Emerging Markets Bonds

Local currency emerging markets sovereign bonds have historically exhibited negative correlation to U.S. treasuries, providing a potential offset to the impact of rising U.S. interest rates.¹
EMLC may be an attractive way to earn relatively high carry²and potentially benefit from U.S. dollar weakness
Local currency emerging markets bonds may provide a higher quality alternative to USD emerging markets sovereigns while providing attractive yield, as the average credit quality of the local emerging markets benchmark is investment grade while the hard currency benchmark is on average high yield.³

Learn More | Declining U.S. Rates Boost EM Debt’s Yield Advantage

¹Source: Morningstar, based on monthly returns from May 2018 to April 2021

²Carry refers to the returns or costs of holding a bond.

³Source: J.P. Morgan as of 4/30/2021, based on the J.P. Morgan GBI-EM Global Diversified Index and the J.P. Morgan EMBI Global Diversified Index.

Fund Description

The VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC^®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the J.P. Morgan GBI-EM Global Core Index (GBIEMCOR), which is comprised of bonds issued by emerging market governments and denominated in the local currency of the issuer.

Fund Ticker
EMLC
Exchange
NYSE Arca
ETF Structure
Physical
Administrator
Van Eck Associates
Custodian
State Street Bank and Trust Company
Index Ticker
GBIEMCOR
Index Rebalancing
Monthly
2021 Preliminary NAIC Designation⁷
3.A

as of 10/15/21

30-Day SEC Yield¹
5.03%
Total Net Assets
$3.5B
Number of Holdings
348
Options
Available
Gross Expense Ratio²
0.31%
Net Expense Ratio/TER²
0.30%
Distribution Frequency
Monthly

^1,2,7 See Important Disclosure.

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Morningstar™ Ratings³
as of 09/30/2021

Category	Overall	3 Year	5 Year
Emerging-Markets Local-Currency Bond	3 stars of 73 funds	3 stars of 73 funds	3 stars of 69 funds

Key Points

Seeks to replicate the J.P. Morgan GBI-EM Global Core Index

Access to local bond markets in emerging economies

Provides yields that are currently higher than developed markets and potential for currency appreciation

Yield
as of 10/15/21

30-Day SEC Yield¹
5.03%
Distribution Yield¹
4.91%
12-Month Yield¹
5.04%

¹ See Important Disclosure for definitions.

Fees & Expenses²

Management Fee
0.27%
Other Expenses
0.04%
Acquired Fund Fees and Expenses
--
Gross Expense Ratio
0.31%
Fee Waivers and
Expense Reimbursement
-0.01%
Net Expense Ratio/TER²
0.30%

²Expenses for EMLC are capped contractually at 0.30% until September 1, 2022. Cap excludes acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.

Trading Information

Fund Ticker
EMLC
Index Total Return Ticker
GBIEMCOR
NAV
EMLCNV
Intraday NAV (IIV)⁵
EMLCIV
Shares Outstanding
116,722,682
Estimated Cash
EMLCEU
Total Cash
EMLCTC
CUSIP
92189H300
ISIN
US92189H3003

⁵See IIV Details. Source: Bloomberg

Fundamentals⁴
as of 10/15/21

Yield to Worst
5.73%
Yield to Maturity
5.76%
Effective Duration (yrs)
5.05
Years to Maturity
7.18
Modified Duration (yrs)
5.12
Coupon
5.48%

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

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

Prices as of 10/15/21

	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
EMLC	$30.01 $29.98	2,346,032 2,042,420	$0.10 / +0.32% $0.06 / +0.20%	-5.93% -6.10%	$-0.03 -0.10%			0.03%

Premium/Discount History as of 10/15/21

		Calendar Year 2020	4Q 2020	1Q 2021	2Q 2021	3Q 2021
	Days closed at a premium	91	36	14	38	22
EMLC	Days closed at NAV	6	2	3	2	5
	Days closed at a discount	156	26	44	23	37

Performance History: Average Annual Total Returns* (%)
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Monthly Returns

Month End as of 09/30/21
Quarter End as of 09/30/21

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 07/22/10
EMLC (NAV)	-3.45	-3.22	-6.23	2.34	2.61	0.88	0.39	0.65
EMLC (Share Price)	-3.45	-3.31	-6.62	1.89	2.52	0.76	0.38	0.63
GBIEMCOR (Index)	-3.37	-3.07	-6.24	2.86	3.12	1.43	1.01	1.34
Performance Differential (NAV - Index)	-0.08	-0.15	0.01	-0.52	-0.51	-0.55	-0.62	-0.69

	1 MO	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	LIFE 07/22/10
EMLC (NAV)	-3.45	-3.22	-6.23	2.34	2.61	0.88	0.39	0.65
EMLC (Share Price)	-3.45	-3.31	-6.62	1.89	2.52	0.76	0.38	0.63
GBIEMCOR (Index)	-3.37	-3.07	-6.24	2.86	3.12	1.43	1.01	1.34
Performance Differential (NAV - Index)	-0.08	-0.15	0.01	-0.52	-0.51	-0.55	-0.62	-0.69

*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. 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 "Net Asset Value" (NAV) of a VanEck 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 ETF investors should not expect to buy or sell shares at NAV.

Top 10 Holdings (%) as of 09/30/21 Daily Holdings

Total Holdings: 349

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full data

	Holding Name	Coupon	Maturity	Country^†	Currency	% of Net Assets
	BRAZIL LETRAS DO TESOURO NACIONAL	0.000	01/01/2024	Brazil	BRL	1.98
	BRAZIL NOTAS DO TESOURO NACIONAL SERIE	10.000	01/01/2023	Brazil	BRL	1.28
	BRAZIL LETRAS DO TESOURO NACIONAL	0.000	07/01/2023	Brazil	BRL	1.08
	PHILIPPINE GOVERNMENT INTERNATIONAL BON	6.250	01/14/2036	Philippines	PHP	1.05
	URUGUAY GOVERNMENT INTERNATIONAL BOND	8.250	05/21/2031	Uruguay	UYU	0.98
	BRAZIL NOTAS DO TESOURO NACIONAL SERIE	10.000	01/01/2025	Brazil	BRL	0.98
	BRAZIL NOTAS DO TESOURO NACIONAL SERIE	10.000	01/01/2027	Brazil	BRL	0.94
	REPUBLIC OF SOUTH AFRICA GOVERNMENT BON	8.750	02/28/2048	South Africa	ZAR	0.91
	BRAZIL LETRAS DO TESOURO NACIONAL	0.000	07/01/2022	Brazil	BRL	0.90
	REPUBLIC OF SOUTH AFRICA GOVERNMENT BON	8.000	01/31/2030	South Africa	ZAR	0.88
Top 10 Total (%)						10.98

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.

Country Weightings (%) as of 09/30/21

Country
% of Net Assets
■
China
10.36
■
Indonesia
9.61
■
Brazil
8.67
■
Mexico
7.21
■
South Africa
6.69
■
Thailand
6.41
■
Malaysia
6.15
■
Poland
5.27
■
Russia
4.89
■
Supra-National
4.30
■
Colombia
4.19
■
Czech Republic
4.13
■
Hungary
3.66
■
Romania
3.26
■
Peru
3.01
■
Chile
2.85
■
Turkey
2.82
■
Dominican Repb.
1.66
■
Serbia
1.64
■
Uruguay
1.59
■
Other/Cash
1.65

Currency Exposure (%)

as of 09/30/21

Chinese Renminbi
10.36
Indonesian Rupiah
10.26
Brazilian Real
8.68
Mexican Peso
8.23
South African Rand
7.22
Thailand Baht
6.41
Polish Zloty
6.37
Malaysian Ringgit
6.15
Russian Ruble
5.90
Colombian Peso
4.19
Czech Koruna
4.13
Hungarian Forint
3.66
Romanian Leu
3.26
Peruvian New Sol
3.01
Turkish Lira
2.90
Chilean Peso
2.85
Dominican Rep. Peso
1.66
Serbian Dinar
1.64
Uruguay Peso
1.59
Philippines Peso
1.55
Other/Cash
0.00

Sector Weightings (%) as of 09/30/21

Sector
% of Net Assets
■
Government Activity
94.3
■
Financials
5.2
■
Industrials
0.2
■
Utilities
0.2
■
Energy
0.1
■
Other/Cash
0.0

Credit Quality (%) as of 09/30/21

Composite		% of Net Assets
Investment Grade	AAA	3.31
	AA	0.68
	A	4.54
	BBB	26.58
Non-Investment Grade	BB	18.61
	CCC	0.07
Total Investment Grade	--	35.11
Total Non-Investment Grade	--	18.69
Not Rated	--	46.20

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 09/30/21

Average Portfolio Maturity: 7.14 Years

Emerging Markets Bonds

CEO's Investment Outlook

Related Funds

EMLCVanEck J.P. Morgan EM Local Currency Bond ETF

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