Municipal Bonds

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MAAX Reacts to Inflation Fears

Blog | May 25

High Yield Munis and the Tax Debate

Blog | February 17

High Yield Munis Benefit from Anticipated Fiscal Support

Blog | January 15

Democratic Control of Senate Creates a Tailwind for Muni Bonds

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Related Funds

XMPT
VanEck Vectors CEF Municipal Income ETF

SHYD
VanEck Vectors Short High Yield Muni ETF

MLN
VanEck Vectors Long Muni ETF

ITM
VanEck Vectors Intermediate Muni ETF

SMB
VanEck Vectors Short Muni ETF

HYD
VanEck Vectors High Yield Muni ETF

Market Updates*

While spreads have tightened since the March 2020 sell-off, we believe there is room to tighten given the prospects of a faster-than-expected recovery.
The current recovery is already well under way, helped by a stronger economic and financial foundation, more immediate fiscal and monetary response, and some direct aid to state and local governments.
Names and sectors that were more affected by the pandemic—such as corporate-backed munis, healthcare and special tax—are likely to drive performance, while tobacco and COFINA (Puerto Rico’s Sales Tax Financing Corporation) may continue to provide good carry and marginal price appreciation.

Fund Description

The VanEck Vectors^®High Yield Muni ETF (HYD^®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index (LMEHTR), which is intended to track the overall performance of the U.S. dollar denominated high yield long-term tax-exempt bond market.

Fund Ticker
HYD
Exchange
Cboe
ETF Structure
Physical
Administrator
Van Eck Associates
Custodian
State Street Bank and Trust Company
Index Ticker
LMEHTR
Index Rebalancing
Monthly
2021 Preliminary NAIC
Designation⁷
4.C

as of 08/02/21

30-Day SEC Yield¹
2.18%
Total Net Assets
$4.0B
Number of Holdings
2016
Options
Available
Gross Expense Ratio²
0.35%
Net Expense Ratio/TER²
0.35%
Distribution Frequency
Monthly

^{1, 2, 7}See Important Disclosure.

Schedule a Call

Morningstar™ Ratings³
as of 06/30/2021

Category	Overall	3 Year	5 Year
High Yield Muni	3 stars of 182 funds	2 stars of 182 funds	3 stars of 151 funds

Key Points

High-Yield Muni Focus
Underlying Index comprised of highest-yielding municipal bonds with income generally exempt from federal taxes

Enhanced Liquidity Feature
Index includes 25% BBB investment-grade exposure for enhanced liquidity

Diverse Sector Exposure and Low Default Rates
Index covers wide range of muni sectors and securities with historically low default rates*

* Source: Moody’s Investors Services; "U.S. Municipal Bond Defaults and Recoveries, 1970-2019"

Yields
as of 08/02/21

30-Day SEC Yield¹
2.18%
Distribution Yield¹
3.38%
12-Month Yield¹
3.92%
Taxable Equivalent 30-Day SEC Yields^1a
12% Federal Tax Rate
2.48%
22% Federal Tax Rate
2.79%
24% Federal Tax Rate
2.87%
32% Federal Tax Rate
3.21%
35% Federal Tax Rate
3.35%
37% Federal Tax Rate
3.46%

^1/1a See Important Disclosure for definitions.

Fees & Expenses²

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

²Van Eck Associates Corporation (the “Adviser”) will pay all expenses of the Fund, except for the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses.

Trading Information

Fund Ticker
HYD
Index Total Return Ticker
LMEHTR
NAV
HYDNV
Intraday NAV (IIV)⁵
HYDIV
Shares Outstanding
62,746,401
Estimated Cash
HYDEU
Total Cash
HYDTC
CUSIP
92189H409
ISIN
US92189H4092

⁵See IIV Details. Source: Bloomberg

Fundamentals⁴
as of 07/30/21

Yield to Worst
2.60%
Yield to Maturity
3.89%
Effective Duration (yrs)
5.81
Duration to Worst (yrs)
5.07
Modified Duration (yrs)
6.65
Spread Duration (yrs)
6.34
Years to Maturity
21.12
Coupon
4.97%
AMT
13.55%

⁴ See Important Disclosure for definitions.

Investment Professionals

James Colby III

Portfolio Manager for non-taxable Fixed Income ETFs and Senior Municipal Strategist
Joined VanEck in 2007
Prior to joining VanEck, held several senior municipal fixed income positions at Lord Abbett, John Hancock Funds, Old Harbor Capital and Evergreen Asset Management
Member of National Municipal Buyers Conference (Chairman, 1996), Municipal Forum of New York, Boston Fixed Income Management Society and The Economics Club of New York
MBA, Finance, Hofstra University
BA, Economics and International Relations, Brown University

Daniel Cho

Associate Portfolio Manager 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

Associate Portfolio Manager for Fixed Income ETFs
Joined VanEck in 2016
MS, Financial Engineering, Baruch College
BBA, Finance, Baruch College

Jared Model

Senior Trader, Portfolio Analyst 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

Tamara Lowin

Senior credit analyst for non-taxable Fixed Income ETFs
Joined VanEck in 2021
Prior to joining VanEck, held several senior municipal analyst positions including director of research at Belle Haven Investments, senior municipal analyst at Brown Brothers, and municipal bond analyst at UBS
Member of National Federation of Municipal Analysts and the Municipal Analysts Group of New York
MBA, Finance and Public Policy, The Wharton School of Business; BA, Communications, University of Pennsylvania

Prices as of 08/02/21

	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
HYD	$63.72 $63.74	507,850 522,383	-$0.16 / -0.25% $-0.13 / -0.20%	+5.82% +5.72%	$0.02 0.03%			--

Premium/Discount History as of 08/02/21

		Calendar Year 2020	3Q 2020	4Q 2020	1Q 2021	2Q 2021
	Days closed at a premium	97	22	31	45	60
HYD	Days closed at NAV	2	0	1	0	0
	Days closed at a discount	154	42	32	16	3

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

Month End as of 06/30/21
Quarter End as of 06/30/21

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 02/04/09
HYD (NAV)	1.03	3.46	5.08	11.53	4.48	3.91	5.68	7.04
HYD (Share Price)	1.05	3.28	5.29	11.49	4.56	3.95	5.72	7.06
LMEHTR (Index)	1.11	3.55	5.65	13.56	7.15	5.89	7.19	8.62
Performance Differential (NAV - Index)	-0.08	-0.09	-0.57	-2.03	-2.67	-1.98	-1.51	-1.58

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 02/04/09
HYD (NAV)	1.03	3.46	5.08	11.53	4.48	3.91	5.68	7.04
HYD (Share Price)	1.05	3.28	5.29	11.49	4.56	3.95	5.72	7.06
LMEHTR (Index)	1.11	3.55	5.65	13.56	7.15	5.89	7.19	8.62
Performance Differential (NAV - Index)	-0.08	-0.09	-0.57	-2.03	-2.67	-1.98	-1.51	-1.58

*Returns less than one year are not annualized.

The table presents past performance which is no guarantee of future results and which may be lower or higher than current performance. 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 "Net Asset Value" (NAV) of a VanEck Vectors Exchange Traded Fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF 's intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

Top 10 Holdings (%) as of 06/30/21 Daily Holdings

Total Holdings: 1,974

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full data

	Issuer Name	State	Weighting (%)
	Chicago Ill Brd Ed	IL	3.67
	Puerto Rico Sales Tax Fing Corp Sales Tax Rev	PR	3.35
	New Jersey St Transn Tr Fd Auth	NJ	3.34
	Illinois St	IL	3.19
	Buckeye Ohio Tob Settlement Fing Auth	OH	2.96
	Florida Dev Fin Corp Surface Transn Fac Rev	FL	2.42
	Chicago Ill	IL	2.26
	New York Transn Dev Corp Spl Fac Rev	NY	2.02
	New Jersey Economic Dev Auth Rev	NJ	1.97
	Cscda Cmnty Impt Auth Calif Essential Hsg Rev	CA	1.77
Top 10 Total (%)			26.95

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

Geographical Weightings (%) as of 06/30/21

State
% of Net Assets
■
California
13.5
■
Illinois
12.2
■
New York
8.5
■
New Jersey
8.0
■
Florida
5.5
■
Ohio
4.8
■
Texas
4.6
■
Pennsylvania
4.1
■
Puerto Rico
4.0
■
Colorado
3.5
■
Wisconsin
2.6
■
Arizona
2.6
■
Washington
2.0
■
Alabama
1.7
■
Georgia
1.4
■
Maryland
1.3
■
Michigan
1.3
■
Virginia
1.3
■
Iowa
1.2
■
Missouri
1.2
■
Other
14.7

Currency Exposure (%)

as of 06/30/21

U.S. Dollar
99.67
Other/Cash
0.33

Sector Weightings (%) as of 06/30/21

Sector
% of Net Assets
■
Health Care
19.0
■
Industrial Revenue
15.9
■
Special Tax
11.5
■
Education
9.8
■
Tobacco
9.7
■
Transportation
8.3
■
Local
7.8
■
Leasing
7.7
■
Housing
4.4
■
State
3.3
■
Water & Sewer
1.7
■
Power
0.4
■
Cash
0.3
■
Solid Waste/Res Recovery
0.0
■
Unassigned
0.0

Credit Quality (%) as of 06/30/21

Composite		% of Net Assets
Investment Grade	AAA	0.08
	AA	0.10
	A	0.58
	BBB	24.87
Non-Investment Grade	BB	20.64
	B	7.20
	CCC	3.80
Total Investment Grade	--	25.62
Total Non-Investment Grade	--	31.64
Not Rated	--	42.41

Source: Barclays. Rating is a proprietary composite of various rating agencies.

Maturity (%) as of 06/30/21

Average Portfolio Maturity: 21.10 Years