N-Q 1 c87479_nq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

 

 

FORM N-Q

 

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

 

MANAGEMENT INVESTMENT COMPANIES

 

INVESTMENT COMPANY ACT FILE NUMBER: 811-10325

 

 

 

VANECK VECTORS ETF TRUST

(Exact name of registrant as specified in its charter)

 

 

666 Third Avenue -  New York, NY   10017
(Address of principal executive offices)   (Zip Code)

 

 

John J. Crimmins

Treasurer & Chief Financial Officer

VanEck Vectors ETF Trust

666 Third Avenue

New York, NY 10017

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (212) 293-2000

  Date of fiscal year end:     September 30
 Date of reporting period:     December 31, 2016

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1 -5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N -Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

ITEM 1. Schedule of Investments.

 

BIOTECH ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		       Value  
COMMON STOCKS: 99.9%   
Ireland: 1.7%      
 181,406   Alkermes Plc (USD) *  $10,082,546 
Netherlands: 2.5%      
 526,746   Qiagen NV (USD) *   14,759,423 
Spain: 1.9%      
 673,248   Grifols SA (ADR)   10,819,095 
United States: 93.8%      
 207,442   ACADIA Pharmaceuticals, Inc. * †   5,982,627 
 204,643   Alexion Pharmaceuticals, Inc. *   25,038,071 
 259,111   Allergan Plc *   54,415,901 
 126,692   Alnylam Pharmaceuticals, Inc. * †   4,743,349 
 476,259   Amgen, Inc.   69,633,828 
 135,627   Biogen Idec, Inc. *   38,461,105 
 316,795   BioMarin Pharmaceutical, Inc. *   26,243,298 
 39,546   Bluebird Bio, Inc. * †   2,439,988 
 568,152   Celgene Corp. *   65,763,594 
 123,385   Charles River Laboratories International, Inc. *   9,400,703 
 910,095   Gilead Sciences, Inc.   65,171,903 
 210,095   Illumina, Inc. *   26,900,564 
 252,072   Incyte Corp. *   25,275,259 
 23,389   Intercept Pharmaceuticals, Inc. * †   2,541,215 
 209,178   Ionis Pharmaceuticals, Inc. * †   10,004,984 
 166,374   Neurocrine Biosciences, Inc. *   6,438,674 
 335,484   Quintiles Transnational Holdings, Inc. *   25,513,558 
 70,944   Regeneron Pharmaceuticals, Inc. *   26,042,833 
 137,967   Seattle Genetics, Inc. * †   7,280,519 
 78,806   TESARO, Inc. * †   10,597,831 
 76,024   United Therapeutics Corp. * †   10,904,122 
 340,586   Vertex Pharmaceuticals, Inc. *   25,090,971 
        543,884,897  
Total Common Stocks
(Cost: $696,816,177)		   579,545,961  
MONEY MARKET FUND: 0.1%
(Cost: $448,917)		        
 448,917   Dreyfus Government Cash Management Fund   448,917 
Total Investments Before Collateral for Securities Loaned: 100.0%
(Cost: $697,265,094)		  579,994,878  

 

Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 5.9%     
Repurchase Agreements: 5.9%     
$8,117,715   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc., 0.53%, due 1/3/17, proceeds $8,118,193; (collateralized by various U.S. government and agency obligations, 2.00% to 8.50%, due 12/1/17 to 1/1/47, valued at $8,280,069 including accrued interest)  8,117,715 
 1,708,516   Repurchase agreement dated 12/30/16 with J.P. Morgan Securities LLC, 0.50%, due 1/3/17, proceeds $1,708,611; (collateralized by various U.S. government and agency obligations, 0.00% to 1.38%, due 4/13/17 to 8/31/21, valued at $1,742,697 including accrued interest)   1,708,516 
 8,117,715   Repurchase agreement dated 12/30/16 with Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.50%, due 1/3/17, proceeds $8,118,166; (collateralized by various U.S. government and agency obligations, 1.74% to 6.00%, due 8/1/22 to 1/15/49, valued at $8,280,069 including accrued interest)   8,117,715 
 8,117,715   Repurchase agreement dated 12/30/16 with Mizuho Securities USA, Inc., 0.48%, due 1/3/17, proceeds $8,118,148; (collateralized by various U.S. government and agency obligations, 2.00% to 6.50%, due 7/1/24 to 9/20/46, valued at $8,280,069 including accrued interest)   8,117,715 
 8,117,715   Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc., 0.50%, due 1/3/17, proceeds $8,118,166; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $8,280,070 including accrued interest)   8,117,715 
Total Short-Term Investments Held as Collateral for Securities Loaned
(Cost: $34,179,376)		    34,179,376  
Total Investments: 105.9%
(Cost: $731,444,470)		   614,174,254 
Liabilities in excess of other assets: (5.9)%   (34,444,018)
NET ASSETS: 100.0%  $579,730,236 

 

ADRAmerican Depositary Receipt
USDUnited States Dollar
  
*Non-income producing
†Security fully or partially on loan. Total market value of securities on loan is $33,159,212.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		   % of
Investments		   Value  
Biotechnology   68.5 %   $ 397,529,264  
Health Care   22.6       130,956,007  
Life Sciences Tools & Services   8.8       51,060,690  
Money Market Fund   0.1       448,917  
    100.0 %   $ 579,994,878  

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks*  $579,545,961   $—   $—   $579,545,961 
Money Market Fund   448,917    —    —    448,917 
Repurchase Agreements   —    34,179,376    —    34,179,376 
Total  $579,994,878   $34,179,376   $—   $614,174,254 

 

* See Schedule of Investments for security type and geographic sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

ENVIRONMENTAL SERVICES ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		       Value  
COMMON STOCKS: 100.1%   
Canada: 10.1%      
 24,110   Waste Connections, Inc. (USD)  $1,894,805 
United Kingdom: 3.8%      
 10,725   Steris Plc (USD)   722,758 
United States: 86.2%      
 18,113   ABM Industries, Inc.   739,735 
 41,769   Calgon Carbon Corp.   710,073 
 9,261   Cantel Medical Corp.   729,304 
 30,740   Casella Waste Systems, Inc. *   381,483 
 26,508   Ceco Environmental Corp.   369,787 
 8,915   Clarcor, Inc.   735,220 
 12,720   Clean Harbors, Inc. *   707,868 
 47,446   Covanta Holding Corp. †   740,158 
 54,219   Darling International, Inc. *   699,967 
 17,067   Donaldson Company, Inc. †   718,179 
 34,496   Layne Christensen Co. *   374,972 
 49,185   Newpark Resources, Inc. *   368,888 
 33,268   Republic Services, Inc.   1,897,939 
 13,786   Schnitzer Steel Industries, Inc.   354,300 
 24,911   Stericycle, Inc. *   1,919,143 
 10,139   Tennant Co.   721,897 
 11,388   Tenneco, Inc. *   711,408 
 16,890   Tetra Tech, Inc.   728,804 
 14,809   US Ecology, Inc.   727,862 
 26,962   Waste Management, Inc.   1,911,875 
        16,248,862  
Total Common Stocks
(Cost: $15,606,902)		  18,866,425  
MONEY MARKET FUND: 0.1%
(Cost: $21,937)		      
 21,937   Dreyfus Government Cash Management Fund   21,937 
Total Investments Before Collateral for Securities Loaned: 100.2%
(Cost: $15,628,839)		   18,888,362 

 

Principal
Amount		        
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 7.2%   
Repurchase Agreements: 7.2%      
$ 360,228    Repurchase agreement dated 12/30/16 with HSBC Securities USA, Inc., 0.45%, due 1/3/17, proceeds $360,246; (collateralized by various U.S. government and agency obligations, 0.88% to 3.00%, due 5/15/17 to 5/15/46, valued at $367,433 including accrued interest)  360,228 
  1,000,000    Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc., 0.50%, due 1/3/17, proceeds $1,000,056; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $1,020,000 including accrued interest)   1,000,000 
Total Short-Term Investments Held as Collateral for Securities Loaned
(Cost: $1,360,228)		  1,360,228  
Total Investments: 107.4%
(Cost: $16,989,067)		  20,248,590  
Liabilities in excess of other assets: (7.4)% (1,394,495 )
NET ASSETS: 100.0% $ 18,854,095  

 

USDUnited States Dollar
  
*Non-income producing
†Security fully or partially on loan. Total market value of securities on loan is $1,330,517.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		   % of
Investments		   Value  
Consumer Discretionary     3.8 %   $ 711,408  
Consumer Staples     3.7       699,967  
Energy     2.0       368,888  
Health Care     7.7       1,452,062  
Industrials     77.1       14,569,727  
Materials     5.6       1,064,373  
Money Market Fund     0.1       21,937  
      100.0 %   $ 18,888,362  

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		    Level 3
Significant
Unobservable
Inputs		    Value  
Common Stocks*  $18,866,425   $—   $—   $18,866,425 
Money Market Fund   21,937    —    —    21,937 
Repurchase Agreements   —    1,360,228    —    1,360,228 
Total  $18,888,362   $1,360,228   $—   $20,248,590 

 

* See Schedule of Investments for security type and geographic sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

GAMING ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		       Value  
COMMON STOCKS: 95.7%   
Australia: 16.1%      
 85,598   Aristocrat Leisure Ltd. #  $958,225 
 57,815   Crown Ltd. #   483,486 
 103,402   Star Entertainment Group Ltd. #   386,133 
 117,863   TABCORP Holdings Ltd. #   409,723 
 240,893   Tatts Group Ltd. #   778,882 
        3,016,449  
Canada: 0.7%      
 8,951   Amaya, Inc. (USD) *   126,657 
China / Hong Kong: 21.4%      
 283,240   Galaxy Entertainment Group Ltd. #   1,226,961 
 26,900   Melco Crown Entertainment Ltd. (ADR)   427,710 
 147,300   MGM China Holdings Ltd. #   304,321 
 329,200   Sands China Ltd. #   1,420,473 
 379,000   SJM Holdings Ltd. #   295,798 
 210,800   Wynn Macau Ltd. #   333,295 
        4,008,558  
Greece: 1.5%      
 32,072   OPAP SA #   284,027 
Ireland: 6.5%      
 11,406   Paddy Power Betfair Plc #   1,216,097 
Japan: 5.1%      
 9,500   Heiwa Corp. #   217,487 
 8,379   Sankyo Co. Ltd. #   270,709 
 30,500   Sega Sammy Holdings, Inc. #   454,164 
        942,360  
Malaysia: 3.2%      
 121,267   Berjaya Sports Toto Bhd   80,016 
 509,898   Genting Malaysia Bhd #   519,811 
        599,827  
Malta: 1.7%      
 34,502   Unibet Group Plc (LDR) #   324,106 
New Zealand: 1.5%      
 103,838   Sky City Entertainment Group Ltd. #   284,380 
Singapore: 3.3%      
 995,900   Genting Singapore Plc #   621,327 
South Africa: 0.8%      
 70,346   Tsogo Sun Holdings Ltd. #   141,714 
South Korea: 3.2%      
 17,356   Kangwon Land, Inc. #   513,574 
 8,983   Paradise Co. Ltd. #   90,091 
          603,665 
Sweden: 2.4%      
 19,823   Betsson AB #   191,335 
 32,412   NetEnt AB #   250,138 
          441,473  
United Kingdom: 6.2%      
 43,338   GVC Holdings Plc #   343,715 
 178,968   Ladbrokes Plc #   256,384 
 26,681   Playtech Ltd. #   272,164 
 82,137   William Hill Plc #   294,146 
          1,166,409 
United States: 22.1%      
 10,714   Boyd Gaming Corp. *   216,101 
 1,494   Churchill Downs, Inc.   224,772 
 17,375   International Game Technology Plc   443,410 
 25,313   Las Vegas Sands Corp.   1,351,967 
 43,042   MGM Mirage *   1,240,901 
 9,429   Penn National Gaming, Inc. *   130,026 
 6,101   Wynn Resorts Ltd. †   527,798 
        4,134,975  
Total Common Stocks
(Cost: $21,416,094)		   17,912,024  
REAL ESTATE INVESTMENT TRUSTS: 4.0%
(Cost: $830,523)		      
United States: 4.0%      
 24,478   Gaming and Leisure Properties, Inc.   749,516  
MONEY MARKET FUND: 0.5%
(Cost: $87,110)		      
 87,110   Dreyfus Government Cash Management Fund   87,110  
Total Investments Before Collateral for Securities Loaned: 100.2%
(Cost: $22,333,727)		   18,748,650  

 

Principal
Amount		        
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES LOANED: 2.8%
(Cost: $515,893)		   
Repurchase Agreement: 2.8%  
$ 515,893    Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc., 0.50%, due 1/3/17, proceeds $515,922; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $526,211 including accrued interest)  515,893 
Total Investments: 103.0%
(Cost: $22,849,620)		    19,264,543 
Liabilities in excess of other assets: (3.0)%    (552,095)
NET ASSETS: 100.0%   $18,712,448 

 

ADRAmerican Depositary Receipt
LDRLocal Depositary Receipt
USDUnited States Dollar
  
*Non-income producing
†Security fully or partially on loan. Total market value of securities on loan is $501,325.
#Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $13,142,666 which represents 70.2% of net assets.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value  
Consumer Discretionary   92.7%  $17,389,722 
Information Technology   2.8    522,302 
Real Estate   4.0    749,516 
Money Market Fund   0.5    87,110 
    100.0%  $18,748,650 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		    Level 3
Significant
Unobservable
Inputs		    Value  
Common Stocks                    
    Australia  $—   $3,016,449   $—   $3,016,449 
    Canada   126,657    —    —    126,657 
    China / Hong Kong   427,710    3,580,848    —    4,008,558 
    Greece   —    284,027    —    284,027 
    Ireland   —    1,216,097    —    1,216,097 
    Japan   —    942,360    —    942,360 
    Malaysia   80,016    519,811    —    599,827 
    Malta   —    324,106    —    324,106 
    New Zealand   —    284,380    —    284,380 
    Singapore   —    621,327    —    621,327 
    South Africa   —    141,714    —    141,714 
    South Korea   —    603,665    —    603,665 
    Sweden   —    441,473    —    441,473 
    United Kingdom   —    1,166,409    —    1,166,409 
    United States   4,134,975    —    —    4,134,975 
Real Estate Investment Trusts   749,516    —    —    749,516 
Money Market Fund   87,110    —    —    87,110 
Repurchase Agreement   —    515,893    —    515,893 
Total  $5,605,984   $13,658,559   $—   $19,264,543 

 

During the period ended December 31, 2016, transfers of securities from Level 1 to Level 2 were $388,946. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Schedules of Investments

 

GENERIC DRUGS ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		      Value 
COMMON STOCKS: 100.2%     
Australia: 0.4%     
 18,034   Mayne Pharma Group Ltd. * #  $17,506 
Belgium: 3.5%     
 2,353   UCB SA #   150,847 
Canada: 0.3%     
 7,310   ProMetic Life Sciences, Inc. * †   12,156 
China / Hong Kong: 7.0%     
 30,500   3SBio, Inc. * # Reg S 144A   29,631 
 74,000   CSPC Pharmaceutical Group Ltd. #   78,807 
 2,000   Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. #   5,157 
 40,000   Luye Pharma Group Ltd. #   23,667 
 5,000   Shanghai Fosun Pharmaceutical Group Co. Ltd. #   15,264 
 9,300   Shanghai Pharmaceuticals Holding Co. Ltd. #   21,229 
 90,000   Sino Biopharmaceutical Ltd. #   63,122 
 14,400   Sinopharm Group Co. Ltd. #   59,026 
         295,903 
Finland: 1.3%     
 1,242   Orion OYJ #   55,294 
Germany: 0.9%     
 754   Stada Arzneimittel AG #   39,031 
Hungary: 1.1%     
 2,254   Richter Gedeon Nyrt #   47,765 
India: 22.1%     
 1,065   Ajanta Pharma Ltd. #   27,895 
 7,078   Aurobindo Pharma Ltd. #   69,630 
 2,419   Biocon Ltd. #   33,774 
 12,384   Cadila Healthcare Ltd.   64,903 
 9,721   Cipla Ltd. #   81,328 
 3,211   Divi’s Laboratories Ltd. #   36,988 
 2,004   Dr. Reddy’s Laboratories Ltd. (ADR)   90,741 
 3,413   Glenmark Pharmaceuticals Ltd. #   44,581 
 1,526   Ipca Laboratories Ltd. * #   11,961 
 5,456   Lupin Ltd. #   119,235 
 2,107   Natco Pharma Ltd. #   17,946 
 1,081   Strides Shasun Ltd. #   16,860 
 29,112   Sun Pharmaceuticals Industries Ltd. #   269,539 
 2,047   Torrent Pharmaceuticals Ltd. #   39,638 
 1,337   Wockhardt Ltd. #   12,912 
         937,931 
Indonesia: 1.5%     
 567,000   Kalbe Farma Tbk PT #   63,542 
Ireland: 8.7%     
 1,833   Alkermes Plc (USD) *   101,878 
 174   COSMO Pharmaceuticals NV (CHF) #   28,963 
 2,695   Endo International Plc (USD) *   44,387 
 671   ICON Plc (USD) *   50,459 
 1,733   Perrigo Co. Plc (USD)   144,238 
         369,925 
Israel: 7.9%     
 517   Taro Pharmaceutical Industries Ltd. (USD) * †   54,425 
 7,752   Teva Pharmaceutical Industries Ltd. (ADR)   281,010 
         335,435 
Japan: 8.5%     
 1,200   Hisamitsu Pharmaceutical Co., Inc. #   60,060 
 700   Kissei Pharmaceutical Co. Ltd. #   17,444 
 7,000   Kyowa Hakko Kirin Co. Ltd. #   96,752 
 300   Mochida Pharmaceutical Co. Ltd. #   20,834 
 700   Nichi-iko Pharmaceutical Co. Ltd. #   10,007 
 700   PeptiDream, Inc. * #   36,344 
 500   Sawai Pharmaceutical Co. Ltd. #   26,857 
 1,100   Taisho Pharmaceutical Holdings Co. Ltd. #   91,377 
         359,675 
Jordan: 1.6%     
 2,902   Hikma Pharmaceuticals Plc (GBP) #   67,817 
South Africa: 2.7%     
 5,521   Aspen Pharmacare Holdings Ltd. #   114,225 
South Korea: 7.1%     
 1,480   Celltrion, Inc. * #   131,263 
 141   Green Cross Corp. #   18,311 
 569   Green Cross Holdings Corp. #   11,197 
 126   Hanmi Pharm Co. Ltd. #   31,774 
 705   Hanmi Science Co. Ltd. #   35,548 
 92   Kolon Life Science, Inc. #   8,923 
 100   LG Life Sciences Ltd. * # §   5,633 
 68   Medy-Tox, Inc. #   20,012 
 141   Yuhan Corp. #   23,266 
 2,149   Yungjin Pharmaceutical Co. Ltd. * #   15,622 
         301,549 
Spain: 0.8%     
 2,092   Almirall SA #   32,517 
Switzerland: 2.6%     
 640   Lonza Group AG #   110,823 
Taiwan: 1.0%     
 2,000   OBI Pharma, Inc. * #   17,606 
 1,000   Pharmally International Holding Co. Ltd. #   13,151 
 9,080   ScinoPharm Taiwan Ltd. #   10,859 
         41,616 
United States: 21.2%     
 1,525   Akorn, Inc. * †   33,291 
 1,360   Albemarle Corp.   117,069 
 389   Cambrex Corp. *   20,986 
 572   Charles River Laboratories International, Inc. *   43,581 
 1,565   Halozyme Therapeutics, Inc. * †   15,462 
 1,946   Horizon Pharma Plc *   31,486 
 893   Impax Laboratories, Inc. *   11,832 
 646   INC Research Holdings, Inc. *   33,980 
 866   Insys Therapeutics, Inc. * †   7,967 
 252   Ligand Pharmaceuticals, Inc. * †   25,606 
 1,303   Mallinckrodt Plc *   64,915 
 6,471   Mylan NV *   246,869 
 1,654   Nektar Therapeutics *   20,295 
 6,735   Opko Health, Inc. * †   62,635 
 451   Pacira Pharmaceuticals, Inc. *   14,567 
 737   PRA Health Sciences, Inc. *   40,623 
 1,440   Quintiles Transnational Holdings, Inc. *   109,512 
         900,676 
Total Common Stocks
(Cost: $4,586,967)		   4,254,233 
MONEY MARKET FUND: 1.2%
(Cost: $49,502)		     
 49,502   Dreyfus Government Cash Management Fund   49,502 
Total Investments Before Collateral for Securities Loaned: 101.4%
(Cost: $4,636,469)		   4,303,735 

 

Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES LOANED: 3.6%
(Cost: $154,709)		     
Repurchase Agreement: 3.6%     
$154,709   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc., 0.51%, due 1/3/17, proceeds $154,718; (collateralized by various U.S. government and agency obligations, 0.13% to 1.75%, due 4/15/20 to 1/15/28, valued at $157,803 including accrued interest)  154,709 
Total Investments: 105.0%
(Cost: $4,791,178)		   4,458,444 
Liabilities in excess of other assets: (5.0)%   (213,340)
NET ASSETS: 100.0%  $4,245,104 

 

ADR American Depositary Receipt
CHF Swiss Franc
GBP British Pound
USD United States Dollar
   
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $138,924.
# Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $2,509,360 which represents 59.1% of net assets.
§ Illiquid Security — the aggregate value of illiquid securities is $5,633 which represents 0.1% of net assets.
Reg S Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $29,631, or 0.7% of net assets.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value 
Biotechnology   12.2%  $523,842 
Health Care Distributors   1.8    80,255 
Life Sciences Tools & Services   10.4    446,952 
Pharmaceuticals   71.7    3,086,115 
Specialty Chemicals   2.7    117,069 
Money Market Fund   1.2    49,502 
    100.0%  $4,303,735 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks                    
Australia  $—   $17,506   $—   $17,506 
Belgium   —    150,847    —    150,847 
Canada   12,156    —    —    12,156 
China / Hong Kong   —    295,903    —    295,903 
Finland   —    55,294    —    55,294 
Germany   —    39,031    —    39,031 
Hungary   —    47,765    —    47,765 
India   155,644    782,287    —    937,931 
Indonesia   —    63,542    —    63,542 
Ireland   340,962    28,963    —    369,925 
Israel   335,435    —    —    335,435 
Japan   —    359,675    —    359,675 
Jordan   —    67,817    —    67,817 
South Africa   —    114,225    —    114,225 
South Korea   —    301,549    —    301,549 
Spain   —    32,517    —    32,517 
Switzerland   —    110,823    —    110,823 
Taiwan   —    41,616    —    41,616 
United States   900,676    —    —    900,676 
Money Market Fund   49,502    —    —    49,502 
Repurchase Agreements   —    154,709    —    154,709 
Total  $1,794,375   $2,664,069   $—   $4,458,444 

 

During the period ended December 31, 2016, transfers of securities from Level 2 to Level 1 were $36,571. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Schedules of Investments

 

GLOBAL SPIN-OFF ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		      Value 
COMMON STOCKS: 85.0%     
Australia: 2.1%     
 15,442   Orora Ltd. #  $33,321 
 17,235   South32 Ltd. #   34,043 
         67,364 
Cayman Islands: 1.1%     
 1,063   Theravance Biopharma, Inc. (USD) * †   33,888 
China / Hong Kong: 3.2%     
 5,500   Cheung Kong Property Holdings Ltd. #   33,594 
 205,000   China Overseas Property Holdings Ltd. #   35,007 
 254,000   Global Brands Group Holding Ltd. * #   33,605 
         102,206 
Finland: 2.1%     
 3,896   Caverion Corp. #   32,486 
 2,245   Valmet OYJ #   33,028 
         65,514 
France: 1.0%     
 492   Groupe Fnac SA * #   33,306 
Germany: 1.0%     
 637   OSRAM Licht AG #   33,423 
Ireland: 3.2%     
 589   Adient Plc (USD) *   34,515 
 509   Allegion Plc (USD)   32,576 
 664   Prothena Corp. Plc (USD) * †   32,662 
         99,753 
Italy: 1.1%     
 8,702   Italgas SpA *   34,309 
Norway: 1.1%     
 6,998   Aker Solutions ASA * # Reg S   33,564 
Singapore: 1.1%     
 31,100   Frasers Centrepoint Ltd.   33,905 
Sweden: 1.1%     
 2,336   Bonava AB * #   36,292 
United Kingdom: 1.1%     
 9,529   Indivior Plc #   34,812 
United States: 65.8%     
 543   AbbVie, Inc.   34,003 
 1,452   AdvanSix Inc *   32,147 
 1,096   Alcoa Corp.   30,776 
 751   Alexander and Baldwin, Inc.   33,697 
 1,604   Armstrong Flooring, Inc. *   31,936 
 994   Associated Capital Group, Inc.   32,653 
 1,947   Babcock & Wilcox Enterprises, Inc. *   32,301 
 2,667   Barnes and Noble Education, Inc. *   30,591 
 53   Cable One, Inc.   32,952 
 1,787   California Resources Corp. *   38,045 
 552   CDK Global, Inc.   32,949 
 1,424   Chemours Co.   31,456 
 2,195   CommerceHub, Inc. *   32,947 
 1,042   CSRA, Inc.   33,177 
 904   CSW Industrials, Inc. *   33,312 
 1,646   Donnelley Financial Solutions, Inc. *   37,825 
 750   Energizer Holdings, Inc.   33,458 
 969   Engility Holdings, Inc. *   32,655 
 1,367   Exterran Corp. *   32,671 
 1,131   Fiesta Restaurant Group, Inc. *   33,760 
 616   Fortive Corp.   33,036 
 1,358   FTD Cos, Inc. *   32,375 
 3,400   Gannett Co., Inc.   33,014 
 1,222   GCP Applied Technologies, Inc. *   32,689 
 868   Halyard Health, Inc. *   32,099 
 810   Herc Holdings, Inc. *   32,530 
 1,396   Hewlett Packard Enterprise Co.   32,303 
 1,290   Horizon Global Corp. *   30,960 
 519   Hyster-Yale Materials Handling, Inc.   33,097 
 624   Ingevity Corp. *   34,233 
 923   Keysight Technologies, Inc. *   33,754 
 1,789   Kimball Electronics, Inc. *   32,560 
 726   KLX, Inc. *   32,750 
 1,954   Knowles Corp. * †   32,651 
 953   Lamb Weston Holdings, Inc. *   36,071 
 1,895   Lands’ End, Inc. * †   28,709 
 457   Liberty Broadband Corp. *   33,114 
 1,300   LSC Communications, Inc.   38,584 
 828   Lumentum Holdings, Inc. *   32,002 
 190   Madison Square Garden Co. *   32,587 
 636   Mallinckrodt Plc *   31,686 
 1,859   Manitowoc Foodservice, Inc. *   35,934 
 492   Murphy USA, Inc. *   30,243 
 1,999   Navient Corp.   32,844 
 2,075   New Media Investment Group, Inc.   33,179 
 2,846   News Corp.   32,615 
 2,219   NorthStar Asset Management Group, Inc.   33,107 
 1,507   NOW, Inc. *   30,848 
 522   ONE Gas, Inc.   33,387 
 832   PayPal Holdings, Inc. *   32,839 
 384   Phillips 66   33,181 
 2,228   Pinnacle Entertainment, Inc. *   32,306 
 1,071   PJT Partners, Inc.   33,072 
 423   Post Holdings, Inc. *   34,005 
 2,097   Rayonier Advanced Materials, Inc.   32,420 
 391   Science Applications International Corp.   33,157 
 1,034   SPX Flow, Inc. *   33,150 
 1,906   Time, Inc.   34,022 
 1,967   TimkenSteel Corp. *   30,449 
 916   TopBuild Corp. *   32,610 
 1,181   Versum Materials, Inc. *   33,151 
 873   Vista Outdoor, Inc. *   32,214 
 2,268   WPX Energy, Inc. *   33,045 
         2,075,893 
Total Common Stocks
(Cost: $2,376,809)		   2,684,229 
REAL ESTATE INVESTMENT TRUSTS: 14.9%     
United States: 14.9%     
 2,924   Altisource Residential Corp.   32,281 
 1,395   Care Capital Properties, Inc.   34,875 
 2,206   CareTrust REIT, Inc.   33,796 
 1,163   Colony Starwood Homes   33,506 
 1,269   Communications Sales and Leasing, Inc. *   32,245 
 1,699   Four Corners Property Trust, Inc.   34,864 
 1,111   Gaming and Leisure Properties, Inc.   34,019 
 2,039   New Residential Investment Corp.   32,053 
 3,359   New Senior Investment Group, Inc.   32,885 
 2,721   NorthStar Realty Europe Corp. †   34,203 
 2,161   Quality Care Properties, Inc. *   33,496 
 1,235   Urban Edge Properties   33,975 
 3,239   Washington Prime Group, Inc.   33,718 
 1,722   Xenia Hotels & Resorts, Inc.   33,441 
Total Real Estate Investment Trusts
(Cost: $456,325)		   469,357 
MONEY MARKET FUND: 1.2%
(Cost: $37,699)		     
 37,699   Dreyfus Government Cash Management Fund   37,699 
Total Investments Before Collateral for Securities Loaned: 101.1%
(Cost: $2,870,833)		   3,191,285 
      
Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES LOANED: 5.6%
(Cost: $175,207)		     
Repurchase Agreement: 5.6%     
$175,207   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc. , 0.51%, due 1/3/17, proceeds $175,217; (collateralized by various U.S. government and agency obligations, 0.13% to 1.75%, due 4/15/20 to 1/15/28, valued at $178,711 including accrued interest)   175,207 
Total Investments: 106.7%
(Cost: $3,046,040)		   3,366,492 
Liabilities in excess of other assets: (6.7)%   (210,956)
NET ASSETS: 100.0%  $3,155,536 

 

USD United States Dollar
   
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $170,612.
# Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $406,481 which represents 12.9% of net assets.
Reg S Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value 
Consumer Discretionary   20.5%  $652,969 
Consumer Staples   3.3    103,534 
Energy   5.3    170,506 
Financials   7.3    233,835 
Health Care   6.2    199,150 
Industrials   16.7    531,646 
Information Technology   11.3    361,490 
Materials   9.1    291,534 
Real Estate   17.0    541,226 
Utilities   2.1    67,696 
Money Market Fund   1.2    37,699 
    100.0%  $3,191,285 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks                    
Australia  $—   $67,364   $—   $67,364 
Cayman Islands   33,888    —    —    33,888 
China / Hong Kong   —    102,206    —    102,206 
Finland   —    65,514    —    65,514 
France   —    33,306    —    33,306 
Germany   —    33,423    —    33,423 
Ireland   99,753    —    —    99,753 
Italy   34,309    —    —    34,309 
Norway   —    33,564    —    33,564 
Singapore   33,905    —    —    33,905 
Sweden   —    36,292    —    36,292 
United Kingdom   —    34,812    —    34,812 
United States   2,075,893    —    —    2,075,893 
Real Estate Investment Trusts*   469,357    —    —    469,357 
Money Market Fund   37,699    —    —    37,699 
Repurchase Agreement   —    175,207    —    175,207 
Total  $2,784,804   $581,688   $—   $3,366,492 

 

* See Schedule of Investments for security type and geographic sector breakouts.

 

During the period ended December 31, 2016, transfers of securities from Level 1 to Level 2 were $38,620 and transfers from Level 2 to Level 1 were $37,670. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Schedules of Investments

 

MORNINGSTAR INTERNATIONAL MOAT ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		      Value 
COMMON STOCKS: 95.1%     
Australia: 21.9%     
 77,308   AMP Ltd. #  $281,336 
 3,569   Blackmores Ltd. #   266,547 
 41,146   Carsales.com Ltd. #   337,293 
 5,786   Commonwealth Bank of Australia #   344,415 
 41,499   Computershare Ltd. #   373,596 
 65,576   Crown Ltd. #   548,388 
 8,421   CSL Ltd. #   611,073 
 135,700   DuluxGroup Ltd. #   611,343 
 125,771   Iluka Resources Ltd. #   657,108 
 46,882   IOOF Holdings Ltd. #   311,804 
 15,105   National Australia Bank Ltd. #   334,779 
 35,313   QBE Insurance Group Ltd. #   316,584 
 6,114   Ramsay Health Care Ltd. #   301,625 
 165,579   Telstra Corp. Ltd. #   610,515 
 57,350   Vocus Communications Ltd. #   160,246 
 13,900   Westpac Banking Corp. #   327,395 
 17,835   Woolworths Ltd. #   310,624 
         6,704,671 
Belgium: 1.0%     
 4,925   KBC Group NV #   304,912 
Canada: 3.3%     
 4,760   Bank of Montreal   342,771 
 3,961   Canadian Imperial Bank of Commerce   323,603 
 8,623   National Bank of Canada †   350,630 
         1,017,004 
China / Hong Kong: 21.4%     
 656,000   Bank of China Ltd. #   289,298 
 59,000   Beijing Enterprises Holdings Ltd. #   277,762 
 89,000   Cheung Kong Property Holdings Ltd. #   543,617 
 402,000   China Construction Bank Corp. #   307,917 
 28,500   China Mobile Ltd. #   300,533 
 248,000   China State Construction International Holdings Ltd. #   369,606 
 1,262,000   China Telecom Corp. Ltd. #   578,992 
 276,000   Dongfeng Motor Group Co. Ltd. #   268,169 
 70,000   ENN Energy Holdings Ltd. #   286,857 
 83,000   Galaxy Entertainment Group Ltd. #   359,546 
 984,000   Industrial and Commercial Bank of China Ltd. #   586,795 
 185,463   MGM China Holdings Ltd. #   383,166 
 4,374   SINA Corp. (USD) *   265,896 
 44,000   Sun Hung Kai Properties Ltd. #   554,166 
 214,200   Swire Properties Ltd. #   589,772 
 12,700   Tencent Holdings Ltd. #   307,992 
 188,976   Wynn Macau Ltd. #   298,789 
         6,568,873 
Denmark: 1.1%     
 18,886   William Demant Holding A/S * #   328,642 
France: 9.5%     
 4,954   Airbus Group SE #   327,858 
 16,400   Bureau Veritas SA #   318,044 
 4,927   Danone SA #   312,395 
 1,566   Kering #   351,960 
 42,160   Orange SA #   640,588 
 4,359   Safran SA #   314,142 
 3,864   Sanofi #   313,086 
 4,707   Schneider Electric SE #   327,640 
         2,905,713 
Germany: 5.1%     
 3,548   Bayerische Motoren Werke AG #   331,106 
 7,951   GEA Group AG #   319,714 
 5,690   KION Group AG #   316,548 
 9,600   Symrise AG #   584,438 
         1,551,806 
India: 4.2%     
 42,150   Infosys Ltd. #   625,613 
 9,767   Tata Consultancy Services Ltd. #   339,754 
 47,343   Tata Motors Ltd. #   328,079 
         1,293,446 
Japan: 6.1%     
 6,900   Kao Corp. #   327,283 
 12,400   KDDI Corp. #   313,781 
 3,500   Nidec Corp. #   301,937 
 7,900   Nippon Telegraph & Telephone Corp. #   333,236 
 15,546   Seven & i Holdings Co. Ltd. #   592,418 
         1,868,655 
Mexico: 1.9%     
 367,600   Cemex SAB de CV *   295,129 
 68,400   Grupo Aeroportuario del Centro Norte SAB de CV   296,755 
         591,884 
Netherlands: 1.1%     
 10,856   Koninklijke Philips NV #   332,551 
New Zealand: 1.0%     
 52,660   Fisher & Paykel Healthcare Corp. Ltd. #   312,627 
Russia: 1.1%     
 83,515   Mobile TeleSystems PJSC #   353,746 
Singapore: 7.8%     
 277,600   CapitaLand Ltd. #   578,262 
 540,800   Genting Singapore Plc #   337,397 
 96,101   Oversea-Chinese Banking Corp. Ltd. #   591,628 
 116,500   Singapore Exchange Ltd. #   575,858 
 22,939   United Overseas Bank Ltd. #   323,037 
         2,406,182 
Spain: 1.0%     
 15,072   Grifols SA #   299,797 
Sweden: 3.2%     
 20,191   Alfa Laval AB #   334,011 
 72,366   Elekta AB † #   640,719 
         974,730 
United Kingdom: 3.2%     
 16,941   GlaxoSmithKline PCL #   326,269 
 17,952   London Stock Exchange Group Plc #   643,316 
         969,585 
United States: 1.2%     
 7,122   Carnival Plc (GBP) #   361,819 
Total Common Stocks
(Cost: $28,568,612)		   29,146,643 
PREFERRED STOCKS: 1.1%     
Brazil: 1.1%
(Cost: $303,249)		     
 24,000   Telefonica Brasil SA   325,044 
REAL ESTATE INVESTMENT TRUSTS: 3.8%     
Australia: 1.0%     
 142,461   Vicinity Centres #   308,263 
Singapore: 2.8%     
 551,100   CapitaLand Commercial Trust Ltd. #   562,785 
 226,400   CapitaLand Mall Trust #   294,354 
         857,139 
Total Real Estate Investment Trusts
(Cost: $1,218,839)		   1,165,402 
MONEY MARKET FUND: 0.1%
(Cost: $40,410)		     
 40,410   Dreyfus Government Cash Management Fund   40,410 
Total Investments Before Collateral for Securities Loaned: 100.1%
(Cost: $30,131,110)		   30,677,499 
      
Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES LOANED: 3.1%
(Cost: $951,870)		     
Repurchase Agreement: 3.1%     
$951,870   Repurchase agreement dated 12/30/16 with HSBC Securities USA, Inc., 0.45%, due 1/3/17, proceeds $951,918; (collateralized by various U.S. government and agency obligations, 0.88% to 3.00%, due 5/15/17 to 5/15/46, valued at $970,908 including accrued interest)   951,870 
Total Investments: 103.2%
(Cost: $31,082,980)		   31,629,369 
Liabilities in excess of other assets: (3.2)%   (989,574)
NET ASSETS: 100.0%  $30,639,795 

 

GBP British Pound
USD United States Dollar
   
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $908,578.
# Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $28,437,261 which represents 92.8% of net assets.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value 
Consumer Discretionary   11.6%  $3,568,419 
Consumer Staples   5.9    1,809,267 
Financials   21.4    6,556,078 
Health Care   10.2    3,133,838 
Industrials   12.5    3,836,568 
Information Technology   7.3    2,250,144 
Materials   7.0    2,148,018 
Real Estate   11.2    3,431,219 
Telecommunication Services   11.8    3,616,681 
Utilities   1.0    286,857 
Money Market Fund   0.1    40,410 
    100.0%  $30,677,499 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks                    
Australia  $—   $6,704,671   $—   $6,704,671 
Belgium   —    304,912    —    304,912 
Canada   1,017,004    —    —    1,017,004 
China / Hong Kong   265,896    6,302,977    —    6,568,873 
Denmark   —    328,642    —    328,642 
France   —    2,905,713    —    2,905,713 
Germany   —    1,551,806    —    1,551,806 
India   —    1,293,446    —    1,293,446 
Japan   —    1,868,655    —    1,868,655 
Mexico   591,884    —    —    591,884 
Netherlands   —    332,551    —    332,551 
New Zealand   —    312,627    —    312,627 
Russia   —    353,746    —    353,746 
Singapore   —    2,406,182    —    2,406,182 
Spain   —    299,797    —    299,797 
Sweden   —    974,730    —    974,730 
United Kingdom   —    969,585    —    969,585 
United States   —    361,819    —    361,819 
Preferred Stocks*   325,044    —    —    325,044 
Real Estate Investment Trusts*   —    1,165,402    —    1,165,402 
Money Market Fund   40,410    —    —    40,410 
Repurchase Agreement   —    951,870    —    951,870 
Total  $2,240,238   $29,389,131   $—   $31,629,369 

 

* See Schedule of Investments for security type and geographic sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

MORNINGSTAR WIDE MOAT ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
of Shares		      Value 
COMMON STOCKS: 100.1%     
Automobiles & Components: 1.4%     
 197,857   Harley-Davidson, Inc.  $11,542,977 
Banks: 3.9%     
 232,802   U.S. Bancorp   11,959,039 
 391,293   Wells Fargo & Co.   21,564,157 
         33,523,196 
Capital Goods: 7.7%     
 124,006   Deere & Co.   12,777,578 
 379,802   Emerson Electric Co.   21,173,961 
 41,970   TransDigm Group, Inc.   10,448,851 
 195,591   United Technologies Corp.   21,440,685 
         65,841,075 
Commercial & Professional Services: 2.5%     
 273,622   Stericycle, Inc. *   21,079,839 
Consumer Durables & Apparel: 4.7%     
 253,736   Polaris Industries, Inc. †   20,905,309 
 360,117   VF Corp.   19,212,242 
         40,117,551 
Consumer Services: 2.4%     
 366,925   Starbucks Corp.   20,371,676 
Diversified Financials: 7.9%     
 297,593   American Express Co.   22,045,689 
 247,088   Bank of New York Mellon Corp.   11,707,029 
 133,619   Berkshire Hathaway, Inc. *   21,777,225 
 146,223   State Street Corp.   11,364,452 
         66,894,395 
Food & Staples Retailing: 1.2%     
 133,462   CVS Caremark Corp.   10,531,486 
Food, Beverage & Tobacco: 2.6%     
 147,772   Mead Johnson Nutrition Co.   10,456,347 
 256,261   Mondelez International, Inc.   11,360,050 
         21,816,397 
Health Care Equipment & Services: 14.4%     
 264,555   AmerisourceBergen Corp.   20,685,555 
 223,910   Cerner Corp. *   10,606,617 
 287,202   Express Scripts Holding Co. *   19,756,626 
 135,542   McKesson Corp.   19,036,874 
 148,814   Medtronic PLC   10,600,021 
 269,155   Patterson Cos, Inc. †   11,043,430 
 227,869   Varian Medical Systems, Inc. *   20,458,079 
 102,921   Zimmer Biomet Holdings, Inc.   10,621,447 
         122,808,649 
Materials: 5.0%     
 278,493   Compass Minerals International, Inc. †   21,819,927 
 198,131   Monsanto Co.   20,845,363 
         42,665,290 
Media: 6.8%     
 132,740   Time Warner, Inc.   12,813,392 
 806,994   Twenty-First Century Fox, Inc.   22,628,112 
 214,643   Walt Disney Co.   22,370,093 
         57,811,597 
Pharmaceuticals, Biotechnology: 16.1%     
 100,206   Allergan Plc *   21,044,262 
 139,262   Amgen, Inc.   20,361,497 
 72,933   Biogen Idec, Inc. *   20,682,340 
 381,010   Bristol-Myers Squibb Co.   22,266,224 
 291,090   Eli Lilly & Co.   21,409,669 
 278,198   Gilead Sciences, Inc.   19,921,759 
 344,576   Pfizer, Inc.   11,191,828 
         136,877,579 
Real Estate: 4.9%     
 689,537   CBRE Group, Inc. *   21,713,520 
 194,238   Jones Lang LaSalle, Inc.   19,625,808 
         41,339,328 
Retailing: 6.1%     
 27,312   Amazon.com, Inc. *   20,480,449 
 275,880   Lowe’s Cos, Inc.   19,620,586 
 150,095   Tiffany & Co. †   11,621,856 
         51,722,891 
Software & Services: 9.6%     
 203,275   Guidewire Software, Inc. *   10,027,556 
 203,134   MasterCard, Inc.   20,973,586 
 177,804   Microsoft Corp.   11,048,741 
 285,384   Salesforce.com, Inc. *   19,537,389 
 257,823   Visa, Inc.   20,115,350 
         81,702,622 
Transportation: 2.9%     
 356,176   CSX Corp.   12,797,404 
 109,070   Norfolk Southern Corp.   11,787,195 
         24,584,599 
Total Common Stocks
(Cost: $825,739,636)		   851,231,147 
      
Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 7.0%     
Repurchase Agreements: 7.0%     
$14,163,052   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc. , 0.53%, due 1/3/17, proceeds $14,163,886; (collateralized by various U.S. government and agency obligations, 2.00% to 8.50%, due 12/1/17 to 1/1/47, valued at $14,446,313 including accrued interest)   14,163,052 
 14,163,052   Repurchase agreement dated 12/30/16 with Daiwa Capital Markets America, Inc., 0.52%, due 1/3/17, proceeds $14,163,870; (collateralized by various U.S. government and agency obligations, 0.00% to 6.50%, due 3/2/17 to 2/1/49, valued at $14,446,313 including accrued interest)   14,163,052 
 2,980,864   Repurchase agreement dated 12/30/16 with Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.50%, due 1/3/17, proceeds $2,981,030; (collateralized by various U.S. government and agency obligations, 0.69% to 2.00%, due 10/31/18 to 11/30/22, valued at $3,040,482 including accrued interest)   2,980,864 
 14,163,052   Repurchase agreement dated 12/30/16 with Mizuho Securities USA, Inc. , 0.48%, due 1/3/17, proceeds $14,163,807; (collateralized by various U.S. government and agency obligations, 2.00% to 6.50%, due 7/1/24 to 9/20/46, valued at $14,446,313 including accrued interest)   14,163,052 
 14,163,052   Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc. , 0.50%, due 1/3/17, proceeds $14,163,839; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $14,446,314 including accrued interest)   14,163,052 
Total Short-Term Investments Held as Collateral for Securities Loaned
(Cost: $59,633,072)		   59,633,072 
Total Investments: 107.1%
(Cost: $885,372,708)		   910,864,219 
Liabilities in excess of other assets: (7.1)%   (60,057,170)
NET ASSETS: 100.0%  $850,807,049 

 

*Non-income producing
†Security fully or partially on loan. Total market value of securities on loan is $58,409,550.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value 
Consumer Discretionary   21.3%  $181,566,692 
Consumer Staples   3.8    32,347,883 
Financials   11.8    100,417,591 
Health Care   30.5    259,686,228 
Industrials   13.1    111,505,513 
Information Technology   9.6    81,702,622 
Materials   5.0    42,665,290 
Real Estate   4.9    41,339,328 
    100.0%  $851,231,147 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks*  $851,231,147   $—   $—   $851,231,147 
Repurchase Agreements   —    59,633,072    —    59,633,072 
Total  $851,231,147   $59,633,072   $—   $910,864,219 

 

* See Schedule of Investments for security type and industry sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

PHARMACEUTICAL ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
of Shares		      Value 
COMMON STOCKS: 100.0%     
Denmark: 4.4%     
 330,097   Novo-Nordisk AS (ADR)  $11,837,278 
France: 4.8%     
 318,620   Sanofi SA (ADR)   12,884,993 
Ireland: 4.2%     
 81,522   Endo International Plc (USD) *   1,342,667 
 25,773   Jazz Pharmaceuticals Plc (USD) *   2,810,030 
 83,292   Perrigo Co. Plc (USD)   6,932,393 
         11,085,090 
Israel: 4.5%     
 329,443   Teva Pharmaceutical Industries Ltd. (ADR)   11,942,309 
Switzerland: 7.8%     
 283,834   Novartis AG (ADR)   20,674,469 
United Kingdom: 10.0%     
 449,495   AstraZeneca Plc (ADR) †   12,280,203 
 343,820   GlaxoSmithKline Plc (ADR) †   13,240,508 
 11,388   GW Pharmaceuticals Plc (ADR) * †   1,272,609 
         26,793,320 
United States: 64.3%     
 301,960   Abbott Laboratories   11,598,284 
 215,211   AbbVie, Inc.   13,476,513 
 55,691   Akorn, Inc. * †   1,215,735 
 99,450   AmerisourceBergen Corp.   7,775,995 
 233,715   Bristol-Myers Squibb Co.   13,658,305 
 172,445   Eli Lilly & Co.   12,683,330 
 241,020   Johnson & Johnson   27,767,914 
 50,867   Mallinckrodt Plc *   2,534,194 
 82,047   McKesson Corp.   11,523,501 
 223,412   Merck and Co., Inc.   13,152,264 
 276,322   Mylan NV *   10,541,684 
 570,395   Pfizer, Inc.   18,526,430 
 70,507   Shire Plc (ADR)   12,012,983 
 215,339   Valeant Pharmaceuticals International, Inc. * †   3,126,722 
 226,676   Zoetis, Inc.   12,133,966 
         171,727,820 
Total Common Stocks
(Cost: $346,046,690)		   266,945,279 
MONEY MARKET FUND: 0.2%
(Cost: $639,607)		     
 639,607   Dreyfus Government Cash Management Fund   639,607 
Total Investments Before Collateral for Securities Loaned: 100.2%
(Cost: $346,686,297)		   267,584,886 
      
Principal
Amount		           
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 6.4%     
Repurchase Agreements: 6.4%     
$4,022,196   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc., 0.53%, due 1/3/17, proceeds $4,022,433; (collateralized by various U.S. government and agency obligations, 2.00% to 8.50%, due 12/1/17 to 1/1/47, valued at $4,102,640 including accrued interest)  4,022,196 
 4,022,196   Repurchase agreement dated 12/30/16 with Daiwa Capital Markets America, Inc., 0.52%, due 1/3/17, proceeds $4,022,428; (collateralized by various U.S. government and agency obligations, 0.00% to 6.50%, due 3/2/17 to 2/1/49, valued at $4,102,640 including accrued interest)   4,022,196 
 4,022,196   Repurchase agreement dated 12/30/16 with HSBC Securities USA, Inc., 0.46%, due 1/3/17, proceeds $4,022,402; (collateralized by various U.S. government and agency obligations, 1.38% to 3.75%, due 11/30/18 to 11/15/43, valued at $4,102,662 including accrued interest)   4,022,196 
 846,502   Repurchase agreement dated 12/30/16 with Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.50%, due 1/3/17, proceeds $846,549; (collateralized by various U.S. government and agency obligations, 0.69% to 2.00%, due 10/31/18 to 11/30/22, valued at $863,432 including accrued interest)   846,502 
 4,022,196   Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc., 0.50%, due 1/3/17, proceeds $4,022,419; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $4,102,640 including accrued interest)   4,022,196 
Total Short-Term Investments Held as Collateral for Securities Loaned
(Cost: $16,935,286)		   16,935,286 
Total Investments: 106.6%
(Cost: $363,621,583)		   284,520,172 
Liabilities in excess of other assets: (6.6)%   (17,560,770)
NET ASSETS: 100.0%  $266,959,402 

 

ADRAmerican Depositary Receipt
USDUnited States Dollar

 

*Non-income producing
†Security fully or partially on loan. Total market value of securities on loan is $16,634,090.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value 
Health Care   13.6%  $36,458,013 
Health Care Equipment   4.4    11,598,284 
Pharmaceuticals   81.8    218,888,982 
Money Market Fund   0.2    639,607 
    100.0%  $267,584,886 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks*  $266,945,279   $—   $—   $266,945,279 
Money Market Fund   639,607    —    —    639,607 
Repurchase Agreements   —    16,935,286    —    16,935,286 
Total  $267,584,886   $16,935,286   $—   $284,520,172 

 

* See Schedule of Investments for security type and geographic sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

RETAIL ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		      Value 
COMMON STOCKS: 99.9%     
China / Hong Kong: 4.2%     
 159,865   JD.com, Inc. (ADR) * †  $4,066,966 
United States: 95.7%     
 20,344   Amazon.com, Inc. *   15,255,355 
 24,493   AmerisourceBergen Corp.   1,915,108 
 2,957   AutoZone, Inc. *   2,335,409 
 17,730   Bed Bath & Beyond, Inc. †   720,547 
 28,271   Best Buy Co., Inc.   1,206,324 
 42,402   Cardinal Health, Inc.   3,051,672 
 32,251   Costco Wholesale Corp.   5,163,708 
 61,615   CVS Caremark Corp.   4,862,040 
 34,647   Dollar General Corp.   2,566,303 
 58,032   Home Depot, Inc.   7,780,930 
 20,573   Kohl’s Corp.   1,015,895 
 123,415   Kroger Co.   4,259,052 
 31,822   L Brands, Inc.   2,095,160 
 64,946   Lowe’s Cos., Inc.   4,618,959 
 46,434   MACY’S, Inc.   1,662,801 
 29,952   McKesson Corp.   4,206,758 
 52,213   Ross Stores, Inc.   3,425,173 
 77,287   Sysco Corp.   4,279,381 
 58,019   Target Corp.   4,190,712 
 38,047   The Gap, Inc. †   853,775 
 57,113   TJX Cos., Inc.   4,290,900 
 58,382   Walgreens Boots Alliance, Inc.   4,831,694 
 90,807   Wal-Mart Stores, Inc.   6,276,580 
 47,806   Whole Foods Market, Inc.   1,470,513 
         92,334,749 
Total Common Stocks
(Cost: $107,159,860)		   96,401,715 
MONEY MARKET FUND: 0.1%
(Cost: $40,073)		     
 40,073   Dreyfus Government Cash Management Fund   40,073 
Total Investments Before Collateral for Securities Loaned: 100.0%
(Cost: $107,199,933)		   96,441,788 

 

Principal
Amount		        
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 5.2%     
Repurchase Agreements: 5.2%     
$1,192,673   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc., 0.53%, due 1/3/17, proceeds $1,192,743; (collateralized by various U.S. government and agency obligations, 2.00% to 8.50%, due 12/1/17 to 1/1/47, valued at $1,216,526 including accrued interest)  1,192,673 
 1,192,673   Repurchase agreement dated 12/30/16 with Daiwa Capital Markets America, Inc., 0.52%, due 1/3/17, proceeds $1,192,742; (collateralized by various U.S. government and agency obligations, 0.00% to 6.50%, due 3/2/17 to 2/1/49, valued at $1,216,527 including accrued interest)   1,192,673 
 251,076   Repurchase agreement dated 12/30/16 with Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.50%, due 1/3/17, proceeds $251,090; (collateralized by various U.S. government and agency obligations, 0.69% to 2.00%, due 10/31/18 to 11/30/22, valued at $256,098 including accrued interest)   251,076 
 1,192,673   Repurchase agreement dated 12/30/16 with Mizuho Securities USA, Inc., 0.48%, due 1/3/17, proceeds $1,192,737; (collateralized by various U.S. government and agency obligations, 2.00% to 6.50%, due 7/1/24 to 9/20/46, valued at $1,216,526 including accrued interest)   1,192,673 
 1,192,673   Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc., 0.50%, due 1/3/17, proceeds $1,192,739; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $1,216,527 including accrued interest)   1,192,673 

Total Short-Term Investments Held as Collateral for Securities Loaned

(Cost: $5,021,768)

   5,021,768 

Total Investments: 105.2%

(Cost: $112,221,701)

   101,463,556 
Liabilities in excess of other assets: (5.2)%   (4,981,400)
NET ASSETS: 100.0%  $96,482,156 

 

ADR American Depositary Receipt
   
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $4,758,226.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value  
Consumer Discretionary   58.2%  $56,085,209 
Consumer Staples   32.3    31,142,968 
Health Care   9.5    9,173,538 
Money Market Fund   0.0    40,073 
    100.0%  $96,441,788 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks*  $96,401,715   $—   $—   $96,401,715 
Money Market Fund   40,073    —    —    40,073 
Repurchase Agreements   —    5,021,768    —    5,021,768 
Total  $96,441,788   $5,021,768   $—   $101,463,556 

 

* See Schedule of Investments for security type and geographic sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

SEMICONDUCTOR ETF

SCHEDULE OF INVESTMENTS

December 31, 2016 (unaudited)

 

Number
 of Shares		       Value 
COMMON STOCKS: 99.9%     
Bermuda: 1.6%     
 493,988   Marvell Technology Group Ltd. (USD)  $6,851,614 
Netherlands: 9.3%     
 185,814   ASML Holding NV (USD)   20,848,331 
 195,557   NXP Semiconductors NV (USD) *   19,166,542 
         40,014,873 
Singapore: 5.2%     
 126,861   Broadcom Ltd. (USD)   22,425,219 
Taiwan: 12.4%     
 1,871,198   Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)   53,796,942 
United States: 71.4%     
 263,790   Analog Devices, Inc.   19,156,430 
 591,809   Applied Materials, Inc.   19,097,676 
 255,965   Cadence Design Systems, Inc. *   6,455,437 
 62,511   Cavium, Inc. *   3,903,187 
 148,234   Integrated Device Technology, Inc. *   3,492,393 
 1,611,634   Intel Corp.   58,453,965 
 132,339   Lam Research Corp.   13,992,202 
 188,967   Linear Technology Corp.   11,782,092 
 241,534   Maxim Integrated Products, Inc.   9,315,966 
 204,370   Microchip Technology, Inc.   13,110,336 
 941,281   Micron Technology, Inc. *   20,632,880 
 94,718   Microsemi Corp. *   5,111,930 
 224,856   NVIDIA Corp.   24,001,129 
 405,543   ON Semiconductor Corp. *   5,174,729 
 93,598   Qorvo, Inc. * †   4,935,423 
 532,862   Qualcomm, Inc.   34,742,602 
 180,736   Skyworks Solutions, Inc. †   13,493,750 
 184,983   Teradyne, Inc.   4,698,568 
 296,082   Texas Instruments, Inc.   21,605,104 
 248,980   Xilinx, Inc.   15,030,923 
         308,186,722 

Total Common Stocks

(Cost: $445,965,635)

   431,275,370 
MONEY MARKET FUND: 0.1%
(Cost: $443,841)		     
 443,841   Dreyfus Government Cash Management Fund   443,841 
Total Investments Before Collateral for Securities Loaned: 100.0%
(Cost: $446,409,476)		   431,719,211 

 

Principal
Amount		        
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 1.3%     
Repurchase Agreements: 1.3%     
$1,333,129   Repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc., 0.53%, due 1/3/17, proceeds $1,333,208; (collateralized by various U.S. government and agency obligations, 2.00% to 8.50%, due 12/1/17 to 1/1/47, valued at $1,359,792 including accrued interest)  1,333,129 
 1,333,129   Repurchase agreement dated 12/30/16 with Daiwa Capital Markets America, Inc., 0.52%, due 1/3/17, proceeds $1,333,206; (collateralized by various U.S. government and agency obligations, 0.00% to 6.50%, due 3/2/17 to 2/1/49, valued at $1,359,792 including accrued interest)   1,333,129 
 1,333,129   Repurchase agreement dated 12/30/16 with HSBC Securities USA, Inc., 0.46%, due 1/3/17, proceeds $1,333,197; (collateralized by various U.S. government and agency obligations, 1.38% to 3.75%, due 11/30/18 to 11/15/43, valued at $1,359,799 including accrued interest)   1,333,129 
 280,566   Repurchase agreement dated 12/30/16 with Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.50%, due 1/3/17, proceeds $280,582; (collateralized by various U.S. government and agency obligations, 0.69% to 2.00%, due 10/31/18 to 11/30/22, valued at $286,177 including accrued interest)   280,566 
 1,333,129   Repurchase agreement dated 12/30/16 with Nomura Securities International, Inc., 0.50%, due 1/3/17, proceeds $1,333,203; (collateralized by various U.S. government and agency obligations, 0.00% to 9.50%, due 1/15/17 to 8/20/66, valued at $1,359,792 including accrued interest)   1,333,129 

Total Short-Term Investments Held as Collateral for Securities Loaned

(Cost: $5,613,082)

   5,613,082 

Total Investments: 101.3%

(Cost: $452,022,558)

   437,332,293 
Liabilities in excess of other assets: (1.3)%   (5,755,151)
NET ASSETS: 100.0%  $431,577,142 

 

ADR American Depositary Receipt
USD United States Dollar
   
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $5,378,956.

 

Summary of Investments by Sector Excluding
Collateral for Securities Loaned (unaudited)		  % of
Investments		  Value  
Information Technology   18.8%  $81,066,191 
Semiconductor Equipment   13.6    58,636,777 
Semiconductors   67.5    291,572,402 
Money Market Fund   0.1    443,841 
    100.0%  $431,719,211 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2016 is as follows:

 

   Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		   Value 
Common Stocks*  $431,275,370   $—   $—   $431,275,370 
Money Market Fund   443,841    —    —    443,841 
Repurchase Agreements   —    5,613,082    —    5,613,082 
Total  $431,719,211   $5,613,082   $—   $437,332,293 

 

* See Schedule of Investments for security type and geographic sector breakouts.

There were no transfers between levels during the period ended December 31, 2016.

 

See Notes to Schedules of Investments

 

VANECK VECTORS ETF TRUST

NOTES TO SCHEDULES OF INVESTMENTS

December 31, 2016 (unaudited)

 

Security Valuation—The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing price. Over-the-counter securities not included in the NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Standard Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Fund is open. Short-term obligations with more than sixty days remaining to maturity are valued at market value. Short-term obligations with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are considered to be Level 1 in the fair value hierarchy. Securities for which quotations are not available are stated at fair value as determined by the Pricing Committee of VanEck Associates Corporation, the Adviser. The Pricing Committee provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments for which market prices are not readily available. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, transactional back-testing and disposition analysis.

 

Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments.

 

The Funds utilize various methods to measure the fair value of their investments on a recurring basis which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The transfers between levels of the fair value hierarchy assume the financial instruments were transferred at the beginning of the reporting period. The three levels of the fair value hierarchy are described below:

 

Level 1 - Quoted prices in active markets for identical securities.

 

Level 2 - Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

A summary of the inputs, the levels used to value the Funds’ investments, and transfers between levels are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments.

 

Income Taxes–As of December 31, 2016, for Federal income tax purposes, the identified cost of investments owned, net unrealized appreciation (depreciation), gross unrealized appreciation, and gross unrealized depreciation of investments were as follows:

 

Fund   Cost of
Investments		     Gross
Unrealized
Appreciation		     Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  
Biotech ETF   $ 732,447,693     $ 5,160,009     $ (123,433,448 )   $ (118,273,439 )
Environmental Services ETF     16,994,000       3,940,943       (686,353 )     3,254,590  
Gaming ETF     23,480,477       1,773,871       (5,989,805 )     (4,215,934 )
Generic Drug ETF     4,804,203       127,642       (473,401 )     (345,759 )
Pharmaceutical ETF     363,624,617       675,158       (79,779,603 )     (79,104,445 )
Retail ETF     112,221,701       3,819,536       (14,577,681 )     (10,758,145 )
Semiconductor ETF     451,905,039       2,107,234       (16,679,980 )     (14,572,746 )
Global Spin-Off ETF     3,046,337       410,653       (90,498 )     320,155  
Morningstar International Moat ETF     31,113,703       1,155,830       (640,164 )     515,666  
Morningstar Wide Moat ETF     885,391,697       51,614,551       (26,142,029 )     25,472,522  

 

Other– The United Kingdom recently decided to leave the European Union (“EU”), creating economic and political uncertainty in its wake. Significant uncertainty exists regarding the timing of the United Kingdom’s withdrawal from the EU and the effects such withdrawal will have on the Euro, European economies and the global markets. This may further impact, the value of the Euro and the British pound sterling, and has caused volatility and uncertainty in European and global markets.

 

As a result of events involving Ukraine and the Russian Federation, the United States and the EU have imposed sanctions on certain Russian individuals and companies. These sanctions do not currently impact the Funds. Additional economic sanctions may be imposed or other actions may be taken that may adversely affect the value and liquidity of the Russian-related issuers’ held by the Funds.

 

ITEM 2. Controls and Procedures.

 

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3 (c)) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15 (b)).
 
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. Exhibits.

 

Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) VanEck Vectors ETF Trust

 

By John J. Crimmins, Treasurer & Chief Financial Officer, VanEck Vectors ETF Trust

 

Date: February 28, 2017

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By Jan F. van Eck, Chief Executive Officer, VanEck Vectors ETF Trust

 

Date: February 28, 2017

 

By John J. Crimmins, Treasurer & Chief Financial Officer, VanEck Vectors ETF Trust

 

Date: February 28, 2017