VanEck Starts ETF Distribution in Austria and Italy
VanEck Investments Ltd. today announced that its suite of UCITS Exchange Traded Funds (ETFs) is now registered in Italy and Austria. The registration of the VanEck Vectors UCITS ETFs in those two countries marks the next step in the expansion of the firm’s ETF business in Europe that started with the launch of two gold miners ETFs and a U.S. equity ETF in 2015. Going forward, Italian and Austrian investors will have access to all fund information, research, investment themes, and other VanEck services.
“After a successful start in Europe, Asia, and Latin America and listings in London, Frankfurt and Zurich, we saw increasing interest in our UCITS ETF platform worldwide,” said Uwe Eberle, Head of International Business Development and Distribution. “We are committed to making our funds and services available to European investors, and registering our ETFs broadly allows us to respond to investors’ interests.” VanEck is currently focusing on expanding both UCITS ETF distribution and fund offerings worldwide.
The VanEck Vectors Gold Miners UCITS ETF (GDX) and the VanEck Vectors Junior Gold Miners UCITS ETF (GDXJ) provide access to the global gold mining sector. GDX covers a comprehensive portfolio of large, mid-sized, and small global gold mining companies. GDX is currently the third largest gold mining UCITS ETFs in Europe by assets under management. GDXJ invests in micro-, small-, and medium-capitalisation mining companies, called “juniors” because they are in an exploratory or early mining phase.
The VanEck Vectors Morningstar US Wide Moat UCITS ETF is the first ETF in Europe to provide exposure to U.S. companies with a Morningstar® Economic MoatTM Rating of Wide. The underlying index developed by Morningstar is based on the idea of economic moats, i.e. long-term structural advantages that allow a company to withstand competition. The Morningstar Wide Moat Focus Index has outperformed the broader U.S. equity market since its inception. Year to date, the index has outperformed the S&P 500 Index by 12.43%.
VanEck offers intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, VanEck was a pioneer in global investing with a history of placing clients’ interests first in all market environments. The firm continues this tradition by offering active and ETF portfolios in hard assets, emerging markets, fixed income, and other assets classes.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell or promote the VanEck Vectors Morningstar US Wide Moat UCITS ETF and bears no liability with respect to that ETF. The index provides exposure to companies with a Morningstar Economic Moat Rating of “wide” that are trading at the lowest current market price/fair value ratios. Moat Ratings and fair value estimates are determined by the Morningstar Equity Research Team.
Moativated Investing – A History of Outperformance
Moativated Investing – A History of Outperformance. Long-term outperformance defines the track record of Morningstar’s success in identifying quality ”moat” companies with sustainable competitive advantages that are also trading at attractive valuations. Since its live inception in 2007, the Morningstar® Wide Moat Focus IndexSM has outperformed the S&P 500® Index by more than four percentage points each year, as shown in the chart below.
Morningstar’s Economic Moat Rating
Morningstar first began rating companies in 2002 according to the strength and longevity of their competitive advantages. Nearly fifteen years later, Morningstar’s equity research process remains rooted in the core belief that quality companies positioned to maintain one or more competitive advantages well into the future are best positioned for long-term success. The quality of these companies is reflected in Morningstar’s Economic Moat Rating.
Morningstar’s unique Economic Moat Rating system helps investors identify how likely a company is to keep competitors at bay for an extended period. The highest rating, a wide economic moat, signifies Morningstar’s belief that the company can sustain its competitive advantage for at least 20 years into the future, which is no small feat in today’s ultra-competitive environment.
Fair Value Represents A Company’s Long-Term Intrinsic Value
Another key component to Morningstar’s moat-investing equity research approach is its valuation process. Morningstar equity analysts assign a fair value estimate to each company based on how much cash it believes the company may generate in the future. The fair value represents a company’s long-term intrinsic value. Of course, stocks may trade above or below the company’s underlying fair value. The key is to identify those companies that are attractively priced at the time of investment.
VanEck VectorsTM Morningstar Wide Moat ETF (MOAT) is the only U.S. ETF that seeks to track the Morningstar® Wide Moat Focus IndexSM (the ”Index”), a benchmark that combines Morningstar’s measure of quality with their valuation framework. The Index’s approach to identifying U.S. companies with wide economic moats that are attractively priced has resulted in long-term outperformance versus the broader U.S. equity market, and provided a unique way for investors to invest in quality companies.
U.S. Moat Investing Has Provided a Long-Term Performance Advantage
Cumulative Index Returns 2/14/2007 to 9/30/2016
(click to enlarge) Source: Morningstar; FactSet.
Index performance is not representative of Fund performance. Fund performance current to the most recent month-end can be found at www.vaneck.com/moat. Past performance is no guarantee of future results.
Important Disclosures
Fair value estimate: The Morningstar analyst’s estimate of what a stock is worth.
The Morningstar Wide Moat Focus Index consists of U.S. companies identified as having sustainable, competitive advantages and whose stocks are the most attractively priced, according to Morningstar.
The S&P 500® Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Wide Moat ETF and bears no liability with respect to the ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Wide Moat Focus Index is a service mark of Morningstar, Inc.
This content is published in the United States for residents of specified countries. Investors are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this content. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.
The information herein represents the opinion of the author(s), but not necessarily those of VanEck, and these opinions may change at any time and from time to time. Non-VanEck proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Historical performance is not indicative of future results. Current data may differ from data quoted. Any graphs shown herein are for illustrative purposes only. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
Any indices listed are unmanaged indices and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in a fund. An index’s performance is not illustrative of a fund’s performance. Indices are not securities in which investments can be made.
An investment in the VanEck VectorsTM Morningstar Wide Moat ETF (MOAT)may be subject to risks which include, among others, investing in the health care sector, investing in the consumer discretionary sector, investing in the industrials sector, investing in the information technology sector, investing in the financial services sector, equity securities, market, index tracking, authorized participant concentration, short history of an active market/no guarantee of active trading market, trading Issues, replication management, premium/discount, non-diversified and concentration risk, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Fund shares are not individually redeemable and will be issued and redeemed at their Net Asset Value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called ”creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
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. Please read the prospectus and summary prospectus carefully before investing.
For the Month Ending May 31, 2016 May Acquisitions Help US Moats
Performance Overview
U.S. moat-rated companies continued to impress in 2016 with another strong relative performance month in May. The U.S.-oriented Morningstar® Wide Moat Focus IndexSM (MWMFTR) topped the S&P 500® Index (2.69% vs. 1.80%) for the month and maintained its relative performance year-to-date (15.07% vs. 3.57%). By contrast international moats fared less well in May with the Morningstar® Global ex-US Moat Focus IndexSM (MGEUMFUN) lagging the MSCI All Country World Index ex USA (-2.09% vs. -1.69%).
US Domestic Moats: May M&A
News of Bayer’s (BAYN GR) bid to buy wide moat agrichemical giant Monsanto Company (MON US) boosted shares of MON US late in the month. This came on the heels of Abbott Laboratories’ (ABT US) announcement of its intent to buy wide moat St. Jude Medical (STJ US) which propelled the stock performance of STJ US in April. Healthcare companies continued their strong performance for MWMFTR in May led by McKesson Corp (MCK US) and Allergan (AGN US). The industrials sector was the leading detractor for the month with notable poor performance from rail companies CSX Corp (CSX US) and Norfolk Southern Corp (NSC US).
International Moats: Financials in Flux
As with U.S. moats in May, internationally focused MGEUMFUN’s exposure to healthcare companies helped boost performance. However, the Index was unable to overcome the negative performance contributions from industrials and financials companies, ending the month down 2.09%. Canadian banks struggled in May as many have been forced to deal with credit losses related to the oil & gas industry. Overall, construction firm China State Construction International Holdings Limited was the poorest Index performer in May.
Special Update: Morningstar Index Enhancements
As previously announced, Morningstar will implement enhancements to the index methodology for MWMFTR and MGEUMFUN effective June 20, 2016. The indices will continue to be built on Morningstar’s equity research which identifies sustainable competitive advantages at attractive valuations, but will aim to reduce turnover, broaden diversification, and mitigate unintended sector concentration.
Moat Investing
Moat Investing provides key insights and performance trends impacting global moat investing based on Morningstar equity research. U.S.-focused MOATand internationally focused MOTIoffer investors global exposure to Morningstar’s moat methodology and valuation principals.
Important Disclosure
This commentary is not intended as a recommendation to buy or to sell any of the named securities. Holding will vary for the MOAT and MOTI ETFs and their corresponding Indices.
Index performance is not representative of fund performance. To view fund performance current to the most recent month end, call 800.826.2333 or visit vaneck.com.
An investor cannot invest directly in an index. Returns reflect past performance and do not guarantee future results. Results reflect the reinvestment of dividends and capital gains, if any. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Fair value estimate: the Morningstar analyst’s estimate of what a stock is worth.
Price/Fair Value: ratio of a stock’s trading price to its fair value estimate.
The Morningstar® Wide Moat Focus IndexSM and Morningstar® Global ex-US Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Wide Moat ETF or VanEck Vectors Morningstar International Moat ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Wide Moat Focus Index and Morningstar Global ex-US Moat Focus Index are service marks of Morningstar, Inc.
The Morningstar Wide Moat Focus Index consists of 20 U.S. companies identified as having sustainable, competitive advantages and whose stocks are the most attractively priced, according to Morningstar.
The Morningstar Global ex-US Moat Focus Index consists of 50 companies outside of the U.S. identified as having sustainable, competitive advantages and whose stocks are the most attractively priced, according to Morningstar.
The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
MSCI All Country World Index ex USA captures large and mid cap representation across 22 Developed Markets countries (excluding the U.S.) and 23 Emerging Markets countries.
An investment in the VanEck Vectors Morningstar Wide Moat ETF (MOAT) may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
An investment in the VanEck Vectors Morningstar International Moat ETF (MOTI) may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Fund shares are not individually redeemable and will be issued and redeemed at their Net Asset Value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called ”creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
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. Please read the prospectus and summary prospectus carefully before investing.
Spring Takeover Bids a Boon. Stock selection, a cornerstone of the moat investment philosophy, has driven much of the recent success of the Morningstar® Wide Moat Focus IndexSM (MWMFTR), which has gained over 15% YTD as of May 31, 2016. Of late, consolidation has been king and we’ve seen increased M&A activity. Spring Takeover Bids a Boon
M&A Activity Can Strengthen Moats
The concept of an economic moat refers to how likely a company is to keep competitors at bay for an extended period of time. Simply put, moat investing comes down to identifying companies that are able to stay one step ahead of the competition. Economic moats are often part of the strategic rationale for M&A transactions and post-acquisition success can be an important factor in moat ratings.
Strategic M&A can be attractive investment themes for moat companies — not only potential takeover targets but possible acquirers as well. Bolstered future return on capital and increased market share have the potential to strengthen these companies’ economic moats and highlights the derived value from their acquisition strategies.
M&A Deals in the Works
M&A in general has been a prevalent theme in MWMFTR this spring. In April, Abbott Laboratories (ABT US) announced its intent to acquire St. Jude Medical, Inc. (STJ US) for $25 million, positioning the two to capture a larger market share position within the cardiovascular device market. The deal is expected to close in the coming fourth quarter. St. Jude was first added to MWMFTR on March 21, 2016. It was the big winner among domestic moat-rated companies for the month of April. (Read more on April’s results in A Star Spangled April for Moats.)
In another announcement, German chemical and pharmaceutical company Bayer AG (BAYN DE), currently the number two crop chemical producer in the world, made an unsolicited takeover offer for Monsanto Company (MON US), the world’s leading seed company. While currently facing a multitude of hurdles, the deal, if completed, would mark the largest-ever German takeover of a foreign company.1 A constituent in MWMFTR since it was added to the index on September 21, 2015, shares of MON soared immediately following reports of the buyout approach.
M&A doesn’t always end in fist bumps and high fives, however. In April, U.S. drug maker Pfizer Inc. (PFE US) terminated its agreement to acquire Botox maker Allergan Plc (AGN US) on the heels of a new tax ruling by the U.S. Department of Treasury targeting its anticipated tax benefits. The announcement sent AGN US’ price falling. However, investors will need to sit tight to see how AGN’s $40.5 billion sale of its generic drug unit to Teva Pharmaceutical Industries Ltd (TEVA US) shakes out.
St Jude, Monsanto, and Allergan are all holdings of MWMFTR and VanEck Vectors™ Morningstar Wide Moat ETF (MOAT®). As of May 31, 2016, they represented 6.51%, 5.75%, and 3.69% of the Fund’s net assets, respectively. Their pre- and post-deal-announcement fair values can be seen in the table below.
Moat Investing provides key insights and performance trends impacting global moat investing based on Morningstar equity research. U.S.-focused MOAT and internationally focused MOTI offer investors global exposure to Morningstar’s moat methodology and valuation principals.
Fair value estimate: The Morningstar analyst’s estimate of what a stock is worth.
The Morningstar Wide Moat Focus Index consists of 20 U.S. companies identified as having sustainable, competitive advantages and whose stocks are the most attractively priced, according to Morningstar.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Wide Moat ETF and bears no liability with respect to the ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Wide Moat Focus Index is a service mark of Morningstar, Inc.
This content is published in the United States for residents of specified countries. Investors are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this content. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.
The information herein represents the opinion of the author(s), but not necessarily those of VanEck, and these opinions may change at any time and from time to time. Non-VanEck proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Historical performance is not indicative of future results. Current data may differ from data quoted. Any graphs shown herein are for illustrative purposes only. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
This commentary is not intended as a recommendation to buy or to sell any of the named securities. Holding will vary for MOAT and its underlying Index.
Any indices listed are unmanaged indices and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in a fund. An index’s performance is not illustrative of a fund’s performance. Indices are not securities in which investments can be made.
To view fund performance current to the most recent month end, call 800.826.2333 or visit vaneck.com.
For the Month Ending April 30, 2016 A Star-Spangled April for Moats
Performance Overview
Moat-rated companies continued their strong start to 2016 in April. U.S.-oriented Morningstar® Wide Moat Focus IndexSM (MWMFTR) topped the S&P 500® Index (5.20% vs. 0.39%) in April and widened the gap in relative performance year-to-date (12.05% vs. 1.74%). On the international front, Morningstar® Global ex-US Moat Focus IndexSM (MGEUMFUN) lagged the MSCI All Country World Index ex USA in April (1.43% vs. 2.63%), but maintained relative outperformance year-to-date (4.09% vs. 2.25%).
U.S. Domestic Moats: Healthcare Rotation Pays Off
St. Jude Medical, Inc. (STJ US) was the big winner among domestic moat-rated companies in April. Late in the month Abbott Laboratories (ABT US) announced its intent to buy STJ US in a deal that is expected to close in the coming fourth quarter. As part of its quarterly review, the MWMFTR Index rotated into several healthcare companies, including STJ US. According to Morningstar, the healthcare sector offered a number of attractive valuation opportunities in March, some of which contributed to MWMFTR’s strong performance in April. Drug manufacturer Allergan plc (AGN US), however, provided no such boost to results. A U.S. Department of Treasury tax ruling squashed any hope for its planned merger with Pfizer, pushing AGN US lower for the month.
International Moats: Oh, Canada
MGEUMFUN’s exposure to financials companies, particularly Canadian banks, contributed to positive performance in April. Only three of the 24 financials companies in the Index posted negative returns last month. Additionally, Russian operator Mobile Telesystems (MTSS RM) has been on a roll since announcing solid fourth quarter results in March. Strains on performance came largely from some of the Index’s consumer discretionary constituents, such as Macau gaming firm Sands China (1928 HK) and Chinese car manufacturer Dongfeng Motor Group Co. (489 HK).
Shooting for the Stars
VanEck Vectors™ Morningstar Wide Moat ETF (MOAT), which seeks to track MWMFTR, received a 5-star Morningstar Rating™ as of April 30, 2016.
Overall Morningstar Rating™ among 1,374 large blend funds as of April 30, 2016.
Moat Investing
Moat Investing provides key insights and performance trends impacting global moat investing based on Morningstar equity research. U.S.-focused MOAT and internationally focused MOTI offer investors global exposure to Morningstar’s moat methodology and valuation principals.
Important Disclosure
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. VanEck Vectors Morningstar Wide Moat ETF was rated against 1,374 U.S.-domiciled large blend funds for the 3-year period and received 5 stars. Past performance is no guarantee of future results.
This commentary is not intended as a recommendation to buy or to sell any of the named securities. Holding will vary for the MOAT and MOTI ETFs and their corresponding Indices.
Index performance is not representative of fund performance. To view fund performance current to the most recent month end, call 800.826.2333 or visit vaneck.com.
An investor cannot invest directly in an index. Returns reflect past performance and do not guarantee future results. Results reflect the reinvestment of dividends and capital gains, if any. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Fair value estimate: the Morningstar analyst’s estimate of what a stock is worth.
Price/Fair Value: ratio of a stock’s trading price to its fair value estimate.
The Morningstar® Wide Moat Focus IndexSM and Morningstar® Global ex-US Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Wide Moat ETF or VanEck Vectors Morningstar International Moat ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Wide Moat Focus Index and Morningstar Global ex-US Moat Focus Index are service marks of Morningstar, Inc.
The Morningstar Wide Moat Focus Index consists of 20 U.S. companies identified as having sustainable, competitive advantages and whose stocks are the most attractively priced, according to Morningstar.
The Morningstar Global ex-US Moat Focus Index consists of 50 companies outside of the U.S. identified as having sustainable, competitive advantages and whose stocks are the most attractively priced, according to Morningstar.
The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
MSCI All Country World Index ex USA captures large and mid cap representation across 22 Developed Markets countries (excluding the U.S.) and 23 Emerging Markets countries.
An investment in the VanEck Vectors Morningstar Wide Moat ETF (MOAT) may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
An investment in the VanEck Vectors Morningstar International Moat ETF (MOTI) may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Fund shares are not individually redeemable and will be issued and redeemed at their Net Asset Value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called ”creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
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. Please read the prospectus and summary prospectus carefully before investing.
