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UCTHYEM VanEck Emerging Markets High Yield Bond UCITS ETF Please read important disclosure Close important disclosure true
Marketing Communication
HYEM

Emerging Markets High Yield Bond ETF
VanEck Emerging Markets High Yield Bond UCITS ETF

Marketing Communication
HYEM

Emerging Markets High Yield Bond ETF
VanEck Emerging Markets High Yield Bond UCITS ETF

ISIN: IE00BF541080 copy-icon
Documents
research-link-icon Fact Sheet
research-link-icon KID
research-link-icon Prospectus

Fund Description

The VanEck Emerging Markets High Yield Bond UCITS ETF offers the potential for higher returns than developed-market bonds, while also having the advantage of higher credit quality. The EM bond universe has grown substantially in the last years, and is now an attractive alternative to the developed world’s high yield markets.

  • NAV
    $122.72

    as of 20 Nov 2024
  • YTD RETURNS
    11.60%

    as of 20 Nov 2024
  • Total Net Assets
    $29.8 million

    as of 20 Nov 2024
  • Total Expense Ratio
    0.40%
  • Inception Date
    20 Mar 2018
  • SFDR Classification
    Article 6
Documents
research-link-icon Fact Sheet
research-link-icon KID
research-link-icon Prospectus

Overview

Fund Description

The VanEck Emerging Markets High Yield Bond UCITS ETF offers the potential for higher returns than developed-market bonds, while also having the advantage of higher credit quality. The EM bond universe has grown substantially in the last years, and is now an attractive alternative to the developed world’s high yield markets.

  • Potential for higher returns than developed market high-yield bonds
  • Currently higher average credit rating than developed-market high yield
  • Tracks a well-diversified index of corporate bonds
  • Underlying bonds issued in USD


Main Risk Factors:

Liquidity Risks, Risk of Investing in Emerging Markets Issuers, High Yield Securities Risk. Please refer to the

KID

and the Prospectus for other important information before investing.



Underlying Index

ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index

Fund Highlights

  • Potential for higher returns than developed market high-yield bonds
  • Currently higher average credit rating than developed-market high yield
  • Tracks a well-diversified index of corporate bonds
  • Underlying bonds issued in USD


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 BofAML Diversified High Yield US Emerging Markets Corporate Plus 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 BofA Diversified High Yield US Emerging Markets Corporate Plus Index is comprised of U.S. dollar-denominated bonds issued by non-sovereign emerging markets issuers that are rated below investment grade and that are issued in the major domestic and Eurobond markets. 

Index Key Points

Underlying Index
ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index


Index Characteristics
In order to qualify for inclusion an issuer must have risk exposure to countries other than members of the FX G10, all Western European countries, and territories of the US and Western European countries. The FX-G10 includes all Euro members, the US, Japan, the UK, Canada, Australia, New Zealand, Switzerland, Norway and Sweden.

Individual securities of qualifying issuers must be denominated in US dollars, must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), must have at least one year remaining term to final maturity, at least 18 months to final maturity at point of issuance.

 

Liquidity

Bonds must have at least USD 300 million in outstanding face value and a fixed coupon.

 

Weighting Methodology

The Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest, subject to a 10% country of risk cap and a 3% issuer cap. Countries and issuers that exceed the caps are reduced to 10% and 3%, respectively, and the face value of each of their bonds is adjusted on a pro-rata basis.

 

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. Issues that no longer meet the criteria during the course of the month remain in the Index until the next month-end rebalancing at which point they are removed from the Index.

Index Provider
ICE Data Indices, LLC
For more information about the index please click here

 

Awards

Main Risks

Main Risk Factors of a Emerging Markets High Yield Bond ETF

While the diversification in a multi-asset strategy reduces risk, it is important to remember that all investments carry some risk. The Multi-Asset Funds by VanEck are subject to the four risks below:

  • Liquidity Risks
  • Risk of Investing in Emerging Markets Issuers
  • High Yield Securities Risk
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Exists when a particular financial instrument is difficult to purchase or sell. If the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous or reasonable price, or at all.

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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.