulting from share transactions | 506,032,598 | 1,975,377,405 | (54,138,847 | ) | 185,526,996 | |||||||||||
Total increase (decrease) in net assets | 634,001,643 | 3,201,250,238 | (87,855,410 | ) | 192,934,211 | |||||||||||
Net Assets, beginning of period | 6,599,217,384 | 3,397,967,146 | 192,934,211 | — | ||||||||||||
Net Assets, end of period | $ | 7,233,219,027 | $ | 6,599,217,384 | $ | 105,078,801 | $ | 192,934,211 | ||||||||
*Shares of Common Stock Issued (no par value) | ||||||||||||||||
Shares sold | 36,600,000 | 68,550,000 | 2,875,000 | 27,525,000 | ||||||||||||
Shares redeemed | (29,700,000 | ) | (40,700,000 | ) | (5,275,000 | ) | (19,700,000 | ) | ||||||||
Net increase (decrease) | 6,900,000 | 27,850,000 | (2,400,000 | ) | 7,825,000 |
(a) | For the period March 3, 2021 (commencement of operations) through September 30, 2021. |
See Notes to Financial Statements
28 |
VANECK ETF TRUST
For a share outstanding throughout each period:
(a) | Consolidated Financial Highlights |
(b) | For the period April 9, 2018 (commencement of operations) through September 30, 2018. |
(c) | Calculated based upon average shares outstanding |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
(g) | Annualized |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
29 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | For the period October 4, 2017 (commencement of operations) through September 30, 2018. |
(b) | Calculated based upon average shares outstanding |
(c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
(g) | Annualized |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
30 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | For the period October 30, 2018 (commencement of operations) through September 30, 2019. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Periods after September 30, 2021 reflect a unitary management fee structure. |
(f) | Annualized |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
31 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | For the period October 6, 2021 (commencement of operations) through March 31, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
32 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | For the period October 30, 2018 (commencement of operations) through September 30, 2019. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
33 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
34 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
35 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
(a) | For the period March 3, 2021 (commencement of operations) through September 30, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
36 |
VANECK ETF TRUST
March 31, 2022 (unaudited)
Note 1—Fund Organization—VanEck ETF Trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust. These financial statements relate only to the investment portfolios listed in the table below (each a “Fund” and, collectively, the “Funds”).
Fund | Diversification Classification |
Inflation Allocation ETF | Non-Diversified |
Long/Flat Trend ETF | Diversified |
Morningstar Durable Dividend ETF | Diversified |
Morningstar ESG Moat ETF | Non-Diversified |
Morningstar Global Wide Moat ETF | Diversified |
Morningstar International Moat ETF | Diversified |
Morningstar Wide Moat ETF | Diversified |
Social Sentiment ETF | Non-Diversified |
Each Fund, except for Inflation Allocation ETF, was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in approximately the same weighting as their index.
Using a proprietary, rules-based real asset allocation model, the Inflation Allocation ETF seeks to achieve its investment objective by investing primarily in exchange traded products (“ETPs”) that provide exposure to real assets, which include commodities, real estate, natural resources and infrastructure, as well as companies that own, operate, or derive a significant portion of their value from real assets or the production thereof.
Van Eck Associates Corporation (“VEAC”) serves as the investment adviser for the Funds, except for Inflation Allocation ETF. Van Eck Absolute Return Advisers Corporation (“VEARA”) serves as the investment adviser to Inflation Allocation ETF and its Subsidiary. VEAC and VEARA are collectively referred to as the “Adviser”.
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Funds are investment companies and follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946 Financial Services—Investment Companies.
The following summarizes the Funds’ significant accounting policies.
A. | Security Valuation—The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset |
37 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
value and are considered as Level 1 in the fair value hierarchy. The Pricing Committee of the Adviser provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes they do not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis. | |
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments. | |
The Funds utilize various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels of the fair value hierarchy are described below: | |
Level 1 — Quoted prices in active markets for identical securities. | |
Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments). | |
A summary of the inputs and the levels used to value the Funds’ investments are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments. | |
B. | Basis for Consolidation—The Inflation Allocation ETF invests in certain ETPs through the Real Asset Allocation Subsidiary (the “Subsidiary”), a wholly-owned subsidiary organized under the laws of the Cayman Islands. The Fund’s investment in the Subsidiary may not exceed 25% of the value of the Fund’s total assets at each quarter-end of the Fund’s fiscal year. Consolidated financial statements of the Fund present the financial position and results of operations for the Fund and its wholly-owned Subsidiary. All interfund account balances and transactions between the Fund and Subsidiary have been eliminated in consolidation. |
C. | Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. |
D. | Dividends and Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund (except for dividends from net investment income from Morningstar Durable Dividend ETF, which are declared and paid quarterly). Income dividends and capital gain distributions are determined |
38 |
in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. | |
E. | Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates are not separately disclosed in the financial statements. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statements of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) and net change in unrealized appreciation (depreciation) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. |
F. | Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. |
G. | Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of offset in those agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at March 31, 2022, is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
H. | Other—Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. Interest income, including amortization of premiums and discounts, is accrued as earned. |
The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
The character of distributions received from certain investment in underlying funds may be comprised of net investment income, capital gains, and return of capital. It is the Funds’ policy to estimate the character of distributions received from these investments based on historical data provided by the underlying funds if actual amounts are not available. After each calendar year end, the underlying funds report the actual tax character of these distributions. Differences between the estimated and actual amounts are reflected in the Funds’ records in the year in which they are reported by adjusting the related cost basis of investments, capital gains and income, as necessary. | |
In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. |
Note 3—Investment Management and Other Agreements—The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of each Fund’s average daily net assets. The Adviser has agreed, until at least February 1, 2023, to waive management fees and assume expenses to
39 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding expense limitations listed in the following table.
The management fee rates and expense limitations for the period ended March 31, 2022, are as follows:
Management | Expense | |||||||
Fund | Fees | Limitations | ||||||
Inflation Allocation ETF | 0.50 | % | 0.55 | % | ||||
Long/Flat Trend ETF | 0.50 | 0.55 | ||||||
Morningstar ESG Moat ETF | 0.45 | 0.49 | ||||||
Morningstar Global Wide Moat ETF | 0.45 | 0.52 | ||||||
Morningstar International Moat ETF | 0.50 | 0.56 | ||||||
Morningstar Wide Moat ETF | 0.45 | 0.49 |
Refer to the Statements of Operations for amounts waived/assumed by the Adviser.
The Adviser waives the management fees it charges the Funds by the amount it collects as a management fee from underlying funds managed by the Adviser. For the period ended March 31, 2022, the Adviser waived management fees of $20,659 due to such investments held in the Inflation Allocation ETF.
The Funds listed below utilize a unitary management fee structure where the Adviser will pay all expenses of the Fund, except for the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.
Unitary | ||||
Management | ||||
Fund | Fee Rate | |||
Morningstar Durable Dividend ETF | 0.29 | % | ||
Social Sentiment ETF | 0.75 |
In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ distributor (“the Distributor”). Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
At March 31, 2022, the Adviser owned approximately 8% of Morningstar Durable Dividend ETF and 67% of Morningstar ESG Moat ETF.
Note 4—Capital Share Transactions—As of March 31, 2022, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”).
The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 115% of the daily marked to market value of the missing Deposit Securities.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Funds may impose certain variable fees on the purchase or redemption of
40 |
Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
Note 5—Investments—For the period ended March 31, 2022, purchases and sales of investments (excluding short-term investments and in-kind capital share transactions) and purchases and sales of investments resulting from in-kind capital share transactions (excluding short-term investments) were as follows:
In-Kind Capital Share Transactions | ||||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Inflation Allocation ETF* | $ | 13,202,141 | $ | 5,705,912 | $ | 52,012,272 | $ | — | ||||||||
Long/Flat Trend ETF | — | — | 15,768,685 | 16,162,237 | ||||||||||||
Morningstar Durable Dividend ETF | 11,999,761 | 12,045,214 | 22,125,570 | 14,215,844 | ||||||||||||
Morningstar ESG Moat ETF | 450,482 | 504,355 | 2,549,718 | 598,281 | ||||||||||||
Morningstar Global Wide Moat ETF | 6,096,657 | 7,007,401 | — | — | ||||||||||||
Morningstar International Moat ETF | 38,484,184 | 38,459,517 | 16,541,576 | 2,917,456 | ||||||||||||
Morningstar Wide Moat ETF | 1,636,154,756 | 1,676,044,969 | 2,706,860,006 | 2,187,133,860 | ||||||||||||
Social Sentiment ETF | 195,192,369 | 194,990,534 | 68,967,965 | 123,224,909 |
* | Represents consolidated cost of investments purchased and proceeds from investments sold. |
Note 6—Income Taxes—As of March 31, 2022, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments owned were as follows:
Gross | Gross | Net Unrealized | |||||||||||||
Tax Cost of | Unrealized | Unrealized | Appreciation | ||||||||||||
Fund | Investments | Appreciation | Depreciation | (Depreciation) | |||||||||||
Inflation Allocation ETF | $81,130,559 | $6,008,587 | $(37,130 | ) | $5,971,457 | ||||||||||
Long/Flat Trend ETF | 37,813,594 | 5,222,098 | – | 5,222,098 | |||||||||||
Morningstar Durable Dividend ETF | 59,004,154 | 4,635,485 | (1,420,149 | ) | 3,215,336 | ||||||||||
Morningstar ESG Moat ETF | 1,920,251 | 58,773 | (135,485 | ) | (76,712) | ||||||||||
Morningstar Global Wide Moat ETF | 15,941,090 | 2,730,889 | (401,546 | ) | 2,329,343 | ||||||||||
Morningstar International Moat ETF | 82,026,496 | 4,463,537 | (4,843,773 | ) | (380,236) | ||||||||||
Morningstar Wide Moat ETF | 7,048,913,127 | 441,015,271 | (258,506,804 | ) | 182,508,467 | ||||||||||
Social Sentiment ETF | 130,502,040 | 4,930,001 | (26,280,247 | ) | (21,350,246) |
The tax character of current year distributions will be determined at the end of the current fiscal year.
At September 30, 2021, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
Short-Term | Long-Term | |||||||||||
Capital Losses | Capital Losses | |||||||||||
Fund | with No Expiration | with No Expiration | Total | |||||||||
Inflation Allocation ETF | $(8,907,362 | ) | $– | $(8,907,362 | ) | |||||||
Long/Flat Trend ETF | (2,767,138 | ) | (84,444 | ) | (2,851,582 | ) | ||||||
Morningstar Durable Dividend ETF | (3,280,928 | ) | (1,107,908 | ) | (4,388,836 | ) | ||||||
Morningstar International Moat ETF | (1,121,585 | ) | (6,313,885 | ) | (7,435,470 | ) | ||||||
Morningstar Wide Moat ETF | (241,017,667 | ) | (118,878,972 | ) | (359,896,639 | ) | ||||||
Social Sentiment ETF | (24,826,598 | ) | – | (24,826,598 | ) |
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, certain Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.
41 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended March 31, 2022, the Funds did not incur any interest or penalties.
Note 7—Principal Risks—Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse economic developments and political conflicts, or natural or other disasters, such as the recent coronavirus outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets. Certain securities of Chinese issuers are, or may in the future become restricted, and the Funds may be forced to sell such restricted securities and incur a loss as a result.
Long/Flat Trend ETF may invest in shares of other funds, including ETFs that track the S&P 500 Index. As a result, the Fund will indirectly be exposed to the risks of an investment in the underlying funds. Shares of other funds have many of the same risks as direct investments in common stocks or bonds. In addition, the market value of the Fund’s shares is expected to rise and fall as the value of the underlying index or bond rises and falls. The market value of such funds’ shares may differ from the net asset value of the particular fund.
Inflation Allocation ETF may concentrate its investments in ETPs that invest directly in, or have exposure to, equity and debt securities, as well as real asset categories such as commodities, real estate, natural resources and infrastructure. Such investments may subject the ETPs to greater volatility than investments in traditional securities. The Fund is dependent on the performance of underlying funds and is subject to the risks of those funds. Changes in laws or government regulations by the United States and/or the Cayman Islands could adversely affect the operations of the Fund. In addition, the Fund may gain exposure to the cryptocurrency Bitcoin by investing in pooled investment vehicles that invest in Bitcoin, which generally operates without central authority (such as a bank) and is not backed by any government; nor is it legal tender. Federal, state and/or foreign governments may restrict the use and exchange of cryptocurrencies, and regulation in the United States is still developing. Cryptocurrencies are susceptible to theft, loss and destruction. Accordingly, the Fund’s indirect investment in Bitcoin is also susceptible to these risks. Cryptocurrency exchanges have in the past, and may in the future, stop operating or permanently shut down due to fraud, cybersecurity issues, manipulation, technical glitches, hackers or malware, which may also affect the price of Bitcoin and thus the Fund’s indirect investment in Bitcoin.
Social Sentiment ETF may concentrate its investment in the information technology and communication services sector. The Fund will be sensitive to, and its performance may depend to a greater extent on, the overall condition of these sectors. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. The products of information technology companies may face product obsolescence due to rapid technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Companies in the information technology sector are heavily dependent on patent protection and the expiration of patents may adversely affect the profitability of these companies. Companies in the communication services sector may be affected by industry competition, substantial capital requirements, government regulations and obsolescence of communications products and services due to technological advancement. The index provider relies on social media analytics, which are relatively new and untested. Investing in companies based on social media analytics involves the potential risk of market
42 |
manipulation because social media posts may be made with an intent to inflate, or otherwise manipulate, the public perception of a company stock or other investment. Furthermore, text and sentiment analysis of social media postings may prove inaccurate in predicting a company’s stock performance.
Economies and financial markets throughout the world have experienced periods of increased volatility, uncertainty and distress as a result of conditions associated with the COVID-19 pandemic. To the extent these conditions continue, the risks associated with an investment in a Fund could be heightened and the Fund’s investments (and thus a shareholder’s investment in a Fund) may be particularly susceptible to sudden and substantial losses, reduced yield or income or other adverse developments.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.
A unitary management fee was adopted on October 1, 2021, for Morningstar Durable Dividend ETF. For this Fund, the liability of the Plan shown as “Deferred Trustee fees” in the Statements of Asset and Liabilities represents amounts accrued through September 30, 2021. Social Sentiment ETF commenced operations with a unitary management fee and therefore bears no costs or liabilities relative to the Plan.
For Inflation Allocation ETF, Long/Flat Trend ETF, Morningstar ESG Moat ETF, Morningstar Global Wide Moat ETF, Morningstar International Moat ETF, and Morningstar Wide Moat ETF, the expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations, and the liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Fund securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related cash collateral, if any, at March 31, 2022, is presented on a gross basis in the Schedules of Investments and Statements of Assets
43 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of March 31, 2022:
Market Value | ||||||||||||||||
of Securities | Cash | Non-Cash | Total | |||||||||||||
Fund | on Loan | Collateral | Collateral | Collateral | ||||||||||||
Inflation Allocation ETF | $ | 18,993,329 | $ | 7,517,472 | $ | 12,357,648 | $ | 19,875,120 | ||||||||
Morningstar Global Wide Moat ETF | 340,555 | – | 366,388 | 366,388 | ||||||||||||
Morningstar International Moat ETF | 4,833,388 | 896,745 | 4,431,187 | 5,327,932 | ||||||||||||
Morningstar Wide Moat ETF | 79,373,415 | 261 | 83,629,049 | 83,629,310 | ||||||||||||
Social Sentiment ETF | 9,721,652 | 3,815,936 | 6,418,215 | 10,234,151 |
The following table presents money market fund investments held as collateral by type of security on loan as of March 31, 2022:
Gross Amount of | ||||
Recognized Liabilities | ||||
for Securities Lending | ||||
Transactions* in the | ||||
Statements of Assets | ||||
and Liabilities | ||||
Fund | Equity Securities | |||
Inflation Allocation ETF | $ | 7,517,472 | ||
Morningstar International Moat ETF | 896,745 | |||
Morningstar Wide Moat ETF | 261 | |||
Social Sentiment ETF | 3,815,936 |
* | Remaining contractual maturity: overnight and continuous |
Note 10—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds based on prevailing market rates in effect at the time of borrowings. During the period ended March 31, 2022, the following Funds borrowed under this Facility:
Average | ||||||||||||
Days | Daily | Average | ||||||||||
Fund | Outstanding | Loan Balance | Interest Rate | |||||||||
Inflation Allocation ETF | 15 | $520,551 | 1.50 | % | ||||||||
Morningstar Durable Dividend ETF | 66 | 109,487 | 1.43 | |||||||||
Morningstar Global Wide Moat ETF | 8 | 59,470 | 1.68 | |||||||||
Morningstar International Moat ETF | 169 | 277,279 | 1.45 | |||||||||
Morningstar Wide Moat ETF | 65 | 7,564,242 | 1.47 | |||||||||
Social Sentiment ETF | 17 | 186,342 | 1.59 |
Outstanding loan balances as of March 31, 2022, if any, are reflected in the Statements of Assets and Liabilities.
Note 11—Subsequent Event Review—The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.
44 |
VANECK ETF TRUST
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for most funds redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2021 to December 31, 2021 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
45 |
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) prospectus and summary prospectus, which includes more complete information. Investing involves substantial risk and high volatility, including possible loss of principal. 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. Please read the prospectus and summary prospectus carefully before investing.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | |
Distributor: | VanEck Securities Corporation | |
666 Third Avenue, New York, NY 10017 | ||
vaneck.com | ||
Account Assistance: | 800.826.2333 | STRATSAR |