These investment grade corporate bond ETFs track indices based on credit metrics calculated by Moody’s Analytics’ CreditEdge® platform, which drives credit risk management at over 650 of the world’s largest institutions. They target the most attractively valued corporate bonds relative to their “Expected Default Frequency™”2 and seek to provide investors with upside return potential while controlling for credit risk.
- Moody’s Analytics’ industry-leading credit model is supported by decades of experience, an expansive dataset and a team of 30 dedicated researchers.
- There is significant dispersion of credit risk pricing within the corporate bond market. This provides an ability to build diversified portfolios with alpha potential, without taking excessive risk.
- By quantifying embedded risks and capturing market pricing opportunities, these strategies allow investors to focus on investment grade bonds offering attractive relative value while avoiding potential “value traps.”
- Bonds that are attractively valued relative to their fair value have significantly and consistently outperformed overvalued bonds.
A Quant-Driven Approach to Investment Grade Bonds
Learn how the VanEck Moody’s Analytics IG Corporate Bond ETF (MIG) and VanEck Moody’s Analytics BBB Corporate Bond ETF (MBBB) can provide outperformance potential within an income oriented portfolio by focusing on bonds with attractive valuations.
Important Definitions & Disclosures
1 Source: Moody’s Analytics based on various industry awards including Risk Technology Awards 2020 Winner (Best credit data provider, Best wholesale credit modelling software), Risk Technology Awards 2019 Winner (Best credit data provider, Best wholesale credit modelling software), and Data Management Awards 2018 Winner (Best risk data aggregation platform)
2 Expected Default Frequency™ is a proprietary credit risk metric developed by Moody’s Analytics, Inc. that measures the probability that a firm will default over a specified period of time.
An investment in the VanEck Moody’s Analytics IG Corporate Bond ETF (MIG) and VanEck Moody’s Analytics BBB Corporate Bond ETF (MBBB ) may be subject to risks which include, among others, investing in European issuers, foreign securities, foreign currency, BBB-rated bond, credit, interest rate, liquidity, restricted securities, consumer staples sector, financials sector, energy sector, communication services sector, market, operational, high portfolio turnover, call, sampling, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, data, non-diversified, concentration and trading, premium/discount and liquidity of fund shares risks. The Funds’ assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
The Adviser has entered into a licensing agreement with Moody's Analytics to use certain Moody's Analytics credit risk models, data and trademarks. Moody’s Analytics® is a registered trademark of Moody’s Analytics, Inc. and/or its affiliates and is used under license.
The Fund is not sponsored, promoted, sold or supported in any manner by Moody’s Analytics nor does Moody’s Analytics offer any express or implicit guarantee or assurance either with regard to the results of using the Moody’s Analytics trademark or data at any time or in any other respect. Moody’s Analytics has no obligation to point out errors in the data to third parties including but not limited to investors and/or financial intermediaries of the Fund. The licensing of data or the Moody’s Analytics trademark for the purpose of use in connection with the Fund does not constitutes a recommendation by Moody’s Analytics to invest capital in the Fund nor does it in any way represent an assurance or opinion of Moody’s Analytics with regard to any investment in this financial instrument. Moody’s Analytics bears no liability with respect to the Fund or any security.
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 888.460.6805 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
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