New index captures both the established leaders
and emerging companies and themes reshaping the low carbon energy
ecosystem
VanEck today announced a change to the underlying Index for its
VanEck Vectors Low Carbon Energy ETF (NYSE: SMOG), enhancing the
Fund’s primary investment strategy and providing more diversified
exposure to the evolving, dynamic low carbon energy economy.
Going forward, SMOG’s underlying index will be the MVIS Global
Low Carbon Energy Index (“the Index”), a rules-based index that
tracks the performance of globally listed equities involved in the
low carbon energy ecosystem.
"SMOG was one of the first ETFs to provide exposure to companies
involved in low carbon, clean energy. Since the time of its launch,
the industry has evolved substantially. Many segments of the
industry are maturing and expanding. The new index modernizes and
expands the expected exposure to the low carbon energy ecosystem,”
said Ed Lopez, Head of ETF Product with VanEck.
The Index is designed to represent companies across a
comprehensive modern set of renewable energy sub-themes including
wind, solar, hydro, hydrogen, bio-fuel or geothermal technology,
lithium-ion batteries, electric vehicles and related equipment,
waste-to-energy production, smart grid technologies, or building or
industrial materials that reduce carbon emissions or energy
consumption.
Its free-float market cap approach provides sufficient liquidity
and allows emerging sub-themes to increase in prominence in the
Index as that sub-theme grows. To be initially eligible for
inclusion in the Index, companies must generate at least 50% of
their revenues, operating activity or energy generation capacity
from renewable energy and all securities must have a market
capitalization of greater than $150 million as of the end of the
month prior to the month in which a rebalancing date occurs. The
Index rebalances quarterly.
In addition to SMOG, VanEck also offers the VanEck Vectors Green
Bond ETF (NYSE: GRNB), the first ETF to provide targeted exposure
to the U.S. dollar-denominated green bond market.
About VanEck
VanEck has a history of looking beyond the financial markets to
identify trends that are likely to create impactful investment
opportunities. We were one of the first U.S. asset managers to
offer investors access to international markets. This set the tone
for the firm’s drive to identify asset classes and trends –
including gold investing in 1968, emerging markets in 1993, and
exchange traded funds in 2006 – that subsequently shaped the
investment management industry.
Today, VanEck offers active and passive strategies with
compelling exposures supported by well-designed investment
processes. As of March 31, 2021, VanEck managed approximately $71.2
billion in assets, including mutual funds, ETFs and institutional
accounts. The firm’s capabilities range from core investment
opportunities to more specialized exposures to enhance portfolio
diversification. Our actively managed strategies are fueled by
in-depth, bottom-up research and security selection from portfolio
managers with direct experience in the sectors and regions in which
they invest. Investability, liquidity, diversity, and transparency
are key to the experienced decision-making around market and index
selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests
first, in all market environments, has been at the heart of the
firm’s mission.
Important Disclosures
An investment in the its VanEck Vectors Low Carbon Energy ETF
may be subject to risks which include, among others, investing in
low carbon energy companies, investing in European issuers, foreign
securities, foreign currency, depository receipts, utilities,
consumer discretionary, industrials and sector, information
technology sectors, utilities sector, small- and
medium-capitalization companies, equity securities, market,
operational, index tracking, authorized participant concentration,
no guarantee of active trading market, high portfolio turnover,
trading issues, passive management, fund shares trading,
premium/discount risk and liquidity of fund shares, non-diversified
and concentration risks, all of which may adversely affect the
Fund. Foreign investments are subject to risks, which include
changes in economic and political conditions, foreign currency
fluctuations, changes in foreign regulations, and changes in
currency exchange rates which may negatively impact the Fund's
return. Small- and medium-capitalization companies may be subject
to elevated risks.
An investment VanEck Vectors Green Bond ETF may be subject to
risks which include, among others, green bonds, investing in Asian,
Chinese and emerging market issuers, foreign securities, foreign
currency, credit, interest rate, floating rate, floating rate
LIBOR, high yield securities, supranational bond,
government-related bond, restricted securities,
securitized/asset-backed securities, financial, utilities, market,
operational, call, sampling, index tracking, authorized participant
concentration, no guarantee of active trading market, trading
issues, passive management, fund shares trading, premium/discount
risk and liquidity of fund shares, non-diversified and
concentration risks, all of which may adversely affect the
Fund.
MVIS Global Low Carbon Energy Index is the exclusive property of
MV Index Solutions GmbH (a wholly owned subsidiary of the Adviser),
which has contracted with Solactive AG to maintain and calculate
the Index. Solactive AG uses its best efforts to ensure that the
Index is calculated correctly. Irrespective of its obligations
towards MV Index Solutions GmbH, Solactive AG has no obligation to
point out errors in the Index to third parties. The VanEck Vectors
Low Carbon Energy ETF is not sponsored, endorsed, sold or promoted
by MV Index Solutions GmbH and MV Index Solutions GmbH makes no
representation regarding the advisability of investing in the
Fund.
Index returns are not Fund returns and do not reflect any
management fees or brokerage expenses. Certain indices may take
into account withholding taxes. Investors cannot invest directly in
the Index. Returns for actual Fund investors may differ from what
is shown because of differences in timing, the amount invested and
fees and expenses. Index returns assume that dividends have been
reinvested.
Investing involves substantial risk and high volatility,
including possible loss of principal. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210426005071/en/
Chris Sullivan/Julia Stoll MacMillan Communications 212.473.4442
chris@macmillancom.com
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