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UCTGFA VanEck Global Fallen Angel High Yield Bond UCITS ETF Please read important disclosure Close important disclosure true
Marketing Communication
GFA

Fallen Angels ETF
VanEck Global Fallen Angel High Yield Bond UCITS ETF

Marketing Communication
GFA

Fallen Angels ETF
VanEck Global Fallen Angel High Yield Bond UCITS ETF

ISIN: IE00BF540Z61 copy-icon
research-link-icon Why invest in a Fallen Angels ETF?
Why invest
Documents
research-link-icon Fact Sheet

Fund Description

The VanEck Global Fallen Angel High Yield Bond UCITS ETF is a straightforward way to profit from the well-known anomaly of Fallen Angels – investment grade bonds that have been downgraded to high yield. They are often oversold due to restrictions placed on institutional investors and tend to outperform the broad High Yield sector, while on average having higher credit quality.

  • NAV
    $66.33

    as of 27 Dec 2024
  • YTD RETURNS
    5.65%

    as of 27 Dec 2024
  • Total Net Assets
    $87.5 million

    as of 27 Dec 2024
  • Total Expense Ratio
    0.40%
  • Inception Date
    19 Mar 2018
  • SFDR Classification
    --
research-link-icon Why invest in a Fallen Angels ETF?
Why invest
Documents
research-link-icon Fact Sheet

Overview

Fund Description

The VanEck Global Fallen Angel High Yield Bond UCITS ETF is a straightforward way to profit from the well-known anomaly of Fallen Angels – investment grade bonds that have been downgraded to high yield. They are often oversold due to restrictions placed on institutional investors and tend to outperform the broad High Yield sector, while on average having higher credit quality.

  • A history of outperformance versus the high-yield bond universe1
  • Take advantage of a market anomaly
  • Currently higher average credit quality than ordinary high-yield issuers
  • Diversification across countries and sectors
  • Issued in USD, GBP, EUR and CAD
  • Currently amongst the lowest total expense ratios in UCITS Fallen Angel ETFs (0.4%)


1Past performance is not a reliable indicator for future performance. Main Risk Factors: Foreign Currency Risk, Emerging Markets Risk, High Yield Securities Risk. Please refer to the

KID

and the Prospectus for other important information before investing.



Underlying Index

ICE Global Fallen Angel High Yield 10% Constrained Index

Fund Highlights

  • A history of outperformance versus the high-yield bond universe1
  • Take advantage of a market anomaly
  • Currently higher average credit quality than ordinary high-yield issuers
  • Diversification across countries and sectors
  • Issued in USD, GBP, EUR and CAD
  • Currently amongst the lowest total expense ratios in UCITS Fallen Angel ETFs (0.4%)


1Past performance is not a reliable indicator for future performance. Risk factors: Foreign Currency Risk, Emerging Markets Risk, High Yield Securities Risk. Please refer to the

KID

and the Prospectus for other important information before investing.



Underlying Index

ICE Global Fallen Angel High Yield 10% Constrained Index

Capital Markets

VanEck partners with esteemed market makers to ensure the availability of our products for trading on the mentioned stock exchanges. Our Capital Markets team is committed to continuously monitoring and assessing spreads, sizes, and prices to ensure optimal trading conditions for our clients. Furthermore, VanEck ETFs are available on various trading platforms, and we collaborate with a wider range of reputable Authorized Participants (APs) to promote an efficient and fair trading environment. For more information about our APs and to contact our Capital Markets team, please visit factsheet capital markets.pdf

Performance

Holdings

Portfolio

Documents

Index

Index Description

The ICE Global Fallen Angel High Yield 10% Constrained Index is comprised of below investment grade corporate bonds denominated in US dollar, Canadian dollar, British pound sterling and Euro, that were rated investment grade at the time of issuance and that are publicly issued in the major domestic or eurobond markets.  

Index Key Points

Underlying Index
ICE Global Fallen Angel High Yield 10% Constrained Index


Index Characteristics
The Index tracks the performance of USD, CAD, GBP and EUR denominated below investment grade corporate debt publicly issued in the major domestic or eurobond markets and that were rated investment grade at the point of issuance.

Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, and a fixed coupon schedule.

 

Liquidity

Bonds must have minimum amount outstanding of USD 250 million, EUR 250 million, GBP 100 million, or CAD 100 million.


Weighting Methodology
Index constituents are market capitalization weighted, provided the total allocation to an individual issuer does not exceed 10%.

 

Accrued interest is calculated assuming next-day settlement.

 

Monthly Rebalance
Rebalance day occurs on the last calendar day of the month, based on information available up to and including the third business day before the last business day of the month. 
 
No changes are made to constituent holdings other than on month end rebalancing dates.

 

Index Provider
ICE Data Indices, LLC

For more information about the index please click here

 

Please note that GFA’s underlying index has changed on 31 July 2020. Prior to 31 July 2020 the underlying index was ICE Global Fallen Angel High Yield Index (HWFA).

Awards

Main Risks

Main Risk Factors of a Fallen Angels ETF

  • Foreign Currency Risk
  • Risk of Investing in Emerging Markets Issuers
  • High Yield Securities Risk
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Because all or a portion of the Fund are being invested in securities denominated in foreign currencies, the Fund’s exposure to foreign currencies and changes in the value of foreign currencies versus the base currency may result in reduced returns for the Fund, and the value of certain foreign currencies may be subject to a high degree of fluctuation.

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Investments in emerging market countries are subject to specific risks and securities are generally less liquid and less efficient and securities markets may be less well regulated. Specific risks may be heightened by currency fluctuations and exchange control; imposition of restrictions on the repatriation of funds or other assets; governmental interference; higher inflation; social, economic and political uncertainties.

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The prices of junk bonds are likely to be more sensitive to adverse economic changes or individual issuer developments than higher rated securities possibly leadong to junk bond issuers not being able to service their principal and interest payment obligations. The secondary market for securities that are junk bonds may be less liquid than the markets for higher quality securities.

For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.