This article was originally published on ETFTrends.com.
VanEck will make changes to two of its emerging market equity ETFs. The changes will seek to provide investors with access to fundamentally strong companies in the relevant countries with favorable long-term growth potential priced at reasonable valuations.
VanEck Vectors ChinaAMC CSI 300 ETF (PEK) will become VanEck Vectors China Growth Leaders ETF (GLCN) and VanEck Vectors India Small-Cap Index ETF (SCIF) will become VanEck Vectors India Growth Leaders ETF (GLIN); new strategies provide access to attractively priced, high growth potential companies
Effective May 1, 2020, GLCN will seek to track, before fees and expenses, the MarketGrader China All-Cap Growth Leaders Index. GLIN will seek to track, before fees and expenses, the MarketGrader India All-Cap Growth Leaders Index.
The new indices select the top-ranked companies in each market based on the index provider’s proprietary fundamental scoring methodology that emphasizes growth at reasonable valuations. Companies of all market capitalizations are eligible for inclusion in each index. Additionally, the new index for GLCN broadens the universe of Chinese companies eligible for inclusion from the fund’s current index. The new index that GLCN will seek to track includes locally listed China A-shares, as well as Chinese companies listed on eligible stock exchanges as determined by the index provider, allowing investors to access leading growth companies from the full China opportunity set.
“Investors often seek to invest in emerging markets in order capture the growth potential of those economies, but we believe that the investor risk and return experience may be improved over broad benchmarks through a selective approach that considers the growth, value and quality characteristics of a company,” said Ed Lopez, Managing Director, Head of ETF Product. “VanEck has been investing in emerging markets for nearly 30 years. Given that it values growth at a reasonable price, this new index methodology aligns well with VanEck’s active management investment philosophy. We are happy to be able to provide investors access to this new index approach in a cost-efficient ETF.”
VanEck has a robust family of emerging markets ETF offerings, covering both equity and debt markets.
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