Income Investing

Blog | February 17

The Consistency of Fallen Angel High Yield Bond Returns

Blog | January 26

Rising Stars Could Emerge Again

Blog | January 13

Fallen Angels: The Year In Review

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Related Funds

IHY
VanEck Vectors International High Yield Bond ETF

HYEM
VanEck Vectors Emerging Markets High Yield Bond ETF

ANGL
VanEck Vectors Fallen Angel High Yield Bond ETF

Market Updates*

ANGL’s index has consistently outperformed the broad high yield index in a variety of market conditions, with outperformance in 13 of the past 17 years.
Long-term performance has been driven by buying new fallen angels at deep discounts, a higher quality tilt, and sector positioning.
2020 performance has been driven by record volume of new fallen angels; we expect further downgrade in 2021, however as the pace slows we expect the other drivers of performance to play an important role in returns going forward.

Learn More | Fallen Angels: The Year In Review

Fund Description

The VanEck Vectors^®Fallen Angel High Yield Bond ETF (ANGL^®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ICE US Fallen Angel High Yield 10% Constrained Index (H0CF), which is comprised of below investment grade corporate bonds denominated in U.S. dollars, issued in the U.S. domestic market and that were rated investment grade at the time of issuance.

Fund Ticker
ANGL
Exchange
NASDAQ
ETF Structure
Physical
Administrator
Van Eck Associates
Custodian
State Street Bank and Trust Company
Index Ticker
H0CF
Index Rebalancing
Monthly
2020 NAIC Designation¹¹
3.C

as of 03/03/21

30-Day SEC Yield¹
3.35%
Total Net Assets
$4.4B
Number of Holdings
333
Options
Available
Gross Expense Ratio²
0.43%
Net Expense Ratio/TER²
0.35%
Distribution Frequency
Monthly

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Morningstar™ Ratings³
as of 01/31/2021

Category	Overall	3 Year	5 Year
High Yield Bond	5 stars of 631 funds	5 stars of 631 funds	5 stars of 554 funds

Key Points

Higher Quality High Yield
Fallen angels, high yield bonds originally issued as investment grade corporate bonds, have had historically higher average credit quality than the broad high yield bond universe⁷
Outperformed Broad High Yield Bond Market
Fallen angels have outperformed the broad high yield bond market in 13 of the last 17 calendar years⁸
Higher Risk-Adjusted Returns than Broad High Yield Bond Market
Fallen angels have historically offered a better risk/reward trade off than found with the broad high yield bond market⁹

Yield
as of 03/03/21

30-Day SEC Yield¹
3.35%
Distribution Yield¹
4.01%
12-Month Yield¹
4.67%

¹ See Important Disclosure for definitions.

Fees & Expenses²

Management Fee
0.40%
Other Expenses
0.03%
Acquired Fund Fees and Expenses
--
Gross Expense Ratio
0.43%
Fee Waivers and
Expense Reimbursement
-0.08%
Net Expense Ratio/TER²
0.35%

²Expenses for ANGL are capped contractually at 0.35% until September 1, 2021. Cap excludes acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.

Trading Information

Fund Ticker
ANGL
Index Total Return Ticker
H0CF
NAV
ANGLNV
Intraday NAV (IIV)⁵
ANGLIV
Shares Outstanding
138,750,000
Estimated Cash
ANGLEU
Total Cash
ANGLTC
CUSIP
92189F437
ISIN
US92189F4375

⁵See IIV Details. Source: Bloomberg

Fundamentals⁴
as of 03/02/21

Yield to Worst
3.64%
Yield to Maturity
3.81%
Effective Duration (yrs)
6.59
Years to Maturity
10.21
Coupon
5.19%

⁴ See Important Disclosure for definitions.

Investment Professionals

Francis G. Rodilosso, CFA

Portfolio Manager and Head of Fixed Income ETFs
Responsible for portfolio strategies as well as credit and market analysis; specializes in international bond markets
Joined VanEck in 2012
Prior to VanEck, Managing Director of Global Emerging Markets with The Seaport Group; launched the firm’s emerging markets fixed income sales and trading business
Previously, held portfolio management positions at Greylock Capital and Soundbrook Capital; focused on corporate high-yield and distressed bonds with an emphasis on emerging markets
CFA charterholder; member of CFA Society New York
MBA (with distinction), Finance, University of Pennsylvania
AB, History, Princeton University

Daniel Cho

Analyst for Fixed Income ETFs
Joined VanEck in 2013
Prior to his current role, held a portfolio administration position for the firm’s alternative investment funds
MS, Finance, University of Rochester
BS, Information Sciences and Technology, Pennsylvania State University

Stephanie Wang

Quantitative Analyst for Fixed Income ETFs
Joined VanEck in 2016
MS, Financial Engineering, Baruch College
BBA, Finance, Baruch College

Jared Model

Trader for Fixed Income ETFs
Joined VanEck in 2017
Previously, Trader at Beck, Mack & Oliver LLC and monitored markets and executed equity and fixed income trades and Fixed Income Operations at Gleacher & Company Securities, Inc.
MBA, Finance, Montclair State University
BS, concentration in Accounting and Finance, minor in Computer Science, University of Vermont

Prices as of 03/03/21

	NAV/ Market Price	Volume 30-Day Avg./ Last Trading Day	Daily Change NAV/ Last Price	YTD Change NAV/ Last Price	Premium/ Discount	Prem/Discount Distribution Charts	NAV & Prem/Discount History	30-Day Median Bid Ask Spread	NAV Chart
ANGL	$32.03 $31.98	2,763,337 3,033,465	-$0.07 / -0.21% $-0.15 / -0.47%	+1.02% +0.39%	$-0.05 -0.16%			--

Premium/Discount History as of 03/03/21

		Calendar Year 2019	1Q 2020	2Q 2020	3Q 2020	4Q 2020
	Days closed at a premium	209	33	40	54	60
ANGL	Days closed at NAV	10	1	3	2	1
	Days closed at a discount	33	28	20	8	3

Performance History: Average Annual Total Returns* (%)
View All ETFs View All Indices

Month End as of 01/31/21
Quarter End as of 12/31/20

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 04/10/12
ANGL (NAV)	0.78	9.16	0.78	12.90	7.53	12.03	--	8.88
ANGL (Share Price)	0.30	8.60	0.30	13.03	7.72	12.00	--	8.88
H0CF (Index)	0.37	9.32	0.37	13.66	8.09	12.67	9.52	9.89
Performance Differential (NAV - Index)	0.41	-0.16	0.41	-0.76	-0.56	-0.64	--	-1.01

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 04/10/12
ANGL (NAV)	2.12	9.02	13.33	13.33	7.98	11.59	--	8.88
ANGL (Share Price)	2.35	9.28	13.18	13.18	8.06	11.72	--	8.93
H0CF (Index)	2.63	9.74	14.06	14.06	8.42	12.13	9.70	9.95
Performance Differential (NAV - Index)	-0.51	-0.72	-0.73	-0.73	-0.44	-0.54	--	-1.07

*Returns less than one year are not annualized.
Index data on and prior to February 28, 2020 reflects that of the ICE BofA US Fallen Angel High Yield Index (H0FA). From February 28, 2020 forward, the index data reflects that of the Fund's underlying index, the ICE US Fallen Angel High Yield 10% Constrained Index (H0CF). Index history which includes periods prior to February 28, 2020 links H0FA and H0CF and is not intended for third party use.

The table presents past performance which is no guarantee of future results and which may be lower or higher than current performance. Returns reflect temporary contractual fee waivers and/or expense reimbursements. Had the ETF incurred all expenses and fees, investment returns would have been reduced. Investment returns and ETF share values will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. ETF returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV.

The "After Tax Held" represents total return after taxes on distributions and assumes shares have not been sold. "After Tax Sold" represents total return after taxes on distributions and the sale of Fund shares. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. After-tax returns are based on NAV.

Top 10 Holdings (%) as of 01/31/21 Daily Holdings

Total Holdings: 338

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full data

	Holding Name	Coupon	Maturity	Composite Rating	Country^†	Currency	% of Net Assets
	CARNIVAL CORP	11.500	04/01/2023	BB-	United States	USD	1.92
	KRAFT HEINZ FOODS CO	4.375	06/01/2046	BB+	United States	USD	1.33
	SPRINT CAPITAL CORP	6.875	11/15/2028	BB	United States	USD	1.31
	SPRINT CAPITAL CORP	8.750	03/15/2032	BB	United States	USD	1.27
	OCCIDENTAL PETROLEUM CORP	2.900	08/15/2024	BB	United States	USD	1.22
	ROYAL CARIBBEAN CRUISES LTD	11.500	06/01/2025	BB	United States	USD	1.11
	VODAFONE GROUP PLC	7.000	04/04/2079	BB+	United Kingdom	USD	1.04
	FREEPORT-MCMORAN INC	5.450	03/15/2043	BB+	United States	USD	0.97
	KRAFT HEINZ FOODS CO	5.200	07/15/2045	BB+	United States	USD	0.94
	KRAFT HEINZ FOODS CO	5.000	06/04/2042	BB+	United States	USD	0.93
Top 10 Total (%)							12.04

These are not recommendations to buy or to sell any security. Securities and holdings may vary.

†See Country of Risk disclosure. These are not recommendations to buy or to sell any security. Securities and holdings may vary. Source: Bloomberg. Rating is a proprietary composite of various rating agencies. A bond must be rated by two or more rating agencies to receive a composite rating; otherwise it is classified as Not Rated.

Country Weightings (%) as of 01/31/21

Country
% of Net Assets
■
United States
83.54
■
Canada
3.28
■
Italy
3.04
■
United Kingdom
2.64
■
Germany
1.90
■
Luxembourg
1.58
■
France
1.56
■
Australia
1.05
■
China
0.37
■
Finland
0.28
■
Brazil
0.22
■
Ireland
0.16
■
Other/Cash
0.40

Currency Exposure (%)
as of 01/31/21

U.S. Dollar
99.60
Other/Cash
0.40

Sector Weightings (%) as of 01/31/21

Sector
% of Net Assets
■
Energy
28.3
■
Consumer Cyclicals
20.7
■
Technology
12.6
■
Consumer Non-Cyclicals
10.0
■
Basic Materials
7.2
■
Utilities
6.0
■
Industrials
5.4
■
Financials
5.1
■
Real Estate
3.8
■
Healthcare
0.5
■
Other/Cash
0.4

Credit Quality (%) as of 01/31/21

Composite		% of Net Assets
Non-Investment Grade	BB	93.98
	B	4.05
	CCC	1.35
	C	0.23
Total Non-Investment Grade	--	99.60

Source: Bloomberg. Rating is a proprietary composite of various rating agencies. A bond must be rated by two or more rating agencies to receive a composite rating; otherwise it is classified as Not Rated.

Maturity (%) as of 01/31/21

Average Portfolio Maturity: 10.26 Years