Financial News
VanEck Launches Actively Managed Dynamic High Income ETF (INC), Focused on High Yielding Segments of the Market
INC is designed to maximize yield per unit of risk by optimizing exposures to high income producing assets and actively managing allocations based on market conditions.
VanEck today announced the launch of the VanEck Dynamic High Income ETF (NYSE: INC), an actively managed multi-asset income-focused ETF offering diversified exposure across the highest yielding segments of the equity income and fixed income markets.
INC seeks to identify compelling sources of high income and dividends and builds a corresponding portfolio primarily of ETFs. The Fund’s management team then seeks to maximize yield per unit of risk by assessing volatility and correlation data to optimize and refine specific exposures. The Fund is also designed to adapt quickly to changing market conditions and to be able to take advantage of pricing anomalies within the market.
The Fund’s equity income sleeve will include exposures to dividend-paying stocks, business development companies (BDCs), preferred securities, mortgage REITs and MLPs. The Fund’s fixed income sleeve will be made up of exposures to “fallen angel” high yield bonds, international and emerging market high yield bonds, emerging market local currency bonds and 10-20 year U.S. Treasuries.
The Fund’s lead portfolio manager is David Schassler, Portfolio Manager and Head of Quantitative Investment Solutions at VanEck. He brings nearly 20 years of direct experience to this role, and in the case of INC, will work alongside the firm’s fixed income and equity investment teams, as they navigate the current markets and identify key opportunities for attractive income generation.
“The search for yield can no longer be a static activity,” said Schassler. “Amidst rising rates, global volatility and increased economic uncertainty, an active approach that seeks income across a wide range of fixed income and equity exposures will be a powerful tool for investors and advisors. We are thrilled to be launching INC, an ETF that we believe offers a compelling, comprehensive, dynamic, risk-managed means of accessing and allocating among income generating assets.”
INC joins an asset allocation-focused VanEck ETF lineup that also includes the VanEck Inflation Allocation ETF (RAAX), VanEck Muni Allocation ETF (MAAX) and VanEck Long/Flat Trend ETF (LFEQ).
The VanEck team provides regular updates and timely insights on their strategic asset allocation solutions, which can be accessed here.
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 September 30, 2022, VanEck managed approximately $60.8 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
An investment in the VanEck Dynamic High Income ETF (INC) may be subject to risks which include, among others, fund of funds, ETPs, U.S. treasury securities, interest rate, income, high portfolio turnover, management, operational, authorized participant concentration, absence of prior active market, trading issues, market, fund shares trading, premium/discount, liquidity of fund shares, affiliated fund, new fund, and non-diversified risks. The Fund may also be subject to dividend paying securities, investing in foreign securities, investing in emerging market issuers, foreign currency, investing in mortgage REITs, preferred securities, CLO, credit, high yield securities, interest rate, call and concentration risks, all of which may adversely affect the Fund.
An investment in the VanEck Inflation Allocation ETF (RAAX) may be subject to risks which include, among others, in fund of funds risk which may subject the Fund to investing in commodities, gold, natural resources companies, MLPs, real estate sector, infrastructure, equities securities, small- and medium-capitalization companies, foreign securities, emerging market issuers, foreign currency, credit, interest rate, call and concentration risks, derivatives, cryptocurrency, cryptocurrency tax, all of which may adversely affect the Fund. The Fund may also be subject to affiliated fund, U.S. Treasury Bills, subsidiary investment, commodity regulatory (with respect to investments in the Subsidiary), tax (with respect to investments in the Subsidiary), risks of ETPs, liquidity, gap, cash transactions, high portfolio turnover, model and data, management, operational, authorized participant concentration, no guarantee of active trading market, trading issues, market, fund shares trading, premium/discount and liquidity of fund shares, and non-diversified risks. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. Small- and medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Muni Allocation ETF (MAAX) may be subject to risks which include, fund of funds risk, high portfolio turnover, model and data, active management, operational, authorized participant concentration, no guarantee of active trading market, trading issues, market and fund shares trading, premium/discount and liquidity of fund shares risks. The fund may also be subject to following risks as a result of investing in Exchange Traded Products including municipal securities, credit, high yield securities, tax, interest rate, call, state concentration and sector concentration risks, all of which may adversely affect the fund. Municipal bonds may be less liquid than taxable bonds. There is no guarantee that a Funds’ income will be exempt from federal, state or local income taxes, and changes in those tax rates or in alternative minimum tax (AMT) rates or in the tax treatment of municipal bonds may make them less attractive as investments and cause them to lose value. Capital gains, if any, are subject to capital gains tax. A portion of the dividends you receive may be subject to AMT.
The VanEck Long/Flat Trend ETF (LFEQ) is subject to risks associated with equity securities, index tracking, investing in other funds, market, U.S. Treasury bills, operational, high portfolio turnover, fund shares trading, premium/discount risk and liquidity of fund shares, passive management, no guarantee of active trading market, authorized participant concentration, trading issues, non-diversification and concentration risks. The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor,
A wholly owned subsidiary of Van Eck Associates Corporation
666 Third Avenue
New York, NY 10017
View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005574/en/
Contacts
Media:
Chris Sullivan / Julia Stoll
MacMillan Communications
212.473.4442
chris@macmillancom.com
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.