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Disclosure: Please note that Van Eck Securities Corporation offers investment products that invest in the asset class(es) in this article. <br />
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Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.<br />
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The content Market Realist publishes should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of VanEck.<br />
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Data from third party sources are deemed to be accurate, however they have not been independently verified, validated, or audited by VanEck.<br />
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Please see below for additional disclosures for the Series "How You Can Prosper from Fallen Angel Bonds", published July 12, 2016:<br />
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Indexes are unmanaged and do not reflect the payment of transaction costs, advisory fees, or expenses that are associated with an investment in any underlying exchange-traded funds. Index performance is not illustrative of fund performance. Fund performance current to the most recent month end is available by visiting vaneck.com. Historical performance is not indicative of future results; current data may differ from data quoted. Indexes are unmanaged and are not securities in which an investment can be made.<br />
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BofA Merrill Lynch US Fallen Angel High Yield Index (H0FA) is a subset of the BofA Merrill Lynch US High Yield Index (H0A0), including securities that were rated investment grade at time of issuance.<br />
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BofA Merrill Lynch US High Yield Index (H0A0) is comprised of below-investment grade corporate bonds (based on an average of Moody’s, S&P, and Fitch) denominated in U.S. dollars. The country of risk of qualifying issuers must be an FX-G10 member, a Western European nation, or a territory of the U.S. or a Western European nation.<br />
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Barclays US High Yield Very Liquid Index is the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Qualifying issues must have been issued within the past three years, have a USD 600 million minimum amount outstanding and include only the largest issue from each issuer.<br />
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Morningstar High-Yield Bond average category is comprised of open-end mutual funds with an investment objective to seek returns via significant exposure to low quality bonds; those that are either unrated or rated by a major agency as BB or lower.<br />
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BofA Merrill Lynch US Original Issue High Yield (H0HY) is a subset of the BofA Merrill Lynch US High Yield Index, including securities that were not rated investment grade at the time of issuance. <br />
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The Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).<br />
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The S&P 500 is widely regarded as the best single gauge of large-cap US equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.<br />
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Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates (“BofA Merrill Lynch”), indices, and related information, the name “BofA Merrill Lynch,” and related trademarks, are intellectual property licensed from BofA Merrill Lynch, and may not be copied, used, or distributed without BofA Merrill Lynch’s prior written approval. The licensee’s products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE INDICES, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY, AND/OR COMPLETENESS). <br />
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Fund shares are not individually redeemable and will be issued and redeemed at their 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. <br />
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An investment in the Fund may be subject to risk which include, among others, credit risk, call risk, and interest rate risk, all of which may adversely affect the Fund. High yield bonds may be subject to greater risk of loss of income and principal and are likely to be more sensitive to adverse economic changes than higher rated securities. International investing involves additional risks which include greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity and political instability. 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.<br />
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Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will generally decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.826.2333 or visit vaneck.com/etfs. Please read the prospectus and summary prospectus carefully before investing.
The cautionary advice to “expect the unexpected” makes a lot of sense for investors—at least in the sense that we should all learn to manage our own expectations by realizing there are outcomes we may not have anticipated.
he second half of 2018 should be very interesting for the gold market. The chart shows the gold price has formed a wedge or pennant pattern that has been in place for several years.
Gold remained resilient in May, as the U.S. dollar strengthened considerably. The U.S. Dollar Index (DXY)1 gained 2.4% and closed the month at its highs for the year.
VanEck GURUSHINA: Since you mentioned the recession, I think when we talk about global growth, there is something else interesting happening right now. Mainly it looks like there is a discrepancy, rising discrepancy between growth outlook in the U.S. and Europe. From your point of view, what does it mean for investment opportunities? VAN ECK: […]
But let’s think about maybe more actionable items in terms of growth, because it’s clear that at least there are now some signs on growth inflection, maybe not globally, but at least in some parts of the world.
With global rates normalizing, geopolitics still posing major risks, and with one of the longest bull runs in U.S. stocks apparently stalling, 2018 might be a year of paradigm shift.
Capital is allocated amongst assets on which the model is bullish on using an optimization process designed to maximize our diversification and minimize our volatility.
At launch, RAAX had a small weighting to coal, but in May, this exposure was completely eliminated based on falling coal equity prices and weakening supply and demand data.
RAAX remains fully invested across commodities, natural resource equities, and MLPs. As they were at launch, the largest weightings remain in diversified commodities (30%), gold bullion (20%), and agribusiness equities (20%).
VanEck The VanEck Vectors Real Asset Allocation ETF (RAAX) uses a data-driven, rules-based process that leverages over 50 indicators (technical, macroeconomic and fundamental, commodity price, and sentiment) to allocate across 12 individual real asset segments in five broad real asset sectors. These objective indicators identify the segments with positive expected returns. Then, using correlation and […]
Gold equities outperformed gold bullion in March, as the NYSE Arca Gold Miners Index (GDMNTR)1 gained 2.9%, while the MVIS Global Junior Gold Miners Index (MVGDXJTR)2 advanced 2.2%.
Real yields are nominal yields adjusted for inflation, which is often one of the greatest contributors to the nominal yield levels of emerging markets local currency bonds.
There are expected, and possibly more aggressive, interest rate hikes over the next several years, and potential commodity supply constraints resulting from years of capital expenditure reductions in the metals and oil industries.
Economic/business cycles are never exactly the same, and the current cycle is no exception. But we are most likely entering the late stages of this expansion.
Commodities and interest rates both tend to rise late in the economic/business cycle. As a normal cycle develops, the economy expands and gains momentum.
Looking ahead for 2018, industry analysts stated in a Bloomberg article that they expect gold to perform better early in the year led, by the “January effect.”
The main factor that caps economic growth and inflation for a country is the amount of debt the country carries. Debt, if used in the right way, can boost economic growth—but it can also damage the economy.
The Senate passed President Donald Trump’s long-awaited tax reform bill in December. This tax reform makes substantial changes to tax rates for both corporates and individuals.
Gold (GLD)(GLDX) has always been considered a safe-haven asset, offering investors diversification benefits. This unique asset gives investors a chance to hedge and earn positive returns.
Digital assets based on DLT (distributed ledger technology) allows users to initiate and verify their own transactions without any central authority such as banks.
Blockchain technology holds a lot of promise due to its many advantages such as transparency, faster transactions at lower costs, and a reliable system.
The founders of bitcoin have set a limit of 21 million bitcoins that can be mined over a period of time. Of those, 16.8 million are already in circulation.
In DLT (distributed ledger technology), details of the transactions are recorded in multiple places called blocks. These blocks are then chained together on a shared network.
The price of bitcoin (SOXL) (SOXX) has risen 69,278.6% over the last five years. On the other hand, in the last seven days, it has plummeted 27% to $12,466.
Despite the higher number of transactions that need to be updated regularly by users, the transaction capacity is intentionally kept very low by the bitcoin founders.
Despite recent declines, the SMH ETF has risen over 41% in the last 12 months. Meanwhile, NVIDIA has risen a whopping 186.7% in the same period, while AMD has returned 15.5% in that period.
There are a lot of reasons behind the sharp rally in EMs (SCHE). The prominent reason is that the GDP growth in many of these nations has improved in the last few quarters partially on the back of the rise in commodity prices like copper and oil.
Building on the success and popularity of VanEck Vectors® Morningstar Wide Moat ETF (MOAT®) and its underlying index’s approach to investing in the U.S., VanEck launched MOTI in 2015 to expand investor access to Morningstar’s core equity research in the international arena.
The performance of VanEck Vectors® Morningstar International Moat ETF (MOTI®) tells an impressive story about the importance of not only identifying quality companies with sustainable competitive advantages but also factoring in valuation to determine the right entry points.
Green bonds carry the same risk-return profile as conventional bonds. However, these bonds fund projects focused on energy efficiency, clean water, transportation, biodiversity, and sustainable waste management.
Investor complacency doesn’t hide the fact that there are financial risks to QT. Forty percent of the Fed’s balance sheet unwind is in mortgage-backed securities at the same time that the housing market is showing signs of slowing.
Since the financial crisis, the stock market has risen consistently as long as the Fed continued to buy treasuries and mortgage-backed securities through its quantitative easing policies (QE 1-3).
A record number of junior companies attended the Precious Metals Summit. We are finding companies with attractive development projects in North America and West Africa as well as some exciting discoveries that merit watching.
Gold stock indices also traded near their highs for the year, but then followed the gold price lower. During September the NYSE Arca Gold Miners Index (GDMNTR) retreated 6.5%.
The momentum gold experienced in August carried over into early September. Geopolitical tension continued as South Korea reacted to possible preparation by North Korea for an intercontinental ballistic missile launch.
The US Moat Index has been performing fairly well this year. As of September 30, 2017, it has outperformed, rising 20.5% over the S&P 500 Index’s (SPY) (SPX-INDEX) rise of 18.6% YTD.
CapitaLand Commercial Trust (CCT SP) is a Singapore based real estate investment trust (REIT) that owns 10 office properties in the city’s central business district (CBD).
To demonstrate the power of efficient scale in creating economic moats, we highlight four companies: U.S.-based wide moats CSX Corporation and UPS, and international narrow moats Telefonica SA (Spain) and CapitaLand Commercial (Singapore).
Across the five moat sources (network effect, intangible assets, cost advantage, switching costs, and efficient scale), efficient scale is the most likely to drive a “narrow moat” rating from Morningstar.
“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats.
In 2016, Puerto Rico defaulted on constitutionally guaranteed GO (general obligation) bonds. On May 3, 2017, Puerto Rico filed for Title III bankruptcy.
In this series, we will shed light on Moody’s recent data report, US Municipal Bond Defaults and Recoveries, 1970–2016. Muni bond prices sparked in 2016, especially when President Trump announced his infrastructure spending plans.
The performance of municipal bonds has fallen since the 2016 election, as President Trump’s tax reform and infrastructure spending plans have caused some concern among investors.
The rally in emerging markets (VWO) has mainly been driven by higher earnings growth on the back of an improved business environment, rising exports, and strengthening corporate balance sheets.
As the emerging market local debt assets (EBND) (ELD) continue to evolve and expand, investors are increasingly looking for opportunities in the space to enhance returns.
With the addition of three new countries to the JPMorgan GBI-EM Global Diversified Index earlier this year, the EM local debt (FEMB) market continued its growth in 2017.
During the past two decades, EM (emerging markets) local debt has evolved to become the largest and most liquid debt market within the emerging market bond space.
KION Group AG (KGX GR) is a German multinational manufacturer of materials handling equipment, specializing in forklift trucks, warehouse equipment, and industrial trucks.
Many successful companies build customer loyalty by offering high-quality products and/or services. Some also have the unique advantage of integrating their products….
“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats. she
The services provided by municipal borrowers have always been, and remain, vital to our everyday life. The need to protect these services from possible disruption has become ever more important.
One possible driver to action could simply be alerting the public through their local media outlets just what havoc can be, and has been, wrought by cyberattacks.
