Emerging Markets Bonds

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Fortify Your 40% with Emerging Markets Bonds

Blog | March 09

What Sets Chinese Bonds Apart?

Blog | January 28

What Do Inflation and Growth Mean for EMFX?

Blog | December 17

Does 60/40 Still Work in China?

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Related Funds

EMLC
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF

GLCN
VanEck Vectors China Growth Leaders ETF

CNXT
VanEck Vectors ChinaAMC SME-ChiNext ETF

EMBAX
Emerging Markets Bond Fund - Class A

GBFAX
Emerging Markets Fund - Class A

CBON
VanEck Vectors ChinaAMC China Bond ETF

Market Updates*

Chinese bonds currently offer attractive yields, with the 10-year China government bond yielding nearly 154 basis points above the 10-year U.S. Treasury yield.¹
CNY has appreciated against the U.S. dollar since last summer, supported by relatively constrained monetary policy, growing FX reserves and a strong economic recovery compared to most other countries worldwide.
Foreign interest in onshore bonds continues to increase, driven by their attractive yield and diversification potential, with inflows expected to continue as onshore bonds are gradually included in global bond indexes.

Learn More | What Sets Chinese Bonds Apart?

¹Source: Bloomberg as of 04/09/2021.

Fund Description

The VanEck Vectors^® ChinaAMC China Bond ETF (CBON^®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ChinaBond China High Quality Bond Index (CHQU01TR), which is comprised of fixed-rate, Renminbi ("RMB")-denominated bonds issued in the People's Republic of China by Chinese credit, governmental and quasi-governmental (e.g., policy banks) issuers.

Fund Ticker
CBON
Exchange
NYSE Arca
ETF Structure
Physical
Administrator
Van Eck Associates
Custodian
State Street Bank and Trust Company
Index Ticker
CHQU01TR
Index Rebalancing
Monthly

as of 07/29/21

30-Day SEC Yield¹
2.60%
Total Net Assets
$116.9M
Number of Holdings
89
Options
Expected
Gross Expense Ratio²
3.53%
Net Expense Ratio/TER²
0.50%
Distribution Frequency
Monthly

Schedule a Call

Morningstar™ Ratings³
as of 06/30/2021

Category	Overall	3 Year	5 Year
Emerging-Markets Local-Currency Bond	5 stars of 74 funds	5 stars of 74 funds	5 stars of 70 funds

Key Points

Yield Premium
Attractive yield pickup over developed markets bonds

Portfolio Diversifier
RMB denominated bonds have historically exhibited low correlation to other asset classes^*

Access to the world’s second largest bond market
Broad exposure to bonds issued by the central government, policy banks and corporations

^*Source: FactSet and ICE Data Indices, LLC.

Yields
as of 07/29/21

30-Day SEC Yield¹
2.60%
Distribution Yield¹
2.67%
12-Month Yield¹
2.68%

¹ See Important Disclosure for definitions.

Fees & Expenses²

Management Fee
0.40%
Other Expenses
3.13%
Acquired Fund Fees and Expenses
--
Gross Expense Ratio
3.53%
Fee Waivers and
Expense Reimbursement
-3.03%
Net Expense Ratio/TER²
0.50%

²Expenses for CBON are capped contractually at 0.50% until September 1, 2021. Cap excludes acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.

Trading Information

Fund Ticker
CBON
Index Total Return Ticker
CHQU01TR
NAV
CBONNV
Intraday NAV (IIV)⁵
CBONIV
Shares Outstanding
4,800,000
Estimated Cash
CBONEU
Total Cash
CBONTC
CUSIP
92189F379
ISIN
US92189F3799

⁵See IIV Details. Source: Bloomberg

Fundamentals⁴
as of 07/28/21

Yield to Maturity
3.10%
Coupon
3.64%
Modified Duration (yrs)
3.50
Years to Maturity
6.39

⁴ See Important Disclosure for definitions.

Investment Professionals

Francis G. Rodilosso, CFA

Portfolio Manager and Head of Fixed Income ETFs
Responsible for portfolio strategies as well as credit and market analysis; specializes in international bond markets
Joined VanEck in 2012
Prior to VanEck, Managing Director of Global Emerging Markets with The Seaport Group; launched the firm’s emerging markets fixed income sales and trading business
Previously, held portfolio management positions at Greylock Capital and Soundbrook Capital; focused on corporate high-yield and distressed bonds with an emphasis on emerging markets
CFA charterholder; member of CFA Society New York
MBA (with distinction), Finance, University of Pennsylvania
AB, History, Princeton University

Daniel Cho

Associate Portfolio Manager for Fixed Income ETFs
Joined VanEck in 2013
Prior to his current role, held a portfolio administration position for the firm’s alternative investment funds
MS, Finance, University of Rochester
BS, Information Sciences and Technology, Pennsylvania State University

Stephanie Wang

Associate Portfolio Manager for Fixed Income ETFs
Joined VanEck in 2016
MS, Financial Engineering, Baruch College
BBA, Finance, Baruch College

Jared Model

Senior Trader, Portfolio Analyst for Fixed Income ETFs
Joined VanEck in 2017
Previously, Trader at Beck, Mack & Oliver LLC and monitored markets and executed equity and fixed income trades and Fixed Income Operations at Gleacher & Company Securities, Inc.
MBA, Finance, Montclair State University
BS, concentration in Accounting and Finance, minor in Computer Science, University of Vermont

Prices as of 07/29/21

	NAV/ Market Price	Volume 30-Day Avg./ Last Trading Day	Daily Change NAV/ Last Price	YTD Change NAV/ Last Price	Premium/ Discount	Prem/Discount Distribution Charts	NAV & Prem/Discount History	30-Day Median Bid Ask Spread	NAV Chart
CBON	$24.36 $24.21	59,245 65,707	$0.16 / +0.65% $0.07 / +0.29%	+3.27% +2.39%	$-0.15 -0.63%			0.21%

Premium/Discount History as of 07/29/21

		Calendar Year 2020	3Q 2020	4Q 2020	1Q 2021	2Q 2021
	Days closed at a premium	186	64	62	45	33
CBON	Days closed at NAV	1	0	1	1	3
	Days closed at a discount	66	0	1	15	27

Performance History: Average Annual Total Returns* (%)
View All ETFs View All Indices

Month End as of 06/30/21
Quarter End as of 06/30/21

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 11/10/14
CBON (NAV)	-1.26	2.62	2.30	12.67	5.08	3.68	--	2.65
CBON (Share Price)	-2.02	2.15	1.67	11.42	5.16	3.85	--	2.60
CHQU01TR (Index)	-1.23	2.91	2.79	12.63	5.85	4.44	--	3.55
Performance Differential (NAV - Index)	-0.03	-0.29	-0.49	0.04	-0.77	-0.76	--	-0.90

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 11/10/14
CBON (NAV)	-1.26	2.62	2.30	12.67	5.08	3.68	--	2.65
CBON (Share Price)	-2.02	2.15	1.67	11.42	5.16	3.85	--	2.60
CHQU01TR (Index)	-1.23	2.91	2.79	12.63	5.85	4.44	--	3.55
Performance Differential (NAV - Index)	-0.03	-0.29	-0.49	0.04	-0.77	-0.76	--	-0.90

*Returns less than one year are not annualized.

The table presents past performance which is no guarantee of future results and which may be lower or higher than current performance. As of October 31, 2018, index data for the ChinaBond China High Quality Bond Index (the “Index”) for all periods presented reflect the CHQU01TR stream of the Index which is denominated in USD and converted by the index provider using the “offshore” Renminbi (CNH) exchange rate. Returns reflect temporary contractual fee waivers and/or expense reimbursements. Had the ETF incurred all expenses and fees, investment returns would have been reduced. Investment returns and ETF share values will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. ETF returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV.

The "Net Asset Value" (NAV) of a VanEck Vectors Exchange Traded Fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF 's intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

Top 10 Holdings (%) as of 06/30/21 Daily Holdings

Total Holdings: 92

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full data

	Holding Name	Coupon	Maturity	Country^†	Currency	% of Net Assets
	CHINA GOVERNMENT BOND	3.400	04/17/2023	China	CNY	9.58
	CHINA DEVELOPMENT BANK	3.870	08/01/2023	China	CNY	5.62
	CHINA GOVERNMENT BOND	3.270	08/22/2046	China	CNY	4.11
	CHINA DEVELOPMENT BANK	3.910	04/06/2022	China	CNY	3.94
	BEIJING STATE-OWNED CAPITAL OPERATION A	3.850	01/14/2024	China	CNY	3.36
	CHINA DEVELOPMENT BANK	4.590	08/01/2038	China	CNY	3.06
	CHINA DEVELOPMENT BANK	3.390	02/03/2027	China	CNY	2.80
	SHANDONG HI-SPEED GROUP CO LTD	4.000	10/21/2024	China	CNY	2.32
	SHENWAN HONGYUAN GROUP CO LTD	4.800	07/17/2023	China	CNY	2.11
	ANSHAN IRON AND STEEL GROUP CO LTD	4.280	07/30/2169	China	CNY	2.04
Top 10 Total (%)						38.94

These are not recommendations to buy or to sell any security. Securities and holdings may vary.

†See Country of Risk disclosure. These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Country Weightings (%) as of 06/30/21

Country
% of Net Assets
■
China
92.57
■
Other/Cash
7.43

Currency Exposure (%)

as of 06/30/21

Chinese Renminbi
92.57
Other/Cash
7.43

Sector Weightings (%) as of 06/30/21

Sector
% of Net Assets
■
Financials
37.7
■
Government Activity
15.4
■
Utilities
10.0
■
Industrials
9.4
■
Basic Materials
8.5
■
Consumer Cyclicals
4.9
■
Real Estate
2.7
■
Energy
2.3
■
Technology
1.6
■
Other/Cash
7.4

Maturity (%) as of 06/30/21

Average Portfolio Maturity: 6.44 Years