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VanEck Vectors MSCI Multifactor Emerging Markets Equity ETF EMKT

Fund description: EMKT invests in a diversified portfolio of emerging markets listed securities with the aim of providing investment returns, before fees and other costs, which track the performance of the Index.

Index description:  The MSCI Emerging Markets Diversified Multiple-Factor Index is based on MSCI Emerging Markets Index, its parent index, which includes large and mid-cap stocks across emerging markets countries. The Index aims to maximise exposure to four factors - Value, Momentum, Low Size and Quality - while maintaining a risk profile similar to that of the parent index.

 

Management style: Replication

 as at 23-Apr-19

  • Exchange

    ASX
  • ASX code

    EMKT
  • Bloomberg index code

    NA706175
  • Index provider

    MSCI Inc.
  • NAV1

    $19.01
  • Units outstanding1

    800,003
  • Net assets1

    $15.2M
  • Number of holdings1

    193
  • Inception date2

    10-Apr-18
  • ASX commencement

    12-Apr-18
1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

as at 23-Apr-19

The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia’s time zone, that the NAV will generally not be updated until around 3pm next business day.

Key points

Underlying Index
MSCI Emerging Markets Diversified Multiple-Factor Index (AUD)

The Index comprises
The Index is based on the MSCI Emerging Markets Index (“the Parent Index”) which includes large and mid-cap stocks diversified across emerging markets countries. The Parent Index covers approximately 85% of the Free Float Market Capitalisation in each emerging markets country. The Index aims to maximise exposure to securities in the Parent Index which exhibit enhanced performance characteristics based on four style factors - Value, Momentum, Low Size and Quality -- while maintaining a market risk profile similar to that of the underlying Parent Index.

Summary of Index methodology

  1. Value: Companies are scored based on three main indicators of good value which are equally-weighted, namely:
    1. the security's forward price relative to estimated future earnings;
    2. the share price relative to the book value of the company; and
    3. the enterprise value of a company relative to its operating cash flow.

    For securities classified in the Financials Sector, forward price to earnings and price to book are used. For securities classified in the Real Estate Sector, enterprise value to operating cash flow is used.

  2. Momentum: Companies are given a higher momentum score if their share price has outperformed the market in the last 2 years and has increased over the last 6 months and last 12 months.
  3. Low Size: Companies have a higher 'low size' score if they are smaller, i.e. have lower market capitalisation than other companies.
  4. Quality: Companies are scored based on three main indicators of high quality, which are equally-weighted, namely:
    1. high return on equity;
    2. low debt to equity; and
    3. low year on year earnings variability.

    The constituents of the Index are selected from the Parent Index using MSCI's 'Barra® Global Equity Multi-factor Model' and 'Barra® Optimizer Model' (Barra Models) to maximise the exposure to the four targeted style factors while maintaining a market risk profile similar to that of the Parent Index.

    MSCI's Barra Models are subject to certain risk diversification constraints, for example, minimum and maximum constituent and sector weights relative to the Parent Index are applied. As a result the Index will comprise a smaller number of securities with different weightings compared to the Parent Index and will, therefore, have a different overall performance and risk profile to the Parent Index. In addition, the Barra Models ensure that the exposure to other factors that are present in the Parent Index (e.g. volatility, growth and liquidity) are restricted in the Index. The Barra Models also limit turnover in the Index to 20% at each rebalance. These diversification constraints of the Index relative to the Parent Index assist to some extent in limiting the divergence of the Index from the Parent Index.

 

Index provider
MSCI Inc. MSCI is not a related entity of VanEck Investments Limited.

EMKT is indexed to a MSCI index. EMKT is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to EMKT or the MSCI Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and EMKT.

Index profile  

  • Bloomberg index code

    NA706175
  • Base date

    29-Feb-00
  • Rebalance frequency

    Quarterly
  • Launch date

    17-Feb-15

Top ten index constituents (%) as at 31-Mar-19

Total constituents: 193
Constituent name
TIcker
Weightings (%)
CHINA MOBILE LTD
941 HK
3.25
YUM CHINA HOLDINGS INC
YUMC US
2.74
TENCENT HOLDINGS LTD
700 HK
2.70
HYNIX SEMICONDUCTOR INC
000660 KS
2.60
SAMSUNG ELECTRONICS CO LTD
005930 KS
2.41
TATNEFT-CLS
TATN RM
2.31
ALIBABA GROUP HOLDING-SP ADR
BABA US
2.23
ITAUSA-INVESTIMENTOS ITAU-PR
ITSA4 BZ
2.08
SAMSUNG ELECTRONICS-PREF
005935 KS
2.00
HANA FINANCIAL GROUP
086790 KS
1.88
Top ten total (%) 24.20
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Mar-19

  • Country

    Weightings (%)
  • CHINA

    30.6
  • SOUTH KOREA

    17.0
  • TAIWAN

    12.6
  • BRAZIL

    8.1
  • SOUTH AFRICA

    5.0
  • INDIA

    4.1
  • RUSSIA

    3.9
  • HONG KONG

    3.0
  • UNITED STATES

    2.9
  • MALAYSIA

    2.5
  • INDONESIA

    2.2
  • PERU

    1.3
  • UAE

    1.2
  • QATAR

    1.2
  • THAILAND

    0.9
  • POLAND

    0.9
  • CHILE

    0.4
  • CZECH

    0.3
  • SINGAPORE

    0.3
  • TURKEY

    0.3
  • MEXICO

    0.3
  • VIRGIN ISLANDS

    0.3
  • HUNGARY

    0.2
  • EGYPT

    0.2
  • PHILIPPINES

    0.2
  • Total

    99.9

Index sector weightings (%) as at 31-Mar-19

  • Sector

    Weightings (%)
  • Commercial Banks

    10.7
  • Semiconductors & Semiconductor Equipment

    7.8
  • Insurance

    6.9
  • Computers & Peripherals

    6.3
  • Oil, Gas & Consumable Fuels

    5.8
  • Pharmaceuticals

    5.4
  • Wireless Telecommunication Services

    4.7
  • Real Estate Management & Development

    3.5
  • Interactive Media & Services

    3.5
  • Industrial Conglomerates

    3.4
  • Electronic Equipment, Instruments & Components

    3.1
  • Diversified Telecommunication Services

    3.0
  • Hotels, Restaurants & Leisure

    2.8
  • Construction Materials

    2.8
  • Multiline Retail

    2.6
  • Internet & Catalog Retail

    2.2
  • Metals & Mining

    2.1
  • Machinery

    1.7
  • Paper & Forest Products

    1.7
  • Automobiles

    1.6
  • Food Products

    1.6
  • Transportation Infrastructure

    1.5
  • Food & Staples Retailing

    1.4
  • Textiles, Apparel & Luxury Goods

    1.2
  • IT Services

    1.0
  • Chemicals

    1.0
  • Specialty Retail

    1.0
  • Health Care Equipment & Supplies

    1.0
  • Capital Markets

    1.0
  • Electric Utilities

    0.8
  • Construction & Engineering

    0.7
  • Auto Components

    0.7
  • Water Utilities

    0.7
  • Independent Power Producers & Energy Traders

    0.7
  • Health Care Providers & Services

    0.7
  • Diversified Financial Services

    0.5
  • Software

    0.5
  • Beverages

    0.4
  • Professional Services

    0.4
  • Trading Companies & Distributors

    0.3
  • Media

    0.3
  • Airlines

    0.2
  • Tobacco

    0.2
  • Personal Products

    0.2
  • Air Freight & Logistics

    0.2
  • Communications Equipment

    0.2
  • Gas Utilities

    0.1
  • Total

    100.1

Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.