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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.
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How the World Is Dealing with the Climate Challenge
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Why LSE Stock Has Outperformed over the Years
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Will Tax Reform Add to US Debt Concerns?
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How Bond Buybacks Add Value
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Will Generic Drugs Help Curb Healthcare Costs?
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Is Gold Falling Due to Unwarranted Optimism?
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How REIT Classification Benefits Preferred Securities
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Green Bonds Issuance Show Signs of Growth in 2017
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The Ins and Outs of Moat Investing
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Why Some Exposure to VanEck’s Gaming ETF Is Prudent
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Inclusion of Chinese Onshore Bonds in Global Indexes
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How to Invest in Global Wide Moat Stocks
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How Green Bonds Can Help Diversify Investor Base
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What a Trump Presidency Means for Municipal Bonds
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Why the RAAX Fund Is Bullish on Gold
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Moat Index: Dramatic Sector Allocation Shift in 2018
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Are ‘Fallen Angels’ a Threat to the Bond Market in 2019?
We believe the indexer has exercised discretion with regard to the index rules in a thoughtful and prudent manner.

How Did PG&E Land among the ‘Fallen Angels?’
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Will We See More ‘Fallen Angels’ in 2019?
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.

What’s Expected for Commodities This Year
Oil prices and many other commodities surged for most of last year.

What Could Help China’s Economic Growth in 2019?
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Advice for 2019: Don’t Fight the People’s Bank of China
“Don’t fight the Fed” is an old investing mantra, suggesting that investments should align with the Federal Reserve’s monetary policies instead of against them.

Why Investors May Want to Consider FLTR
Floating rate notes (or FRNs) act as cushions during periods of rising interest rates.

Bank Loans or Floating Rate Notes: Which Should You Consider?
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How Floating Rate Notes Act as Cushions When Rates Rise
Rising interest rates usually cause fear in the fixed income market, as market interest rates and bond prices move in the opposite direction.

How Gold Mining Exposure Can Hedge Your Portfolio
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What Could Help Gold Get Its Shine Back?
During market distress, when other asset classes suffer, gold is often the only asset class that flourishes.

Why eSports Are Here to Stay
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How Tencent Has Gained from PUBG and Fortnite
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How Nintendo Transformed Gaming
Many companies across the world are realizing the potential of esports and discovering that a lot of money can be made in the esports market.

Why Morningstar Is Overweight on Healthcare
As the third graph shows, the Morningstar US Wide Moat Focus Index has over a 30% weight in healthcare, while the S&P 500 Index has only a 15% weight in the sector.