Financial News

VanEck Introduces YUMY: ETF Investing in the Future of Food

New fund offers actively managed exposure to the leading innovators and disruptors solving some of today’s most difficult agricultural challenges.

VanEck today announced the launch of the VanEck Future of Food ETF (YUMY), an actively managed equity ETF that provides exposure to companies engaged in agri-food technology and innovation.

YUMY is the first VanEck ETF to incorporate bottom-up, fundamental company research and will be overseen by portfolio managers Shawn Reynolds and Ammar James.

“The growing global population and the concurrent threats from climate change are driving the need for more sustainable agri-food processes and technologies in order to provide for a future with more affordable, nutritious and safe food for all,” said Mr. Reynolds, Portfolio Manager for YUMY. Mr. Reynolds also oversees VanEck’s Environmental Sustainability and Natural Resources Equity Strategies. “We are now in the early stages of a multi-decade agri-food system transformation. Growth opportunities in this space currently exist, but the market remains nascent. A number of private firms appear poised to enter the public markets and several established companies are pivoting their business models to embrace the future of food, so an active approach to stock selection will position YUMY and its investors to capitalize on emerging trends.”

To better understand and research the expansive global agriculture and food industry, VanEck has identified three proprietary pillars of the agri-food technology and innovation opportunity set:

  1. Food Technology: alternative proteins, animal feed and nutrition, and sustainable aquaculture.
  2. Precision Agriculture: vertical/indoor farming, robotics and automation, data collection and analysis, water and irrigation.
  3. Agriculture Sustainability: seed genetics, sustainable and safe fertilizer and crop chemicals, and sustainable food preservation and packaging.

VanEck further noted the growing global population is driving the need for innovation as the population is expected to increase by 25% from 7.8 billion today to nearly 10 billion by 2050.1 More people are expected to enter the middle class than any time in history, accelerating anticipated consumption of protein and animal-based foods, which are resource-intensive to produce. By some estimates it may take as much as 70% more food production to feed this larger and wealthier population.2

“These growing needs have to be met with innovation, but they will also have to take into account the demands from both governments and consumers for cleaner, healthier and more environmentally sustainable approaches to feeding the world,” added Mr. James, who also serves as an analyst specializing in agribusiness, timber, and paper and packaging research for the firm. “We’re thrilled to be bringing YUMY to the marketplace and look forward to continuing to share our insights and research with investors and advisors around this essential topic and key investment category.”

Mr. James recently joined VanEck’s Head of ETF Product Ed Lopez on an episode of the Trends with Benefits podcast, to discuss the future of food, going into more detail on all of the points and trends discussed above.

VanEck has a long history in agriculture and sustainability-focused investing and is a leader in providing investors with solutions focused on relevant themes such as green bonds and the low carbon energy ecosystem. As a signatory of the Principles of Responsible Investment (PRI), VanEck incorporates ESG factors and analysis into their investment processes, and YUMY joins a lineup of sustainability-focused equity solutions that also includes the recently launched VanEck Green Metals ETF (GMET) and VanEck Environmental Sustainability Fund (ENVIX).

YUMY is listed on the NYSE Arca and has a net expense ratio of 0.69%.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of October 31, 2021, VanEck managed approximately $82.2 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.

Important Disclosures

The Fund will be sensitive to, and its performance will depend to a greater extent on, the overall condition of companies operating in the food technology, precision agriculture, and agricultural sustainability markets. These companies may have limited product lines, markets, financial resources or personnel and may face intense competition or potentially rapid product obsolescence which may adversely affect the Fund.

An investment in the Fund may be subject to risks which include, among others, risk of investing in agri-food technology and innovation food companies, equity securities, investing in small- and medium-capitalization companies, basic materials, industrials and consumer staples sectors, investing in European issuers, foreign securities, foreign currency, management, market, operational, authorized participant concentration, new fund, absence of prior active market, trading issues, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, initial public offerings, special purpose acquisition companies, and concentration risks, which may make these investments volatile in price or difficult to trade. Small- and medium capitalization companies may be subject to elevated risks.

An investment in GMET may be subject to risks which include, among others, risks related to investing in green metals, clean energy companies, regulatory action and changes in governments, rare earth and strategic metals companies, Australian, Asian issuers and Chinese issuers, investing through stock connect, foreign securities, emerging market issuers, foreign currency, basic materials sector, mining industry, small- and medium-capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and concentration risks which may make these investments volatile in price or difficult to trade. Small- and medium-capitalization companies may be subject to elevated risk.

You can lose money by investing in ENVIX. Any investment in ENVIX should be part of an overall investment program, not a complete program. An investment in ENVIX may be subject to risks which include, among others, investing in derivatives, equity securities, emerging market securities. environmental-related securities, foreign currency transactions, foreign securities, investments in other investment companies, management, market, new fund risk, non-diversification, operational, sectors, small and medium capitalization companies, special purpose acquisition companies. Small- and medium-capitalization companies may be subject to elevated risks.

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

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1
Source: United Nations

2 Ibid.

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