1 Bearish flattening refers to the convergence of interest rates along the yield curve, with short-term rates rising faster than long-term rates and is seen as a harbinger of economic contraction. .
Prior to September 1, 2020, the funds were known as VanEck AMT-Free Short Municipal Index ETF, VanEck AMT-Free Intermediate Municipal Index ETF, VanEck AMT-Free Long Municipal Index ETF, VanEck Short High-Yield Municipal Index ETF, VanEck Municipal High Yield Index ETF and VanEck Municipal Allocation ETF.
An investment in the Funds may be subject to risks which include, among others, fund of funds risk, high portfolio turnover, model and data risks, management, concentration of authorized participants and absence of prior active market risks, trading issues, market risks, fund stock trading, premium/discount, general duty bond, health care bond, water and sewer bond , special tax obligation, transport obligation, private activity obligation, sampling, index tracking, replication management and liquidity of fund shares and undiversified risks . The funds may be subject to the following risks due to investment in exchange-traded products, including municipal securities, the investment performance of the underlying funds, leverage, credit, securities with high yield, tax, interest rate, call, government concentration and sector concentration risks. Municipal bonds can be less liquid than taxable bonds. There is no guarantee that a Fund’s income will be exempt from federal, state or local income taxes, and changes to such tax rates or alternative minimum tax rates (AMT) or tax treatment of municipal bonds can 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. For a more complete description of these and other risks, please refer to each Fund’s prospectus.
Taxable equivalent returns are used by investors to compare the returns of taxable and tax-exempt securities after taking federal income tax into account. The TEY represents the return that an investment in taxable bonds would have to earn to match, after deduction of federal income tax, the return available on an investment in tax-exempt municipal bonds. TEY = Tax Free Municipal Bond Yield/(1 -Tax Rate).
The investment management agreement between VanEck ETF Trust (the “Trust”) and Van Eck Associates Corporation (the “Advisor”) provides that the Adviser will pay all expenses of the Fund, except the payment of fees under investment management agreement, acquired fund fees and expenses, interest charges, offering fees, trading fees, taxes and extraordinary expenses.
The “net asset value” (NAV) of a VanEck exchange-traded fund (ETF) is determined at the end of each business day and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting the total liabilities and dividing by the total number of shares outstanding. The net asset value is not necessarily the same as the intraday trading value of the ETF. VanEck ETF investors should not expect to buy or sell shares at net asset value.
Shares of the Fund are not individually redeemable and will be issued and redeemed at their net asset value only through certain approved brokers in large blocks of specific shares called “Creation Units” and may otherwise only be bought and sold through exchanges. Creation shares are issued and redeemed mainly in kind. Shares may trade at a premium or discount to their net asset value in the secondary market.
Investing involves substantial risks and high volatility, including possible loss of capital. Bonds and bond funds will lose value as interest rates rise. An investor should carefully consider a fund’s investment objective, risks, charges and expenses before investing. To get a prospectus and simplified prospectusthat contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and simplified prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, 666 Third Avenue, New York, NY 10017