VanEck to launch two ETFs leveraging Morningstar’s leading research

Sydney, 27 August 2020 – A new international exchange traded fund (ETF) from VanEck will follow the success of its US equity VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT), offering Australians the opportunity to invest in a high conviction quality and value international companies with sustainable competitive advantages from around the world. Separately, a new Australian moat equity income-focused ETF will help income starved investors target quality Australian companies with strong financial health in the search for yield.

The VanEck Vectors Morningstar World ex Australia Wide Moat ETF (ASX: GOAT) invests in economic wide moat companies trading at attractive prices relative to Morningstar's estimate of fair value. Separately, the VanEck Vectors Morningstar Australian Moat Income ETF (ASX: DVDY) will list in parallel. Both ETFs are at final stages of approval and will commence trading on ASX in coming weeks.

Arian Neiron, VanEck's Managing Director and Head of Asia Pacific, said: “We are excited to offer investors, for the first time, a high conviction core international equity portfolio of wide Economic Moat™ rated companies, in a single trade on ASX. GOAT will provide investors with a compelling selection of quality companies trading at attractive valuations and leverage Morningstar’s Economic Moat™ rating system, the only one of its kind in the world.

Morningstar^®equity research team aims to identify attractively priced companies that have wide economic moats, being structural and sustainable competitive advantages that in Morningstar’s view will deliver excess returns more likely than not for 20 years or more. In contrast, a no-moat company without evidence of a sustainable competitive advantage is unlikely to generate excess returns over the course of a full business cycle.

Set to list on the same day is the VanEck Vectors Morningstar Australian Moat Income ETF, also fuelled by Morningstar's rigorous equity research process. DYDY will provide investors with a unique income opportunity and invest in at least 25 Australian companies selected for their quality, strong financial health and dividends.

“The search for income is more pronounced than ever, with interest rates at historic lows. Investors are forced up the risk curve but are perpetually mindful of the preservation of capital and even more so the ability for companies to pay dividends in light of COVID-19. As Australian banks significantly reduce their payouts, investors need to look elsewhere and DVDY provides a solution, with an approach focused on quality and strong financial health,” said Neiron.

“DVDY is designed to give investors a portfolio of quality income producing companies, using Morningstar® research’s active stock selection strategies, for passive fees. Australian investors need to consider a different approach for equity income. We believe an approach focused on quality and financial health can help investors navigate dividend traps and volatility and also minimise losses during market drawdowns. DVDY holds quality household names such as ASX, Wesfarmers and Woolworths, which pay relatively high income and enjoy sustainable competitive advantages and growth,” said Neiron.

<sub>About VanEck

VanEck is one of the world’s largest issuers of ETFs (Exchange Traded Funds), managing in excess of $50 billion globally for individual and institutional investors. Founded in New York in 1955, VanEck is a pioneer in international investing and in gold funds, launching the first gold equities fund and the first gold ETF in the US.

In Australia, VanEck is the fastest growing ETF provider in the country and a leader in ‘smart beta’ investment strategies. We have 25 exchange traded funds on ASX that focus on delivering superior performance through beyond-the-usual approaches and providing access to asset classes typically unavailable to Australian investors.

vaneck.com.au</sub>

<sub>General information only

This information is issued by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’) as responsible entity of the proposed VanEck Vectors ETFs. Units in the ETFs are not yet available for trading.

This is general advice only about financial products and is not personal financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision in relation to a fund, you should read the PDS and with the assistance of a financial adviser consider if it is appropriate for your circumstances. The PDS will be available at vaneck.com.au or by calling 1300 68 38 37 after the end of the exposure period required for the fund on ASIC Offer Notice Board. The ETFs invest in international markets which have heightened risks compared to the typical risks associated with investing in the Australian market. These include, foreign currency, ASX trading time differences, emerging markets, country or sector concentration, political, regulatory and tax risks. The PDS details the key risks.

No member of the VanEck group guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from the Fund.</sub>