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

Market Updates*

  • Local currency emerging markets sovereign bonds have historically exhibited negative correlation to U.S. treasuries, providing a potential offset to the impact of rising U.S. interest rates.1
  • EMLC may be an attractive way to earn relatively high carry2and potentially benefit from U.S. dollar weakness
  • Local currency emerging markets bonds may provide a higher quality alternative to USD emerging markets sovereigns while providing attractive yield, as the average credit quality of the local emerging markets benchmark is investment grade while the hard currency benchmark is on average high yield.3

Learn More | Declining U.S. Rates Boost EM Debt’s Yield Advantage

1Source: Morningstar, based on monthly returns from May 2018 to April 2021

2Carry refers to the returns or costs of holding a bond.

3Source: J.P. Morgan as of 4/30/2021, based on the J.P. Morgan GBI-EM Global Diversified Index and the J.P. Morgan EMBI Global Diversified Index.

Fund Description

The VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the J.P. Morgan GBI-EM Global Core Index (GBIEMCOR), which is comprised of bonds issued by emerging market governments and denominated in the local currency of the issuer.

 
 

  • Fund Ticker

    EMLC
  • Exchange

    NYSE Arca
  • ETF Structure

    Physical
  • Administrator

    Van Eck Associates
  • Custodian

    State Street Bank and Trust Company
  • Index Ticker

    GBIEMCOR
  • Index Rebalancing

    Monthly
  • 2021 Preliminary NAIC Designation7

    3.A

 
as of 09/22/21

  • 30-Day SEC Yield1

    4.81%
  • Total Net Assets

    $3.6B
  • Number of Holdings

    349
  • Options

    Available
  • Gross Expense Ratio2

    0.31%
  • Net Expense Ratio/TER2

    0.30%
  • Distribution Frequency

    Monthly
1,2,7 See Important Disclosure
Why Invest?

Morningstar™ Ratings3
as of 08/31/2021

Category Overall 3 Year 5 Year
Emerging-Markets Local-Currency Bond
3 stars of 73 funds
3 stars of 73 funds
3 stars of 69 funds

Key Points

    • Seeks to replicate the J.P. Morgan GBI-EM Global Core Index

    • Access to local bond markets in emerging economies

    • Provides yields that are currently higher than developed markets and potential for currency appreciation

Yield
as of 09/22/21

  • 30-Day SEC Yield1

    4.81%
  • Distribution Yield1

    4.99%
  • 12-Month Yield1

    4.90%
 1 See Important Disclosure for definitions.

Fees & Expenses2

  • Management Fee

    0.27%
  • Other Expenses

    0.04%
  • Acquired Fund Fees and Expenses

    --
  • Gross Expense Ratio

    0.31%
  • Fee Waivers and
    Expense Reimbursement

    -0.01%
  • Net Expense Ratio/TER2

    0.30%
2Expenses for EMLC are capped contractually at 0.30% until September 1, 2022. Cap excludes acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.

Trading Information

  • Fund Ticker

    EMLC
  • Index Total Return Ticker

    GBIEMCOR
  • NAV

    EMLCNV
  • Intraday NAV (IIV)5

    EMLCIV
  • Shares Outstanding

    118,022,682
  • Estimated Cash

    EMLCEU
  • Total Cash

    EMLCTC
  • CUSIP

    92189H300
  • ISIN

    US92189H3003
5See IIV Details. Source: Bloomberg

Fundamentals4
as of 09/21/21

  • Yield to Worst

    5.36%
  • Yield to Maturity

    5.38%
  • Effective Duration (yrs)

    5.07
  • Years to Maturity

    7.16
  • Modified Duration (yrs)

    5.15
  • Coupon

    5.46%
 4 See Important Disclosure for definitions.

Investment Professionals

  • 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
  • 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
  • Associate Portfolio Manager for Fixed Income ETFs
  • Joined VanEck in 2016
  • MS, Financial Engineering, Baruch College
  • BBA, Finance, Baruch College
  • 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 09/22/21

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
EMLC $30.58
$30.46
1,980,613
3,226,704
$0.07 / +0.24%
$-0.02 / -0.07%
-4.53%
-5.03%
$-0.12
-0.39%
--

Premium/Discount History as of 09/22/21

Calendar Year 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Premium/Discount Charts NAV & Prem/Discount History
Days closed at a premium 91 30 36 14 38
EMLC Days closed at NAV 6 1 2 3 2
Days closed at a discount 156 33 26 44 23


Performance History: Average Annual Total Returns* (%)

1 MO 3 MO YTD 1 YR 3 YR 5 YR 10 YR LIFE
07/22/10
EMLC (NAV) 0.83 -0.64 -2.88 4.07 4.51 1.93 -0.35 0.98
EMLC (Share Price) 0.61 -1.00 -3.28 3.74 4.55 1.91 -0.44 0.96
GBIEMCOR (Index) 0.79 -0.80 -2.97 4.54 5.07 2.50 0.30 1.66
Performance Differential (NAV - Index) 0.04 0.16 0.09 -0.47 -0.56 -0.57 -0.65 -0.68
1 MO 3 MO YTD 1 YR 3 YR 5 YR 10 YR LIFE
07/22/10
EMLC (NAV) -0.88 3.48 -3.12 6.78 2.98 2.01 -0.21 0.97
EMLC (Share Price) -1.14 3.54 -3.42 7.18 3.07 1.90 -0.26 0.96
GBIEMCOR (Index) -1.10 3.53 -3.27 7.33 3.45 2.58 0.44 1.66
Performance Differential (NAV - Index) 0.22 -0.05 0.15 -0.55 -0.47 -0.57 -0.65 -0.69

Top 10 Holdings (%) as of 08/31/21 Daily Holdings

Total Holdings: 344
Swipe
to view
full data
Holding Name
Coupon
Maturity
Country
Currency
% of Net
Assets
BRAZIL LETRAS DO TESOURO NACIONAL
0.000
01/01/2024
Brazil
BRL
2.06
BRAZIL NOTAS DO TESOURO NACIONAL SERIE
10.000
01/01/2023
Brazil
BRL
1.30
BRAZIL LETRAS DO TESOURO NACIONAL
0.000
07/01/2023
Brazil
BRL
1.11
BRAZIL NOTAS DO TESOURO NACIONAL SERIE
10.000
01/01/2025
Brazil
BRL
1.01
PHILIPPINE GOVERNMENT INTERNATIONAL BON
6.250
01/14/2036
Philippines
PHP
1.01
BRAZIL NOTAS DO TESOURO NACIONAL SERIE
10.000
01/01/2027
Brazil
BRL
0.97
URUGUAY GOVERNMENT INTERNATIONAL BOND
8.250
05/21/2031
Uruguay
UYU
0.93
BRAZIL LETRAS DO TESOURO NACIONAL
0.000
07/01/2022
Brazil
BRL
0.92
REPUBLIC OF SOUTH AFRICA GOVERNMENT BON
8.000
01/31/2030
South Africa
ZAR
0.91
REPUBLIC OF SOUTH AFRICA GOVERNMENT BON
8.750
02/28/2048
South Africa
ZAR
0.90
Top 10 Total (%) 11.12

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 08/31/21

  • Country

    % of Net Assets
  • China

    9.91
  • Indonesia

    9.55
  • Brazil

    8.97
  • Mexico

    7.40
  • South Africa

    6.98
  • Thailand

    6.58
  • Malaysia

    5.99
  • Poland

    5.43
  • Russia

    4.85
  • Supra-National

    4.18
  • Colombia

    4.14
  • Czech

    3.89
  • Hungary

    3.74
  • Romania

    3.22
  • Turkey

    2.98
  • Peru

    2.96
  • Chile

    2.94
  • Serbia

    1.58
  • Uruguay

    1.52
  • Dominican Repb.

    1.51
  • Other/Cash

    1.69

Currency Exposure (%)
as of 08/31/21

  • Indonesian Rupiah

    10.17
  • Chinese Renminbi

    9.91
  • Brazilian Real

    8.98
  • Mexican Peso

    8.41
  • South African Rand

    7.51
  • Thailand Baht

    6.58
  • Polish Zloty

    6.52
  • Malaysian Ringgit

    5.99
  • Russian Ruble

    5.80
  • Colombian Peso

    4.14
  • Czech Koruna

    3.89
  • Hungarian Forint

    3.74
  • Romanian Leu

    3.22
  • Turkish Lira

    3.06
  • Peruvian New Sol

    2.96
  • Chilean Peso

    2.94
  • Serbian Dinar

    1.58
  • Uruguay Peso

    1.52
  • Dominican Rep. Peso

    1.51
  • Philippines Peso

    1.49
  • Other/Cash

    0.09

Sector Weightings (%) as of 08/31/21

  • Sector

    % of Net Assets
  • Government Activity

    94.3
  • Financials

    5.1
  • Industrials

    0.2
  • Utilities

    0.2
  • Energy

    0.1
  • Other/Cash

    0.1

Credit Quality (%) as of 08/31/21

Composite % of Net Assets
Investment Grade AAA 3.33
AA 3.87
A 18.30
BBB 47.33
Non-Investment Grade BB 22.84
B 2.98
CCC 0.07
Total Investment Grade -- 72.82
Total Non-Investment Grade -- 25.90
Not Rated -- 1.28
Source: Bloomberg.  Rating is a proprietary composite of various rating agencies. A bond must be rated by two or more rating agencies to receive a composite rating; otherwise it is classified as Not Rated.

Maturity (%) as of 08/31/21

 Average Portfolio Maturity: 7.17 Years