N-CSRS 1 c94019_ncsrs.htm 
                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM N-CSR

              CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

                              INVESTMENT COMPANIES

Investment Company Act file number  811-10325

                            VANECK VECTORS ETF TRUST
               (Exact name of registrant as specified in charter)

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

                         Van Eck Associates Corporation
                      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:  DECEMBER 31

Date of reporting period: JUNE 30, 2019
 

Item 1. Report to Shareholders

 

SEMI-ANNUAL REPORT
June 30, 2019 (unaudited)

 

VANECK VECTORS®  
   
Africa Index ETF AFK®
Brazil Small-Cap ETF BRF®
ChinaAMC CSI 300 ETF PEK®
ChinaAMC SME-ChiNext ETF CNXT®
Egypt Index ETF EGPT®
India Small-Cap Index ETF SCIF®
Indonesia Index ETF IDX®
Israel ETF ISRA®
Russia ETF RSX®
Russia Small-Cap ETF RSXJ®
Vietnam ETF VNM®

 

     
  800.826.2333 vaneck.com
 

 

 

President’s Letter 1
Explanation of Expenses 3
Schedule of Investments  
Africa Index ETF 5
Brazil Small-Cap ETF 8
ChinaAMC CSI 300 ETF 11
ChinaAMC SME-ChiNext ETF 16
Egypt Index ETF 19
India Small-Cap Index ETF 21
Indonesia Index ETF 25
Israel ETF 27
Russia ETF 30
Russia Small-Cap ETF 32
Vietnam ETF 34
Statements of Assets and Liabilities 36
Statements of Operations 38
Statements of Changes in Net Assets 40
Financial Highlights  
Africa Index ETF 45
Brazil Small-Cap ETF 45
ChinaAMC CSI 300 ETF 46
ChinaAMC SME-ChiNext ETF 46
Egypt Index ETF 47
India Small-Cap Index ETF 47
Indonesia Index ETF 48
Israel ETF 48
Russia ETF 49
Russia Small-Cap ETF 49
Vietnam ETF 50
Notes to Financial Statements 51
Approval of Investment Management Agreements 60

 

Certain information contained in this shareholder letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2019.

 

VANECK VECTORS ETFs

June 30, 2019 (unaudited)

Dear Shareholders:

 

We are pleased to present this semi-annual report.

 

Investment Outlook

 

In brief, the two engines of the global economy, the U.S. and China, are moving forward, albeit at a moderate pace. In this environment, with stocks having had a very solid year so far, our main message is that investors should not be too conservative with their fixed income portfolios. See our blog Is There Enough Risk in Your Fixed Income Portfolio?

 

Getting to this current environment was, however, a result of a lot of turbulence.

 

At the beginning of December last year, we were worried about the impact the European Central Bank’s (ECB) and the U.S. Federal Reserve’s (Fed) continued tightening would have on the financial markets. Typically, central bank tightening is unfavorable for financial assets, and markets decelerated going into December. Then, suddenly the Fed signaled it would stop raising rates and reverse on quantitative tightening. This led to a rally in U.S. equities and other asset classes.

 

The ECB is also now delaying any tightening steps. At its March 7 policy meeting, the ECB pushed back its timing for increasing interest rates and is expected to stay on hold through the end of 2019. It also announced a program to stimulate bank lending, with another round of targeted longer-term refinancing operations (TLTRO) launching in September. TLTRO loans from the ECB provides banks in the euro zone with cheap rates.

 

Last but not least, China’s non-manufacturing Purchasing Managers’ Index (PMI) shows a strong rate of expansion, which one would expect with the emergence of the “new China” economy–one that is increasingly driven by consumption. However, the manufacturing PMI shows several recent dips below the important 50 mark into contraction territory, corresponding to the “recession” in late 2018, followed by a recovery after Q1 2019. It saw another fall into contraction territory in Q2 2019, though this was slightly smaller than the Q4 2018 drop, indicating that China’s stimulus measures may have softened the impact of external factors, such as tariffs and trade tensions. If so, we believe more stimulus may be expected to support domestic demand in the months ahead.

 

Doubtless there are risks to the global economy and financial markets. Concerns around the strength of global economic growth, the strength of the U.S. dollar, the trajectory of U.S. interest rates, certain country-specific factors, e.g., Iran and Venezuela, and the, as yet, unresolved trade dispute between the U.S. and China continue to hang over the market.

 

We encourage you to stay in touch with us through the videos, email subscriptions, and research blogs available on our website, www.vaneck.com. I have started my own email subscription where I share interesting research—you can sign up on vaneck.com. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.

1

VANECK VECTORS ETFs

(unaudited) (continued)

 

We sincerely thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each of the funds for the six month period ended June 30, 2019. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.

 

 

Jan F. van Eck

Trustee and President

VanEck Vectors ETF Trust

 

July 16, 2019

 

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

2

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited)

Hypothetical $1,000 investment at beginning of period

As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2019 to June 30, 2019.

 

Actual Expenses

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

3

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited) (continued)

 

   Beginning
Account
Value
January 1, 2019		  Ending
Account
Value
June 30, 2019		  Annualized
Expense
Ratio
During Period		  Expenses Paid
During the Period*
January 1, 2019 –
June 30, 2019
Africa Index ETF                    
Actual  $1,000.00   $1,112.10       0.78%         $4.08 
Hypothetical**  $1,000.00   $1,020.93    0.78%  $3.91 
Brazil Small-Cap ETF                    
Actual  $1,000.00   $1,195.90    0.66%  $3.59 
Hypothetical**  $1,000.00   $1,021.52    0.66%  $3.31 
ChinaAMC CSI 300 ETF                    
Actual  $1,000.00   $1,278.00    0.61%  $3.45 
Hypothetical**  $1,000.00   $1,021.77    0.61%  $3.06 
ChinaAMC SME-ChiNext ETF                    
Actual  $1,000.00   $1,232.70    0.65%  $3.60 
Hypothetical**  $1,000.00   $1,021.57    0.65%  $3.26 
Egypt Index ETF                    
Actual  $1,000.00   $1,111.40    1.00%  $5.24 
Hypothetical**  $1,000.00   $1,019.84    1.00%  $5.01 
India Small-Cap Index ETF                    
Actual  $1,000.00   $899.40    0.84%  $3.96 
Hypothetical**  $1,000.00   $1,020.63    0.84%  $4.21 
Indonesia Index ETF                    
Actual  $1,000.00   $1,058.60    0.57%  $2.91 
Hypothetical**  $1,000.00   $1,021.97    0.57%  $2.86 
Israel ETF                    
Actual  $1,000.00   $1,155.10    0.63%  $3.37 
Hypothetical**  $1,000.00   $1,021.67    0.63%  $3.16 
Russia ETF                    
Actual  $1,000.00   $1,263.40    0.70%  $3.93 
Hypothetical**  $1,000.00   $1,021.32    0.70%  $3.51 
Russia Small-Cap ETF                    
Actual  $1,000.00   $1,251.40    0.78%  $4.35 
Hypothetical**  $1,000.00   $1,020.93    0.78%  $3.91 
Vietnam ETF                    
Actual  $1,000.00   $1,086.30    0.64%  $3.31 
Hypothetical**  $1,000.00   $1,021.62    0.64%  $3.21 

 

* Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2019) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
   
** Assumes annual return of 5% before expenses
4

VANECK VECTORS AFRICA INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 101.1%     
Canada: 10.1%     
 28,400   B2Gold Corp. (USD) *  $86,052 
 77,584   Barrick Gold Corp. (USD)   1,223,500 
 167,883   First Quantum Minerals Ltd.   1,598,213 
 340,964   IAMGOLD Corp. (USD) *   1,152,458 
 562,259   Ivanhoe Mines Ltd. * †   1,789,935 
         5,850,158 
China / Hong Kong: 2.2%     
 4,098,000   China Molybdenum Co. Ltd. #   1,299,567 
Egypt: 4.0%     
 551,735   Commercial International Bank Reg S (GDR) #   2,348,344 
Germany: 4.1%     
 90,800   Jumia Technologies AG (ADR) *   2,398,936 
India: 0.7%     
 16,841   MakeMyTrip Ltd. (USD) *   417,657 
Kenya: 9.7%     
 464,800   East African Breweries Ltd.   908,452 
 3,904,000   Equity Group Holdings Plc #   1,489,700 
 11,775,300   Safaricom Plc   3,237,631 
         5,635,783 
Morocco: 14.5%    
 61,451   Attijariwafa Bank #   2,994,176 
 53,368   Banque Centrale Populaire   1,505,319 
 43,167   Banque Marocaine du Commerce Exterieur #   812,048 
 38,537   Cosumar #   818,365 
 156,289   Maroc Telecom   2,270,325 
         8,400,233 
Nigeria: 13.6%     
 38,985,863   Guaranty Trust Bank Plc   3,562,875 
 357,386   Nestle Nigeria Plc   1,379,907 
 4,898,715   Nigerian Breweries Plc   857,275 
 37,887,510   Zenith Bank Ltd.   2,083,813 
         7,883,870 
Singapore: 1.0%    
 2,586,600   Golden Agri-Resources Ltd. #   555,348 
South Africa: 31.9%     
 45,837   Absa Group Ltd. #   572,537 
 4,412   Anglo American Platinum Ltd. #   262,211 
 20,343   AngloGold Ashanti Ltd. (ADR)   362,309 
 25,005   Aspen Pharmacare Holdings Ltd. † #   178,274 
 19,570   AVI Ltd.   126,791 
 7,566   Barloworld Ltd. #   68,527 
 18,374   Bid Corp. Ltd. #   399,648 
 19,283   Bidvest Group Ltd. #   259,187 
 4,524   Capitec Bank Holdings Ltd.   416,665 
 13,984   Clicks Group Ltd. †   203,583 
 19,661   Coronation Fund Managers Ltd. #   62,371 
 27,632   Discovery Ltd. #   292,594 
 14,546   Exxaro Resources Ltd. #   177,915 
 227,477   FirstRand Ltd. #   1,106,645 
 60,105   Fortress REIT Ltd. #   91,741 
 13,306   Foschini Group Ltd. #   170,294 
 41,267   Gold Fields Ltd. (ADR)   223,254 
Number
of Shares		      Value 
         
South Africa: (continued)     
 186,004   Growthpoint Properties Ltd. #  $320,863 
 14,564   Hyprop Investments Ltd.   72,163 
 42,866   Impala Platinum Holdings Ltd. * #   212,182 
 12,404   Imperial Holdings Ltd.   45,240 
 17,697   Investec Ltd. #   114,985 
 36,152   Investec Plc (GBP) #   235,520 
 9,367   Liberty Holdings Ltd.   70,187 
 80,383   Life Healthcare Group Holdings Ltd. #   128,214 
 25,176   Mediclinic International Plc (GBP) #   97,685 
 56,465   MMI Holdings Ltd. #   75,874 
 8,786   Motus Holdings Ltd. #   45,109 
 15,538   Mr Price Group Ltd. #   218,568 
 84,455   MTN Group Ltd. † #   637,895 
 27,162   MultiChoice Group Ltd. * #   257,749 
 19,064   Naspers Ltd. #   4,609,128 
 26,875   Nedbank Group Ltd. #   482,874 
 91,929   Netcare Ltd. #   117,125 
 261,225   Old Mutual Ltd. #   392,840 
 22,468   Pick n Pay Stores Ltd.   109,940 
 9,303   Pioneer Foods Ltd.   45,521 
 10,736   PSG Group Ltd. #   182,128 
 52,310   Rand Merchant Investment Holdings Ltd. #   126,097 
 346,207   Redefine Properties Ltd. #   222,222 
 29,368   Remgro Ltd. #   391,399 
 19,047   Resilient REIT Ltd.   83,691 
 46,200   RMB Holdings Ltd. #   276,809 
 116,700   Sanlam Ltd. #   647,245 
 23,389   Sappi Ltd.   91,043 
 36,887   Sasol Ltd. (ADR) †   916,642 
 29,028   Shoprite Holdings Ltd. #   324,083 
 10,140   Spar Group Ltd. #   134,546 
 76,014   Standard Bank Group Ltd. #   1,060,673 
 17,092   Telkom SA SOC Ltd. #   111,653 
 9,858   Tiger Brands Ltd. #   156,410 
 26,459   Truworths International Ltd. #   131,175 
 27,429   Vodacom Group Ltd. † #   232,798 
 58,182   Woolworths Holdings Ltd. † #   201,373 
         18,554,195 
United Kingdom: 7.3%     
 55,184   Anglo American Plc #   1,579,934 
 271,109   Centamin Plc #   395,259 
 6,481   Mondi Ltd. (ZAR) #   145,537 
 784,431   Tullow Oil Plc #   2,103,016 
         4,223,746 
United States: 2.0%     
 147,773   Kosmos Energy Ltd.   926,537 
 1,742   Royal Caribbean Cruises Ltd.   211,148 
         1,137,685 
Zimbabwe: 0.0%     
 32,900   Cassava Smartech Zimbabwe Ltd. *   7,109 
 15,980   Delta Corp. Ltd. #   5,956 
         13,065 
Total Common Stocks
(Cost: $50,319,674)		   58,718,587 


 

See Notes to Financial Statements

5

VANECK VECTORS AFRICA INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Number
of Shares		      Value 
         
MONEY MARKET FUND: 0.0%
(Cost: $10,539)		     
 10,539   Dreyfus Government Cash Management Fund – Institutional Shares  $10,539 
      
Total Investments Before Collateral for Securities Loaned: 101.1%
(Cost: $50,330,213)		   58,729,126 
          
Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.4%     
Repurchase Agreements: 4.4%     
$1,000,000   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $1,000,208; (collateralized by various U.S. government and agency obligations, 3.10% to 4.00%, due 7/2/19 to 1/20/63, valued at $1,020,000 including accrued interest)   1,000,000 
Principal
Amount		      Value 
     
Repurchase Agreements: (continued)     
$1,000,000   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,000,211; (collateralized by various U.S. government and agency obligations, 3.16% to 3.20%, due 7/5/19 to 9/9/49, valued at $1,020,000 including accrued interest)  $1,000,000 
 548,017   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $548,131; (collateralized by various U.S. government and agency obligations, 3.20%, due 8/15/20 to 11/15/46, valued at $558,977 including accrued interest)   548,017 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $2,548,017)		   2,548,017 
Total Investments: 105.5%
 (Cost: $52,878,230)		   61,277,143 
Liabilities in excess of other assets: (5.5)%   (3,215,256)
NET ASSETS: 100.0%  $58,061,887 


 

 

 

Definitions:

ADR American Depositary Receipt
GBP British Pound
GDR Global Depositary Receipt
USD United States Dollar
ZAR South African Rand

Footnotes:

* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $2,413,104.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $30,334,416 which represents 52.2% 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		    % of Investments  Value 
Communication Services                11.5%           $6,748,051 
Consumer Discretionary     14.3    8,403,388 
Consumer Staples     10.3    6,025,825 
Energy     5.5    3,207,468 
Financials     36.3    21,310,827 
Health Care     0.9    521,298 
Industrials     0.6    372,954 
Materials     19.3    11,338,096 
Real Estate     1.3    790,680 
Money Market Fund     0.0    10,539 
      100.0%  $58,729,126 

 

See Notes to Financial Statements

6

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                      
Canada    $5,850,158   $—     $—   $5,850,158 
China / Hong Kong     —    1,299,567    —    1,299,567 
Egypt     —    2,348,344    —    2,348,344 
Germany     2,398,936    —    —    2,398,936 
India     417,657    —    —    417,657 
Kenya     4,146,083    1,489,700    —    5,635,783 
Morocco     3,775,644    4,624,589    —    8,400,233 
Nigeria     7,883,870    —    —    7,883,870 
Singapore     —    555,348    —    555,348 
South Africa     2,767,029    15,787,166    —    18,554,195 
United Kingdom     —    4,223,746    —    4,223,746 
United States     1,137,685    —    —    1,137,685 
Zimbabwe     7,109    5,956    —    13,065 
Money Market Fund     10,539    —    —    10,539 
Repurchase Agreements     —    2,548,017    —    2,548,017 
Total    $28,394,710   $32,882,433   $—   $61,277,143 

 

See Notes to Financial Statements

7

VANECK VECTORS BRAZIL SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 90.0%     
Automobiles & Components: 1.3%     
 74,800   Mahle-Metal Leve SA Industria e Comercio  $481,531 
 128,900   Tupy SA   701,239 
         1,182,770 
Capital Goods: 1.1%     
 178,402   Iochpe Maxion SA   1,036,511 
Consumer Durables & Apparel: 12.0%     
 77,750   Arezzo Industria e Comercio SA   1,016,432 
 195,350   Cia Hering SA   1,512,965 
 442,900   Cyrela Brazil Realty SA Empreendimentos e Participacoes   2,399,073 
 198,302   EZ Tec Empreendimentos e Participacoes SA   1,327,195 
 596,250   Grendene SA   1,211,149 
 165,000   Guararapes Confeccoes SA   695,243 
 535,250   MRV Engenharia e Participacoes SA   2,727,859 
         10,889,916 
Consumer Services: 6.2%     
 8,825   Arco Platform Ltd. (USD) *   386,358 
 251,900   BK Brasil Operacao E Assessoria   1,458,940 
 254,200   CVC Brasil Operadora e Agencia de Viagens SA   3,296,699 
 85,025   Ser Educacional SA Reg S 144A   550,234 
         5,692,231 
Energy: 4.5%     
 185,089   Cosan Ltd. (USD)   2,472,789 
 155,000   Enauta Participacoes SA   515,866 
 38,400   Modec, Inc. #   1,087,677 
         4,076,332 
Food, Beverage & Tobacco: 5.0%     
 97,516   Adecoagro SA (USD) *   696,264 
 239,150   Camil Alimentos SA   447,166 
 265,650   Mafrig Global Foods SA *   435,146 
 278,250   Minerva SA *   576,072 
 339,600   Sao Martinho SA   1,781,154 
 137,100   SLC Agricola SA   630,882 
         4,566,684 
Health Care Equipment & Services: 8.6%     
 108,100   Centro de Imagem Diagnosticos SA   405,943 
 350,200   Fleury SA   1,947,101 
 73,800   Instituto Hermes Pardini SA   370,927 
 516,400   Odontoprev SA   2,455,622 
 440,300   Qualicorp SA   2,633,808 
         7,813,401 
Insurance: 0.4%     
 118,100   Wiz Solucoes e Corretagem de Seguros SA   336,159 
Materials: 9.2%     
 591,625   Duratex SA   1,821,119 
 113,964   ERO Copper Corp. *   1,930,221 
 473,209   Largo Resources Ltd. *   654,048 
 65,112   Rhi Magnesita NV (GBP) #   3,996,597 
         8,401,985 
Number
of Shares		      Value 
         
Media & Entertainment: 1.4%     
 113,400   Smiles Fidelidade SA  $1,240,329 
Real Estate: 4.7%     
 161,573   Aliansce Shopping Centers SA   1,034,670 
 237,400   BR Properties SA   608,964 
 32,137   FII BTG Pactual Corporate Office Fund   807,704 
 151,000   Iguatemi Empresa de Shopping Centers SA   1,806,912 
         4,258,250 
Semiconductor: 0.4%     
 16,043   SMART Global Holdings, Inc. *   368,829 
Software & Services: 7.4%     
 236,000   Linx SA   2,191,018 
 863,498   Sonda SA   1,203,615 
 292,100   Totvs SA   3,344,741 
         6,739,374 
Technology Hardware & Equipment: 0.9%     
 26,466   Ituran Location and Control Ltd. (USD)   796,362 
Telecommunication Services: 3.6%     
 112,546   NII Holdings, Inc. *   190,203 
 1,532,313   Oi SA (ADR)   3,079,949 
         3,270,152 
Transportation: 4.7%     
 45,600   DryShips, Inc. (USD)   174,192 
 390,940   EcoRodovias Infraestrutura e Logistica SA   1,095,461 
 101,659   Gol Linhas Aereas Inteligentes SA (ADR) * †   1,716,004 
 122,900   Movida Participacoes SA   476,884 
 765,150   Santos Brasil Participacoes SA   868,775 
         4,331,316 
Utilities: 18.6%     
 397,750   AES Tiete Energia SA   1,219,161 
 392,687   Alupar Investimento SA   2,643,513 
 123,196   Cia de Saneamento de Minas Gerais SA   2,150,825 
 174,300   Cia de Saneamento do Parana   3,657,624 
 157,107   Cia Paranaense de Energia (ADR)   1,995,259 
 162,500   Light SA   820,128 
 629,450   Transmissora Alianca de Energia Eletrica SA   4,452,105 
         16,938,615 
Total Common Stocks
(Cost: $63,110,447)		   81,939,216 
PREFERRED STOCKS: 9.8%     
Banks: 1.5%     
 160,850   Banco ABC Brasil SA, 5.55%   805,098 
 34,550   Banco Inter SA Reg S 144A, 0.91%   548,039 
         1,353,137 
Capital Goods: 1.8%     
 917,709   Marcopolo SA, 3.10%   920,111 
 316,350   Randon Implementos e Participacoes SA, 1.59%   744,750 
         1,664,861 
Consumer Durables & Apparel: 1.8%     
 316,881   Alpargatas SA, 0.33%   1,684,277 


 

See Notes to Financial Statements

8

 

 

Number
of Shares		      Value 
         
Materials: 3.0%     
 1,018,850   Metalurgica Gerdau SA, 2.49%  $1,920,982 
 86,477   Unipar Carbocloro SA, 4.13%   802,850 
         2,723,832 
Utilities: 1.7%     
 213,200   Cia Energetica de Sao Paulo, 3.26%   1,509,076 
Total Preferred Stocks
(Cost: $4,539,471)		   8,935,183 
Total Investments Before Collateral for Securities Loaned: 99.8%
(Cost: $67,649,918)		  90,874,399 
          
Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.8%     
Repurchase Agreements: 1.8%     
$1,000,000   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,000,211; (collateralized by various U.S. government and agency obligations, 3.44% to 3.48%, due 7/5/19 to 9/9/49, valued at $1,020,000 including accrued interest)   1,000,000 
Principal
Amount		      Value 
         
Repurchase Agreements: (continued)     
$612,760   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $612,888; (collateralized by various U.S. government and agency obligations, 3.48%, due 8/15/20 to 11/15/46, valued at $625,015 including accrued interest)  $612,760 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $1,612,760)		   1,612,760 
Total Investments: 101.6%
(Cost: $69,262,678)		   92,487,159 
Liabilities in excess of other assets: (1.6)%   (1,479,435)
NET ASSETS: 100.0%  $91,007,724 


 

 

Definitions:

ADR American Depositary Receipt
CAD Canadian Dollar
GBP British Pound
USD United States Dollar

Footnotes:

* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $1,616,699.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $5,084,274 which represents 5.6% 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 $1,098,273, or 1.2% of net assets.

 

See Notes to Financial Statements

9

VANECK VECTORS BRAZIL SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		    % of Investments  Value 
Communication Services               5.0%  $4,510,481 
Consumer Discretionary     21.4    19,449,194 
Consumer Staples     5.0    4,566,684 
Energy     4.5    4,076,332 
Financials     2.8    2,497,000 
Health Care     8.6    7,813,401 
Industrials     7.7    7,032,688 
Information Technology     8.7    7,904,565 
Materials     12.2    11,125,817 
Real Estate     3.8    3,450,546 
Utilities     20.3    18,447,691 
      100.0%  $90,874,399 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                      
Automobiles & Components    $1,182,770   $—   $—   $1,182,770 
Capital Goods     1,036,511    —    —    1,036,511 
Consumer Durables & Apparel     10,889,916    —    —    10,889,916 
Consumer Services     5,692,231    —    —    5,692,231 
Energy     2,988,655    1,087,677    —    4,076,332 
Food, Beverage & Tobacco     4,566,684    —    —    4,566,684 
Health Care Equipment & Services     7,813,401    —    —    7,813,401 
Insurance     336,159    —    —    336,159 
Materials     4,405,388    3,996,597    —    8,401,985 
Media & Entertainment     1,240,329    —    —    1,240,329 
Real Estate     4,258,250    —    —    4,258,250 
Semiconductor     368,829    —    —    368,829 
Software & Services     6,739,374    —    —    6,739,374 
Technology Hardware & Equipment     796,362    —    —    796,362 
Telecommunication Services     3,270,152    —    —    3,270,152 
Transportation     4,331,316    —    —    4,331,316 
Utilities     16,938,615    —    —    16,938,615 
Preferred Stocks*     8,935,183    —    —    8,935,183 
Repurchase Agreements     —    1,612,760    —    1,612,760 
Total    $85,790,125   $6,697,034   $—   $92,487,159 

 

* See Schedule of Investments for industry sector breakouts.

 

See Notes to Financial Statements

10

VANECK VECTORS CHINAAMC CSI 300 ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares

      Value 
           
COMMON STOCKS: 99.7%
Automobiles & Components: 2.2%
 19,100   BAIC BluePark New Energy Technology Co. Ltd. *  $22,954 
 41,381   Byd Co. Ltd. #   306,108 
 31,309   China Shipbuilding Industry Group Power Co. Ltd. #   107,818 
 88,985   Chongqing Changan Automobile Co. Ltd. #   85,943 
 63,900   Fuyao Glass Industry Group Co. Ltd. #   211,752 
 54,974   Great Wall Motor Co. Ltd. #   66,276 
 42,280   Guangzhou Automobile Group Co. Ltd. #   67,367 
 71,873   Huayu Automotive Systems Co. Ltd. #   226,234 
 19,700   Kuang-Chi Technologies Co. Ltd. * #   26,689 
 159,863   SAIC Motor Corp. Ltd. #   593,840 
 67,580   Zhejiang Century Huatong Group Co. Ltd. #   107,426 
         1,822,407 
Banks: 16.9%
 1,747,000   Agricultural Bank of China Ltd. #   915,832 
 674,915   Bank of Beijing Co. Ltd. #   581,053 
 17,200   Bank of Changsha Co. Ltd. *   23,874 
 82,400   Bank of Chengdu Co. Ltd. #   106,038 
 961,100   Bank of China Ltd. #   523,475 
 1,252,916   Bank of Communications Co. Ltd. #   1,116,672 
 88,060   Bank of Guiyang Co. Ltd. #   110,985 
 93,560   Bank of Hangzhou Co. Ltd. #   113,532 
 315,900   Bank of Jiangsu Co. Ltd. #   334,123 
 270,771   Bank of Nanjing Co. Ltd. #   325,865 
 118,735   Bank of Ningbo Co. Ltd. #   419,332 
 249,196   Bank of Shanghai Co. Ltd. #   430,180 
 139,800   China CITIC Bank Corp. Ltd. #   121,566 
 306,200   China Construction Bank Corp. #   331,892 
 726,200   China Everbright Bank Co. Ltd. #   402,989 
 470,389   China Merchants Bank Co. Ltd. #   2,467,146 
 1,132,017   China Minsheng Banking Corp. Ltd. #   1,046,978 
 280,656   Huaxia Bank Co. Ltd. #   314,774 
 983,604   Industrial & Commercial Bank of China Ltd. #   843,898 
 663,191   Industrial Bank Co. Ltd. #   1,767,368 
 391,509   Ping An Bank Co. Ltd. #   786,412 
 535,418   Shanghai Pudong Development Bank Co. Ltd. #   911,222 
         13,995,206 
Capital Goods: 8.7%
 41,000   AECC Aviation Power Co. Ltd. #   135,736 
 63,100   AVIC Aircraft Co. Ltd. #   144,949 
 13,400   AVIC Helicopter Co. Ltd. #   80,131 
 19,200   AVIC Shenyang Aircraft Co. Ltd. * #   81,271 
 38,500   Beijing New Building Materials Plc #   101,691 
 24,099   China Avionics Systems Co. Ltd. #   52,098 
 107,124   China Communications Construction Co. Ltd. #   176,593 
 126,000   China Gezhouba Group Co. Ltd. #   114,310 
 90,000   China National Chemical Engineering Co. Ltd. #   78,925 
 209,800   China Railway Construction Corp. Ltd. #   304,152 
 339,908   China Railway Group Ltd. #   322,582 

Number

of Shares

      Value 
           
Capital Goods: (continued)
 417,300   China Shipbuilding Industry Co. Ltd. #   $338,015 
 27,000   China Spacesat Co. Ltd. #   88,793 
 957,208   China State Construction Engineering Corp. Ltd. #   801,544 
 443,715   CRRC Corp. Ltd. #   523,017 
 73,658   Fangda Carbon New Material Co. Ltd. #   131,925 
 38,900   Han’s Laser Technology Co. Ltd. #   195,208 
 111,900   Jiangsu Zhongtian Technology Co. Ltd. #   149,742 
 325,600   Metallurgical Corp of China Ltd. #   144,165 
 84,311   NARI Technology Development Co. Ltd. #   228,986 
 348,800   Power Construction Corp. of China Ltd. #   268,820 
 267,300   Sany Heavy Industry Co. Ltd. #   509,532 
 203,048   Shanghai Construction Group Co. Ltd. #   111,146 
 160,800   Shanghai Electric Group Co. Ltd. #   126,117 
 45,449   Shenzhen Inovance Technology Co. Ltd. #   151,840 
 49,789   Siasun Robot & Automation Co. Ltd. * #   110,584 
 73,261   Suzhou Gold Mantis Construction Decoration Co. Ltd. #   110,019 
 169,407   TBEA Co. Ltd. #   179,002 
 218,600   Weichai Power Co. Ltd. #   391,613 
 214,300   XCMG Construction Machinery Co. Ltd. #   139,302 
 64,600   Xiamen C & D, Inc. #   83,574 
 125,900   Xinjiang Goldwind Science and Technology Co. Ltd. #   228,156 
 27,300   Zangge Holding Co. Ltd. * #   32,971 
 39,200   Zhejiang Chint Electrics Co. Ltd. #   131,997 
 63,082   Zhejiang Sanhua Intelligent Controls Co. Ltd. #   96,954 
 60,553   Zhengzhou Yutong Bus Co. Ltd. #   114,934 
 234,200   Zoomlion Heavy Industry Science and Technology Co. Ltd. #   204,960 
         7,185,354 
Commercial & Professional Services: 0.2%
 73,500   Beijing Orient Landscape Co. Ltd. #   64,224 
 86,241   Beijing Originwater Technology Co. Ltd. #   97,993 
         162,217 
Consumer Durables & Apparel: 5.3%
 219,428   Gree Electric Appliances, Inc. #   1,762,665 
 166,800   Haier Smart Home Co. Ltd. #   420,337 
 21,672   Hangzhou Robam Appliances Co. Ltd. #   85,813 
 81,994   Heilan Home Co. Ltd. #   108,425 
 210,895   Midea Group Co. Ltd. #   1,597,272 
 5,700   Oppein Home Group, Inc. #   89,505 
 494,300   TCL Corp. #   240,386 
 6,300   Xiamen Intretech, Inc. #   35,907 
 7,500   Zhejiang Supor Co. Ltd. #   82,855 
         4,423,165 
Consumer Services: 1.1%
 44,500   China International Travel Service Corp. Ltd. #   574,706 
 187,020   Shenzhen Overseas Chinese Town Co. Ltd. #   189,334 
 33,100   Songcheng Performance Development Co. Ltd. #   111,578 
         875,618 


 

See Notes to Financial Statements

11

VANECK VECTORS CHINAAMC CSI 300 ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Number

of Shares

      Value 
           
Diversified Financials: 3.7%
 99,736   Anxin Trust Co. Ltd. * #  $73,453 
 84,600   Bohai Capital Holding Co. Ltd. #   48,291 
 114,600   Caitong Securities Co. Ltd. #   183,590 
 58,800   China Galaxy Securities Co. Ltd. #   105,054 
 15,600   China Great Wall Securities Co. Ltd.   37,882 
 12,300   Chinalin Securities Co. Ltd. #   33,311 
 20,400   CSC Financial Co. Ltd. #   62,817 
 62,900   Dongxing Securities Co. Ltd. #   108,967 
 245,020   East Money Information Co. Ltd. #   484,286 
 89,071   Everbright Securities Co. Ltd. #   148,301 
 205,650   Guotai Junan Securities Co. Ltd. #   550,239 
 112,230   Guosen Securities Co. Ltd. #   215,295 
 9,800   Hithink RoyalFlush Information Network Co. Ltd. #   140,459 
 23,900   Minmetals Capital Co. Ltd. #   32,862 
 163,300   Orient Securities Co. Ltd. #   254,304 
 77,100   SDIC Capital Co. Ltd. #   157,497 
 411,038   Shenwan Hongyuan Group Co. Ltd. #   300,009 
 23,600   Tianfeng Securities Co. Ltd.   37,222 
 60,800   Zheshang Securities Co. Ltd. #   82,490 
         3,056,329 
Energy: 2.2%
 83,500   China Coal Energy Co. Ltd. #   58,362 
 27,000   China Oilfield Services Ltd. #   37,978 
 610,100   China Petroleum & Chemical Corp. #   486,895 
 76,400   China Petroleum Engineering Corp. #   47,043 
 150,410   China Shenhua Energy Co. Ltd. #   447,014 
 100,780   Offshore Oil Engineering Co. Ltd. #   82,484 
 369,200   PetroChina Co. Ltd. #   370,489 
 182,407   Shaanxi Coal Industry Co. Ltd. #   245,726 
 40,500   Yanzhou Coal Mining Co. Ltd. #   64,220 
         1,840,211 
Financials: 5.5%
 245,586   AVIC Capital Co. Ltd. #   194,028 
 176,500   Changjiang Securities Co. Ltd. #   200,979 
 130,400   China Merchants Securities Co. Ltd. #   324,652 
 358,900   CITIC Securities Co. Ltd. #   1,246,091 
 187,750   Founder Securities Co. Ltd. #   194,681 
 134,956   GF Securities Co. Ltd. #   270,401 
 92,050   Guoyuan Securities Co. Ltd. #   123,052 
 369,036   Haitong Securities Co. Ltd. #   763,549 
 148,904   Huatai Securities Co. Ltd. #   484,637 
 213,750   Industrial Securities Co. Ltd. #   210,082 
 110,300   Sinolink Securities Co. Ltd. #   156,370 
 109,400   SooChow Securities Co. Ltd. #   163,588 
 128,728   Southwest Securities Co. Ltd. #   92,719 
 79,814   Western Securities Co. Ltd. #   117,300 
         4,542,129 
Food, Beverage & Tobacco: 12.3%
 5,200   Anhui Gujing Distillery Co. Ltd. #   89,855 
 36,900   Foshan Haitian Flavouring and Food Co. Ltd. #   564,898 
 36,100   Guangdong Haid Group Co. Ltd. #   162,466 
 19,225   Hebei Yangyuan Zhihui Beverage Co. Ltd. #   103,861 
 45,167   Henan Shuanghui Investment and Development Co. Ltd. #   163,822 

 

Number

of Shares

      Value 
           
Food, Beverage & Tobacco: (continued)
 278,044   Inner Mongolia Yili Industrial Group Co. Ltd. #  $1,354,406 
 27,499   Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. #   487,721 
 22,926   Kweichow Moutai Co. Ltd. #   3,290,463 
 33,393   Luzhou Laojiao Co. Ltd. #   393,667 
 38,000   Muyuan Foodstuff Co. Ltd. #   325,583 
 96,100   New Hope Liuhe Co. Ltd. #   243,171 
 11,960   Shanxi Xinghuacun Fen Wine Factory Co. Ltd. #   120,444 
 88,500   Tongwei Co. Ltd. #   181,554 
 169,585   Wens Foodstuffs Group Co. Ltd. #   886,211 
 88,500   Wuliangye Yibin Co. Ltd. #   1,523,247 
 174,556   Yonghui Superstores Co. Ltd. #   259,738 
         10,151,107 
Health Care Equipment & Services: 1.1%
 56,562   Aier Eye Hospital Group Co. Ltd. #   255,227 
 39,881   Huadong Medicine Co. Ltd. #   150,869 
 25,700   Jointown Pharmaceutical Group Co. Ltd. #   46,228 
 48,700   Lepu Medical Technology Beijing Co. Ltd. #   163,322 
 85,395   Meinian Onehealth Healthcare Holdings Co. Ltd. #   155,235 
 52,573   Shanghai Pharmaceuticals Holding Co. Ltd. #   139,033 
         909,914 
Insurance: 9.6%
 76,011   China Life Insurance Co. Ltd. #   313,840 
 143,317   China Pacific Insurance Group Co. Ltd. #   762,877 
 90,100   Hubei Biocause Pharmaceutical Co. Ltd. #   85,244 
 38,076   New China Life Insurance Co. Ltd. #   305,619 
 48,600   People’s Insurance Co Group of China Ltd. *   67,105 
 494,020   Ping An Insurance Group Co. of China Ltd. #   6,383,645 
         7,918,330 
Materials: 6.1%
 20,800   ADAMA Ltd. #   32,513 
 298,200   Aluminum Corp. of China Ltd. * #   170,415 
 109,330   Angang Steel Co. Ltd. #   60,378 
 91,200   Anhui Conch Cement Co. Ltd. #   551,369 
 39,500   Baiyin Nonferrous Group Co. Ltd. #   25,232 
 406,328   Baoshan Iron and Steel Co. Ltd. #   384,958 
 152,100   BBMG Corp. #   83,268 
 40,852   Beijing Oriental Yuhong Waterproof Technology Co. Ltd. #   134,736 
 53,565   Beijing Sanju Environmental Protection and New Material Co. Ltd. #   61,929 
 13,500   Bluestar Adisseo Co. #   20,397 
 95,800   China Jushi Co. Ltd. #   133,125 
 322,200   China Molybdenum Co. Ltd. #   186,179 
 99,370   China Northern Rare Earth Group High-Tech Co. Ltd. #   186,360 
 193,700   Hebei Iron & Steel Co. Ltd. #   84,390 
 48,440   Hengli Petrochemical Co. Ltd. #   85,833 
 51,800   Hengyi Petrochemical Co. Ltd. #   103,203 
 4,600   Hoshine Silicon Industry Co. Ltd. #   31,561 


 

See Notes to Financial Statements

12

 

 

Number

of Shares

      Value 
           
Materials: (continued)
 153,916   Inner Mongolia Junzheng Energy & Chemical Industry Co. Ltd. #  $73,803 
 831,560   Inner Mongolian Baotou Steel Union Co. Ltd. #   204,762 
 47,300   Jiangxi Copper Co. Ltd. #   108,548 
 35,600   Jiangxi Ganfeng Lithium Co. Ltd. #   121,710 
 27,800   Lomon Billions Group Co. Ltd. #   60,110 
 195,900   Pangang Group Vanadium Titanium & Resources Co. Ltd. *   96,625 
 57,400   Rongsheng Petro Chemical Co. Ltd. #   100,833 
 33,900   Shandong Gold Mining Co. Ltd. #   203,405 
 326,940   Shandong Nanshan Aluminum Co. Ltd. #   107,637 
 100,300   Sinopec Shanghai Petrochemical Co. Ltd. #   75,388 
 31,265   Tianqi Lithium Industries, Inc. #   115,279 
 288,000   Tongling Nonferrous Metals Group Co. Ltd. #   103,194 
 59,400   Transfar Zhilian Co. Ltd. #   65,184 
 71,570   Wanhua Chemical Group Co. Ltd. #   446,639 
 20,936   YanAn Bicon Pharmaceutical Listed Co. #   52,936 
 29,533   Zhejiang Huayou Cobalt Co. Ltd. #   91,848 
 118,700   Zhejiang Longsheng Group Co. Ltd. #   272,919 
 78,646   Zhongjin Gold Corp. Ltd. #   117,661 
 552,100   Zijin Mining Group Co. Ltd. #   303,820 
         5,058,147 
Media & Entertainment: 0.8%
 40,120   Beijing Enlight Media Co. Ltd. #   39,753 
 34,029   China Film Co. Ltd. #   77,611 
 27,700   Giant Network Group Co. Ltd. #   73,331 
 9,600   Mango Excellent Media Co. Ltd. * #   57,479 
 24,000   Perfect World Co. Ltd. #   90,287 
 93,967   Shanghai Oriental Pearl Group Co. Ltd. #   144,362 
 37,900   Wanda Film Holding Co. Ltd. #   101,757 
 48,400   Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co. Ltd. #   95,599 
         680,179 
Pharmaceuticals, Biotechnology: 5.1%
 25,000   Beijing Tongrentang Co. Ltd. #   105,570 
 6,200   Changchun High & New Technology Industry Group, Inc. #   305,241 
 11,945   Chengdu Kanghong Pharmaceutical Group Co. Ltd. #   57,221 
 21,900   Chongqing Zhifei Biological Products Co. Ltd. #   137,565 
 25,661   Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. #   153,236 
 38,340   Hualan Biological Engineering, Inc. #   170,211 
 14,900   Hubei Jumpcan Pharmaceutical Co. Ltd. #   65,363 
 141,149   Jiangsu Hengrui Medicine Co. Ltd. #   1,357,948 
 20,210   Shandong Buchang Pharmaceuticals Co. Ltd. #   75,865 
 20,900   Shandong Dong-E E-Jiao Co. Ltd. #   121,200 
 45,900   Shanghai Fosun Pharmaceutical Group Co. Ltd. #   169,290 
 68,060   Shanghai RAAS Blood Products Co. Ltd. * #   69,080 

Number

of Shares

      Value 
           
Pharmaceuticals & Biotechnology: (continued)
 19,086   Shenzhen Salubris Pharmaceuticals Co. Ltd. #  $62,228 
 39,391   Sichuan Kelun Pharmaceutical Co. Ltd. #   170,588 
 41,370   Tasly Pharmaceutical Group Co. Ltd. #   99,690 
 55,639   Tonghua Dongbao Pharmaceutical Co. Ltd. #   124,832 
 56,100   Walvax Biotechnology Co. Ltd. * #   231,758 
 4,800   WuXi AppTec Co. Ltd. * #   60,580 
 23,701   Yunnan Baiyao Group Co. Ltd. #   287,972 
 13,791   Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. #   231,537 
 58,800   Zhejiang NHU Co. Ltd. #   165,352 
         4,222,327 
Real Estate: 4.4%
 82,174   China Fortune Land Development Co. Ltd. #   389,996 
 108,159   China Merchants Shekou Industrial Zone Co. Ltd. #   329,421 
 221,767   China Vanke Co. Ltd. #   899,039 
 54,500   Financial Street Holdings Co. Ltd. #   62,231 
 102,901   Gemdale Corp. #   178,881 
 166,500   Greenland Holdings Corp. Ltd. #   165,662 
 84,600   Jiangsu Zhongnan Construction Group Co. Ltd. #   106,724 
 97,400   Jinke Properties Group Co Ltd #   85,478 
 325,504   Poly Developments and Holdings Group Co. Ltd. #   605,355 
 18,400   Red Star Macalline Group Corp. Ltd. #   32,598 
 79,300   RiseSun Real Estate Development Co. Ltd. #   108,511 
 41,200   Seazen Holdings Co. Ltd. #   239,069 
 40,017   Shanghai Lujiazui Finance and Trade Zone Development Co. Ltd. #   90,353 
 73,900   Sunshine City Group Co. Ltd. #   69,766 
 196,081   Xinhu Zhongbao Co. Ltd. #   89,696 
 160,023   Youngor Group Co. Ltd. #   148,107 
 124,100   Zhejiang China Commodities City Group Co. Ltd. #   74,512 
         3,675,399 
Retailing: 0.5%
 149,320   China Grand Automotive Services Co. Ltd. #   97,165 
 169,800   Suning Commerce Group Co. Ltd. #   284,230 
 78,560   Wuchan Zhongda Group Co. Ltd. #   62,062 
         443,457 
Semiconductor: 0.9%
 7,767   Gigadevice Semiconductor Beijing, Inc. #   98,266 
 115,678   LONGi Green Energy Technology Co. Ltd. #   390,222 
 111,623   Sanan Optoelectronics Co. Ltd. #   183,558 
 4,200   Shenzhen Goodix Technology Co. Ltd. #   85,004 
         757,050 
Software & Services: 1.8%
 18,500   360 Security Technology, Inc. #   57,702 
 51,000   Aisino Co. Ltd. #   171,240 
 66,830   Anhui USTC iFlytek Co. Ltd. * #   323,942 


 

See Notes to Financial Statements

13

VANECK VECTORS CHINAAMC CSI 300 ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Number

of Shares

      Value 
           
Software & Services: (continued)
 14,606   Beijing Shiji Information Technology Co. Ltd. #  $77,097 
 85,273   DHC Software Co. Ltd. #   86,900 
 30,800   Glodon Co. Ltd. #   147,716 
 29,290   Hundsun Technologies, Inc. #   291,096 
 88,731   Wangsu Science and Technology Co. Ltd. #   139,439 
 56,715   Yonyou Software Co. Ltd. #   222,360 
         1,517,492 
Technology Hardware & Equipment: 5.4%
 11,600   Avary Holding Shenzhen Co. Ltd.   49,553 
 23,473   AVIC Jonhon OptronicTechnology Co. Ltd. #   114,484 
 109,754   Beijing Xinwei Telecom Technology Group Co. Ltd. * # ∞   162,453 
 1,080,933   BOE Technology Group Co. Ltd. #   542,888 
 47,700   Chaozhou Three-Circle Group Co. Ltd. #   135,232 
 28,700   Dawning Information Industry Co. Ltd. #   147,084 
 199,900   Dongxu Optoelectronic Technology Co. Ltd. #   149,927 
 32,022   Fiberhome Telecommunication Technologies Co. Ltd. #   130,280 
 468,512   Focus Media Information Technology Co. Ltd. #   361,914 
 54,300   Foxconn Industrial Internet Co. Ltd. #   95,249 
 88,800   GoerTek, Inc. #   115,105 
 170,564   Hangzhou Hikvision Digital Technology Co. Ltd. #   686,955 
 60,780   Hengtong Optic-electric Co. Ltd. #   148,985 
 35,849   Lens Technology Co. Ltd. #   36,423 
 81,200   Leyard Optoelectronic Co. Ltd. #   92,779 
 112,586   Luxshare Precision Industry Co. Ltd. #   407,941 
 86,550   OFILM Group Co. Ltd. #   99,079 
 35,600   Shenzhen Sunway Communication Co. Ltd. #   127,137 
 108,100   Tsinghua Tongfang Co. Ltd. #   142,534 
 13,000   Tsinghua Unisplendour Co. Ltd. #   51,752 
 81,995   Zhejiang Dahua Technology Co. Ltd. #   173,799 
 108,520   ZTE Corp. * #   516,714 
         4,488,267 
Telecommunication Services: 0.5%
 424,678   China United Network Communications Ltd. #   381,213 
Transportation: 3.1%
 136,300   Air China Ltd. #   189,946 
 176,600   China COSCO Holdings Co. Ltd. * #   129,234 
 178,900   China Eastern Airlines Corp. Ltd. #   163,422 
 156,900   China Southern Airlines Co. Ltd. #   176,420 
 271,191   Daqin Railway Co. Ltd. #   319,427 

Number

of Shares

      Value 
           
Transportation: (continued)
 47,200   Guangzhou Baiyun International Airport Co. Ltd. #  $125,174 
 84,700   Guangzhou Port Co. Ltd. #   51,599 
 524,700   Hainan Airlines Co. Ltd. * #   155,168 
 180,167   Ningbo Port Co. Ltd. #   115,221 
 22,100   Qingdao Port International Co. Ltd. * #   26,963 
 28,200   SF Holding Co. Ltd. #   139,449 
 43,900   Shanghai International Airport Co. Ltd. #   535,974 
 147,900   Shanghai International Port Group Co. Ltd. #   147,093 
 16,700   Spring Airlines Co. Ltd. #   109,406 
 14,000   STO Express Co. Ltd. #   50,820 
 16,800   YTO Express Group Co. Ltd. #   30,231 
 13,240   Yunda Holding Co. Ltd. #   59,592 
         2,525,139 
Utilities: 2.3%
 212,899   China National Nuclear Power Co. Ltd. #   172,379 
 301,000   China Yangtze Power Co. Ltd. #   784,528 
 537,700   GD Power Development Co. Ltd. #   198,862 
 148,600   Huadian Power International Corp. Ltd. #   81,514 
 82,100   Huaneng Lancang River Hydropower, Inc. #   48,649 
 200,657   Huaneng Power International, Inc. #   182,006 
 154,700   SDIC Power Holdings Co. Ltd. #   174,972 
 80,300   Sichuan Chuantou Energy Co. Ltd. #   104,028 
 186,110   Zhejiang Zheneng Electric Power Co. Ltd. #   119,752 
         1,866,690 
Total Common Stocks
(Cost: $68,565,495)		   82,497,347 

 

Principal

Amount

         

FOREIGN DEBT OBLIGATION: 0.0%

(Cost: $17,231)

  
Software & Services: 0.0%    
$107,000   Aisino Corp., 1.50% 06/12/21 (s)   16,692 

Total Investments: 99.7%

 (Cost: $68,582,726)

  82,514,039 
Other assets less liabilities: 0.3%    227,065 
NET ASSETS: 100.0% $82,741,104 


 

See Notes to Financial Statements

14

 

 

Footnotes:

(s)The rate shown reflects the rate in effect at the end of the reporting period. Coupon adjusts periodically based upon a predetermined schedule.
*Non-income producing
#Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $82,162,132 which represents 99.3% of net assets.
∞Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

 

Summary of Investments by Sector    % of Investments  Value 
Communication Services                   1.3%  $1,061,392 
Consumer Discretionary     9.2    7,564,647 
Consumer Staples     12.3    10,151,107 
Energy     2.2    1,840,211 
Financials     35.8    29,511,994 
Health Care     6.2    5,132,241 
Industrials     12.0    9,872,710 
Information Technology     8.2    6,779,501 
Materials     6.1    5,058,147 
Real Estate     4.4    3,675,399 
Utilities     2.3    1,866,690 
      100.0%  $82,514,039 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                              
Automobiles & Components    $22,954   $1,799,453   $—   $1,822,407 
Banks     23,874    13,971,332    —    13,995,206 
Capital Goods     —    7,185,354    —    7,185,354 
Commercial & Professional Services     —    162,217    —    162,217 
Consumer Durables & Apparel     —    4,423,165    —    4,423,165 
Consumer Services     —    875,618    —    875,618 
Diversified Financials     75,104    2,981,225    —    3,056,329 
Energy     —    1,840,211    —    1,840,211 
Financials     —    4,542,129    —    4,542,129 
Food, Beverage & Tobacco     —    10,151,107    —    10,151,107 
Health Care Equipment & Services     —    909,914    —    909,914 
Insurance     67,105    7,851,225    —    7,918,330 
Materials     96,625    4,961,522    —    5,058,147 
Media & Entertainment     —    680,179    —    680,179 
Pharmaceuticals, Biotechnology     —    4,222,327    —    4,222,327 
Real Estate     —    3,675,399    —    3,675,399 
Retailing     —    443,457    —    443,457 
Semiconductor     —    757,050    —    757,050 
Software & Services     —    1,517,492    —    1,517,492 
Technology Hardware & Equipment     49,553    4,276,261    162,453    4,488,267 
Telecommunication Services     —    381,213    —    381,213 
Transportation     —    2,525,139    —    2,525,139 
Utilities     —    1,866,690    —    1,866,690 
Foreign Debt Obligation*     —    16,692    —    16,692 
Total    $335,215   $82,016,371   $162,453   $82,514,039 

 

* See Schedule of Investments for industry breakouts.

 

See Notes to Financial Statements

15

VANECK VECTORS CHINAAMC SME-CHINEXT ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		     Value
       
COMMON STOCKS: 99.8%     
Automobiles & Components: 2.8%     
 71,022   Byd Co. Ltd. #  $525,372 
 88,800   Zhejiang Century Huatong Group Co. Ltd. #   141,158 
 100,058   Zhejiang Wanfeng Auto Wheel Co. Ltd. #   106,162 
         772,692 
Banks: 2.6%     
 201,032   Bank of Ningbo Co. Ltd. #   709,978 
Capital Goods: 11.1%     
 151,400   AVIC Electromechanical Systems Co. Ltd. #   151,768 
 118,800   Beijing Orient Landscape Co. Ltd. #   103,807 
 64,400   Contemporary Amperex Technology Co. Ltd. * #   646,639 
 43,705   Eve Energy Co. Ltd. * #   194,220 
 150,200   Guangdong LY Intelligent Manufacturing Co. Ltd. * #   130,107 
 61,830   Guoxuan High-Tech Co. Ltd. #   118,137 
 74,800   Han’s Laser Technology Co. Ltd. #   375,361 
 94,690   Shenzhen Inovance Technology Co. Ltd. #   316,350 
 103,722   Siasun Robot & Automation Co. Ltd. * #   230,371 
 119,449   Suzhou Gold Mantis Construction Decoration Co. Ltd. #   179,381 
 224,830   Xinjiang Goldwind Science and Technology Co. Ltd. #   407,438 
 102,726   Zhejiang Sanhua Intelligent Controls Co. Ltd. #   157,884 
         3,011,463 
Commercial & Professional Services: 0.6%     
 147,863   Beijing Originwater Technology Co. Ltd. #   168,012 
Consumer Durables & Apparel: 2.6%     
 40,980   Hangzhou Robam Appliances Co. Ltd. #   162,266 
 110,476   NavInfo Co. Ltd. #   259,626 
 50,693   Suofeiya Home Collection Co. Ltd. #   137,354 
 13,823   Zhejiang Supor Co. Ltd. #   152,707 
         711,953 
Consumer Services: 0.8%     
 63,521   Songcheng Performance Development Co. Ltd. #   214,126 
Diversified Financials: 7.7%     
 28,800   China Great Wall Securities Co. Ltd. #   70,136 
 441,075   East Money Information Co. Ltd. #   871,792 
 181,080   First Capital Securities Co. Ltd. #   167,528 
 186,643   Guoyuan Securities Co. Ltd. #   358,044 
 16,700   Hithink RoyalFlush Information Network Co. Ltd. #   239,354 
 137,300   Shanxi Securities Co. Ltd. #   162,177 
 154,754   Western Securities Co. Ltd. #   227,438 
         2,096,469 
Food, Beverage & Tobacco: 12.3%     
 59,600   Guangdong Haid Group Co. Ltd. #   268,227 
 330,500   Guangdong Wens Foodstuffs Group Co. Ltd. #   1,727,114 
Number
of Shares		     Value
       
Food, Beverage & Tobacco: (continued)     
 47,638   Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. #  $844,906 
 57,500   Muyuan Foodstuff Co. Ltd. #   492,658 
         3,332,905 
Health Care Equipment & Services: 6.6%     
 104,555   Aier Eye Hospital Group Co. Ltd. #   471,801 
 50,420   Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. #   180,708 
 98,498   Lepu Medical Technology Beijing Co. Ltd. #   330,327 
 180,680   Meinian Onehealth Healthcare Holdings Co. Ltd. #   328,449 
 11,300   Shenzhen Mindray Bio-Medical Electronics Co. Ltd. #   268,737 
 100,951   Winning Health Technology Group Co. Ltd. #   208,736 
         1,788,758 
Household & Personal Products: 0.7%     
 65,000   By-health Co. Ltd. #   183,759 
Materials: 6.3%     
 78,669   Beijing Oriental Yuhong Waterproof Technology Co. Ltd. #   259,462 
 103,429   Beijing Sanju Environmental Protection and New Material Co. Ltd. #   119,580 
 304,176   GEM Co. Ltd. #   208,875 
 65,600   Jiangxi Ganfeng Lithium Co. Ltd. #   224,275 
 56,300   Lomon Billions Group Co. Ltd. #   121,734 
 96,500   Rongsheng Petrochemical Co. Ltd. #   169,519 
 86,550   Sansteel Minguang Co. Ltd., Fujian #   117,386 
 61,920   Tianqi Lithium Industries, Inc. #   228,308 
 132,700   Xinjiang Zhongtai Chemical Co. Ltd. #   153,977 
 90,900   Zhejiang Transfar Co. Ltd. #   99,752 
         1,702,868 
Media & Entertainment: 2.5%     
 81,410   Beijing Enlight Media Co. Ltd. #   80,664 
 48,278   Beijing Kunlun Tech Co. Ltd. * #   90,660 
 38,180   Giant Network Group Co. Ltd. #   101,075 
 19,100   Mango Excellent Media Co. Ltd. * #   114,359 
 36,300   Perfect World Co. Ltd. #   136,558 
 62,950   Wanda Film Holding Co. Ltd. #   169,014 
         692,330 
Pharmaceuticals & Biotechnology: 9.8%     
 35,998   Beijing SL Pharmaceutical Co. Ltd. #   123,552 
 14,300   BGI Genomics Co. Ltd. #   118,865 
 39,700   Chongqing Zhifei Biological Products Co. Ltd. #   249,375 
 29,400   Hangzhou Tigermed Consulting Co. Ltd. #   330,053 
 69,090   Hualan Biological Engineering, Inc. #   306,726 
 153,263   Shanghai RAAS Blood Products Co. Ltd. * #   155,560 
 23,800   Shenzhen Kangtai Biological Products Co. Ltd. #   182,049 
 31,140   Shenzhen Salubris Pharmaceuticals Co. Ltd. #   101,530 
 79,598   Sichuan Kelun Pharmaceutical Co. Ltd. #   344,710 
 109,900   Walvax Biotechnology Co. Ltd. * #   454,013 
 99,970   Zhejiang NHU Co. Ltd. #   281,127 
         2,647,560 


 

See Notes to Financial Statements

16

 

 

Number
of Shares		     Value
      
Real Estate: 0.7%     
 148,500   RiseSun Real Estate Development Co. Ltd. #  $203,201 
Retailing: 2.3%     
 61,900   Offcn Education Technology Co. Ltd. #   124,082 
 295,038   Suning Commerce Group Co. Ltd. #   493,867 
         617,949 
Semiconductor: 0.8%     
 150,820   Tianjin Zhonghuan Semiconductor Joint-Stock Co. Ltd. #   214,976 
Software & Services: 8.5%     
 135,050   Anhui USTC iFlytek Co. Ltd. * #   654,622 
 27,790   Beijing Shiji Information Technology Co. Ltd. #   146,688 
 84,300   Beijing Sinnet Technology Co. Ltd. #   206,069 
 166,458   DHC Software Co. Ltd. #   169,634 
 61,275   Glodon Software Co. Ltd. #   293,874 
 12,700   Sangfor Technologies, Inc. #   162,036 
 372,363   Shanghai 2345 Network Holding Group Co. Ltd. #   211,235 
 51,900   Venustech Group, Inc. #   203,484 
 162,550   Wangsu Science and Technology Co. Ltd. #   255,444 
         2,303,086 
Technology Hardware & Equipment: 18.9%     
 21,400   Avary Holding Shenzhen Co. Ltd. #   91,711 
 44,061   AVIC Jonhon Optronic Technology Co. Ltd. #   214,898 
 92,000   Chaozhou Three-Circle Group Co. Ltd. #   260,824 
 948,360   Focus Media Information Technology Co. Ltd. #   732,584 
 166,616   GoerTek, Inc. #   215,972 
Number
of Shares		     Value
       
Technology Hardware & Equipment: (continued)     
 138,900   Guangzhou Haige Communications Group, Inc. Co. #  $193,589 
 6,200   Guangzhou Shiyuan Electronic Technology Co. Ltd. #   70,027 
 301,095   Hangzhou Hikvision Digital Technology Co. Ltd. #   1,212,674 
 67,768   Lens Technology Co. Ltd. #   68,852 
 154,650   Leyard Optoelectronic Co. Ltd. #   176,702 
 208,982   Luxshare Precision Industry Co. Ltd. #   757,219 
 16,900   NAURA Technology Group Co. Ltd. #   170,712 
 169,462   OFILM Group Co. Ltd. #   193,993 
 70,501   Shenzhen Sunway Communication Co. Ltd. #   251,778 
 34,600   Unigroup Guoxin Microelectronics Co. Ltd. #   222,667 
 141,105   Zhejiang Dahua Technology Co. Ltd. #   299,091 
         5,133,293 
Transportation: 1.9%     
 48,700   SF Holding Co. Ltd. #   240,822 
 22,800   STO Express Co. Ltd. #   82,764 
 40,888   Yunda Holding Co. Ltd. #   184,032 
         507,618 
Utilities: 0.3%     
 56,400   Jiangsu Guoxin Corp. Ltd. * #   70,111 
Total Common Stocks
(Cost: $23,694,191)		   27,083,107 
Other assets less liabilities: 0.2%   61,423 
NET ASSETS: 100.0%  $27,144,530 


 

 

Footnotes:
* Non-income producing
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $27,083,107 which represents 99.8% of net assets.
   
Summary of Investments by Sector    % of Investments  Value
Communication Services               2.6%  $692,330 
Consumer Discretionary     8.5    2,316,720 
Consumer Staples     13.0    3,516,664 
Financials     10.4    2,806,447 
Health Care     16.4    4,436,318 
Industrials     13.6    3,687,093 
Information Technology     28.2    7,651,355 
Materials     6.3    1,702,868 
Real Estate     0.7    203,201 
Utilities     0.3    70,111 
      100.0%  $27,083,107 

 

See Notes to Financial Statements

17

VANECK VECTORS CHINAAMC SME-CHINEXT ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		  Level 2
Significant
Observable
Inputs		  Level 3
Significant
Unobservable
Inputs		  Value  
Common Stocks*    $—     $27,083,107     $—   $27,083,107 

 

* See Schedule of Investments for industry sector breakouts.

 

See Notes to Financial Statements

18

VANECK VECTORS EGYPT INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 99.9%
Banks: 7.7%
 673,047   Commercial International Bank Reg S (GDR) #  $2,864,683 
Capital Goods: 5.1%
 2,197,655   El Sewedy Electric Co. #   1,881,870 
Consumer Durables & Apparel: 2.2%
 1,287,768   Oriental Weavers   804,518 
Diversified Financials: 11.4%
 522,825   Egyptian Financial Group-Hermes Holding Co. Reg S (GDR) † #   998,325 
 1,192,005   Egyptian Financial Group-Hermes Holding SAE #   1,221,840 
 2,472,551   Pioneers Holding * #   938,939 
 4,587,085   Qalaa Holdings SAE * #   1,056,921 
         4,216,025 
Energy: 1.2%
 330,390   TransGlobe Energy Corp. (USD)   459,242 
Food, Beverage & Tobacco: 11.2%
 2,711,129   Eastern Co. SAE   2,507,327 
 2,654,140   Juhayna Food Industries #   1,640,877 
         4,148,204 
Health Care Equipment & Services: 4.2%
 2,144,540   Ibnsina Pharma SAE #   1,546,659 
Materials: 22.5%
 1,178,371   Abou Kir Fertilizers & Chemical Industries #   1,700,699 
 2,557,408   Alexandria Mineral Oils Co. #   689,849 
 1,266,737   Centamin Plc #   1,846,817 
 2,065,121   Egyptian Kuwaiti Holding Co. (USD) #   2,771,413 
 932,330   Ezz Steel Co. SAE *   635,515 
 970,290   Sidi Kerir Petrochemcials Co.   650,928 
         8,295,221 
Real Estate: 22.5%
 3,886,534   Emaar Misr for Development SAE *   737,964 
 822,489   Heliopolis Housing   1,144,932 
 4,985,414   Medinet Nasr Housing * #   1,541,865 
 9,347,499   Palm Hills Developments SAE *   1,343,756 
 1,267,637   Six of October Development & Investment Co. #   1,059,976 
 3,833,757   Talaat Moustafa Group   2,486,948 
         8,315,441 
Number
of Shares		      Value 
         
Telecommunication Services: 11.9%
 7,231,732   Global Telecom Holding SAE * #  $2,072,509 
 16,619,895   Orascom Telecom Media and Technology Holding SAE * #   628,343 
 2,019,454   Telecom Egypt #   1,680,671 
         4,381,523 
Total Common Stocks
(Cost: $33,374,929)		   36,913,386 
           
Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.4%
(Cost: $142,222)
Repurchase Agreement: 0.4%
$142,222   Repurchase agreement dated 6/28/19 with Nomura Securities International, Inc., 2.48%, due 7/1/19, proceeds $142,251; (collateralized by various U.S. government and agency obligations, 3.52%, due 7/18/19 to 9/9/49, valued at $145,066 including accrued interest)   142,222 
Total Investments: 100.3%
(Cost: $33,517,151)		   37,055,608 
Liabilities in excess of other assets: (0.3)%   (125,318)
NET ASSETS: 100.0%  $36,930,290 


 

See Notes to Financial Statements

19

VANECK VECTORS EGYPT INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:
GDR Global Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $135,573.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $26,142,256 which represents 70.8% 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		    % of Investments  Value 
Communication Services                11.9%  $4,381,523 
Consumer Discretionary     2.2    804,518 
Consumer Staples     11.2    4,148,204 
Energy     1.2    459,242 
Financials     19.2    7,080,708 
Health Care     4.2    1,546,659 
Industrials     5.1    1,881,870 
Materials     22.5    8,295,221 
Real Estate     22.5    8,315,441 
      100.0%  $36,913,386 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stock                      
Banks    $—   $2,864,683   $—   $2,864,683 
Capital Goods     —    1,881,870    —    1,881,870 
Consumer Durables & Apparel     804,518    —    —    804,518 
Diversified Financials     —    4,216,025    —    4,216,025 
Energy     459,242    —    —    459,242 
Food, Beverage & Tobacco     2,507,327    1,640,877    —    4,148,204 
Health Care Equipment & Services     —    1,546,659    —    1,546,659 
Materials     1,286,443    7,008,778    —    8,295,221 
Real Estate     5,713,600    2,601,841    —    8,315,441 
Telecommunication Services     —    4,381,523    —    4,381,523 
Repurchase Agreement     —    142,222    —    142,222 
Total    $10,771,130   $26,284,478   $—   $37,055,608 

 

See Notes to Financial Statements

20

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 100.1%
Automobiles & Components: 1.5%
 105,069   Ceat Ltd. #  $1,406,072 
 591,441   Jamna Auto Industries Ltd. #   451,883 
 365,479   JK Tyre & Industries Ltd. #   424,139 
         2,282,094 
Banks: 10.5%
 1,841,381   Allahabad Bank * #   1,330,098 
 2,140,721   Andhra Bank * #   731,965 
 197,642   Can Fin Homes Ltd. #   1,020,554 
 938,745   Development Credit Bank Ltd. #   3,225,078 
 1,164,518   Dewan Housing Finance Corp. Ltd. #   1,214,369 
 79,932   GIC Housing Finance Ltd. #   286,164 
 1,377,160   Jammu & Kashmir Bank Ltd. * #   802,955 
 856,428   Karnataka Bank Ltd. #   1,289,449 
 1,977,009   Karur Vysya Bank Ltd. #   2,025,294 
 395,693   Lakshmi Vilas Bank Ltd. * #   374,415 
 1,016,901   Oriental Bank of Commerce * #   1,390,118 
 5,484,142   South Indian Bank Ltd. #   1,032,957 
 2,655,634   Syndicate Bank * #   1,612,374 
         16,335,790 
Capital Goods: 12.2%
 61,812   BEML Ltd. #   816,815 
 1,666,749   CG Power and Industrial Solutions Ltd. * #   688,548 
 203,008   Dilip Buildcon Ltd. Reg S 144A #   1,431,393 
 937,945   Engineers India Ltd. #   1,648,569 
 362,475   Greaves Cotton Ltd. #   762,562 
 4,585,150   Hindustan Construction Co. Ltd. * #   797,069 
 912,899   IRB Infrastructure Developers Ltd. #   1,268,020 
 1,841,889   Jain Irrigation Systems Ltd. #   688,627 
 6,767,252   Jaiprakash Associates Ltd. * #   299,376 
 229,417   KEI Industries Ltd. #   1,595,890 
 927,688   MMTC Ltd. #   334,171 
 2,526,030   Nagarjuna Construction Co. Ltd. #   3,566,455 
 552,206   Nava Bharat Ventures Ltd. #   752,771 
 54,000   Nissei ASB Machine Co. Ltd. #   1,294,879 
 271,319   Praj Industries Ltd. #   552,674 
 36,694   SML Isuzu Ltd.   396,802 
 16,121,283   Suzlon Energy Ltd. * #   1,227,285 
 326,655   Texmaco Rail & Engineering Ltd. #   328,204 
 219,801   Welspun Enterprises Ltd. #   423,539 
         18,873,649 
Commercial & Professional Services: 0.4%
 160,799   RITES Ltd. #   679,480 
Consumer Durables & Apparel: 7.2%
 46,675   Amber Enterprises India Ltd. * #   557,720 
 783,725   Arvind Ltd. #   719,374 
 151,993   Bajaj Electricals Ltd. #   1,164,937 
 306,560   Bombay Dyeing & Manufacturing Co. Ltd. #   477,735 
 16,808   Dixon Technologies India Ltd. Reg S #   552,664 
 146,139   Himatsingka Seide Ltd. #   342,751 
 260,429   Jindal Worldwide Ltd.   247,309 
 37,484   LUX Industries Ltd. #   657,889 
 91,107   Raymond Ltd. #   964,569 
 362,550   Swan Energy Ltd. #   547,952 
 91,022   TCNS Clothing Co. Ltd. Reg S 144A *   1,098,949 
Number
of Shares		      Value 
           
Consumer Durables & Apparel: (continued)
 724,875   Trident Ltd. #  $653,439 
 18,859   TTK Prestige Ltd.   1,844,700 
 209,756   VIP Industries Ltd. #   1,352,961 
         11,182,949 
Consumer Services: 1.6%
 1,298,085   Chennai Super Kings Cricket Ltd. * # ∞ ø   10,578 
 545,989   Cox & Kings Ltd. #   290,744 
 402,153   Delta Corp. Ltd. #   996,514 
 1,175,930   Lemon Tree Hotels Ltd. Reg S 144A * #   1,139,456 
         2,437,292 
Consumer, Cyclical: 0.1%
 211,645   Kesoram Industries Ltd. * #   194,888 
           
Diversified Financials: 6.8%
 76,870   BSE Ltd. #   682,857 
 134,830   Care Ratings Ltd. #   1,842,907 
 155,111   Central Depository Services India Ltd. Reg S #   495,095 
 4,738,947   IDFC Ltd. #   2,382,277 
 4,615,164   IFCI Ltd. * #   615,264 
 136,954   IndoStar Capital Finance Ltd. Reg S 144A #   723,854 
 107,238   Multi Commodity Exchange of India Ltd. #   1,292,402 
 953,341   PTC India Financial Services Ltd. #   214,112 
 750,192   Reliance Capital Ltd. #   718,856 
 170,244   Repco Home Finance Ltd. #   940,839 
 995,642   SREI Infrastructure Finance Ltd. #   258,177 
 244,607   Tourism Finance Corp of India Ltd. #   387,236 
         10,553,876 
Energy: 1.0%
 221,030   Chennai Petroleum Corp. Ltd. #   665,112 
 472,007   Gujarat Mineral Development Corp. Ltd. #   513,853 
 193,692   Hindustan Oil Exploration Co. Ltd. * #   346,351 
         1,525,316 
Food, Beverage & Tobacco: 5.4%
 202,228   Avanti Feeds Ltd. #   1,030,312 
 833,551   Balrampur Chini Mills Ltd. #   1,679,914 
 67,527   Godfrey Phillips India Ltd. #   812,490 
 175,693   Kaveri Seed Co. Ltd. #   1,173,171 
 191,036   Manpasand Beverages Ltd. #   97,992 
 258,407   McLeod Russel India Ltd.   62,143 
 208,086   Parag Milk Foods Ltd. Reg S 144A #   771,381 
 330,033   Radico Khaitan Ltd. #   1,509,008 
 2,608,040   Shree Renuka Sugars Ltd. * #   347,620 
 382,868   Triveni Engineering & Industries Ltd.   378,833 
 20,909   Venky’s India Ltd. #   504,514 
         8,367,378 
Health Care Equipment & Services: 0.9%
 398,779   Max India Ltd. * #   392,165 
 219,577   Take Solutions Ltd. #   397,909 
 78,369   Thyrocare Technologies Ltd. Reg S 144A #   535,892 
         1,325,966 


 

See Notes to Financial Statements

21

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

(unaudited) (continued)

 

Number
of Shares		      Value 
         
Household & Personal Products: 0.1%
 193,304   Eveready Industries India Ltd.  $223,751 
Materials: 18.0%
 165,721   Advanced Enzyme Technologies Ltd. Reg S #   407,401 
 29,026   Astec Lifesciences Ltd. #   198,637 
 44,028   Atul Ltd. #   2,538,739 
 246,253   Bhansali Engineering Polymers Ltd. #   224,561 
 181,575   Bodal Chemicals Ltd. #   261,927 
 329,771   Century Plyboards India Ltd. #   800,034 
 617,775   Chambal Fertilizers & Chemicals Ltd. #   1,567,033 
 231,465   DCM Shriram Ltd. #   1,886,156 
 130,922   Deepak Fertilizers & Petrochemicals Corp. Ltd. #   204,449 
 262,714   EID Parry India Ltd. #   697,436 
 145,503   GHCL Ltd.   505,263 
 230,687   Gujarat Narmada Valley Fertilizers Co. Ltd. #   781,626 
 621,342   Himadri Speciality Chemical Ltd. #   944,733 
 686,651   Hindustan Copper Ltd. #   397,480 
 766,635   India Cements Ltd. #   1,107,408 
 59,030   International Paper APPM Ltd. * #   365,375 
 297,982   Jai Corp. Ltd. #   444,317 
 731,692   Jindal Saw Ltd. #   882,523 
 350,197   Jindal Stainless Hisar Ltd. * #   402,523 
 174,659   JK Lakshmi Cement Ltd.   863,332 
 264,566   JK Paper Ltd. #   467,134 
 64,795   Kalyani Steels Ltd. #   197,119 
 54,277   Kiri Industries Ltd. * #   401,683 
 377,479   Meghmani Organics Ltd. #   350,274 
 208,551   Mishra Dhatu Nigam Ltd. Reg S 144A #   386,012 
 382,369   MOIL Ltd. #   843,333 
 19,217   Monsanto India Ltd. #   610,623 
 424,764   National Fertilizers Ltd. #   227,449 
 22,149   Nilkamal Ltd. #   384,585 
 245,574   NOCIL Ltd. #   418,042 
 255,800   Phillips Carbon Black Ltd. #   430,724 
 242,457   Prakash Industries Ltd. * #   225,028 
 747,131   Prism Johnson Ltd. #   980,374 
 499,238   Rain Industries Ltd. #   725,098 
 288,651   Rallis India Ltd. #   609,346 
 818,870   Rashtriya Chemicals & Fertilizers Ltd. #   718,637 
 310,466   Sanghi Industries Ltd. * #   279,372 
 53,509   Sarda Energy & Minerals Ltd. #   179,064 
 214,659   SH Kelkar & Co. Ltd. Reg S 144A #   404,588 
 2,575,719   Sintex Plastics Technology Ltd. * #   263,118 
 102,755   Sudarshan Chemical Industries #   475,721 
 80,760   Surya Roshni Ltd. #   267,943 
 102,729   Tamil Nadu Newsprint & Papers Ltd. #   271,248 
 37,535   Tata Metaliks Ltd. #   327,845 
 21,051   Tata Sponge Iron Ltd. #   167,976 
 155,360   Tinplate Co. of India Ltd. #   288,741 
 107,185   Uflex Ltd. #   375,777 
 606,917   Welspun Corp. Ltd. #   1,235,783 
         27,993,590 
Media & Entertainment: 4.9%
 205,497   Eros International Plc (USD) *   277,421 
 144,201   Just Dial Ltd. * #   1,589,520 
 1,618,736   Network 18 Media & Investments Ltd. * #   638,037 
Number
of Shares		      Value 
         
Media & Entertainment: (continued)
 144,530   PVR Ltd. #  $3,506,477 
 25,857   Saregama India Ltd. #   210,473 
 95,934   TV Today Network Ltd. #   391,351 
 2,756,675   TV18 Broadcast Ltd. * #   967,759 
         7,581,038 
Pharmaceuticals, Biotechnology: 7.8%
 153,100   Bliss Gvs Pharma Ltd. #   342,349 
 770,484   Granules India Ltd. #   1,080,616 
 273,502   Ipca Laboratories Ltd. #   3,636,499 
 119,096   JB Chemicals & Pharmaceuticals Ltd. #   632,783 
 1,240,402   Marksans Pharma Ltd. #   369,532 
 24,639   Proctor & Gamble Health Ltd. #   1,468,019 
 271,375   Strides Pharma Science Ltd. #   1,568,500 
 518,566   Sun Pharma Advanced Research Co. Ltd. * #   873,263 
 314,875   Suven Life Sciences Ltd. #   1,236,717 
 177,969   Wockhardt Ltd. * #   966,717 
         12,174,995 
Real Estate: 4.4%
 675,268   Anant Raj Industries Ltd. #   291,108 
 1,544,305   Housing Development & Infrastructure Ltd. * #   376,906 
 1,538,704   Indiabulls Real Estate Ltd. * #   2,537,565 
 271,480   OMAXE Ltd.   784,619 
 187,706   Sobha Developers Ltd. #   1,474,074 
 217,219   Sunteck Realty Ltd. #   1,369,564 
         6,833,836 
Retailing: 1.6%
 674,195   Future Retail Ltd. * #   344,419 
 984,673   Infibeam Avenues Ltd. #   630,244 
 1,025,109   PC Jeweller Ltd. #   672,198 
 50,873   Shankara Building Products Ltd. #   324,613 
 50,577   V2 Retail Ltd. * #   126,050 
 85,709   Yatra Online, Inc. (USD) *   320,552 
         2,418,076 
Software & Services: 9.4%
 1,000,326   Birlasoft Ltd. #   1,250,792 
 1,026,658   Firstsource Solutions Ltd. #   734,028 
 195,820   Intellect Design Arena Ltd. * #   753,512 
 42,144   Majesco Ltd. * #   331,542 
 71,193   Mastek Ltd. #   491,531 
 116,196   Newgen Software Technologies Ltd. #   521,323 
 507,641   NIIT Ltd. * #   757,893 
 187,206   NIIT Technologies Ltd. #   3,647,954 
 241,319   Persistent Systems Ltd. #   2,158,470 
 96,011   Quick Heal Technologies Ltd. Reg S 144A #   233,321 
 195,108   Sonata Software Ltd. #   987,475 
 92,367   Tata Elxsi Ltd. #   1,184,174 
 3,210,470   Vakrangee Software Ltd. #   1,572,466 
         14,624,481 
Technology Hardware & Equipment: 1.6%
 753,328   HCL Infosystems Ltd. * #   143,966 
 1,082,838   Redington India Ltd. #   1,708,906 
 278,535   Tejas Networks Ltd. Reg S 144A * #   576,983 
         2,429,855 


 

See Notes to Financial Statements

22

 

 

Number
of Shares		      Value 
           
Telecommunication Services: 0.8%
 3,877,713   Himachal Futuristic Communications Ltd. #  $1,095,700 
 7,012,504   Reliance Communications Ltd. *   142,226 
         1,237,926 
Transportation: 2.0%
 41,561   Dredging Corp. of India Ltd. #   258,774 
 316,046   Gateway Distriparks Ltd. #   602,315 
 161,108   Gati Ltd. #   169,387 
 4,491,028   GVK Power & Infrastructure Ltd. * #   387,344 
 168,611   Jet Airways India Ltd. * #   166,103 
 106,049   Mahindra Logistics Ltd. Reg S 144A #   741,569 
 662,578   Shipping Corp of India Ltd. * #   300,568 
 134,095   VRL Logistics Ltd. #   536,205 
         3,162,265 
Utilities: 1.9%
 8,895,345   Jaiprakash Power Ventures Ltd. * #   258,243 
 1,098,412   PTC India Ltd. #   1,068,904 
 715,652   Reliance Infrastructure Ltd. #   576,584 
 4,163,648   Reliance Power Ltd. * #   250,258 
 165,737   VA Tech Wabag Ltd. #   742,650 
         2,896,639 
Total Common Stocks
(Cost: $166,403,105)		   155,335,130 
Number
of Shares		      Value 
           
RIGHTS: 0.0%
(Cost: $38,725)
Materials: 0.0%
 50,753   Tata Sponge Iron Ltd. Rights (INR 500.00, expiring 07/17/19 ) * #  $37,278 
Total Investments: 100.1%
(Cost: $166,441,830)		   155,372,408 
Liabilities in excess of other assets: (0.1)%   (119,320)
NET ASSETS: 100.0%  $155,253,088 


 

 

Definitions:
INR Indian Rupee
USD United States Dollar
Footnotes:
(a) Represents Consolidated Schedule of Investments.
* Non-income producing
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $148,226,508 which represents 95.5% of net assets.
ø Restricted Security – the aggregate value of restricted securities is $10,578, or 0.0% of net assets.
∞ Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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 $8,043,398, or 5.2% of net assets.

 

Restricted securities held by the Fund as of June 30, 2019 are as follows:

 

Security  Acquisition
Date		  Number of
Shares		  Acquisition
Cost		  Value  % of
Net Assets
Chennai Super Kings Cricket Ltd.  10/08/15   1,298,085    $35,108         $10,578    0.0%

 

See Notes to Financial Statements

23

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

(unaudited) (continued)

 

Summary of Investments by Sector    % of Investments  Value 
Communication Services                5.7%  $8,818,964 
Consumer Discretionary     11.9    18,515,299 
Consumer Staples     5.5    8,591,129 
Energy     1.0    1,525,316 
Financials     17.3    26,889,666 
Health Care     8.7    13,500,961 
Industrials     14.6    22,715,394 
Information Technology     11.0    17,054,336 
Materials     18.0    28,030,868 
Real Estate     4.4    6,833,836 
Utilities     1.9    2,896,639 
      100.0%  $155,372,408 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                      
Automobiles & Components    $—   $2,282,094   $—   $2,282,094 
Banks     —    16,335,790    —    16,335,790 
Capital Goods     396,802    18,476,847    —    18,873,649 
Commercial & Professional Services     —    679,480    —    679,480 
Consumer Durables & Apparel     3,190,958    7,991,991    —    11,182,949 
Consumer Services     —    2,426,714    10,578    2,437,292 
Consumer, Cyclical     —    194,888    —    194,888 
Diversified Financials     —    10,553,876    —    10,553,876 
Energy     —    1,525,316    —    1,525,316 
Food, Beverage & Tobacco     440,976    7,926,402    —    8,367,378 
Health Care Equipment & Services     —    1,325,966    —    1,325,966 
Household & Personal Products     223,751    —    —    223,751 
Materials     1,368,595    26,624,995    —    27,993,590 
Media & Entertainment     277,421    7,303,617    —    7,581,038 
Pharmaceuticals, Biotechnology     —    12,174,995    —    12,174,995 
Real Estate     784,619    6,049,217    —    6,833,836 
Retailing     320,552    2,097,524    —    2,418,076 
Software & Services     —    14,624,481    —    14,624,481 
Technology Hardware & Equipment     —    2,429,855    —    2,429,855 
Telecommunication Services     142,226    1,095,700    —    1,237,926 
Transportation     —    3,162,265    —    3,162,265 
Utilities     —    2,896,639    —    2,896,639 
Rights*     —    37,278    —    37,278 
Total    $7,145,900   $148,215,930   $10,578   $155,372,408 

 

* See Schedule of Investments for industry sector breakouts.

 

See Notes to Financial Statements

24

VANECK VECTORS INDONESIA INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
  
COMMON STOCKS: 99.7%
Automobiles & Components: 6.3%     
 5,377,200   Astra International Tbk PT #  $2,836,113 
Banks: 29.4%     
 1,698,400   Bank Central Asia Tbk PT #   3,604,134 
 995,700   Bank Danamon Indonesia Tbk PT   338,302 
 4,727,202   Bank Mandiri Persero Tbk PT #   2,683,864 
 3,967,932   Bank Negara Indonesia Persero Tbk PT #   2,585,124 
 11,790,000   Bank Rakyat Indonesia Tbk PT #   3,639,869 
 2,271,300   Bank Tabungan Negara Tbk PT #   395,685 
         13,246,978 
Capital Goods: 1.3%     
 1,628,868   PP Persero Tbk PT #   254,697 
 2,474,588   Waskita Karya Persero Tbk PT #   352,145 
         606,842 
Diversified Financials: 1.4%     
 1,001,250   First Pacific Company Ltd. #   406,238 
 5,955,500   Kresna Graha Investama Tbk PT * #   229,748 
         635,986 
Energy: 9.4%     
 8,575,200   Adaro Energy Tbk PT #   826,667 
 2,407,897   Banpu PCL (NVDR) #   1,179,042 
 212,000   Indo Tambangraya Megah Tbk PT #   263,533 
 1,667,900   Tambang Batubara Bukit Asam Tbk PT #   349,840 
 820,069   United Tractors Tbk PT #   1,636,240 
         4,255,322 
Food, Beverage & Tobacco: 11.4%     
 3,868,700   Charoen Pokphand Indonesia Tbk PT #   1,295,842 
 2,185,000   Golden Agri-Resources Ltd. #   469,124 
 247,600   Gudang Garam Tbk PT #   1,347,814 
 1,188,100   Indofood Cbp Sukses Makmur Tbk PT #   853,972 
 2,354,000   Indofood Sukses Makmur Tbk PT #   1,170,577 
         5,137,329 
Health Care Equipment & Services: 0.9%     
 3,042,697   Mitra Keluarga Karyasehat Tbk PT Reg S * #   408,042 
Household & Personal Products: 4.3%     
 613,700   Unilever Indonesia Tbk PT #   1,956,145 
Materials: 11.1%     
 2,575,700   Barito Pacific Tbk PT #   585,499 
 765,000   Chandra Asri Petrochemical Tbk PT #   269,160 
 1,378,700   Indah Kiat Pulp and Paper Corp. Tbk PT #   916,423 
 967,200   Indocement Tunggal Prakarsa Tbk PT #   1,366,939 
 667,700   Pabrik Kertas Tjiwi Kimia Tbk PT #   594,697 
 1,558,400   Semen Indonesia Persero Tbk PT #   1,276,421 
         5,009,139 
Number
of Shares		      Value 
           
Media & Entertainment: 0.8%     
 3,088,300   Surya Citra Media Tbk PT #  $352,223 
Pharmaceuticals, Biotechnology: 2.5%     
 10,807,500   Kalbe Farma Tbk PT #   1,116,051 
Real Estate: 4.5%     
 4,953,500   Bumi Serpong Damai Tbk PT * #   537,944 
 5,274,495   Ciputra Development Tbk PT #   429,564 
 38,144,500   Hanson International Tbk PT *   283,502 
 8,005,000   Pakuwon Jati Tbk PT #   413,538 
 4,177,100   Summarecon Agung Tbk PT #   360,689 
         2,025,237 
Retailing: 4.8%     
 3,678,200   Ace Hardware Indonesia Tbk PT #   471,289 
 52,988   Jardine Cycle & Carriage Ltd. #   1,419,991 
 1,048,200   Matahari Department Store Tbk PT #   256,078 
         2,147,358 
Telecommunication Services: 8.7%     
 111,351   Telekomunikasi Indonesia Tbk PT (ADR)   3,255,903 
 971,900   Tower Bersama Infrastructure Tbk PT #   260,884 
 1,948,475   XL Axiata Tbk PT * #   410,919 
         3,927,706 
Transportation: 1.0%     
 1,167,450   Jasa Marga Persero Tbk PT #   472,773 
Utilities: 1.9%     
 5,589,100   Perusahaan Gas Negara Tbk PT #   834,863 
Total Common Stocks
(Cost: $53,609,591)		   44,968,107 
MONEY MARKET FUND: 0.3%
(Cost: $134,393)		     
 134,393   Dreyfus Government Cash Management Fund – Institutional Shares   134,393 
Total Investments: 100.0%
(Cost: $53,743,984)		   45,102,500 
Other assets less liabilities: 0.0%   7,573 
NET ASSETS: 100.0%  $45,110,073 


 

See Notes to Financial Statements

 25 

VANECK VECTORS INDONESIA INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:

ADR American Depositary Receipt
NVDR Non-Voting Depositary Receipt

Footnotes:

* Non-income producing
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $41,090,400 which represents 91.1% 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.

 

Summary of Investments by Sector    % of Investments  Value 
Communication Services                9.5%          $4,279,929 
Consumer Discretionary     11.0    4,983,471 
Consumer Staples     15.7    7,093,474 
Energy     9.4    4,255,322 
Financials     30.8    13,882,964 
Health Care     3.4    1,524,093 
Industrials     2.4    1,079,615 
Materials     11.1    5,009,139 
Real Estate     4.5    2,025,237 
Utilities     1.9    834,863 
Money Market Fund     0.3    134,393 
      100.0%  $45,102,500 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		  Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                   
Automobiles & Components  $—  $2,836,113   $—   $2,836,113 
Banks   338,302   12,908,676    —    13,246,978 
Capital Goods   —   606,842    —    606,842 
Diversified Financials   —   635,986    —    635,986 
Energy   —   4,255,322    —    4,255,322 
Food, Beverage & Tobacco   —   5,137,329    —    5,137,329 
Health Care Equipment & Services   —   408,042    —    408,042 
Household & Personal Products   —   1,956,145    —    1,956,145 
Materials   —   5,009,139    —    5,009,139 
Media & Entertainment   —   352,223    —    352,223 
Pharmaceuticals, Biotechnology   —   1,116,051    —    1,116,051 
Real Estate   283,502   1,741,735    —    2,025,237 
Retailing   —   2,147,358    —    2,147,358 
Telecommunication Services   3,255,903   671,803    —    3,927,706 
Transportation   —   472,773    —    472,773 
Utilities   —   834,863    —    834,863 
Money Market Fund   134,393   —    —    134,393 
Total  $4,012,100  $41,090,400   $—   $45,102,500 

 

See Notes to Financial Statements

 26 

VANECK VECTORS ISRAEL ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 100.0%     
Banks: 17.7%     
 376,726   Bank Hapoalim BM #  $2,799,417 
 494,152   Bank Leumi Le-Israel BM #   3,574,006 
 17,448   First International Bank of Israel Ltd. #   441,068 
 387,648   Israel Discount Bank Ltd. #   1,581,593 
 44,879   Mizrahi Tefahot Bank Ltd. #   1,037,367 
 6,236   Union Bank of Israel * †   29,602 
         9,463,053 
Capital Goods: 4.6%     
 8,244   Arotech Corp. *   16,406 
 7,506   Caesarstone Sdot-Yam Ltd. (USD)   112,815 
 7,622   Discount Investment Corp. #   13,284 
 7,896   Elbit Systems Ltd. #   1,178,840 
 3,173   Elco Holdings Ltd. #   68,018 
 562   Electra Ltd. #   157,192 
 1,947   Ham-Let Israel-Canada Ltd. #   35,063 
 17,846   Inrom Construction Industries Ltd. #   62,653 
 11,275   Kornit Digital Ltd. (USD) *   356,967 
 1,015   Plasson Industries Ltd. #   43,402 
 8,768   RADA Electronic Industries Ltd. (USD) *   29,460 
 2,044   Scope Metals Group Ltd. #   47,986 
 38,174   Shapir Engineering and Industry Ltd. #   140,261 
 66,817   Shikun & Binui Ltd. #   195,129 
         2,457,476 
Commercial & Professional Services: 0.3%     
 1,666   Danel Adir Yeoshua Ltd. #   108,696 
 1,849   Pointer Telocation Ltd. (USD) *   28,197 
         136,893 
Consumer Durables & Apparel: 0.5%     
 2,936   Delta-Galil Industries Ltd. #   86,532 
 3,487   Electra Consumer Products Ltd. #   42,725 
 2,295   Fox Wizel Ltd. #   65,729 
 14,124   Maytronics Ltd. #   97,464 
         292,450 
Consumer Services: 0.7%     
 114,721   888 Holdings Plc   237,989 
 1,349   Fattal Holdings Ltd. #   159,177 
         397,166 
Diversified Financials: 0.4%     
 33,598   Plus500 Ltd. (GBP) #   222,811 
Energy: 2.5%     
 1,481   Delek Group Ltd. #   254,917 
 17,640   Energean Oil & Gas Plc * #   186,543 
 11,774   Naphtha Israel Petroleum Corp. Ltd. #   77,128 
 554,642   Oil Refineries Ltd. * #   285,087 
 3,406   Paz Oil Co. Ltd. #   480,005 
 23,074   Tamar Petroleum Ltd. Reg S 144A #   70,247 
         1,353,927 
Food & Staples Retailing: 1.0%     
 2,455   Rami Levi Chain Stores Hashikma Marketing Ltd. #   128,115 
 57,607   Shufersal Ltd. #   384,558 
         512,673 
Number
of Shares		      Value 
         
Food, Beverage & Tobacco: 0.9%     
 16,481   Strauss Group Ltd. #  $474,785 
Health Care Equipment & Services: 3.3%     
 5,850   Brainsway Ltd. * #   30,312 
 13,128   Intercure Ltd. * #   26,872 
 23,213   Mediterranean Towers Ltd.   47,167 
 26,002   Novocure Ltd. (USD) *   1,644,106 
         1,748,457 
Insurance: 2.2%     
 13,723   Clal Insurance Enterprises Holdings Ltd. * #   228,975 
 3,705   Direct Insurance Financial #   40,874 
 36,416   Harel Insurance Investments & Financial Services Ltd. #   273,585 
 2,568   IDI Insurance Co. Ltd. #   99,977 
 7,605   Menorah Mivtachim Holdings Ltd. #   115,560 
 109,231   Migdal Insurance & Financial Holdings Ltd. #   114,652 
 49,574   Phoenix Holdings Ltd. #   300,886 
         1,174,509 
Materials: 3.0%     
 897   Hadera Paper Ltd. #   61,614 
 236,815   Israel Chemicals Ltd. #   1,246,661 
 1,250   Israel Corp. Ltd. * #   304,665 
         1,612,940 
Media & Entertainment: 0.3%     
 55,984   Taptica international Ltd. (GBP)   83,007 
 64,283   XLMedia Plc   51,951 
         134,958 
Pharmaceuticals & Biotechnology: 8.0%     
 55,215   BioLine RX Ltd. (ADR) *   20,153 
 19,094   Compugen Ltd. (USD) * †   73,321 
 17,724   Foamix Pharmaceuticals Ltd. (USD) * †   42,183 
 5,404   Galmed Pharmaceuticals Ltd. (USD) * †   39,719 
 9,256   Intec Pharma Ltd. (USD) *   40,171 
 8,790   Kamada Ltd. * #   47,599 
 45,852   Pluristem Therapeutics, Inc. (USD) *   28,460 
 9,423   Redhill Biopharma Ltd. (ADR) *   61,250 
 3,238   Taro Pharmaceutical Industries Ltd. (USD)   276,590 
 372,371   Teva Pharmaceutical Industries Ltd. * #   3,415,543 
 5,813   UroGen Pharma Ltd. *   208,919 
         4,253,908 
Real Estate: 7.4%     
 2,045   A.D.O Group Ltd. * #   30,667 
 6,242   Africa Israel Properties Ltd. * #   201,530 
 24,237   Airport City Ltd. * #   445,989 
 37,616   Alony Hetz Properties & Investments Ltd. #   489,169 
 49,676   Amot Investments Ltd. #   330,528 
 11,097   Ashtrom Properties Ltd. #   60,080 
 12,315   Azrieli Group Ltd. #   826,892 
 343   Bayside Land Corp. #   181,514 
 1,640   Big Shopping Centers Ltd. * #   118,636 
 1,644   Blue Square Real Estate Ltd. #   71,610 
 1,472   Brack Capital Properties NV (ILS) * #   139,228 
 19,452   Gazit-Globe Ltd. #   161,032 
 46,450   Industrial Buildings Corp. * #   92,234 


 

See Notes to Financial Statements

 27 

VANECK VECTORS ISRAEL ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Number
of Shares		       
Value		 
           
Real Estate: (continued)     
 67,842   Jerusalem Economy Ltd. * #  $260,395 
 5,317   Mega Or Holdings Ltd. #   98,015 
 5,298   Melisron Ltd. #   285,809 
 679   Property & Building Corp. #   66,431 
 10,523   Summit Real Estate Holdings Ltd. #   101,543 
         3,961,302 
Retailing: 0.1%     
 12,194   Delek Automotive Systems Ltd. #   56,008 
Semiconductor: 7.2%     
 6,669   Camtek Ltd. (USD)   56,353 
 7,128   Ceva, Inc. *   173,567 
 7,076   DSP Group, Inc. *   101,611 
 16,797   Mellanox Technologies Ltd. (USD) *   1,858,924 
 8,253   Nova Measuring Instruments Ltd. * #   205,721 
 15,004   SolarEdge Technologies, Inc. (USD) * †   937,150 
 31,884   Tower Semiconductor Ltd. (USD) *   502,811 
         3,836,137 
Software & Services: 33.4%     
 10,908   Allot Communications Ltd. (USD) *   78,647 
 47,097   Amdocs Ltd.   2,924,253 
     Attunity Ltd. (USD) †   0 
 40,686   Check Point Software Technologies Ltd. (USD) *   4,703,708 
 12,625   CyberArk Software Ltd. (USD) *   1,613,980 
 11,821   ForeScout Technologies, Inc. *   400,259 
 2,349   Formula Systems Ltd. #   121,217 
 4,873   Hilan Ltd. #   158,668 
 20,830   LivePerson, Inc. *   584,073 
 8,113   Magic Software Enterprises Ltd. (USD)   72,774 
 10,864   Matrix IT Ltd. #   156,570 
 20,599   NICE Systems Ltd. * #   2,821,692 
 15,314   SafeCharge International Group Ltd. #   84,025 
 8,667   Sapiens International Corp. NV (USD)   144,046 
 10,014   Varonis Systems, Inc. *   620,267 
 21,816   Verint Systems, Inc. *   1,173,265 
 15,390   Wix.com Ltd. (USD) *   2,186,919 
         17,844,363 
Technology Hardware & Equipment: 2.7%     
 6,552   AudioCodes Ltd. (USD)   101,425 
 110,740   BATM Advanced Communications (GBP) * #   60,649 
 20,894   Ceragon Networks Ltd. (USD) *   61,219 
 8,401   Gilat Satellite Networks Ltd. #   72,217 
 6,622   Ituran Location and Control Ltd. (USD)   199,256 
 3,847   RADCOM Ltd. (USD) * †   31,699 
 13,384   Radware Ltd. (USD) *   330,986 
 2,080   Silicom Ltd. (USD) *   67,995 
 17,676   Stratasys Ltd. *   519,144 
 38,844   Suny Cellular Communication Ltd. * #   20,887 
         1,465,477 
Number
of Shares		      Value 
           
Telecommunication Services: 1.3%     
 672,948   Bezeq The Israeli Telecommunication Corp. Ltd. #  $510,030 
 16,994   Cellcom Israel Ltd. * #   48,737 
 29,974   Partner Communications Co. Ltd. * #   128,343 
         687,110 
Transportation: 0.0%     
 97,174   El Al Israel Airlines * #   25,419 
Utilities: 2.5%     
 47,572   Energix-Renewable Energies Ltd. *   96,036 
 162,442   Enlight Renewable Energy Ltd. * † #   128,515 
 6,034   Kenon Holdings Ltd. (ILS) #   128,113 
 15,187   Ormat Technologies, Inc.   962,704 
         1,315,368 
Total Common Stocks
(Cost: $46,014,466)		   53,427,190 
          
Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.5%
(Cost: $282,007)		     
Repurchase Agreement: 0.5%     
$282,007   Repurchase agreement dated 6/28/19 with J.P. Morgan Securities LLC, 2.53%, due 7/1/19, proceeds $282,066; (collateralized by various U.S. government and agency obligations, 3.68%, due 7/31/19 to 6/30/22, valued at $287,647 including accrued interest)   282,007 
Total Investments: 100.5%
(Cost: $46,296,473)		   53,709,197 
Liabilities in excess of other assets: (0.5)%   (243,838)
NET ASSETS: 100.0%  $53,465,359 


 

See Notes to Financial Statements

 28 

 

 

Definitions:

ADR American Depositary Receipt
GBP British Pound
ILS New Israeli Shekel
USD United States Dollar

Footnotes:

* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $209,883.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $29,495,686 which represents 55.2% 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 $70,247, or 0.1% of net assets.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments  Value 
Communication Services          1.6%          $822,068 
Consumer Discretionary   1.4    745,624 
Consumer Staples   1.9    987,458 
Energy   2.5    1,353,927 
Financials   20.3    10,860,373 
Health Care   11.2    6,002,365 
Industrials   4.9    2,619,788 
Information Technology   43.3    23,145,977 
Materials   3.0    1,612,940 
Real Estate   7.4    3,961,302 
Utilities   2.5    1,315,368 
    100.0%  $53,427,190 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		     Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		    Value 
Common Stocks                            
Banks    $29,602     $9,433,451     $—     $9,463,053 
Capital Goods     515,648      1,941,828      —      2,457,476 
Commercial & Professional Services     28,197      108,696      —      136,893 
Consumer Durables & Apparel     —      292,450      —      292,450 
Consumer Services     237,989      159,177      —      397,166 
Diversified Financials     —      222,811      —      222,811 
Energy     —      1,353,927      —      1,353,927 
Food & Staples Retailing     —      512,673      —      512,673 
Food, Beverage & Tobacco     —      474,785      —      474,785 
Health Care Equipment & Services     1,691,273      57,184      —      1,748,457 
Insurance     —      1,174,509      —      1,174,509 
Materials     —      1,612,940      —      1,612,940 
Media & Entertainment     134,958      —      —      134,958 
Pharmaceuticals, Biotechnology     790,766      3,463,142      —      4,253,908 
Real Estate     —      3,961,302      —      3,961,302 
Retailing     —      56,008      —      56,008 
Semiconductor     3,630,416      205,721      —      3,836,137 
Software & Services     14,502,191      3,342,172      —      17,844,363 
Technology Hardware & Equipment     1,311,724      153,753      —      1,465,477 
Telecommunication Services     —      687,110      —      687,110 
Transportation     —      25,419      —      25,419 
Utilities     1,058,740      256,628      —      1,315,368 
Repurchase Agreement     —      282,007      —      282,007 
Total    $23,931,504     $29,777,693     $—     $53,709,197 

 

See Notes to Financial Statements

 29 

VANECK VECTORS RUSSIA ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 96.2%     
Banks: 9.9%     
 6,441,502   Sberbank of Russia PJSC (ADR) # $   99,238,147 
 19,391,617   VTB Bank OJSC Reg S (GDR) #   24,436,055 
         123,674,202 
Diversified Financials: 1.9%     
 16,745,978   Moscow Exchange MICEX-RTS PJSC #   23,936,887 
 
Energy: 36.3%     
 13,513,072   Gazprom PJSC (ADR) #   99,167,881 
 1,059,463   Lukoil PJSC (ADR) #   89,566,898 
 359,455   Novatek PJSC Reg S (GDR) #   76,409,435 
 9,364,251   Rosneft Oil Co. PJSC Reg S (GDR) #   61,443,692 
 11,136,123   Surgutneftegas OJSC (ADR) #   45,865,592 
 1,103,506   Tatneft PJSC (ADR) #   81,609,219 
         454,062,717 
Food & Staples Retailing: 8.3%     
 3,855,114   Magnit OAO Reg S (GDR) #   56,400,931 
 1,388,291   X5 Retail Group NV Reg S (GDR) #   47,507,818 
         103,908,749 
Materials: 23.2%     
 31,221,897   Alrosa PJSC #   42,597,935 
 6,154,995   Evraz Plc (GBP) #   52,229,343 
 2,986,268   MMC Norilsk Nickel PJSC (ADR)   67,818,146 
 1,195,612   Novolipetsk Steel PJSC Reg S (GDR) #   30,199,236 
 1,259,558   PhosAgro OAO Reg S (GDR) #   16,530,398 
 3,160,221   Polymetal International Plc (GBP) #   40,157,629 
 2,402,349   Severstal PJSC Reg S (GDR)   40,479,581 
         290,012,268 
Number
of Shares		      Value 
           
Media & Entertainment: 7.0%     
 1,300,338      Mail.ru Group Ltd. Reg S (GDR) * #  $33,086,015 
 1,415,859   Yandex NV (USD) *   53,802,642 
         86,888,657 
Telecommunication Services: 7.0%     
 5,606,228   Mobile TeleSystems OJSC (ADR)   52,193,983 
 2,193,841   Rostelecom PJSC (ADR) #   16,809,613 
 6,352,034   VEON Ltd. (ADR)   17,785,695 
         86,789,291 
Utilities: 2.6%     
 455,595,410   Inter Rao Ues PJSC #   32,718,916 
 7,410,870   Irkutsk Electronetwork Co. JSC (USD) * # ∞   207,078 
         32,925,994 
Total Common Stocks
(Cost: $1,261,710,471)		   1,202,198,765 
PREFERRED STOCK: 4.1%
(Cost: $54,432,330)		     
Energy: 4.1%     
 19,385   AK Transneft OAO, 4.58% #   50,859,411 
Total Investments: 100.3%
(Cost: $1,316,142,801)		   1,253,058,176 
Liabilities in excess of other assets: (0.3)%   (3,127,271)
NET ASSETS: 100.0%  $1,249,930,905 


 

 

Definitions:

ADR American Depositary Receipt
GBP British Pound
GDR Global Depositary Receipt
USD United States Dollar

Footnotes:

* Non-income producing
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,020,978,129 which represents 81.7% of net assets.
∞ Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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  % of Investments  Value 
Communication Services          13.9%          $173,677,948 
Consumer Staples   8.3    103,908,749 
Energy   40.3    504,922,128 
Financials   11.8    147,611,089 
Materials   23.1    290,012,268 
Utilities   2.6    32,925,994 
    100.0%  $1,253,058,176 

 

See Notes to Financial Statements

 30 

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                            
Banks    $—   $123,674,202   $—   $123,674,202 
Diversified Financials     —    23,936,887    —    23,936,887 
Energy     —    454,062,717    —    454,062,717 
Food & Staples Retailing     —    103,908,749    —    103,908,749 
Materials     108,297,727    181,714,541    —    290,012,268 
Media & Entertainment     53,802,642    33,086,015    —    86,888,657 
Telecommunication Services     69,979,678    16,809,613    —    86,789,291 
Utilities     —    32,718,916    207,078    32,925,994 
Preferred Stock*     —    50,859,411    —    50,859,411 
Total    $232,080,047   $1,020,771,051   $207,078   $1,253,058,176 

 

* See Schedule of Investments for industry sector breakouts.

 

See Notes to Financial Statements

 31 

VANECK VECTORS RUSSIA SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 100.4%     
Banks: 7.6%     
 31,655,900   Credit Bank of Moscow PJSC #  $2,994,192 
Capital Goods: 1.9%     
 115,124   United Wagon Co. PJSC *   761,105 
Diversified Financials: 5.1%     
 180,005   Safmar Financial Investment #   1,433,639 
 88,470   Vostok New Ventures Ltd. (SDR) #   544,057 
         1,977,696 
Energy: 3.0%     
 1,230,498   TMK PJSC #   1,169,844 
Food & Staples Retailing: 3.4%     
 406,798   Lenta Ltd. Reg S (GDR) *   1,318,026 
Food, Beverage & Tobacco: 3.4%     
 113,295   Ros Agro Plc Reg S (GDR)   1,334,615 
Household & Personal Products: 4.4%     
 69,830   Oriflame Holding AG (SEK) #   1,710,124 
Materials: 12.2%     
 748,024   Highland Gold Mining Ltd. (GBP) #   1,945,022 
 826,320   Mechel PJSC * #   871,676 
 7,753,720   Petropavlovsk Plc (GBP) *   967,080 
 446,680   Raspadskaya OJSC * #   988,021 
         4,771,799 
Media & Entertainment: 4.0%     
 1,733,891   ITE Group Plc (GBP) #   1,579,674 
Number
of Shares		      Value 
           
Real Estate: 9.6%     
 679,189   Etalon Group Ltd. Reg S (GDR)  $1,514,591 
 867,770   LSR Group PJSC Reg S (GDR) #   2,236,210 
         3,750,801 
Retailing: 8.0%     
 997,530   Detsky Mir PJSC Reg S 144A #   1,357,124 
 264,069   M.Video PJSC *   1,787,254 
         3,144,378 
Software & Services: 4.4%     
 88,315   Qiwi Plc (ADR)   1,728,325 
Telecommunication Services: 5.8%     
 727,920   Sistema PJSC Reg S (GDR) #   2,252,521 
Transportation: 12.7%     
 2,004,053   Aeroflot PJSC   3,233,174 
 188,846   Globaltrans Investment Plc Reg S (GDR)   1,756,268 
         4,989,442 
Utilities: 14.9%     
 31,561,800   Mosenergo PJSC #   1,256,732 
 118,385,600   OGK-2 PJSC #   1,028,295 
 86,831,000   Rosseti PJSC #   1,899,524 
 40,050,000   Unipro PJSC #   1,667,203 
         5,851,754 
Total Common Stocks
(Cost: $42,781,072)		   39,334,296 
Liabilities in excess of other assets: (0.4)%   (175,781)
NET ASSETS: 100.0%  $39,158,515 


 

 

Definitions:

ADR American Depositary Receipt
GBP British Pound
GDR Global Depositary Receipt
SDR Swedish Depositary Receipt
SEK Swedish Krona

Footnotes:

* Non-income producing
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $24,933,858 which represents 63.7% 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 $1,357,124, or 3.5% of net assets.

 

See Notes to Financial Statements

 32 

 

 

Summary of Investments by Sector    % of Investments  Value 
Communication Services            9.8%          $3,832,195 
Consumer Discretionary     8.0    3,144,378 
Consumer Staples     11.1    4,362,765 
Energy     3.0    1,169,844 
Financials     12.6    4,971,888 
Industrials     14.6    5,750,547 
Information Technology     4.4    1,728,325 
Materials     12.1    4,771,799 
Real Estate     9.5    3,750,801 
Utilities     14.9    5,851,754 
      100.0%  $39,334,296 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                       
Banks    $—    $2,994,192   $—   $2,994,192 
Capital Goods     761,105     —    —    761,105 
Diversified Financials     —     1,977,696    —    1,977,696 
Energy     —     1,169,844    —    1,169,844 
Food & Staples Retailing     1,318,026     —    —    1,318,026 
Food, Beverage & Tobacco     1,334,615     —    —    1,334,615 
Household & Personal Products     —     1,710,124    —    1,710,124 
Materials     967,080     3,804,719    —    4,771,799 
Media & Entertainment     —     1,579,674    —    1,579,674 
Real Estate     1,514,591     2,236,210    —    3,750,801 
Retailing     1,787,254     1,357,124    —    3,144,378 
Software & Services     1,728,325     —    —    1,728,325 
Telecommunication Services     —     2,252,521    —    2,252,521 
Transportation     4,989,442     —    —    4,989,442 
Utilities     —     5,851,754    —    5,851,754 
Total    $14,400,438    $24,933,858   $—   $39,334,296 

 

See Notes to Financial Statements

 33 

VANECK VECTORS VIETNAM ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 99.6%     
Banks: 6.3%     
 9,655,002   Bank for Foreign Trade of Vietnam JSC #  $29,248,144 
 2   Saigon Thuong Tin Commercial JSB * #   1 
         29,248,145 
Capital Goods: 6.0%     
 9,453,901   FLC Faros Construction JSC * #   12,092,131 
 9,153,010   Hoang Huy Investment Financial Services JSC #   8,255,366 
 97   Vietnam Construction & Import-Export JSC   109 
 8,276,400   Vietnam Electrical Equipment #   7,822,168 
         28,169,774 
Consumer Durables & Apparel: 9.4%     
 1,635,160   Eclat Textile Co. Ltd. #   20,950,553 
 838,967   Hansae Co. Ltd. #   15,258,951 
 9,899,000   Regina Miracle International Holdings Ltd. Reg S 144A † #   7,887,958 
         44,097,462 
Diversified Financials: 3.0%     
 13,192,221   Saigon Securities, Inc. #   14,066,560 
Energy: 3.1%     
 16,534,550   Soco International Plc   14,688,380 
Food, Beverage & Tobacco: 14.4%     
 5,740,240   Masan Group Corp. * #   20,473,743 
 14,253,911   Thanh Thanh Cong Tay Ninh JSC #   10,531,826 
 6,889,106   Vietnam Dairy Products JSC #   36,400,020 
         67,405,589 
Health Care Equipment & Services: 4.5%     
 323,700   MANI, Inc. #   20,844,875 
Insurance: 4.5%     
 6,041,916   Bao Viet Holdings #   20,952,199 
Materials: 3.7%     
 17,032,719   Hoa Phat Group JSC * #   17,211,202 
Real Estate: 26.5%     
 11,699,266   No Va Land Investment Group Corp. *   29,919,599 
 16,966,422   Vincom Retail JSC #   24,646,662 
 7,435,382   Vingroup JSC * #   36,934,988 
 9,433,682   Vinhomes JSC Reg S 144A * #   32,142,412 
         123,643,661 
Technology Hardware & Equipment: 13.0%     
 1,377,950   BH Co. Ltd. * #   22,297,363 
 663,319   Mcnex Co. Ltd. #   16,573,827 
 3,981,083   Synopex, Inc. ‡ * #   9,574,736 
 731,343   UTI, Inc. #   12,069,580 
         60,515,506 
Number
of Shares		      Value 
           
Utilities: 5.2%     
 4,617,229   PetroVietnam Nhon Trach 2 Power JSC #  $5,290,717 
 28,788,260   PetroVietnam Power Corp. * #   18,772,264 
         24,062,981 
Total Common Stocks
(Cost: $419,973,142)		   464,906,334 
MONEY MARKET FUND: 0.4%
(Cost: $1,801,949)		     
 1,801,949   Dreyfus Government Cash Management Fund–Institutional Shares   1,801,949 
Total Investments Before Collateral for Securities Loaned: 100.0%
(Cost: $421,775,091)		   466,708,283 
           
Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.3%     
Repurchase Agreements: 0.3%     
$1,000,000   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,000,211; (collateralized by various U.S. government and agency obligations, 3.13%, due 7/5/19 to 9/9/49, valued at $1,020,000 including accrued interest)   1,000,000 
 625,919   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $626,049; (collateralized by various U.S. government and agency obligations, 3.13%, due 8/15/20 to 11/15/46, valued at $638,437 including accrued interest)   625,919 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $1,625,919)		   1,625,919 
Total Investments: 100.3%
(Cost: $423,401,010)		   468,334,202 
Liabilities in excess of other assets: (0.3)%   (1,536,375)
NET ASSETS: 100.0%  $466,797,827 


 

See Notes to Financial Statements

 34 

 

 

Footnotes:

‡ Affiliated issuer-as defined under the Investment Company Act of 1940.
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $1,521,495.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $420,298,246 which represents 90.0% 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 $40,030,370, or 8.6% of net assets.

 

A summary of the Fund’s transactions in securities of affiliates for the period ended June 30, 2019 is set forth below:

 

Affiliates  Value
12/31/18		     Purchases     Sales
Proceeds		     Realized
Gain (Loss)		     Dividend
Income		     Change in
Net Unrealized
Gain (Loss)		     Value
06/30/19
Synopex, Inc.      $—(a)       $3,364,527        $(865,794)         $(815,591)         $—            $(54,133)           $9,574,736   

 

(a) Security held by the Fund, however not classified as an affiliate at the beginning of the reporting period.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		    % of Investments  Value 
Consumer Discretionary            9.4%          $44,097,462 
Consumer Staples     14.4    67,405,589 
Energy     3.1    14,688,380 
Financials     13.8    64,266,904 
Health Care     4.5    20,844,875 
Industrials     6.0    28,169,774 
Information Technology     13.0    60,515,506 
Materials     3.7    17,211,202 
Real Estate     26.5    123,643,661 
Utilities     5.2    24,062,981 
Money Market Fund     0.4    1,801,949 
      100.0%  $466,708,283 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                       
Banks    $—    $29,248,145   $—   $29,248,145 
Capital Goods     109     28,169,665    —    28,169,774 
Consumer Durables & Apparel     —     44,097,462    —    44,097,462 
Diversified Financials     —     14,066,560    —    14,066,560 
Energy     14,688,380     —    —    14,688,380 
Food, Beverage & Tobacco     —     67,405,589    —    67,405,589 
Health Care Equipment & Services     —     20,844,875    —    20,844,875 
Insurance     —     20,952,199    —    20,952,199 
Materials     —     17,211,202    —    17,211,202 
Real Estate     29,919,599     93,724,062    —    123,643,661 
Technology Hardware & Equipment     —     60,515,506    —    60,515,506 
Utilities     —     24,062,981    —    24,062,981 
Money Market Fund     1,801,949     —    —    1,801,949 
Repurchase Agreements     —     1,625,919    —    1,625,919 
Total    $46,410,037    $421,924,165   $—   $468,334,202 

 

See Notes to Financial Statements

 35 

VANECK VECTORS ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2019 (unaudited)

 

   Africa
Index ETF		  Brazil
Small-Cap ETF		  ChinaAMC
CSI 300 ETF		  ChinaAMC
SME-ChiNext
ETF
                             
Assets:                            
Investments, at value                            
Unaffiliated issuers (1) (2)    $58,729,126     $90,874,399     $82,514,039     $27,083,107 
Affiliated issuers (3)     —      —      —      — 
Short-term investments held as collateral for securities loaned (4)     2,548,017      1,612,760      —      — 
Cash     —      —      —      36,976 
Cash denominated in foreign currency, at value (5)     763,184      475,404      2,784,448(b)     131,196(c)
Receivables:                            
Investment securities sold     255,335      —      —      — 
Shares sold     —      —      —      — 
Due from Adviser     —      —      2,257      — 
Dividends and interest     181,757      422,723      36      — 
Prepaid expenses     2,642      2,686      2,643      2,539 
Total assets     62,480,061      93,387,972      85,303,423      27,253,818 
                             
Liabilities:                            
Payables:                            
Investment securities purchased     748,815      —      —      — 
Collateral for securities loaned     2,548,017      1,612,760      —      — 
Line of credit     562,213      613,609      2,193,358      — 
Shares redeemed     412,298      —      —      — 
Due to Adviser     17,595      27,845      —      709 
Due to custodian     —      61      190,254      — 
Deferred Trustee fees     10,141      32,076      4,128      480 
Accrued expenses     119,095      93,897      174,579      108,099 
Total liabilities     4,418,174      2,380,248      2,562,319      109,288 
NET ASSETS    $58,061,887     $91,007,724     $82,741,104     $27,144,530 
Shares outstanding     2,600,000      3,800,000      2,050,000      1,050,000 
Net asset value, redemption and offering price per share    $22.33     $23.95     $40.36     $25.85 
                             
Net assets consist of:                            
Aggregate paid in capital    $106,127,000     $234,552,682     $74,478,992     $38,402,752 
Total distributable earnings (loss)     (48,065,113)     (143,544,958)     8,262,112      (11,258,222)
     $58,061,887     $91,007,724     $82,741,104     $27,144,530 
(1)  Value of securities on loan    $2,413,104     $1,616,699     $—     $— 
(2)  Cost of investments – Unaffiliated issuers    $50,330,213     $67,649,918     $68,582,726     $23,694,191 
(3)  Cost of investments – Affiliated issuers    $—     $—     $—     $— 
(4)  Cost of short-term investments held as collateral for securities loaned    $2,548,017     $1,612,760     $—     $— 
(5)  Cost of cash denominated in foreign currency    $630,247     $463,179     $2,762,835     $131,002 

 

 
(a) Represents consolidated Statement of Assets and Liabilities.
(b) Includes $4,441 on foreign investor minimum settlement reserve funds (See Note 2.J.).
(c) Includes $10,539 on foreign investor minimum settlement reserve funds (See Note 2.J.).

 

See Notes to Financial Statements

36

 

 

Egypt
Index ETF		  India
Small-Cap
Index ETF (a)		  Indonesia
Index ETF		  Israel ETF  Russia ETF  Russia
Small-Cap ETF		  Vietnam ETF
                                               
  $36,913,386     $155,372,408     $45,102,500     $53,427,190     $1,253,058,176     $39,334,296     $457,133,547 
   —      —      —      —      —      —      9,574,736 
                                               
   142,222      —      —      282,007      —      —      1,625,919 
   —      591,460      —      —      —      —      — 
   126,084      6,173,038      —      51,816      1,427,978      —      18,104,309 
                                               
   —      8,525      —      160,707      —      23,905      536,342 
   —      —      —      —      4,111      —      3,641,875 
   —      —      —      —      —      —      — 
   73,729      146,274      154,797      33,113      15,904,952      145,982      14,066 
   2,618      3,061      2,604      2,578      8,508      2,592      3,168 
   37,258,039      162,294,766      45,259,901      53,957,411      1,270,403,725      39,506,775      490,633,962 
                                               
   —      —      —      60,238      1,762,790      150,243      10,991,355 
   142,222      —      —      282,007      —      —      1,625,919 
   —      6,639,140      —      —      16,470,309      —      10,758,518 
   —      —      —      —      —      —      — 
   16,469      67,267      9,474      4,995      685,785      6,484      181,689 
   17,752      —      3      61,703      —      60,340      — 
   4,597      11,734      26,666      2,630      147,888      2,472      37,591 
   146,709      323,537      113,685      80,479      1,406,048      128,721      241,063 
   327,749      7,041,678      149,828      492,052      20,472,820      348,260      23,836,135 
  $36,930,290     $155,253,088     $45,110,073     $53,465,359     $1,249,930,905     $39,158,515     $466,797,827 
   1,174,974      4,074,967      1,950,000      1,650,000      52,650,000      1,133,318      28,950,000 
                                               
  $31.43     $38.10     $23.13     $32.40     $23.74     $34.55     $16.12 
                                               
  $65,394,727     $203,639,498     $154,106,940     $55,186,327     $2,659,670,414     $52,055,650     $695,261,927 
   (28,464,437)     (48,386,410)     (108,996,867)     (1,720,968)     (1,409,739,509)     (12,897,135)     (228,464,100)
  $36,930,290     $155,253,088     $45,110,073     $53,465,359     $1,249,930,905     $39,158,515     $466,797,827 
  $135,573     $—     $—     $209,883     $—     $—     $1,521,495 
  $33,374,929     $166,441,830     $53,743,984     $46,014,466     $1,316,142,801     $42,781,072     $406,132,783 
  $—     $—     $—     $—     $—     $—     $15,642,308 
                                               
  $142,222     $—     $—     $282,007     $—     $—     $1,625,919 
  $126,123     $6,168,329     $—     $51,796     $1,427,910     $—     $18,082,700 

 

See Notes to Financial Statements

37

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Six Months Ended June 30, 2019 (unaudited)

 

   Africa
Index ETF		  Brazil
Small-Cap ETF		  ChinaAMC
CSI 300 ETF		  ChinaAMC
SME-ChiNext
ETF
                             
Income:                            
Dividends    $1,488,418     $1,481,276     $887,081     $214,363 
Interest     —      —      119      24 
Securities lending income     5,846      11,681      —      — 
Foreign taxes withheld     (156,096)     (35,184)     (89,285)     (21,762)
Total Income     1,338,168      1,457,773      797,915      192,625 
                             
Expenses:                            
Management fees     144,259      225,860      187,718      66,195 
Professional fees     34,130      34,829      36,378      31,440 
Insurance     347      496      342      111 
Trustees’ fees and expenses     1,205      1,689      1,108      353 
Reports to shareholders     10,015      8,146      7,712      6,876 
Indicative optimized portfolio value fee     2,991      1,731      3,052      2,184 
Custodian fees     50,259      27,056      64,326      21,108 
Registration fees     2,496      2,492      2,492      2,634 
Transfer agent fees     1,182      1,221      1,196      1,196 
Fund accounting fees     8,990      4,480      40,122      11,551 
Interest     1,032      30,364      45,871      156 
Other     1,604      1,713      6,913      2,427 
Total expenses     258,510      340,077      397,230      146,231 
Waiver of management fees     (32,432)     (43,198)     (168,629)     (59,671)
Net expenses     226,078      296,879      228,601      86,560 
Net investment income     1,112,090      1,160,894      569,314      106,065 
                             
Net realized gain (loss) on:                            
Investments – Unaffiliated issuers     (792,126)     2,817,654      (2,396,514)     (2,408,552)
Investments – Affiliated issuers     —      —      —      — 
In-kind redemptions     551,178      508,402      —      — 
Foreign currency transactions and foreign denominated assets and liabilities     (14,715)     79,603      (46,970)     (21,336)
Net realized gain (loss)     (255,663)     3,405,659      (2,443,484)     (2,429,888)
                             
Net change in unrealized appreciation (depreciation) on:                         
Investments – Unaffiliated issuers     5,132,571      11,274,272      15,809,567      4,277,153 
Investments – Affiliated issuers     —      —      —      — 
Foreign currency transactions and foreign denominated assets and liabilities     8,584      (1,329)     12,620      380 
Net change in unrealized appreciation (depreciation)     5,141,155      11,272,943      15,822,187      4,277,533 
Net Increase (Decrease) in Net Assets Resulting from Operations    $5,997,582     $15,839,496     $13,948,017     $1,953,710 

 

 
(a) Represents consolidated Statement of Operations.

 

See Notes to Financial Statements

38

 

 

Egypt
Index ETF		  India
Small-Cap
Index ETF (a)		  Indonesia
Index ETF		  Israel ETF  Russia ETF  Russia
Small-Cap ETF		  Vietnam ETF
                                               
  $988,696     $1,920,711     $976,513     $418,271     $37,357,895     $846,408     $2,466,780 
   —      —      —      87      —      —      — 
   891      —      1,005      10,137      —      —      55,003 
   (103,337)     (1,693)     (137,561)     (87,034)     (4,199,324)     (29,499)     (21,708)
   886,250      1,919,018      839,957      341,461      33,158,571      816,909      2,500,075 
                                               
   113,233      439,289      111,219      128,252      3,503,527      87,544      988,523 
   31,290      78,420      31,966      34,721      29,080      31,587      32,986 
   360      1,519      289      207      8,890      247      1,919 
   794      18,041      734      830      24,869      640      6,527 
   7,120      11,543      6,853      6,341      29,076      8,435      14,191 
   2,491      3,052      3,052      2,491      2,165      3,041      3,052 
   62,166      69,508      8,991      44,481      1,192,377      42,482      140,985 
   2,492      2,492      2,492      2,785      4,884      2,492      2,887 
   1,196      2,394      1,196      1,196      827      1,196      1,196 
   4,722      44,492      7,472      8,988      46,669      4,787      13,852 
   12,926      30,596      11      10,622      66,044      5,599      58,432 
   1,506      35,603      1,862      1,648      29,688      1,712      6,297 
   240,296      736,949      176,137      242,562      4,938,096      189,762      1,270,847 
   (14,493)     —      (49,335)     (80,603)     —      (52,849)     — 
   225,803      736,949      126,802      161,959      4,938,096      136,913      — 
   660,447      1,182,069      713,155      179,502      28,220,475      679,996      1,229,228 
                                               
   (1,798,342)     (15,978,872)     (147,759)     526,975      (24,270,317)     (1,887,792)     (6,691,625)
   —      —      —      —      —      —      (815,591)
   100,522      (40,888)     370,119      —      68,375,211      (45,969)     217,992 
                                               
   (113,839)     (201,153)     (790)     1,249      (18,021)     4,565      (363,025)
   (1,811,659)     (16,220,913)     221,570      528,224      44,086,873      (1,929,196)     (7,652,249)
                                               
   2,836,559      (3,571,303)     1,567,028      6,476,330      238,576,329      9,144,934      32,643,552 
   —      —      —      —      —      —      (54,133)
                                               
   867      2,328      238      (3,689)     (14,211)     1,435      (6,098)
   2,837,426      (3,568,975)     1,567,266      6,472,641      238,562,118      9,146,369      32,583,321 
                                               
  $1,686,214     $(18,607,819)    $2,501,991     $7,180,367     $310,869,466     $7,897,169     $26,160,300 

 

See Notes to Financial Statements

39

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

   Africa Index ETF  Brazil Small-Cap ETF
   For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
   (unaudited)     (unaudited)   
Operations:                            
Net investment income    $1,112,090     $1,667,874     $1,160,894     $3,012,348 
Net realized gain (loss)     (255,663)     (27,757)     3,405,659      4,482,111 
Net change in unrealized appreciation (depreciation)     5,141,155      (14,097,436)     11,272,943      (19,288,050)
Net increase (decrease) in net assets resulting from operations     5,997,582      (12,457,319)     15,839,496      (11,793,591)
                             
Distributions to shareholders:                            
Dividends and Distributions     —      (924,000)     —      (2,547,600)
                             
Share transactions:**                            
Proceeds from sale of shares     —      —      —      5,522,935 
Cost of shares redeemed     (3,158,552)     (7,073,702)     (13,228,905)     (11,268,857)
Increase (Decrease) in net assets resulting from share transactions     (3,158,552)     (7,073,702)     (13,228,905)     (5,745,922)
Total increase (decrease) in net assets     2,839,030      (20,455,021)     2,610,591      (20,087,113)
Net Assets, beginning of period     55,222,857      75,677,878      88,397,133      108,484,246 
Net Assets, end of period    $58,061,887     $55,222,857     $91,007,724     $88,397,133 
                             
** Shares of Common Stock Issued (no par value)                            
Shares sold     —      —      —      250,000 
Shares redeemed     (150,000)     (300,000)     (600,000)     (500,000)
Net increase (decrease)     (150,000)     (300,000)     (600,000)     (250,000)

 

See Notes to Financial Statements

40

 

 

ChinaAMC CSI 300 ETF  ChinaAMC SME-ChiNext ETF  Egypt Index ETF          
For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		          
  (unaudited)       (unaudited)       (unaudited)               
                                                  
  $569,314     $608,763     $106,065     $19,785     $660,447     $1,018,244           
   (2,443,484)     4,930,507      (2,429,888)     (3,576,086)     (1,811,659)     6,230,153           
   15,822,187      (26,428,940)     4,277,533      (7,066,926)     2,837,426      (11,591,246)          
   13,948,017      (20,889,670)     1,953,710      (10,623,227)     1,686,214      (4,342,849)          
                                                  
   —      (4,841,600)     —      —      —      (560,463)          
                                                  
   20,798,154      14,985,222      14,409,956      7,672,886      21,589,787      15,041,752           
   (5,698,514)     (29,881,468)     (4,949,456)     (3,932,406)     (19,569,589)     (53,373,990)          
                                                  
   15,099,640      (14,896,246)     9,460,500      3,740,480      2,020,198      (38,332,238)          
   29,047,657      (40,627,516)     11,414,210      (6,882,747)     3,706,412      (43,235,550)          
   53,693,447      94,320,963      15,730,320      22,613,067      33,223,878      76,459,428           
  $82,741,104     $53,693,447     $27,144,530     $15,730,320     $36,930,290     $33,223,878           
                                                  
   500,000      400,000      500,000      250,000      650,000      400,000           
   (150,000)     (650,000)     (200,000)     (150,000)     (650,000)     (1,550,000)          
   350,000      (250,000)     300,000      100,000      —      (1,150,000)          

 

See Notes to Financial Statements

41

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

   India Small-Cap Index ETF (a)  Indonesia Index ETF
   For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
   (unaudited)       (unaudited)   
Operations:                            
Net investment income (loss)    $1,182,069     $(77,616)    $713,155     $876,448 
Net realized gain (loss)     (16,220,913)     4,126,517      221,570      (4,134,430)
Net change in unrealized appreciation (depreciation)     (3,568,975)     (131,817,510)     1,567,266      (3,716,594)
Net increase (decrease) in net assets resulting from operations     (18,607,819)     (127,768,609)     2,501,991      (6,974,576)
                             
Distributions to shareholders:                            
Dividends and Distributions     —      (216,823)     —      (975,800)
                             
Share transactions:**                            
Proceeds from sale of shares     6,215,759      6,506,209      1,105,122      8,643,814 
Cost of shares redeemed     (19,794,014)     (96,327,507)     (3,297,606)     (17,756,773)
Increase (Decrease) in net assets resulting from share transactions     (13,578,255)     (89,821,298)     (2,192,484)     (9,112,959)
Total increase (decrease) in net assets     (32,186,074)     (217,806,730)     309,507      (17,063,335)
Net Assets, beginning of period     187,439,162      405,245,892      44,800,566      61,863,901 
Net Assets, end of period    $155,253,088     $187,439,162     $45,110,073     $44,800,566 
                             
** Shares of Common Stock Issued (no par value)                         
Shares sold     150,000      150,000      50,000      350,000 
Shares redeemed     (500,000)     (1,650,000)     (150,000)     (800,000)
Net increase (decrease)     (350,000)     (1,500,000)     (100,000)     (450,000)

 

 
(a) Represents consolidated Statement of Changes in Net Assets.

 

See Notes to Financial Statements

42

 

 

Israel ETF  Russia ETF  Russia Small-Cap ETF          
For the
Six Months
Ended
June 30,
2019		   For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		          
(unaudited)        (unaudited)     (unaudited)             
                                                     
  $179,502     $401,669     $28,220,475     $70,096,608     $679,996     $1,469,550           
   528,224      (5,005,061)     44,086,873      66,675,505      (1,929,196)     (2,827,712)          
   6,472,641      911,146      238,562,118      (226,285,860)     9,146,369      (12,433,777)          
   7,180,367      (3,692,246)     310,869,466      (89,513,747)     7,897,169      (13,791,939)          
                                                     
   —      (349,800)     —      (68,511,950)     —      (1,440,098)          
                                                     
   —      9,336,069      166,539,310      898,492,169      —      3,757,271           
   —      (1,529,591)     (553,099,214)     (1,221,552,842)     (1,415,716)     (14,160,540)          
                                                     
   —      7,806,478      (386,559,904)     (323,060,673)     (1,415,716)     (10,403,269)          
   7,180,367      3,764,432      (75,690,438)     (481,086,370)     6,481,453      (25,635,306)          
   46,284,992      42,520,560      1,325,621,343      1,806,707,713      32,677,062      58,312,368           
  $53,465,359     $46,284,992     $1,249,930,905     $1,325,621,343     $39,158,515     $32,677,062           
                                                     
   —      300,000      8,100,000      42,350,000      —      100,000           
   —      (50,000)     (26,000,000)     (57,250,000)     (50,000)     (350,000)          
   —      250,000      (17,900,000)     (14,900,000)     (50,000)     (250,000)          

 

See Notes to Financial Statements

43

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

   Vietnam ETF
   For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
   (unaudited)     
Operations:              
Net investment income    $1,229,228     $3,720,819 
Net realized loss     (7,652,249)     (1,687,406)
Net change in unrealized appreciation (depreciation)     32,583,321      (63,106,038)
Net increase (decrease) in net assets resulting from operations     26,160,300      (61,072,625)
               
Distributions to shareholders:              
Dividends and Distributions     —      (2,610,800)
               
Share transactions:**              
Proceeds from sale of shares     129,512,993      96,453,951 
Cost of shares redeemed     (6,544,575)     (64,130,429)
Increase in net assets resulting from share transactions     122,968,418      32,323,522 
Total increase (decrease) in net assets     149,128,718      (31,359,903)
Net Assets, beginning of period     317,669,109      349,029,012 
Net Assets, end of period    $466,797,827     $317,669,109 
               
** Shares of Common Stock Issued (no par value)              
Shares sold     7,950,000      5,200,000 
Shares redeemed     (400,000)     (3,800,000)
Net increase     7,550,000      1,400,000 

 

See Notes to Financial Statements

44

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Africa Index ETF  
   For the                      
   Six Months                      
   Ended                      
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                      
Net asset value, beginning of period     $20.08      $24.81      $20.09      $18.11      $26.20      $30.93   
Income from investment operations:                                            
Net investment income     0.41(a)     0.57(a)     0.39(a)     0.58      0.50      0.64   
Net realized and unrealized gain (loss) on investments     1.84      (4.96)     4.82      1.93      (8.20)     (4.61)  
Total from investment operations     2.25      (4.39)     5.21      2.51      (7.70)     (3.97)  
Less:                                            
Dividends from net investment income     —      (0.34)     (0.49)     (0.53)     (0.39)     (0.76)  
Net asset value, end of period     $22.33      $20.08      $24.81      $20.09      $18.11      $26.20   
Total return (b)     11.21%(c)     (17.70)%     26.02%     13.94%     (29.41)%     (12.86)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $58,062   $55,223   $75,678   $66,296   $59,766   $95,645   
Ratio of gross expenses to average net assets     0.90%(d)     0.91%     0.87%     0.83%     0.82%     0.80%  
Ratio of net expenses to average net assets     0.78%(d)     0.78%     0.84%     0.79%     0.79%     0.80%  
Ratio of net expenses to average net assets excluding interest expense     0.78%(d)     0.78%     0.78%     0.78%(f)     0.78%     0.78%  
Ratio of net investment income to average net assets     3.85%(d)     2.44%     1.73%     2.85%     2.05%     2.00%  
Portfolio turnover rate (e)     18%(c)     23%     38%     45%     33%     30%  
                                             
   Brazil Small-Cap ETF  
   For the                                     
   Six Months                                     
   Ended                                     
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                     
Net asset value, beginning of period        $20.09            $23.33            $16.10            $10.44            $21.23            $29.61      
Income from investment operations:                                            
Net investment income     0.28(a)     0.68(a)     0.48(a)     0.51      0.44      0.88   
Net realized and unrealized gain (loss) on investments     3.58      (3.34)     7.81      5.83      (10.83)     (8.37)  
Total from investment operations     3.86      (2.66)     8.29      6.34      (10.39)     (7.49)  
Less:                                            
Dividends from net investment income     —      (0.58)     (1.06)     (0.68)     (0.40)     (0.89)  
Net asset value, end of period     $23.95      $20.09      $23.33      $16.10      $10.44      $21.23   
Total return (b)     19.59%(c)     (11.66)%     51.71%     60.92%     (48.97)%     (25.19)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $91,008   $88,397   $108,484   $82,898   $65,264   $104,011   
Ratio of gross expenses to average net assets     0.75%(d)     0.73%     0.68%     0.69%     0.72%     0.66%  
Ratio of net expenses to average net assets     0.66%(d)     0.60%     0.60%     0.60%     0.60%     0.60%  
Ratio of net expenses to average net assets excluding interest expense     0.59%(d)     0.59%     0.59%     0.59%     0.59%     0.59%  
Ratio of net investment income to average net assets     2.57%(d)     3.25%     2.24%     3.14%     3.29%     2.99%  
Portfolio turnover rate (e)     20%(c)     45%     53%     44%     57%     64%  

 

 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Excludes reimbursement from prior year custodial charge of 0.01%.

 

See Notes to Financial Statements

45

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   ChinaAMC CSI 300 ETF  
   For the                                
   Six Months                                
   Ended                                
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                
Net asset value, beginning of period        $31.58            $48.37            $37.08            $44.76            $46.06               $30.89         
Income from investment operations:                                            
Net investment income     0.29(a)     0.41(a)     0.41(a)     0.41      0.45      0.32(a)  
Net realized and unrealized gain (loss) on investments     8.49      (14.35)     11.40      (7.64)     (0.34)     14.85   
Total from investment operations     8.78      (13.94)     11.81      (7.23)     0.11      15.17   
Less:                                            
Dividends from net investment income     —      (0.31)     (0.52)     (0.15)     (0.52)     —   
Distributions from net realized capital gains     —      (2.54)     —      (0.28)     (0.89)     —   
Return of capital     —      —      —      (0.02)     —      —   
Total dividends and distributions     —      (2.85)     (0.52)     (0.45)     (1.41)     —   
Net asset value, end of period     $40.36      $31.58      $48.37      $37.08      $44.76      $46.06   
Total return (b)     27.80%(c)     (28.79)%     31.86%     (16.16)%     0.22%     49.11%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $82,741    $53,693   $94,321   $85,290   $105,193   $94,414   
Ratio of gross expenses to average net assets     1.06%(d)     1.17%     0.82%     1.06%     1.20%     1.69%  
Ratio of net expenses to average net assets     0.61%(d)     0.85%     0.78%     0.71%     0.75%     0.72%  
Ratio of net expenses to average net assets excluding interest expense (h)     0.60%(d)     0.72%     0.72%     0.72%(g)     0.72%     0.72%  
Ratio of net investment income to average net assets     1.52%(d)     0.95%     0.96%     1.26%     0.91%     1.00%  
Portfolio turnover rate (e)     14%(c)     34%     37%     50%     70%     59%  
                                             
   ChinaAMC SME-ChiNext ETF  
   For the                              For the Period  
   Six Months                              July 23,  
   Ended                              2014 (f) through  
   June 30,  For the Year Ended December 31,   December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                     
Net asset value, beginning of period     $20.97      $34.79      $29.20      $41.74      $28.60      $24.68   
Income from investment operations:                                            
Net investment income (loss)     0.10(a)     0.03(a)     (0.01)(a)     (0.06)     (0.10)     (0.05)  
Net realized and unrealized gain (loss) on investments     4.78      (13.85)     5.67      (12.48)     13.24      3.97   
Total from investment operations     4.88      (13.82)     5.66      (12.54)     13.14      3.92   
Less:                                            
Dividends from net investment income     —      —      (0.07)     —      —      —   
Net asset value, end of period     $25.85      $20.97      $34.79      $29.20      $41.74      $28.60   
Total return (b)     23.27%(c)     (39.72)%     19.37%     (30.04)%     45.94%     15.88%(c)  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $27,145   $15,730   $22,613   $23,357   $56,343   $21,451   
Ratio of gross expenses to average net assets     1.10%(d)     1.33%     1.38%     1.16%     1.11%     1.48%(d)  
Ratio of net expenses to average net assets     0.65%(d)     0.82%     0.82%     0.81%     0.79%     0.78%(d)  
Ratio of net expenses to average net assets excluding interest expense (h)     0.65%(d)     0.78%     0.78%     0.78%     0.78%     0.78%(d)  
Ratio of net investment income (loss) to average net assets     0.80%(d)     0.09%     (0.04)%     (0.07)%     (0.29)%     (0.73)%(d)  
Portfolio turnover rate (e)     29%(c)     36%     34%     39%     160%     7%(c)  

 

 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Commencement of operations
(g) Excludes reimbursement from prior year custodial charge of 0.02%.
(h) Effective January 10, 2019, the fund includes interest expense in the calculation of the expense limitation. The ratio only excludes interest expense accrued prior to January 10, 2019 and not waived under the expense limit agreement.

 

See Notes to Financial Statements

46

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Egypt Index ETF  
   For the                                
   Six Months                                
   Ended                                
   June 30,  For the Year Ended December 31,  
   2019  2018   2017  2016  2015  2014  
   (unaudited)                                
Net asset value, beginning of period     $28.28      $32.89      $26.02      $39.01      $59.95      $55.51   
Income from investment operations:                                            
Net investment income     0.46(a)     0.60(a)     0.81(a)     1.17      0.04      0.53   
Net realized and unrealized gain (loss) on investments     2.69      (4.73)     6.31      (14.16)     (20.37)     6.67   
Total from investment operations     3.15      (4.13)     7.12      (12.99)     (20.33)     7.20   
Less:                                            
Dividends from net investment income     —      (0.48)     (0.25)     —      (0.61)     (2.76)  
Net asset value, end of period     $31.43      $28.28      $32.89      $26.02      $39.01      $59.95   
Total return (b)     11.14%(c)     (12.56)%     27.39%     (33.30)%     (33.89)%     12.92%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $36,930   $33,224   $76,459   $40,985   $26,329   $49,461   
Ratio of gross expenses to average net assets     1.06%(d)     1.19%     1.09%     1.14%     1.07%     0.97%  
Ratio of net expenses to average net assets     1.00%(d)     0.98%     0.94%     1.01%     0.98%     0.97%  
Ratio of net expenses to average net assets excluding interest expense     0.94%(d)     0.94%     0.94%     0.94%     0.94%     0.92%  
Ratio of net investment income to average net assets     2.92%(d)     1.73%     2.82%     1.17%     0.60%     0.63%  
Portfolio turnover rate (e)     44%(c)     41%     41%     56%     57%     69%  
                                                
   India Small-Cap Index ETF (f)  
   For the                                     
   Six Months                                     
   Ended                                     
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                     
Net asset value, beginning of period        $42.36            $68.40            $41.03            $43.66            $44.53            $31.31      
Income from investment operations:                                            
Net investment income (loss)     0.27(a)(h)     (0.02)(a)     0.02(a)     0.39      0.06(a)     0.37   
Net realized and unrealized gain (loss) on investments     (4.53)     (25.97)     27.42      (2.45)     0.42      13.29   
Total from investment operations     (4.26)     (25.99)     27.44      (2.06)     0.48      13.66   
Less:                                            
Dividends from net investment income     —      (0.05)     (0.07)     (0.57)     (1.35)     (0.44)  
Net asset value, end of period     $38.10      $42.36      $68.40      $41.03      $43.66      $44.53   
Total return (b)     (10.06)%(c)     (38.00)%     66.88%     (4.70)%     1.07%     43.65%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $155,253   $187,439   $405,246   $183,627   $171,370   $272,745   
Ratio of gross expenses to average net assets     0.84%(d)     0.83%     0.72%     0.78%     0.78%     0.92%  
Ratio of net expenses to average net assets     0.84%(d)     0.83%     0.72%     0.78%     0.78%     0.89%  
Ratio of net expenses to average net assets excluding interest expense     0.80%(d)     0.80%     0.70%     0.78%(g)     0.75%     0.85%  
Ratio of net investment income (loss) to average net assets     1.35%(d)(h)     (0.03)%     0.04%     0.96%     0.13%     0.82%  
Portfolio turnover rate (e)     26%(c)     39%     42%     29%     40%     120%  

 

 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Represents consolidated Financial Highlights.
(g) Excludes reimbursement from prior year custodial charge of 0.01%.
(h) Net Investment income per share reflects a non-recurring dividend which amounted to $0.32 per average share outstanding. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (0.23)%.

 

See Notes to Financial Statements

47

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Indonesia Index ETF  
   For the
Six Months
Ended		                 
   June 30,  For the Year Ended December 31,  
   2019   2018   2017   2016   2015   2014  
   (unaudited)                      
Net asset value, beginning of period   $21.85    $24.75    $21.31    $18.36    $24.32    $20.98   
Income from investment operations:                                
Net investment income   0.36(a)   0.36(a)   0.35(a)   0.28    0.47    0.53   
Net realized and unrealized gain (loss) on investments   0.92    (2.78)   3.55    2.92    (5.98)   3.31   
Total from investment operations   1.28    (2.42)   3.90    3.20    (5.51)   3.84   
Less:                                
Dividends from net investment income   —    (0.48)   (0.46)   (0.25)   (0.45)   (0.50)  
Net asset value, end of period   $23.13    $21.85    $24.75    $21.31    $18.36    $24.32   
Total return (b)   5.86%(c)   (9.79)%   18.35%   17.49%   (22.69)%   18.34%  
Ratios/Supplemental Data                                
Net assets, end of period (000’s)  $45,110   $44,801   $61,864   $85,240   $86,293   $184,831   
Ratio of gross expenses to average net assets   0.79%(d)   0.75%   0.73%   0.68%   0.72%   0.66%  
Ratio of net expenses to average net assets   0.57%(d)   0.57%   0.57%   0.58%   0.58%   0.58%  
Ratio of net expenses to average net assets excluding interest expense   0.57%(d)   0.57%   0.57%   0.57%   0.57%   0.57%  
Ratio of net investment income to average net assets   3.21%(d)   1.61%   1.53%   1.05%   1.65%   1.80%  
Portfolio turnover rate (e)   4%(c)   14%   14%   12%   11%   12%  
      
   Israel ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                            
Net asset value, beginning of period      $28.05          $30.37          $26.84          $28.81          $29.56          $30.04      
Income from investment operations:                                
Net investment income   0.11(a)   0.27(a)   0.30(a)   0.27    0.32    0.31   
Net realized and unrealized gain (loss) on investments   4.24    (2.38)   3.71    (1.80)   (0.69)   (0.05)  
Total from investment operations   4.35    (2.11)   4.01    (1.53)   (0.37)   0.26   
Less:                                
Dividends from net investment income   —    (0.21)   (0.48)   (0.26)   (0.38)   (0.28)  
Distributions from net realized capital gains   —    —    —    —    —    (0.46)  
Return of capital   —    —    —    (0.18)   —    —   
Total dividends and distributions   —    (0.21)   (0.48)   (0.44)   (0.38)   (0.74)  
Net asset value, end of period   $32.40    $28.05    $30.37    $26.84    $28.81    $29.56   
Total return (b)   15.51%(c)   (6.94)%   14.96%   (5.34)%   (1.27)%   0.88%  
Ratios/Supplemental Data                                
Net assets, end of period (000’s)  $53,465   $46,285   $42,521   $36,236   $46,091   $44,335   
Ratio of gross expenses to average net assets   0.95%(d)   1.02%   0.92%   0.92%   0.85%   0.76%  
Ratio of net expenses to average net assets   0.63%(d)   0.60%   0.59%   0.60%   0.59%   0.60%  
Ratio of net expenses to average net assets excluding interest expense   0.59%(d)   0.59%   0.59%   0.59%   0.59%   0.59%  
Ratio of net investment income to average net assets   0.70%(d)   0.85%   1.04%   0.94%   1.04%   1.03%  
Portfolio turnover rate (e)   9%(c)   23%   21%   19%   18%   17%  
 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

48

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Russia ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019   2018   2017   2016   2015   2014  
   (unaudited)                      
Net asset value, beginning of period        $18.79            $21.14           $21.09           $14.69           $15.17           $28.69      
Income from investment operations:                                
Net investment income   0.42(a)   0.88(a)   0.71(a)   0.38    0.50    0.59   
Net realized and unrealized gain (loss) on investments   4.53    (2.26)   0.25    6.36    (0.46)   (13.45)  
Total from investment operations   4.95    (1.38)   0.96    6.74    0.04    (12.86)  
Less:                                
Dividends from net investment income   —    (0.97)   (0.91)   (0.34)   (0.52)   (0.66)  
Net asset value, end of period   $23.74    $18.79    $21.14    $21.09    $14.69    $15.17   
Total return (b)   26.34%(c)   (6.47)%   4.62%   45.91%   0.39%   (44.95)%  
Ratios/Supplemental Data                                
Net assets, end of period (000’s)$1,249,931 $1,325,621 $1,806,708 $2,605,165 $1,735,849 $1,541,945   
Ratio of gross expenses to average net assets   0.70%(d)   0.65%   0.72%   0.79%   0.72%   0.61%  
Ratio of net expenses to average net assets   0.70%(d)   0.65%   0.67%   0.65%   0.63%   0.61%  
Ratio of net expenses to average net assets excluding interest expense and a portion of depositary receipt fees (f)   0.70%(d)   0.64%   0.66%   0.65%   0.62%   0.61%  
Ratio of net investment income to average net assets   4.03%(d)   4.09%   3.40%   2.48%   2.98%   3.92%  
Portfolio turnover rate (e)   5%(c)   20%   15%   22%   33%   23%  
      
   Russia Small-Cap ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019   2018   2017   2016   2015   2014  
   (unaudited)                           
Net asset value, beginning of period   $27.61    $40.68    $38.04    $19.31    $19.60       $42.24   
Income from investment operations:                                
Net investment income   0.60(a)   1.17(a)   1.17(a)   0.77    0.38    0.91   
Net realized and unrealized gain (loss) on investments   6.34    (13.02)   2.94    18.77    (0.29)   (23.14)  
Total from investment operations   6.94    (11.85)   4.11    19.54    0.09    (22.23)  
Less:                                
Dividends from net investment income   —    (1.22)   (1.47)   (0.81)   (0.38)   (0.41)  
Net asset value, end of period   $34.55    $27.61    $40.68    $38.04    $19.31    $19.60   
Total return (b)   25.14%(c)   (29.09)%   11.01%   101.07%   0.48%   (52.67)%  
Ratios/Supplemental Data                                
Net assets, end of period (000’s)  $39,159   $32,677   $58,312   $88,755   $35,392   $53,573   
Ratio of gross expenses to average net assets   1.08%(d)   0.94%   0.82%   0.86%   1.19%   0.95%  
Ratio of net expenses to average net assets   0.78%(d)   0.76%   0.76%   0.75%   0.69%   0.68%  
Ratio of net expenses to average net assets excluding interest expense and a portion of depositary receipt fees (g)   0.75%(d)   0.75%   0.75%   0.73%   0.67%   0.67%  
Ratio of net investment income to average net assets   3.88%(d)   3.22%   2.87%   3.28%   1.58%   2.42%  
Portfolio turnover rate (e)   13%(c)   49%   39%   72%   30%   32%  

 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Effective May 1, 2016, the Fund excludes depositary receipt fees in excess of 0.10% of average daily net assets (See Note 3).
(g) Effective May 1, 2016, the Fund excludes depositary receipt fees in excess of 0.08% of average daily net assets (See Note 3).

 

See Notes to Financial Statements

49

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Vietnam ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019  2018   2017   2016   2015   2014  
   (unaudited)                      
Net asset value, beginning of period      $14.84          $17.45         $12.97        $14.78        $18.84        $18.63     
Income from investment operations:                                
Net investment income   0.05(a)   0.17(a)   0.20(a)   0.39    0.55    0.51   
Net realized and unrealized gain (loss) on investments   1.23    (2.66)   4.46    (1.83)   (4.11)   0.21   
Total from investment operations   1.28    (2.49)   4.66    (1.44)   (3.56)   0.72   
Less:                                
Dividends from net investment income   —    (0.12)   (0.18)   (0.37)   (0.50)   (0.49)  
Return of capital   —    —    —(f)   —    —    (0.02)  
Total dividends   —    (0.12)   (0.18)   (0.37)   (0.50)   (0.51)  
Net asset value, end of period   $16.12    $14.84    $17.45    $12.97    $14.78    $18.84   
Total return (b)   8.63%(c)   (14.15)%   35.76%   (9.78)%   (18.87)%   3.95%  
Ratios/Supplemental Data                                
Net assets, end of period (000’s)  $466,798 $317,669 $349,029 $257,549 $379,231 $468,233   
Ratio of gross expenses to average net assets   0.64%(d)   0.68%   0.66%   0.66%   0.67%   0.66%  
Ratio of net expenses to average net assets   0.64%(d)   0.68%   0.66%   0.66%   0.67%   0.66%  
Ratio of net expenses to average net assets excluding interest expense   0.61%(d)   0.64%   0.63%   0.63%   0.65%   0.65%  
Ratio of net investment income to average net assets   0.62%(d)   0.98%   1.37%   2.14%   3.29%   2.32%  
Portfolio turnover rate (e)   14%(c)   49%   50%   47%   67%   67%  
 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Amount represents less than $0.005 per share.

 

See Notes to Financial Statements

50

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

June 30, 2019 (unaudited)

 

Note 1—Fund Organization—VanEck Vectors ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust.

 

These financial statements relate only to the following investment portfolios: Africa Index ETF, Brazil Small-Cap ETF, ChinaAMC CSI 300 ETF, ChinaAMC SME-ChiNext ETF, Egypt Index ETF, India Small-Cap Index ETF, Indonesia Index ETF, Israel ETF, Russia ETF, Russia Small-Cap ETF and Vietnam ETF (each a “Fund” and, together, the “Funds”). China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) is the sub-adviser to ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF. ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF seek to achieve their investment objectives by primarily investing directly in A-shares through the Hong Kong-Shanghai Stock Connect program and via the A-share quota granted to the Sub-Adviser. India Small-Cap Index ETF makes its investments through the MV SCIF Mauritius (the “Subsidiary”), a wholly owned subsidiary organized in the Republic of Mauritius. Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in substantially the same weighting as their index.

 

Fund Diversification Classification
Africa Index ETF Diversified
Brazil Small-Cap ETF Diversified
ChinaAMC CSI 300 ETF Diversified
ChinaAMC SME-ChiNext ETF Diversified
Egypt Index ETF Non-Diversified
India Small-Cap Index ETF Diversified
Indonesia Index ETF Non-Diversified
Israel ETF Non-Diversified
Russia ETF Non-Diversified
Russia Small-Cap ETF Non-Diversified
Vietnam ETF Non-Diversified

 

Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

 

The Funds are investment companies and are following accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946 Financial Services – Investment Companies.

 

The following is a summary of significant accounting policies followed by the Funds.

 

A. 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 are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ 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 debt securities 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. The Pricing Committee of the Adviser provides oversight of the Funds’ valuation policies and procedures, which are
51

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

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 or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes it does not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. 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, periodic comparisons to valuations provided by other independent pricing services, 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 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 each Fund’s own assumptions in determining the fair value of investments).

 

A summary of the inputs and the levels used to value the Funds’ investments 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.

 

B. Basis for Consolidation—The Subsidiary, an Indian exempted company, was incorporated on February 25, 2010. Consolidated financial statements of India Small-Cap Index ETF present the financial position and results of operations for India Small-Cap Index ETF and its wholly-owned Subsidiary. All material interfund account balances and transactions between parent and subsidiary have been eliminated in consolidation.
   
C. Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
   
D. Dividends and Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP.
   
E. Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the
52

 

 

Statements of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations.

 

F. Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments.
   
G. Repurchase Agreements—The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Adviser, to generate income from their excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Fund acquires securities from a seller, subject to resale to the seller at an agreed upon price and date. A Fund, through its custodian/securities lending agent, takes possession of securities collateralizing the repurchase agreement. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain their right to sell the underlying securities at market value and may claim any resulting loss against the seller. Repurchase agreements held as of June 30, 2019 are reflected in the Schedules of Investments.
   
H. Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of setoff in those agreements allows the Funds to set off any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and/or securities as collateral for derivative instruments, securities lending and repurchase agreements. For financial reporting purposes, the Funds present securities lending and repurchase agreement assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Collateral held at June 30, 2019 is presented in the Schedules of Investments. Refer to related disclosures in Note 2G (Repurchase Agreements) and Note 9 (Securities Lending).
   
I. Other—Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. Interest income, including amortization of premiums and discounts, is accrued as earned.

 

In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.

 

At June 30, 2019, ChinaAMC CSI 300 and ChinaAMC SME-ChiNext included $4,441 and $10,539, respectively, in cash denominated in foreign currency, at value on the Statements of Assets and Liabilities, which represents foreign investor minimum settlement reserve funds required by China Securities Depository and Clearing Corporation Limited.

 

Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.50% of each Fund’s average daily net assets. The Adviser has agreed, until at least May 1, 2020, to waive management fees and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses; and for Russia ETF and Russia Small-Cap ETF, depositary receipt fees up to 0.10% and 0.08% of average daily net assets, respectively) from exceeding the expense limitations as listed in the table below. Effective January 10, 2019, ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF no longer exclude interest expense from their expense limitations. Refer to the Statements of Operations for the amounts waived/assumed by the Advisor for the period ended June 30, 2019.

53

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

Fund  Expense
Limitations
Africa Index ETF        0.78%    
Brazil Small-Cap ETF   0.59 
ChinaAMC CSI 300 ETF*(a)   0.60 
ChinaAMC SME-ChiNext ETF*(b)   0.65 
Egypt Index ETF   0.94 
India Small-Cap Index ETF   0.85 
Indonesia Index ETF   0.57 
Israel ETF   0.59 
Russia ETF   0.62 
Russia Small-Cap ETF   0.67 
Vietnam ETF   0.76 

 

* The Adviser paid sub-advisory fees directly to the Sub-Adviser
(a) Prior to January 10, 2019 the expense limitation was 0.72%.
(b) Prior to January 10, 2019 the expense limitation was 0.78%

 

In addition, Van Eck Securities Corporation (the “Distributor”), an affiliate of the Adviser, acts as the Funds’ distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.

 

Note 4—Investments—For the period ended June 30, 2019, the cost of purchases and proceeds from sales of investments other than U.S. government obligations and short-term obligations (excluding in-kind transactions described in Note 6) were as follows:

 

Fund  Cost of Investments
Purchased		  Proceeds from
Investments Sold
Africa Index ETF          $11,604,580                        $10,644,738    
Brazil Small-Cap ETF     18,492,815      26,681,346 
ChinaAMC CSI 300 ETF     24,601,411      9,463,798 
ChinaAMC SME-ChiNext ETF     16,884,978      7,410,029 
Egypt Index ETF     20,886,667      18,925,225 
India Small-Cap Index ETF     45,473,849      57,334,303 
Indonesia Index ETF     2,431,990      1,825,995 
Israel ETF     4,871,670      4,739,692 
Russia ETF     105,227,826      76,714,938 
Russia Small-Cap ETF     4,921,005      4,633,218 
Vietnam ETF     166,855,503      57,587,229 

 

Note 5—Income Taxes—As of June 30, 2019, for Federal income tax purposes, the identified cost, gross unrealized appreciation (depreciation), gross unrealized depreciation, and net unrealized appreciation (depreciation) of investments owned were as follows:

 

Fund  Tax
Cost of
Investments		  Gross
Unrealized
Appreciation		  Gross
Unrealized
Depreciation		  Net Unrealized Appreciation (Depreciation)
Africa Index ETF  $53,734,918   $12,425,963   $(4,883,738)  $7,542,225 
Brazil Small-Cap ETF   76,275,045    26,076,700    (9,864,586)   16,212,114 
ChinaAMC CSI 300 ETF   70,117,530    20,118,833    (7,722,324)   12,396,509 
ChinaAMC SME-ChiNext ETF   25,264,233    5,220,812    (3,401,938)   1,818,874 
Egypt Index ETF   37,510,166    5,899,730    (6,354,288)   (454,558)
India Small-Cap Index ETF   177,942,308    29,352,744    (51,922,644)   (22,569,900)
Indonesia Index ETF   54,210,208    6,092,485    (15,200,193)   (9,107,708)
Israel ETF   47,137,970    15,267,956    (8,696,729)   6,571,227 
Russia ETF   1,345,150,386    139,150,301    (231,242,511)   (92,092,210)
Russia Small-Cap ETF   43,090,621    4,770,193    (8,526,518)   (3,756,325)
Vietnam ETF   440,739,110    88,006,432    (60,411,340)   27,595,092 
54

 

 

The tax character of dividends and distributions paid to shareholders during the year ended December 31, 2018 was as follows:

 

Fund  Ordinary
Income
Africa ETF    $924,000 
Brazil Small-Cap ETF     2,547,600 
ChinaAMC CSI 300 ETF     525,300 
ChinaAMC SME-ChiNext ETF     — 
Egypt Index ETF     560,463 
India Small-Cap Index ETF     216,823 
Indonesia Index ETF     975,800 
Israel ETF     349,800 
Russia ETF     68,511,950 
Russia Small-Cap ETF     1,440,098 
Vietnam ETF     2,610,800 

 

The tax character of current year distributions will be determined at the end of the current fiscal year.

 

At December 31, 2018, the Funds had capital loss carryforwards available to offset future capital gains, as follows:

 

Fund  Short-Term
Capital Losses
with No Expiration		  Long-Term
Capital Losses
with No Expiration		  Total
Africa Index ETF  $(8,382,998)             $(48,116,120)            $(56,499,118)
Brazil Small-Cap ETF   (22,839,034)   (141,526,841)   (164,365,875)
ChinaAMC CSI 300 ETF   —    —    — 
ChinaAMC SME-ChiNext ETF   (7,662,937)   (3,080,438)   (10,743,375)
Egypt Index ETF   (10,710,517)   (16,115,529)   (26,826,046)
India Small-Cap Index EF   (10,693,460)   —    (10,693,460)
Indonesia Index ETF   (37,168,759)   (63,705,584)   (100,874,343)
Israel ETF   (1,104,339)   (7,896,365)   (9,000,704)
Russia ETF   (223,522,045)   (1,167,960,809)   (1,391,482,854)
Russia Small-Cap ETF   (3,569,743)   (4,317,158)   (7,886,901)
Vietnam ETF   (66,259,395)   (183,385,205)   (249,644,600)

 

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds may be subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.

 

The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2019, the Funds did not incur any interest or penalties.

 

Investments in China: Uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-Shares could result in unexpected tax liabilities for the ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF (the “Funds”). China generally imposes withholding income tax (“WHT”) at a rate of 10% on dividends and interest (excluding government bond interest) derived by non-People’s Republic of China (“PRC”) resident enterprises (including a Qualified Foreign Institutional Investor (“QFII”) and a Renminbi Qualified Foreign Institutional Investor (“RQFII”)) from issuers resident in China. However, on November 7, 2018, the PRC Ministry of Finance (MOF) and PRC State Administration of Taxation (SAT) jointly issued Caishui [2018] 108 (Circular 108) to clarify the temporary three-year tax exemption on bond interest derived by foreign institutional investors (FIIs). Pursuant to Circular 108, FIIs are temporarily exempt from withholding income tax and value added tax with respect to bond interest income derived in the domestic bond market (via QFII, RQFII, CIBM and Hong Kong Bond Connect) from November 7, 2018 to November 6, 2021. China also imposes WHT at a rate of 10% on capital gains derived by non-PRC resident enterprises from the disposal in shares of PRC enterprises. Effective November 17, 2014, investments through the Hong Kong-Shanghai Stock

55

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

Connect program, QFIIs and RQFIIs, which includes these Funds, were exempted temporarily from WHT with respect to gains derived from the trading of equity investments (including A-shares). However, uncertainties remain regarding the taxation of capital gains in China. PRC rules for taxation of RQFIIs (and QFIIs) and the PRC tax regulations to be issued by the SAT and/or MOF to clarify the subject matter may apply retrospectively, even if such rules are adverse to the nonresident investors. If the PRC tax authorities were to issue differing formal guidance or tax rules regarding the taxation of capital gains derived by QFIIs, RQFIIs and other nonresident investors WHT on gains from such investments the Funds could be subject to additional tax liabilities.

 

Investments in India: The Subsidiary holds a tax residency certificate issued by the Mauritian Revenue authorities which entitles it to claim the benefits of the double taxation avoidance agreement entered between the Government of India and Mauritius (the “tax treaty”). Since India Small-Cap Index ETF makes its investments through the Subsidiary, this structure permits it to benefit from the tax treaty. The taxable profits derived from the worldwide income of the Subsidiary is subject to income tax at the rate of 15% in the Republic of Mauritius. As with all Mauritian tax residents, the Subsidiary is entitled to a foreign tax credit (“FTC”) on its foreign sourced income. The FTC is based on the lower of the Mauritian tax or the foreign tax incurred. Where documentary evidence is not available to substantiate the foreign taxes suffered, the FTC can be presumed to be 80% of the Mauritius tax on its foreign source income. The presumed FTC effectively reduces the Mauritian income tax rate on the foreign sourced income of the Subsidiary to a maximum of 3%.

 

In 2012, the Indian Finance Minister introduced a general anti-avoidance rule (“GAAR”), which became effective from April 1, 2017 and affects the Subsidiary. On May 10, 2016, the Governments of India and Mauritius signed the Protocol for amending the tax treaty between India and Mauritius which clarified the applicability of GAAR to a Mauritius subsidiary deemed a tax resident of Mauritius. As per the Protocol, India commenced taxation on short-term capital gains at a rate of 15% (plus applicable surcharge and education cess) arising from disposition of shares acquired on or after April 1, 2017 in a company resident in India, with shares acquired on or before March 31, 2017 being grandfathered as exempt from capital gains taxation.

 

Additionally, the Finance Bill (2018) provided that long-term capital gains from listed equity shares sold after April 1, 2018 which were previously exempt from capital gains tax are subject to a tax of 10% (plus applicable surcharge and education cess). Taxpayers received a cost step-up to the fair market value of shares held on January 31, 2018 provided the shares had unrealized gains as of that date. The Fund’s existing Indian capital loss carryforward of $(31,749,200) may be utilized to offset capital gains realized. These changes may reduce the return to the Fund on its investments made after April 1, 2017 and the return received by Fund shareholders.

 

Note 6—Capital Share Transactions—As of June 30, 2019, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”), consisting of 50,000 shares or multiples thereof.

 

The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit at the Custodian for the benefit of the Funds, collateral consisting of cash in the form of U.S. dollars at least equal to 115% of the daily marked to market value of the missing Deposit Securities.

 

Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to The Bank of New York Mellon. In addition, the Funds may impose certain variable fees for creations and redemptions with respect to transactions in Creation Units for cash, or on transactions effected outside the clearing process, which are treated as increases in capital. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.

56

 

 

For the period ended June 30, 2019, the Funds had in-kind contributions and redemptions as follows:

 

Fund  In-Kind Contributions  In-Kind Redemptions
Africa Index ETF        $—                     $1,994,536    
Brazil Small-Cap ETF   —    2,418,142 
ChinaAMC CSI 300 ETF   —    — 
ChinaAMC SME-ChiNext ETF   —    — 
Egypt Index ETF   3,934,735    3,420,509 
India Small-Cap Index ETF   124,833    430,681 
Indonesia Index ETF   1,104,653    3,295,986 
Israel ETF   —    — 
Russia ETF   166,460,573    552,568,288 
Russia Small-Cap ETF   —    1,415,389 
Vietnam ETF   13,396,493    694,900 

 

The table represents the accumulation of each Fund’s daily net in-kind shareholder transactions including rebalancing activity, while the Statements of Changes in Net Assets reflect shareholder transactions including any cash component of the transactions.

 

Note 7—Principal Risks—The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The Adviser uses a “passive” or index approach to achieve each Fund’s investment objective by investing in a portfolio of securities that generally replicates the Fund’s index. Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse political and economic developments and local/regional conflicts. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers. In addition, for Africa Index ETF and Egypt Index ETF there may be limitations or delays in the convertibility or repatriation of certain African currencies, which would adversely affect the U.S. dollar value and/or liquidity of the Fund’s investments denominated in such African currencies, may impair the Fund’s ability to achieve its investment objective and/or may impede the Fund’s ability to satisfy redemption requests in timely manner.

 

As a result of certain events, the United States and the European Union 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.

 

Should the Chinese government impose restrictions on the ability of ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF to repatriate funds associated with direct investment in A-Shares, the Funds may be unable to satisfy distribution requirements applicable to regulated investment companies (“RICs”) under the Internal Revenue Code of 1986, as amended, and the Funds may therefore be subject to Fund-level U.S. federal taxes.

 

A more complete description of risks is included in each Fund’s prospectus and Statement of Additional Information.

 

Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.

 

The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.

 

Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with The Bank of New York Mellon, the securities lending agent and also the Funds’ custodian. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash,

57

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value plus accrued interest on the securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and/or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. The Funds may pay reasonable finders’, administrative and custodial fees in connection with a loan of its securities. Securities lending income is disclosed as such in the Statements of Operations. The collateral for securities loaned is recognized in the Schedules of Investments and the Statements of Assets and Liabilities. The cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in repurchase agreements collateralized by obligations of the U.S. Treasury and/or Government Agencies. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related collateral at June 30, 2019 are presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities.

 

The following table presents repurchase agreements held as collateral by type of security on loan as of June 30, 2019:

 

   Gross Amount of Recognized
Liabilities for Securities
Loaned in the Statements
of Assets and Liabilities*
Fund   Equity Securities 
Africa Index ETF   $2,548,017       
Brazil Small-Cap ETF   1,612,760 
Egypt Index ETF   142,222 
Israel ETF   282,007 
Vietnam ETF   1,625,919 

 

* Remaining contractual maturity of the agreements: overnight and continuous

 

Note 10—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2019, the following Funds borrowed under this Facility:

 

Fund  Days
Outstanding		  Average Daily
Loan Balance		  Average
Interest Rate		  Outstanding Loan
Balance as of
June 30, 2019
Africa Index ETF   50         $204,072      3.84%    $562,213       
Brazil Small-Cap ETF   181    1,558,762    3.84    613,609 
China AMC CSI 300 ETF   178    2,265,915    3.84    2,193,358 
ChinaAMC SME-ChiNext ETF   1    1,478,981    3.80    — 
Egypt Index ETF   123    890,880    3.84    — 
India Small-Cap Index ETF   133    2,139,517    3.83    6,639,140 
Indonesia Index ETF   1    43,613    3.89    — 
Israel ETF   85    737,313    3.82    — 
Russia ETF   99    5,396,124    3.84    16,470,309 
Russia Small-Cap ETF   119    436,931    3.81    — 
Vietnam ETF   146    3,539,904    3.84    — 
58

 

 

Note 11—Custodian Fees—The Funds have entered into an expense offset agreement with the custodian wherein they receive a credit toward the reduction of custodian fees whenever there are uninvested cash balances. The Funds could have invested their cash balances elsewhere if they had not agreed to a reduction in fees under the expense offset agreement with the custodian. For the period ended June 30, 2019, there were offsets to custodian fees and these amounts are reflected in custody expense in the Statements of Operations.

 

Note 12—Recent Accounting Pronouncements—The Funds early adopted certain provisions of Accounting Standards Update No. 2018-13 Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) that eliminate and modify certain disclosure requirements for fair value measurements. The adoption of certain provisions of the ASU 2018-13 had no material effect on financial statements and related disclosures. Management is currently evaluating the potential impact of additional requirements, not yet adopted, of the ASU 2018-13 to financial statements. Public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years.

 

Note 13—Subsequent Event Review—The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.

 

On August 1, 2019 the President of India signed into law changes to the 2019 Indian Budget. These changes will apply an increase in the surcharge that results in an increase to the effective tax rates for capital gains earned by foreign portfolio investors organized as non-corporate entities for all sales of investments after April 1, 2019. The Subsidiary is considered a corporation and therefore these changes do not impact gains on their investments.

59

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2019 (unaudited)

 

At a meeting held on June 13, 2019 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck Vectors® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Vectors Africa Index ETF, Agribusiness ETF, Agriculture Producers ETF, Brazil Small-Cap ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, ChinaAMC CSI 300 ETF, [ChinaAMC] Environmental Protection ETF, [ChinaAMC] Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, ChinaAMC SME-ChiNext ETF, Coal ETF, Egypt Index ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Frontier Index ETF, Gold Miners ETF, Hard Assets Producers Extra Liquid ETF, India Small-Cap Index ETF, Indonesia Index ETF, Internet ETF, Israel ETF, Junior Gold Miners ETF, Kuwait Index ETF, Low Carbon Energy ETF (formerly Global Alternative Energy ETF), Metals ETF, MLP ETF, Mongolia ETF, Natural Resources ETF, Ned Davis [Long/Flat] International Equity ETF, Ned Davis [Long/Flat] US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF, Steel ETF, Telecom ETF, Unconventional Oil & Gas ETF, Uranium+Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck Vectors ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF (together, the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”

 

The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.

 

In preparation for the Renewal Meeting, the Trustees held a meeting on May 10, 2019. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses (for those Funds which had begun operations) of the Funds and the Funds’ peer funds (other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund except for the VanEck Vectors ChinaAMC CSI 300 ETF seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds.

 

The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 10, 2019 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including the Adviser’s commitment to waive certain fees and/or pay expenses of each of the

60

 

 

Funds to the extent necessary to prevent the operating expenses of each of the Funds from exceeding agreed upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Foreign Institutional Investors Scheme funds. The Trustees also noted that the Sub-Adviser is a wholly-owned subsidiary of China Asset Management Co., Ltd., one of China’s largest asset management companies measured by fund assets under management.

 

The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance of each of the Funds that had commenced operations prior to the date of the Renewal Meeting (the “Operating Funds”), the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Operating Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Operating Funds was satisfactory.

 

The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.

 

As noted above, the Trustees were also provided various data from Broadridge comparing the Operating Funds’ expenses and performance to that of other ETFs. The Trustees noted that the information provided showed that each Operating Fund had management fees (after the effect of any applicable fee waiver) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Low Carbon Energy ETF (formerly Global Alternative Energy ETF), Russia ETF, Unconventional Oil & Gas ETF and Vietnam ETF, which had management fees (after the effect of any applicable fee waiver) greater than the average and/or median of its respective peer group of funds. The Trustees also noted that the information provided showed that each Operating Fund had a total expense ratio (after the effect of any applicable expense limitation) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Africa Index ETF, Coal ETF, Egypt Index ETF, Low Carbon Energy ETF (formerly Global Alternative Energy ETF), Oil Refiners ETF, Russia ETF, Russia Small-Cap ETF, Unconventional Oil & Gas ETF, Uranium+Nuclear Energy ETF and Vietnam ETF, which had a total expense ratio (after the effect of any applicable expense limitation) greater than the average and/or median of its respective peer group of funds. With respect to these Operating Funds, the Trustees reviewed the amount by which these Operating Funds’ management fees and/or total expense ratios (after the effect of any applicable expense limitation) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Operating Funds were reasonable in light of the performance of the Operating Funds and the quality of services received.

 

The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds.

 

The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Operating Fund. The Trustees reviewed each Operating Fund’s asset size, expense ratio and expense cap and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Operating Funds invest, potential variability in the net assets of these Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Operating Funds effectively incorporate the benefits of economies of scale. The Trustees noted that the Adviser has capped expenses on each Operating Fund since its inception, although the cap was not necessarily exceeded each year. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Operating Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Operating Fund and the other factors discussed above and that the advisory fee rate for each Operating Fund currently reflects an

61

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2019 (unaudited) (continued)

 

appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the profits earned by the Adviser with respect to the Funds that were profitable to the Adviser were reasonable in light of the nature and quality of the services received by such Funds. The Trustees also considered information from the Sub-Adviser informing them that the Sub-Adviser did not earn any profits from managing the China Funds.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability to the Adviser of VanEck Vectors Agriculture Producers ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, [ChinaAMC] Environmental Protection ETF, [ChinaAMC] Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Frontier Index ETF, Hard Assets Producers Extra Liquid ETF, Internet ETF, Kuwait Index ETF, Metals ETF, MLP ETF, Mongolia ETF, Ned Davis [Long/Flat] International Equity ETF, Ned Davis [Long/Flat] US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF and Telecom ETF because the Funds had not yet commenced operations at the time of the Renewal Meeting. The Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, each of these Funds although they concluded that the nature, quality and extent of the services to be provided by the Adviser (and the Sub-Adviser, with respect to those Funds in respect of which the Sub-Adviser had been retained) were appropriate based on the Trustees’ knowledge of the Adviser and Sub-Adviser (to the extent applicable) and their personnel and the operations of the other series of the Trust.

 

The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 10, 2019 meeting as part of their consideration of the Agreements.

 

In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that each Agreement is in the best interest of each Fund and such Fund’s shareholders.

62

 

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck Vectors ETF Trust (the “Trust”) Prospectus, which includes more complete information. Investing involves substantial risk and high volatility, including possible loss of principal. 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 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

 

Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at https://www.sec.gov.

 

The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORTs are available on the Commission’s website at https://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.

 

 

 

Investment Adviser: Van Eck Associates Corporation    
Distributor: Van Eck Securities Corporation
666 Third Avenue, New York, NY 10017
vaneck.com		    
Account Assistance: 800.826.2333   INTLSAR
 
SEMI-ANNUAL REPORT
June 30, 2019 (unaudited)

   
VANECK VECTORS®  
 
Agribusiness ETF MOO®
Coal ETF KOL®
Gold Miners ETF GDX®
Junior Gold Miners ETF GDXJ®
Low Carbon Energy ETF SMOG™
Natural Resources ETF HAP®
Oil Refiners ETF CRAK®
Oil Services ETF OIH®
Rare Earth/Strategic Metals ETF REMX®
Steel ETF SLX®
Unconventional Oil & Gas ETF FRAK®
Uranium+Nuclear Energy ETF NLR®
   
     
  800.826.2333 vaneck.com
 
   
   
President’s Letter 1
Explanation of Expenses 3
Schedule of Investments  
Agribusiness ETF 5
Coal ETF 8
Gold Miners ETF 10
Junior Gold Miners ETF 14
Low Carbon Energy ETF 18
Natural Resources ETF 20
Oil Refiners ETF 25
Oil Services ETF 27
Rare Earth/Strategic Metals ETF 29
Steel ETF 31
Unconventional Oil & Gas ETF 33
Uranium+Nuclear Energy ETF 35
Statements of Assets and Liabilities 38
Statements of Operations 40
Statements of Changes in Net Assets 42
Financial Highlights  
Agribusiness ETF 47
Coal ETF 47
Gold Miners ETF 48
Junior Gold Miners ETF 48
Low Carbon Energy ETF 49
Natural Resources ETF 49
Oil Refiners ETF 50
Oil Services ETF 50
Rare Earth/Strategic Metals ETF 51
Steel ETF 51
Unconventional Oil & Gas ETF 52
Uranium+Nuclear Energy ETF 52
Notes to Financial Statements 53
Approval of Investment Management Agreements 61

 

Certain information contained in this shareholder letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2019.

 

VANECK VECTORS ETFs

June 30, 2019 (unaudited)

 

Dear Shareholders:

 

We are pleased to present this semi-annual report.

 

Investment Outlook

In brief, the two engines of the global economy, the U.S. and China, are moving forward, albeit at a moderate pace. In this environment, with stocks having had a very solid year so far, our main message is that investors should not be too conservative with their fixed income portfolios. See our blog Is There Enough Risk in Your Fixed Income Portfolio?

 

Getting to this current environment was, however, a result of a lot of turbulence.

 

At the beginning of December last year, we were worried about the impact the European Central Bank’s (ECB) and the U.S. Federal Reserve’s (Fed) continued tightening would have on the financial markets. Typically, central bank tightening is unfavorable for financial assets, and markets decelerated going into December. Then, suddenly the Fed signaled it would stop raising rates and reverse on quantitative tightening. This led to a rally in U.S. equities and other asset classes.

 

The ECB is also now delaying any tightening steps. At its March 7 policy meeting, the ECB pushed back its timing for increasing interest rates and is expected to stay on hold through the end of 2019. It also announced a program to stimulate bank lending, with another round of targeted longer-term refinancing operations (TLTRO) launching in September. TLTRO loans from the ECB provides banks in the euro zone with cheap rates.

 

Last but not least, China’s non-manufacturing Purchasing Managers’ Index (PMI) shows a strong rate of expansion, which one would expect with the emergence of the “new China” economy—one that is increasingly driven by consumption. However, the manufacturing PMI shows several recent dips below the important 50 mark into contraction territory, corresponding to the “recession” in late 2018, followed by a recovery after Q1 2019. It saw another fall into contraction territory in Q2 2019, though this was slightly smaller than the Q4 2018 drop, indicating that China’s stimulus measures may have softened the impact of external factors, such as tariffs and trade tensions. If so, we believe more stimulus may be expected to support domestic demand in the months ahead.

 

Doubtless there are risks to the global economy and financial markets. Concerns around the strength of global economic growth, the strength of the U.S. dollar, the trajectory of U.S. interest rates, certain country-specific factors, e.g., Iran and Venezuela, and the, as yet, unresolved trade dispute between the U.S. and China continue to hang over the market.

 

We encourage you to stay in touch with us through the videos, email subscriptions, and research blogs available on our website, www.vaneck.com. I have started my own email subscription where I share interesting research—you can sign up on vaneck.com. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.

1

VANECK VECTORS ETFs

(unaudited) (continued)

 

We sincerely thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each of the funds for the six month period ended June 30, 2019. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.

 

 

Jan F. van Eck

Trustee and President

VanEck Vectors ETF Trust

 

July 16, 2019

 

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

2

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited)

 

Hypothetical $1,000 investment at beginning of period

As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2019 to June 30, 2019.

 

Actual Expenses

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

3

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited) (continued)

 

   Beginning
Account
Value
January 1, 2019		  Ending
Account
Value
June 30, 2019		  Annualized
Expense
Ratio
During Period		  Expenses Paid
During the Period*
January 1, 2019 –
June 30, 2019
Agribusiness ETF                    
Actual        $1,000.00               $1,170.40       0.55%               $2.96           
Hypothetical**  $1,000.00   $1,022.07    0.55%  $2.76 
Coal ETF                    
Actual  $1,000.00   $1,050.60    0.60%  $3.05 
Hypothetical**  $1,000.00   $1,021.82    0.60%  $3.01 
Gold Miners ETF                    
Actual  $1,000.00   $1,216.40    0.52%  $2.86 
Hypothetical**  $1,000.00   $1,022.22    0.52%  $2.61 
Junior Gold Miners ETF                    
Actual  $1,000.00   $1,164.10    0.54%  $2.90 
Hypothetical**  $1,000.00   $1,022.12    0.54%  $2.71 
Low Carbon Energy ETF                    
Actual  $1,000.00   $1,180.40    0.62%  $3.35 
Hypothetical**  $1,000.00   $1,021.72    0.62%  $3.11 
Natural Resources ETF                    
Actual  $1,000.00   $1,141.00    0.50%  $2.65 
Hypothetical**  $1,000.00   $1,022.32    0.50%  $2.51 
Oil Refiners ETF                    
Actual  $1,000.00   $1,031.50    0.61%  $3.07 
Hypothetical**  $1,000.00   $1,021.77    0.61%  $3.06 
Oil Services ETF                    
Actual  $1,000.00   $1,055.60    0.35%  $1.78 
Hypothetical**  $1,000.00   $1,023.06    0.35%  $1.76 
Rare Earth/Strategic Metals ETF                    
Actual  $1,000.00   $1,113.60    0.60%  $3.14 
Hypothetical**  $1,000.00   $1,021.82    0.60%  $3.01 
Steel ETF                    
Actual  $1,000.00   $1,123.30    0.56%  $2.95 
Hypothetical**  $1,000.00   $1,022.02    0.56%  $2.81 
Unconventional Oil & Gas ETF                    
Actual  $1,000.00   $1,096.10    0.54%  $2.81 
Hypothetical**  $1,000.00   $1,022.12    0.54%  $2.71 
Uranium+Nuclear Energy ETF                    
Actual  $1,000.00   $1,028.00    0.61%  $3.07 
Hypothetical**  $1,000.00   $1,021.77    0.61%  $3.06 
* Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2019) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
   
** Assumes annual return of 5% before expenses
4

VANECK VECTORS AGRIBUSINESS ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
      
COMMON STOCKS: 100.2%     
Australia: 2.6%     
 519,102   Costa Group Holdings Ltd. #  $1,474,288 
 2,077,807   Incitec Pivot Ltd. #   4,977,694 
 1,075,950   Treasury Wine Estates Ltd. #   11,295,330 
         17,747,312 
Brazil: 1.9%     
 2,349,200   Rumo SA *   12,706,330 
Canada: 6.3%     
 817,308   Nutrien Ltd. (USD) †   43,693,286 
Chile: 1.0%     
 228,735   Sociedad Quimica y Minera de Chile SA (ADR)   7,115,946 
China / Hong Kong: 1.9%     
 3,099,000   China Mengniu Dairy Co. Ltd. #   12,013,983 
 4,100,000   Goldin Financial Holdings Ltd. * #   1,207,244 
         13,221,227 
Denmark: 0.8%     
 68,191   Bakkafrost P/F (NOK) #   3,810,172 
 25,787   Schouw & Co. AB #   1,968,595 
         5,778,767 
Germany: 9.9%     
 891,585   Bayer AG #   61,933,081 
 363,690   K+S AG † #   6,776,730 
         68,709,811 
Indonesia: 0.7%     
 14,595,000   Charoen Pokphand Indonesia Tbk PT #   4,888,675 
Israel: 1.1%     
 1,398,504   Israel Chemicals Ltd. (USD) †   7,272,221 
Japan: 6.0%     
 1,820,030   Kubota Corp. #   30,427,521 
 74,200   Maruha Nichiro Corp. #   2,181,965 
 143,600   Nippon Meat Packers, Inc. #   6,161,116 
 442,600   Nippon Suisan Kaisha Ltd. #   2,748,920 
         41,519,522 
Malaysia: 3.2%     
 5,127,155   IOI Corp. Bhd #   5,273,543 
 801,970   Kuala Lumpur Kepong Bhd #   4,766,096 
 1,130,580   PPB Group Bhd #   5,113,577 
 6,054,500   Sime Darby Plantation Bhd #   7,210,378 
         22,363,594 
Netherlands: 0.5%     
 127,625   OCI NV * #   3,509,545 
Norway: 6.1%     
 506,164   Leroy Seafood Group ASA #   3,355,024 
 824,761   Mowi ASA #   19,308,474 
 94,112   Salmar ASA #   4,099,068 
 320,188   Yara International ASA #   15,563,002 
         42,325,568 
Russia: 0.4%     
 204,350   PhosAgro OAO Reg S (GDR) #   2,681,883 
Number
of Shares		      Value 
      
Singapore: 2.6%     
 8,243,245   Golden Agri-Resources Ltd. #  $1,769,841 
 5,889,351   Wilmar International Ltd. #   16,122,370 
         17,892,211 
South Korea: 0.2%     
 77,725   Komipharm International Co. Ltd. * #   1,475,333 
Switzerland: 0.6%     
 12,235   Bucher Industries AG #   4,220,449 
Taiwan: 0.4%     
 1,559,000   Taiwan Fertilizer Co. Ltd. #   2,398,752 
Thailand: 1.3%     
 9,754,636   Charoen Pokphand Foods (NVDR) #   8,989,499 
United Kingdom: 3.3%     
 1,725,896   CNH Industrial NV (USD) †   17,742,211 
 102,613   Genus Plc #   3,463,445 
 9,072,482   Sirius Minerals Plc * † #   1,701,084 
         22,906,740 
United States: 49.4%     
 107,195   AGCO Corp.   8,315,116 
 40,110   Andersons, Inc.   1,092,596 
 770,399   Archer-Daniels-Midland Co.   31,432,279 
 41,216   Balchem Corp.   4,120,364 
 217,537   Bunge Ltd.   12,118,986 
 272,767   CF Industries Holdings, Inc.   12,740,947 
 313,291   Deere & Co.   51,915,452 
 663,912   Elanco Animal Health, Inc. *   22,440,226 
 183,693   FMC Corp.   15,237,334 
 133,962   IDEXX Laboratories, Inc. *   36,883,757 
 577,408   Mosaic Co.   14,452,522 
 66,412   Neogen Corp. *   4,124,849 
 110,999   Pilgrim’s Pride Corp. *   2,818,265 
 20,583   Sanderson Farms, Inc.   2,810,814 
 157,177   Toro Co.   10,515,141 
 200,072   Tractor Supply Co.   21,767,834 
 429,483   Tyson Foods, Inc.   34,676,457 
 477,563   Zoetis, Inc.   54,198,625 
         341,661,564 
Total Common Stocks
(Cost: $625,460,147)		   693,078,235 
MONEY MARKET FUND: 1.0%
(Cost: $6,925,595)		     
 6,925,595   Dreyfus Government Cash Management Fund – Institutional Shares   6,925,595 
Total Investments Before Collateral for Securities Loaned: 101.2%
(Cost: $632,385,742)		   700,003,830 


 

See Notes to Financial Statements

5

VANECK VECTORS AGRIBUSINESS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Principal
Amount		      Value 
           
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 7.3%     
Repurchase Agreements: 7.3%     
$12,027,655   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $12,030,161; (collateralized by various U.S. government and agency obligations, 3.20% due 6/1/46 to 7/1/49, valued at $12,268,208 including accrued interest)  $12,027,655 
 12,027,655   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $12,030,161; (collateralized by various U.S. government and agency obligations, 3.21% to 3.27%, due 7/2/19 to 1/20/63, valued at $12,268,208 including accrued interest)   12,027,655 
 2,528,660   Repurchase agreement dated 6/28/19 with Credit Agricole CIB, 2.45%, due 7/1/19, proceeds $2,529,176; (collateralized by U.S. government obligations, 3.27% due 4/15/21 valued at $2,579,233 including accrued interest)   2,528,660 
Principal
Amount		      Value 
           
Repurchase Agreements: (continued)     
$12,027,655   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $12,030,191; (collateralized by various U.S. government and agency obligations, 3.27% to 3.31%, due 7/5/19 to 9/9/49, valued at $12,268,208 including accrued interest)  $12,027,655 
 12,027,655   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $12,030,181; (collateralized by various U.S. government and agency obligations, 3.31% to 3.32%, due 4/1/26 to 6/20/49, valued at $12,268,208 including accrued interest)   12,027,655 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $50,639,280)		   50,639,280 
Total Investments: 108.5%
(Cost: $683,025,022)		   750,643,110 
Liabilities in excess of other assets: (8.5)%   (58,848,941)
NET ASSETS: 100.0%  $691,794,169 


 

 

Definitions:
ADR American Depositary Receipt
GDR Global Depositary Receipt
NOK Norwegian Krone
NVDR Non-Voting Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $47,707,038.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $262,886,677 which represents 38.0% 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		  % of Investments          Value 
Consumer Discretionary     3.1%    $21,767,834 
Consumer Staples     29.8      208,707,555 
Health Care     26.4      184,519,316 
Industrials     19.4      135,842,220 
Materials     20.3      142,241,310 
Money Market Fund     1.0      6,925,595 
           100.0%          $700,003,830 

 

See Notes to Financial Statements

6

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		  Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                   
Australia  $—              $17,747,312              $—              $17,747,312 
Brazil   12,706,330   —    —    12,706,330 
Canada   43,693,286   —    —    43,693,286 
Chile   7,115,946   —    —    7,115,946 
China / Hong Kong   —   13,221,227    —    13,221,227 
Denmark   —   5,778,767    —    5,778,767 
Germany   —   68,709,811    —    68,709,811 
Indonesia   —   4,888,675    —    4,888,675 
Israel   7,272,221   —    —    7,272,221 
Japan   —   41,519,522    —    41,519,522 
Malaysia   —   22,363,594    —    22,363,594 
Netherlands   —   3,509,545    —    3,509,545 
Norway   —   42,325,568    —    42,325,568 
Russia   —   2,681,883    —    2,681,883 
Singapore   —   17,892,211    —    17,892,211 
South Korea   —   1,475,333    —    1,475,333 
Switzerland   —   4,220,449    —    4,220,449 
Taiwan   —   2,398,752    —    2,398,752 
Thailand   —   8,989,499    —    8,989,499 
United Kingdom   17,742,211   5,164,529    —    22,906,740 
United States   341,661,564   —    —    341,661,564 
Money Market Fund   6,925,595   —    —    6,925,595 
Repurchase Agreements   —   50,639,280    —    50,639,280 
Total  $437,117,153  $313,525,957   $—   $750,643,110 

 

See Notes to Financial Statements

7

VANECK VECTORS COAL ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
      
COMMON STOCKS: 99.9%     
Australia: 18.0%     
 884,595   Aurizon Holdings Ltd. #  $3,356,638 
 407,957   Coronado Global Resources, Inc. Reg S 144A #   1,042,316 
 149,180   Washington H Soul Pattinson & Co. Ltd. #   2,305,821 
 786,144   Whitehaven Coal Ltd. #   2,024,915 
         8,729,690 
Canada: 10.8%     
 170,518   Teck Cominco Ltd. (USD)   3,932,145 
 77,418   Westshore Terminals Investment Corp. †   1,302,198 
         5,234,343 
China / Hong Kong: 19.7%     
 5,920,000   Agritrade Resources Ltd. †   856,269 
 4,420,095   China Coal Energy Co. Ltd. #   1,840,567 
 1,807,908   China Shenhua Energy Co. Ltd. #   3,786,396 
 29,780,000   National United Resources Holdings Ltd. * # ∞   0 
 3,916,067   Shougang Fushan Resources Group Ltd. #   852,638 
 2,362,000   Yanzhou Coal Mining Co. Ltd. #   2,208,489 
         9,544,359 
Indonesia: 18.1%     
 23,418,415   Adaro Energy Tbk PT #   2,257,583 
 106,401,300   Bumi Resources Tbk PT * #   896,572 
 834,652   Indo Tambangraya Megah Tbk PT #   1,037,541 
 6,564,700   Tambang Batubara Bukit Asam Tbk PT #   1,376,936 
 1,623,400   United Tractors Tbk PT #   3,239,084 
         8,807,716 
Philippines: 2.5%     
 2,691,130   Semirara Mining and Power Corp.   1,215,959 
Poland: 2.9%     
 111,506   Jastrzebska Spolka Weglowa SA * #   1,413,879 
South Africa: 6.1%     
 243,839   Exxaro Resources Ltd. #   2,982,444 
Thailand: 5.5%     
 5,417,289   Banpu PCL (NVDR) #   2,652,610 
Number
of Shares		      Value 
           
United States: 16.3%     
 17,383   Arch Coal, Inc.  $1,637,652 
 36,711   CONSOL Energy, Inc. *   976,880 
 28,750   Contura Energy, Inc. *   1,492,125 
 83,553   Peabody Energy Corp.   2,013,627 
 69,634   Warrior Met Coal, Inc.   1,818,840 
         7,939,124 
Total Common Stocks
(Cost: $59,263,012)		   48,520,124 
           
Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.1%     
Repurchase Agreements: 4.1%     
$1,000,000   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,000,211; (collateralized by various U.S. government and agency obligations, 3.48% to 3.52%, due 7/5/19 to 9/9/49, valued at $1,020,000 including accrued interest)   1,000,000 
 983,413   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $983,618; (collateralized by various U.S. government and agency obligations, 3.52% due 8/15/20 to 11/15/46, valued at $1,003,081 including accrued interest)   983,413 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $1,983,413)		   1,983,413 
Total Investments: 104.0%
(Cost: $61,246,425)		   50,503,537 
Liabilities in excess of other assets: (4.0)%   (1,953,969)
NET ASSETS: 100.0%  $48,549,568 


 

 

Definitions:
NVDR Non-Voting Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $1,721,607.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $33,274,429 which represents 68.5% of net assets.
 ∞ Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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 $1,042,316, or 2.1% of net assets.

 

See Notes to Financial Statements

8

 

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments          Value 
Energy     71.7%    $34,801,470 
Industrials     9.6      4,658,836 
Materials     18.7      9,059,818 
           100.0%          $48,520,124 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		  Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                   
Australia  $—              $8,729,690               $—               $8,729,690 
Canada   5,234,343   —    —    5,234,343 
China / Hong Kong   856,269   8,688,090    0    9,544,359 
Indonesia   —   8,807,716    —    8,807,716 
Philippines   1,215,959   —    —    1,215,959 
Poland   —   1,413,879    —    1,413,879 
South Africa   —   2,982,444    —    2,982,444 
Thailand   —   2,652,610    —    2,652,610 
United States   7,939,124   —    —    7,939,124 
Repurchase Agreements   —   1,983,413    —    1,983,413 
Total  $15,245,695  $35,257,842   $0   $50,503,537 

 

See Notes to Financial Statements

9

VANECK VECTORS GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 100.0%    
Australia: 17.3%    
 105,707,115            Evolution Mining Ltd. ‡ #  $323,833,148 
 30,629,024   Newcrest Mining Ltd. #   687,824,447 
 39,838,945   Northern Star Resources Ltd. ‡ #   326,692,243 
 38,760,495   OceanaGold Corp. (CAD) ‡   106,189,074 
 31,634,022   Regis Resources Ltd. ‡ #   117,415,358 
 47,220,228   Resolute Mining Ltd. ‡ #   44,416,425 
 51,093,120   Saracen Mineral Holdings Ltd. ‡ * #   132,214,140 
 40,497,423   St. Barbara Ltd. ‡ #   83,602,210 
         1,822,187,045 
Canada: 50.0%    
 10,372,077   Agnico-Eagle Mines Ltd. (USD) †   531,465,226 
 24,217,779   Alamos Gold, Inc. (USD) ‡   146,517,563 
 58,510,203   B2Gold Corp. (USD) ‡ * †   177,285,915 
 69,799,936   Barrick Gold Corp. (USD)   1,100,744,991 
 18,217,056   Centerra Gold, Inc. ‡ *   128,533,581 
 10,896,472   Detour Gold Corp. ‡ *   137,753,754 
 9,891,468   Eldorado Gold Corp. (USD) ‡ *   57,568,344 
 12,491,988   First Majestic Silver Corp. (USD) ‡ * †   98,811,625 
 7,461,821   Franco-Nevada Corp. (USD)   633,359,367 
 29,148,931   IAMGOLD Corp. (USD) ‡ *   98,523,387 
 77,529,894   Kinross Gold Corp. (USD) ‡ *   300,815,989 
 11,286,816   Kirkland Lake Gold Ltd. ‡ †   487,317,512 
 22,424,803   McEwen Mining, Inc. (USD) ‡ †   39,243,405 
 9,665,835   Osisko Gold Royalties Ltd. (USD) ‡ †   100,911,317 
 13,046,866   Pan American Silver Corp. (USD) ‡   168,435,040 
 11,478,941   Pretium Resources, Inc. (USD) ‡ * †   114,904,199 
 11,118,884   Sandstorm Gold Ltd. (USD) ‡ * †   61,598,617 
 20,749,719   Semafo, Inc. ‡ *   81,934,991 
 7,550,603   SSR Mining, Inc. (USD) ‡ *   103,216,743 
 4,946,124   Torex Gold Resources, Inc. ‡ *   50,946,875 
 20,888,911   Wheaton Precious Metals Corp. (USD)   505,093,868 
 59,104,613   Yamana Gold, Inc. (USD) ‡ †   148,943,625 
         5,273,925,934 
China / Hong Kong: 2.1%    
 65,356,500   Zhaojin Mining Industry Co. Ltd. ‡ #   73,364,685 
 357,358,000   Zijin Mining Group Ltd. ‡ #   145,212,406 
         218,577,091 
Monaco: 1.1%    
 6,711,654   Endeavour Mining Corp. (CAD) ‡ *   109,656,639 
Peru: 2.7%    
 17,122,312   Cia de Minas Buenaventura SA (ADR) ‡   285,428,941 
Russia: 0.6%    
 22,663,055   Highland Gold Mining Ltd. (GBP) ‡ #   58,928,771 
South Africa: 7.7%    
 25,804,488   AngloGold Ashanti Ltd. (ADR) ‡   459,577,931 
 51,613,871   Gold Fields Ltd. (ADR) ‡   279,231,042 
 33,621,770   Harmony Gold Mining Co. Ltd. (USD) ‡ * †   76,321,418 
         815,130,391 
Number
of Shares		      Value 
         
United Kingdom: 1.0%     
 72,002,243            Centamin Plc ‡ #  $104,974,432 
United States: 17.5%     
 18,351,227   Alacer Gold Corp. (CAD) ‡ *   63,897,519 
 12,775,203   Coeur Mining, Inc. ‡ *   55,444,381 
 30,286,647   Hecla Mining Co. ‡   54,515,965 
 32,665,605   Newmont Mining Corp.   1,256,645,824 
 4,081,103   Royal Gold, Inc. ‡   418,272,246 
         1,848,775,935 
Total Common Stocks
(Cost: $9,469,928,561)		   10,537,585,179 
MONEY MARKET FUND: 0.0%
(Cost: $3,134,689)		     
 3,134,689   Dreyfus Government Cash Management Fund – Institutional Shares   3,134,689 
Total Investments Before Collateral for Securities Loaned: 100.0%
(Cost: $9,473,063,250)		   10,540,719,868 
          
Principal
Amount		         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.0%     
Repurchase Agreements: 1.0%     
$25,018,274   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $25,023,486; (collateralized by various U.S. government and agency obligations, 3.56%, due 6/1/46 to 7/1/49, valued at $25,518,639 including accrued interest)   25,018,274 
 25,018,274   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $25,023,486; (collateralized by various U.S. government and agency obligations, 3.56% to 3.63%, due 7/2/19 to 1/20/63, valued at $25,518,640 including accrued interest)   25,018,274 
 5,261,266   Repurchase agreement dated 6/28/19 with Credit Agricole CIB, 2.45%, due 7/1/19, proceeds $5,262,340; (collateralized by U.S. government obligations, 3.63%, due 4/15/21, valued at $5,366,492 including accrued interest)   5,261,266 


 

See Notes to Financial Statements

10

 

 

Principal
Amount		      Value 
         
Repurchase Agreements: (continued)     
$25,018,274   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $25,023,549; (collateralized by various U.S. government and agency obligations, 3.63% to 3.67%, due 7/5/19 to 9/9/49, valued at $25,518,639 including accrued interest)  $25,018,274 
Principal
Amount		      Value 
         
Repurchase Agreements: (continued)     
$25,018,274   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $25,023,528; (collateralized by various U.S. government and agency obligations, 3.67% to 3.68%, due 4/1/26 to 6/20/49, valued at $25,518,639 including accrued interest)  $25,018,274 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $105,334,362)		   105,334,362 
Total Investments: 101.0%
(Cost: $9,578,397,612)		   10,646,054,230 
Liabilities in excess of other assets: (1.0)%   (104,189,874)
NET ASSETS: 100.0%  $10,541,864,356 


 

 

Definitions:
ADR American Depositary Receipt
CAD Canadian Dollar
GBP British Pound
USD United States Dollar
Footnotes:
‡ Affiliated issuer—as defined under the Investment Company Act of 1940.
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $99,484,839.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $2,098,478,265 which represents 19.9% of net assets.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments  Value 
Gold       92.1%                 $9,710,728,681 
Silver       7.9    826,856,498 
Money Market Fund              0.0       3,134,689 
             100.0%        $10,540,719,868 

 

See Notes to Financial Statements

11

VANECK VECTORS GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

A summary of the Fund’s transactions in securities of affiliates for the period ended June 30, 2019 is set forth below:

 

Affiliates  Value
12/31/18		  Purchases  Sales
Proceeds		  Realized Gain
(Loss)		  Dividend
Income		  Net Change
in Unrealized
Appreciation
(Depreciation)		  Value
06/30/19		 
Agnico-Eagle Mines Ltd.     $520,137,718      $20,161,218      $(128,444,728)     $19,303,262      $2,876,547      $100,307,756      $—(a)
Alacer Gold Corp.   —    59,779,916    (7,713,615)   226,550    —    11,604,668    63,897,519 
Alamos Gold, Inc.   99,464,864    12,884,510    (27,710,670)   7,680,916    497,846    54,197,943    146,517,563 
AngloGold Ashanti Ltd.   366,913,231    41,740,308    (83,619,158)   32,414,466    1,860,235    102,129,084    459,577,931 
B2Gold Corp.   204,816,687    12,284,455    (45,132,060)   5,004,947    —    311,886    177,285,915 
Barrick Gold Corp.   808,713,532    554,846,185    (378,662,820)   (24,239,282)   2,950,613    140,087,376    —(a)
Centamin Plc   113,792,339    10,144,401    (23,260,870)   370,648    2,208,467    3,927,914    104,974,432 
Centerra Gold, Inc.   88,781,167    11,460,443    (23,554,085)   5,647,523    —    46,198,533    128,533,581 
Cia de Minas Buenaventura SA   316,030,237    28,533,738    (65,911,570)   13,322,750    1,063,561    (6,546,214)   285,428,941 
Coeur Mining, Inc.   64,403,009    6,103,821    (12,633,570)   (664,847)   —    (1,764,032)   55,444,381 
Detour Gold Corp.   104,674,993    11,833,670    (25,164,567)   4,687,876    —    41,721,782    137,753,754 
Eldorado Gold Corp.   32,416,577    4,818,233    (9,469,700)   2,262,236    —    27,540,998    57,568,344 
Endeavour Mining Corp.   124,894,732    10,609,486    (24,847,365)   1,369,533    —    (2,369,747)   109,656,639 
Evolution Mining Ltd.   312,760,951    29,878,354    (67,164,701)   23,115,818    2,827,229    25,242,726    323,833,148 
First Majestic Silver Corp.   80,812,220    11,259,411    (17,676,794)   2,298,317    —    22,118,471    98,811,625 
Fortuna Silver Mines, Inc.   41,480,198    1,910,383    (35,051,997)   (26,914,481)   —    18,575,897    — 
Franco-Nevada Corp.   668,954,538    25,611,833    (180,941,294)   20,931,042    4,061,146    98,803,248    —(a)
Gold Fields Ltd.   204,968,051    26,153,001    (50,953,412)   11,982,242    753,914    87,081,160    279,231,042 
Goldcorp, Inc.   482,050,171    36,549,182    (587,592,401)   (192,897,372)   918,382    261,890,420    — 
Harmony Gold Mining Co. Ltd.   67,526,656    8,018,770    (15,154,468)   2,228,301    —    13,702,159    76,321,418 
Hecla Mining Co.   80,325,184    7,184,484    (15,758,219)   (1,046,567)   154,956    (16,188,917)   54,515,965 
Highland Gold Mining Ltd.   —    61,409,379    (7,594,224)   (73,431)   675,562    5,187,047    58,928,771 
IAMGOLD Corp.   121,697,254    10,147,944    (22,439,776)   (1,520,096)   —    (9,361,939)   98,523,387 
Kinross Gold Corp.   285,843,557    28,141,125    (62,730,629)   7,493,121    —    42,068,815    300,815,989 
Kirkland Lake Gold Ltd.   387,709,075    18,459,036    (139,457,016)   86,903,587    850,202    133,702,830    487,317,512 
McEwen Mining, Inc.   43,509,870    6,089,351    (8,052,117)   (593,005)   —    (1,710,694)   39,243,405 
New Gold, Inc.   30,868,670    1,710,353    (33,598,744)   (85,660,687)   —    86,680,408    — 
Newcrest Mining Ltd.   603,699,623    25,588,204    (182,996,594)   30,620,767    2,793,592    210,912,447    —(a)
Newmont Mining Corp.   944,143,269    552,473,888    (375,352,796)   10,213,921    28,969,365    125,167,542    —(a)
Northern Star Resources Ltd.   295,708,750    29,036,520    (63,163,155)   31,826,687    1,799,162    33,283,441    326,692,243 
OceanaGold Corp.   159,840,290    12,622,776    (28,751,175)   3,641,948    406,838    (41,164,765)   106,189,074 
Osisko Gold Royalties Ltd.   97,337,468    9,790,617    (24,043,773)   5,162,932    756,577    12,664,073    100,911,317 
Pan American Silver Corp.   158,659,602    65,316,999    (36,378,710)   (412,781)   811,272    (18,750,070)   168,435,040 
Pretium Resources, Inc.   109,881,257    11,021,149    (22,369,554)   2,103,607    —    14,267,740    114,904,199 
Randgold Resources Ltd.   498,159,398    —    (511,609,270)   —    15,559,502    13,449,872    — 
Regis Resources Ltd.   122,392,528    11,681,188    (26,453,159)   12,135,793    1,901,451    (2,340,992)   117,415,358 
Resolute Mining Ltd.   43,706,450    3,965,707    (9,196,955)   287,979    —    5,653,244    44,416,425 
Royal Gold, Inc.   397,694,277    38,884,135    (86,826,628)   14,449,749    2,366,328    54,070,713    418,272,246 
Sandstorm Gold Ltd.   59,675,136    4,887,376    (14,279,681)   2,841,418    —    8,474,368    61,598,617 
Saracen Mineral Holdings Ltd.   120,142,275    11,933,350    (26,184,176)   13,127,961    —    13,194,730    132,214,140 
Semafo, Inc.   49,849,492    8,490,892    (13,525,634)   3,458,320    —    33,661,921    81,934,991 
SSR Mining, Inc.   103,045,923    10,303,046    (21,848,224)   4,671,334    —    7,044,664    103,216,743 
St. Barbara Ltd.   123,029,927    27,184,458    (23,866,993)   4,296,913    982,017    (47,042,095)   83,602,210 
Tahoe Resources, Inc.   81,058,653    659,261    (82,846,460)   (97,134,218)   —    98,262,764    — 
Torex Gold Resources, Inc.   53,530,337    5,564,441    (12,690,322)   2,986,696    —    1,555,723    50,946,875 
Wheaton Precious Metals Corp.   515,099,961    23,261,473    (143,197,097)   11,860,259    3,993,343    98,069,272    —(a)
Yamana Gold, Inc.   158,725,755    14,929,610    (33,978,706)   1,805,241    615,037    7,461,725    148,943,625 
Zhaojin Mining Industry Co. Ltd.   75,479,429    6,949,770    (15,449,132)   3,257,842    371,170    3,126,776    73,364,685 
Zijin Mining Group Ltd.   154,103,290    14,592,384    (33,262,408)   4,676,389    5,194,402    5,102,751    145,212,406 
   $10,578,508,571   $1,946,860,234   $(3,888,561,172)  $(20,487,876)  $88,218,716   $1,921,265,422   $5,822,451,456 

 

(a) Security held by the Fund, however not classified as an affiliate at the end of the reporting period.

 

See Notes to Financial Statements

12

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		  Level 2
Significant
Observable
Inputs		  Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                    
Australia  $106,189,074              $1,715,997,971                  $—                  $1,822,187,045 
Canada   5,273,925,934   —     —    5,273,925,934 
China / Hong Kong   —   218,577,091     —    218,577,091 
Monaco   109,656,639   —     —    109,656,639 
Peru   285,428,941   —     —    285,428,941 
Russia   —   58,928,771     —    58,928,771 
South Africa   815,130,391   —     —    815,130,391 
United Kingdom   —   104,974,432     —    104,974,432 
United States   1,848,775,935   —     —    1,848,775,935 
Money Market Fund   3,134,689   —     —    3,134,689 
Repurchase Agreements   —   105,334,362     —    105,334,362 
Total  $8,442,241,603  $2,203,812,627    $—   $10,646,054,230 

 

See Notes to Financial Statements

13

VANECK VECTORS JUNIOR GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 99.7%     
Australia: 25.0%     
 51,818,327   Aurelia Metals Ltd. ‡ * #  $18,026,046 
 79,449,308   Evolution Mining Ltd. #   243,392,505 
 30,376,856   Northern Star Resources Ltd. #   249,100,051 
 29,132,168   OceanaGold Corp. (CAD)   79,811,105 
 64,159,889   Perseus Mining Ltd. ‡ * #   26,413,221 
 36,155,005   Ramelius Resources Ltd. ‡ * #   18,370,128 
 29,978,564   Regis Resources Ltd. ‡ #   111,270,828 
 32,918,855   Resolute Mining Ltd. † #   30,964,227 
 41,191,353   Saracen Mineral Holdings Ltd. ‡ * #   106,591,246 
 46,629,992   Silver Lake Resources Ltd. ‡ * #   41,270,914 
 41,063,291   St. Barbara Ltd. ‡ #   84,770,378 
 17,688,404   Westgold Resources Ltd. * #   23,259,062 
         1,033,239,711 
Canada: 49.4%     
 16,361,765   Alamos Gold, Inc. (USD)   98,988,678 
 40,902,496   B2Gold Corp. (USD) *   123,934,563 
 10,516,957   Centerra Gold, Inc. *   74,204,204 
 16,406,650   China Gold International Resources Corp. Ltd. * †   20,590,707 
 8,222,811   Continental Gold, Inc. *   23,848,826 
 8,834,222   Detour Gold Corp. ‡ *   111,682,684 
 7,509,394   Dundee Precious Metals, Inc. *   28,043,499 
 7,973,119   Eldorado Gold Corp. (USD) ‡ * †   46,403,553 
 8,296,008   Endeavour Silver Corp. (USD) ‡ * †   17,006,816 
 10,438,127   First Majestic Silver Corp. (USD) ‡ * †   82,565,585 
 8,681,351   Fortuna Silver Mines, Inc. (USD) ‡ *   24,741,850 
 8,112,918   Gold Standard Ventures Corp. (USD) * †   8,599,693 
 4,210,294   Golden Star Resources Ltd. (USD) * †   16,967,485 
 17,632,051   Great Panther Silver Ltd. (USD) ‡ * †   15,071,877 
 7,299,778   Guyana Goldfields, Inc. *   5,753,795 
 24,765,902   IAMGOLD Corp. (USD) ‡ * †   83,708,749 
 59,476,509   Kinross Gold Corp. (USD) *   230,768,855 
 3,714,393   MAG Silver Corp. (USD) * †   39,149,702 
 16,365,277   McEwen Mining, Inc. (USD) †   28,639,235 
 31,433,762   New Gold, Inc. (USD) ‡ *   30,217,275 
 13,462,145   Novagold Resources, Inc. (USD) *   79,561,277 
 7,881,405   Novo Resources Corp. * †   12,726,049 
 4,737,585   Osisko Gold Royalties Ltd. (USD)   49,460,387 
 8,912,361   Osisko Mining, Inc. * †   22,506,823 
 16,729,842   Pan American Silver Corp. * # (b)   4,830,443 
 12,647,032   Pan American Silver Corp. (USD) ‡ †   163,273,183 
 9,280,328   Premier Gold Mines Ltd. * †   14,487,751 
 8,377,480   Pretium Resources, Inc. (USD) * †   83,858,575 
 27,370,549   Royal Nickel Corp. *   12,986,218 
 9,245,048   Sandstorm Gold Ltd. (USD) ‡ * †   51,217,566 
 2,894,189   Seabridge Gold, Inc. (USD) * †   39,158,377 
 13,108,924   Semafo, Inc. *   51,763,572 
 10,706,814   Silvercorp Metals, Inc. ‡ †   26,546,836 
 6,990,928   SSR Mining, Inc. (USD) ‡ *   95,565,986 
 1,694,754   Sulliden Mining Capital, Inc. *   87,542 
 5,328,721   Teranga Gold Corp. *   16,352,149 
 3,871,039   Torex Gold Resources, Inc. *   39,873,109 
 6,751,004   Wesdome Gold Mines Ltd. *   27,846,116 
 54,803,105   Yamana Gold, Inc. (USD) ‡   138,103,825 
         2,041,093,415 
Number
of Shares		      Value 
         
China / Hong Kong: 1.0%     
 11,760,000   Hengxing Gold Holding Co. Ltd. Reg S † #  $8,943,242 
 19,287,400   Real Gold Mining Ltd. * # ∞   0 
 29,900,000   Zhaojin Mining Industry Co. Ltd. #   33,563,671 
         42,506,913 
Monaco: 1.1%     
 2,684,806   Endeavour Mining Corp. (CAD) *   43,865,015 
Peru: 5.4%    
 11,004,039   Cia de Minas Buenaventura SA (ADR)   183,437,330 
 16,973,799   Hochschild Mining Plc (GBP) #   41,347,597 
         224,784,927 
Russia: 0.9%     
 14,813,955   Highland Gold Mining Ltd. (GBP) #   38,519,439 
South Africa: 10.0%     
 39,355,139   Gold Fields Ltd. (ADR)   212,911,302 
 27,467,874   Harmony Gold Mining Co. Ltd. (USD) ‡ *   62,352,074 
 28,985,269   Sibanye Gold Ltd. (ADR) * †   137,680,028 
         412,943,404 
Turkey: 0.7%     
 3,104,078   Koza Altin Isletmeleri AS * † #   28,333,082 
United Kingdom: 2.2%     
 8,347,126   African Barrick Gold Ltd. * #   18,911,821 
 48,626,619   Centamin Plc #   70,894,343 
 386,037   Patagonia Gold Plc *   191,611 
         89,997,775 
United States: 4.0%     
 17,344,894   Alacer Gold Corp. (CAD) ‡ *   60,393,547 
 10,046,994   Argonaut Gold, Inc. (CAD) ‡ *   13,685,594 
 9,778,545   Coeur Mining, Inc. *   42,438,885 
 3,514,611   Gold Resource Corp. ‡   11,879,385 
 21,113,730   Hecla Mining Co.   38,004,714 
         166,402,125 
Total Common Stocks
(Cost: $4,094,767,264)		   4,121,685,806 
MONEY MARKET FUND: 0.3%
(Cost: $14,769,623)		     
 14,769,623   Dreyfus Government Cash Management Fund – Institutional Shares   14,769,623 
Total Investments Before Collateral for Securities Loaned: 100.0%
(Cost: $4,109,536,887)		   4,136,455,429 


 

See Notes to Financial Statements

14

 

 

Principal
Amount		      Value 
         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.1%    
Repurchase Agreements: 3.1%     
$29,799,382   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $29,805,590; (collateralized by various U.S. government and agency obligations, 3.68%, due 6/1/46 to 7/1/49, valued at $30,395,370 including accrued interest)  $29,799,382 
 29,799,382   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $29,805,590; (collateralized by various U.S. government and agency obligations, 3.68% to 3.75%, due 7/2/19 to 1/20/63, valued at $30,395,370 including accrued interest)   29,799,382 
 6,264,991   Repurchase agreement dated 6/28/19 with Credit Agricole CIB, 2.45%, due 7/1/19, proceeds $6,266,270; (collateralized by U.S. government obligations, 3.75%, 4/15/21, valued at $6,390,291 including accrued interest)   6,264,991 
Principal
Amount		      Value 
         
Repurchase Agreements: (continued)     
$29,799,382   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $29,805,665; (collateralized by various U.S. government and agency obligations, 3.75% to 3.79%, due 7/5/19 to 9/9/49, valued at $30,395,370 including accrued interest)  $29,799,382 
 29,799,382   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $29,805,640; (collateralized by various U.S. government and agency obligations, 3.79%, due 4/1/26 to 6/20/49, valued at $30,395,370 including accrued interest)   29,799,382 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $125,462,519)		   125,462,519 
Total Investments: 103.1%
(Cost: $4,234,999,406)		   4,261,917,948 
Liabilities in excess of other assets: (3.1)%   (126,594,241)
NET ASSETS: 100.0%  $4,135,323,707 


 

 

Definitions:

ADRAmerican Depositary Receipt
CADCanadian Dollar
GBP British Pound
USDUnited States Dollar
Footnotes:
(b) Contingent Value Right
‡ Affiliated issuer—as defined under the Investment Company Act of 1940.
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $119,996,252.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,198,772,244 which represents 29.0% of net assets.
∞ Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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		  % of Investments  Value 
Diversified Metals & Mining       0.7%               $31,012,264 
Gold       87.8    3,630,612,451 
Precious Metals & Minerals       0.5    22,594,365 
Silver       10.6    437,466,726 
Money Market Fund       0.4    14,769,623 
             100.0%        $4,136,455,429 

 

See Notes to Financial Statements

15

VANECK VECTORS JUNIOR GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

A summary of the Fund’s transactions in securities of affiliates for the period ended June 30, 2019 is set forth below:

 

Affiliates  Value
12/31/18		  Purchases  Sales
Proceeds		  Realized Gain
(Loss)		  Dividend
Income		  Net Change
in Unrealized
Appreciation
(Depreciation)		  Value
06/30/19		 
Alacer Gold Corp.     $34,982,152      $11,290,806      $(14,883,022)     $4,247,275      $—      $24,756,336      $60,393,547 
AngloGold Ashanti Ltd.   282,998,522    5,835,830    (312,202,250)   121,052,961    —    (97,685,063)   — 
Argonaut Gold, Inc.   12,949,447    2,553,035    (4,387,941)   (419,064)   —    2,990,117    13,685,594 
Aurelia Metals Ltd.   —    34,619,054    (3,572,682)   (618,993)   —    (12,401,333)   18,026,046 
Centamin Plc   80,309,456    14,336,196    (27,858,128)   (4,703,876)   1,631,852    8,810,695    —(a)
Cia de Minas Buenaventura SA   234,294,396    28,916,870    (85,369,596)   1,042,337    755,269    4,553,323    —(a)
Coeur Mining, Inc.   45,523,338    11,152,504    (12,831,085)   (3,989,699)   —    2,583,827    —(a)
Detour Gold Corp.   88,749,098    18,649,727    (36,848,106)   848,787    —    40,283,178    111,682,684 
Eldorado Gold Corp.   25,343,959    7,511,458    (10,910,445)   (1,343,987)   —    25,802,568    46,403,553 
Endeavour Silver Corp.   19,602,819    4,256,337    (6,006,055)   (478,820)   —    (367,465)   17,006,816 
Evolution Mining Ltd.   231,124,387    42,799,039    (70,593,472)   21,347,909    2,068,636    18,714,642    —(a)
First Majestic Silver Corp.   65,808,888    16,874,471    (21,242,180)   (631,477)   —    21,755,883    82,565,585 
First Mining Gold Corp.   7,062,340    1,633,504    (8,092,517)   (16,153,544)   —    15,550,217    — 
Fortuna Silver Mines, Inc.   35,792,404    5,880,663    (9,588,720)   (1,183,437)   —    (6,159,060)   24,741,850 
Gold Fields Ltd.   169,028,988    36,787,618    (80,750,420)   16,357,775    601,597    71,487,341    —(a)
Gold Resource Corp.   13,319,704    4,718,820    (4,075,418)   517,222    33,594    (2,600,943)   11,879,385 
Great Panther Silver Ltd.   8,385,985    11,089,605    (3,841,727)   (817,168)   —    255,182    15,071,877 
Harmony Gold Mining Co. Ltd.   52,794,763    13,118,818    (17,548,548)   1,446,260    —    12,540,781    62,352,074 
Hecla Mining Co.   60,219,126    6,329,151    (16,036,939)   (4,728,703)   115,973    (7,777,921)   —(a)
IAMGOLD Corp.   102,965,609    16,861,991    (27,586,680)   (395,435)   —    (8,136,736)   83,708,749 
Kinross Gold Corp.   264,445,346    50,762,665    (132,834,651)   12,868,092    —    35,527,403    —(a)
New Gold, Inc.   28,593,826    3,867,201    (9,541,147)   (9,085,452)   —    16,382,847    30,217,275 
Northern Star Resources Ltd.   237,525,086    27,839,924    (68,446,086)   29,425,054    1,402,746    22,756,073    —(a)
OceanaGold Corp.   119,830,727    18,000,955    (30,082,068)   1,073,860    295,764    (29,012,369)   —(a)
Pan American Silver Corp.   139,336,545    147,579,697    (48,590,674)   (5,306,712)   921,965    (69,745,673)   163,273,183 
Perseus Mining Ltd.   16,515,673    9,553,705    (5,710,151)   1,172,436    —    4,881,558    26,413,221 
Premier Gold Mines Ltd.   12,902,867    2,912,960    (5,428,846)   (995,288)   —    5,096,058    —(a)
Pretium Resources, Inc.   89,438,248    9,528,717    (28,723,652)   2,548,618    —    11,066,644    —(a)
Ramelius Resources Ltd.   9,807,806    10,573,324    (7,385,140)   1,752,151    —    3,621,987    18,370,128 
Regis Resources Ltd.   111,422,986    24,712,935    (34,591,347)   19,454,728    1,680,228    (9,728,474)   111,270,828 
Sandstorm Gold Ltd.   51,768,258    7,039,739    (18,018,976)   5,032,979    —    5,395,566    51,217,566 
Saracen Mineral Holdings Ltd.   97,789,867    24,562,336    (41,017,274)   27,592,607    —    (2,336,290)   106,591,246 
Silver Lake Resources Ltd.   11,913,423    20,738,496    (6,128,890)   1,309,542    —    13,438,343    41,270,914 
Silvercorp Metals, Inc.   24,544,468    5,834,566    (8,250,604)   228,388    140,169    4,190,018    26,546,836 
SSR Mining, Inc.   94,896,804    17,925,426    (29,743,087)   14,248,951    —    (1,762,108)   95,565,986 
St. Barbara Ltd.   107,983,269    45,247,723    (28,268,610)   5,198,838    835,757    (45,390,842)   84,770,378 
Tahoe Resources, Inc.   65,108,273    784,105    (114,775,367)   695,506    —    48,187,483    — 
Teranga Gold Corp.   17,350,543    3,325,712    (4,989,227)   (77,435)   —    742,556    —(a)
Torex Gold Resources, Inc.   42,916,086    9,822,309    (16,294,940)   1,569,992    —    1,859,662    —(a)
Yamana Gold, Inc.   147,920,842    26,515,022    (46,155,790)   981,899    565,731    8,841,852    138,103,825 
   $3,263,266,324   $762,343,014   $(1,459,202,458)  $241,085,077   $11,049,281   $138,967,863   $1,441,129,146 

 

(a) Security held by the Fund, however not classified as an affiliate at the end of the reporting period.

 

See Notes to Financial Statements

16

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		  Level 2
Significant
Observable
Inputs		  Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                    
Australia  $79,811,105              $953,428,606                $—               $1,033,239,711 
Canada   2,036,262,972   4,830,443     —    2,041,093,415 
China / Hong Kong   —   42,506,913     0    42,506,913 
Monaco   43,865,015   —     —    43,865,015 
Peru   183,437,330   41,347,597     —    224,784,927 
Russia   —   38,519,439     —    38,519,439 
South Africa   412,943,404   —     —    412,943,404 
Turkey   —   28,333,082     —    28,333,082 
United Kingdom   191,611   89,806,164     —    89,997,775 
United States   166,402,125   —     —    166,402,125 
Money Market Fund   14,769,623   —     —    14,769,623 
Repurchase Agreements   —   125,462,519     —    125,462,519 
Total  $2,937,683,185  $1,324,234,763    $0   $4,261,917,948 

 

See Notes to Financial Statements

17

VANECK VECTORS LOW CARBON ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
      
COMMON STOCKS: 99.9%     
Austria: 2.9%     
 49,510   Verbund – Oesterreichische Elektrizis AG #  $2,597,498 
Brazil: 1.3%     
 90,013   Cosan Ltd. (USD)   1,202,574 
Canada: 3.4%     
 34,029   Canadian Solar, Inc. (USD) * †   742,853 
 117,600   Northland Power, Inc.   2,294,854 
         3,037,707 
China / Hong Kong: 4.7%     
 2,316,000   China Longyuan Power Group Corp. Ltd. #   1,488,010 
 9,021,600   GCL-Poly Energy Holdings Ltd. * † #   497,164 
 3,752,000   Huaneng Renewables Corp. Ltd. #   1,032,901 
 25,308   JinkoSolar Holding Co. Ltd. (ADR) * †   548,931 
 576,780   Xinjiang Goldwind Science & Technology Co. Ltd. #   630,698 
         4,197,704 
Denmark: 9.8%     
 101,384   Vestas Wind Systems A/S #   8,796,875 
Japan: 2.3%     
 82,304   Kurita Water Industries Ltd. #   2,052,019 
Spain: 3.1%     
 167,624   Siemens Gamesa Renewable Energy SA #   2,790,220 
Sweden: 5.0%     
 304,978   Nibe Industrier AB #   4,470,748 
United States: 67.4%     
 101,349   AMETEK, Inc.   9,206,543 
 21,711   Badger Meter, Inc.   1,295,930 
 91,868   Covanta Holding Corp.   1,645,356 
 76,978   Cree, Inc. *   4,324,624 
 109,517   Eaton Corp. Plc   9,120,576 
 32,103   EnerSys, Inc.   2,199,055 
 57,090   Enphase Energy, Inc. *   1,040,751 
 19,329   ESCO Technologies, Inc.   1,596,962 
 56,321   First Solar, Inc. *   3,699,163 
 28,642   Franklin Electric Co., Inc.   1,360,495 
 25,060   Itron, Inc. *   1,568,004 
 103,253   Microchip Technology, Inc.   8,952,035 
 37,789   Ormat Technologies, Inc.   2,395,445 
 21,553   Power Integrations, Inc.   1,728,120 
 27,816   Renewable Energy Group, Inc. *   441,162 
 55,886   Sunrun, Inc. *   1,048,421 
 40,595   Tesla Motors, Inc. * †   9,071,359 
         60,694,001 
Total Common Stocks
(Cost: $68,068,395)		   89,839,346 
MONEY MARKET FUND: 0.0%
(Cost: $43,233)		     
 43,233   Dreyfus Government Cash Management Fund – Institutional Shares   43,233 
Total Investments Before Collateral for Securities Loaned: 99.9%
(Cost: $68,111,628)		   89,882,579 
Principal
Amount		      Value 
         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 8.8%     
Repurchase Agreements: 8.8%     
$1,881,338   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $1,881,730; (collateralized by various U.S. government and agency obligations, 3.32%, due 6/1/46 to 7/1/49, valued at $1,918,965 including accrued interest)  $1,881,338 
 1,881,338   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $1,881,730; (collateralized by various U.S. government and agency obligations, 3.32% to 3.39%, due 7/2/19 to 1/20/63, valued at $1,918,965 including accrued interest)   1,881,338 
 1,881,338   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,881,735; (collateralized by various U.S. government and agency obligations, 3.39% to 3.43%, due 7/5/19 to 9/9/49, valued at $1,918,965 including accrued interest)   1,881,338 
 1,881,338   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $1,881,733; (collateralized by various U.S. government and agency obligations, 3.43%, due 4/1/26 to 6/20/49, valued at $1,918,965 including accrued interest)   1,881,338 
 395,403   Repurchase agreement dated 6/28/19 with Nomura Securities International, Inc., 2.48%, due 7/1/19, proceeds $395,485; (collateralized by various U.S. government and agency obligations, 3.43% to 3.44%, due 7/18/19 to 9/9/49, valued at $403,311 including accrued interest)   395,403 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $7,920,755)		   7,920,755 
Total Investments: 108.7%
(Cost: $76,032,383)		   97,803,334 
Liabilities in excess of other assets: (8.7)%   (7,829,221)
NET ASSETS: 100.0%  $89,974,113 


 

See Notes to Financial Statements

18

 

 

Definitions:
ADR American Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $7,642,382.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $24,356,133 which represents 27.1% of net assets.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments  Value 
Consumer Discretionary           10.1%           $9,071,359 
Energy   1.8    1,643,736 
Industrials   51.2    45,958,719 
Information Technology   26.0    23,356,824 
Utilities   10.9    9,808,708 
Money Market Fund   0.0    43,233 
    100.0%  $89,882,579 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		     Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		    Value 
Common Stocks                            
Austria    $—     $2,597,498        $—        $2,597,498 
Brazil     1,202,574      —      —      1,202,574 
Canada     3,037,707      —      —      3,037,707 
China / Hong Kong     548,931      3,648,773      —      4,197,704 
Denmark     —      8,796,875      —      8,796,875 
Japan     —      2,052,019      —      2,052,019 
Spain     —      2,790,220      —      2,790,220 
Sweden     —      4,470,748      —      4,470,748 
United States     60,694,001      —      —      60,694,001 
Money Market Fund     43,233      —      —      43,233 
Repurchase Agreements     —      7,920,755      —      7,920,755 
Total    $65,526,446     $32,276,888     $—     $97,803,334 

 

See Notes to Financial Statements

19

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 100.4%     
Argentina: 0.2%     
 9,094   Adecoagro SA (USD) *  $64,931 
 3,171   Cresud SACIF. y A (ADR) *   33,232 
 1,561   YPF SA (ADR)   28,426 
         126,589 
Australia: 5.3%     
 44,696   Alumina Ltd. #   73,335 
 19,127   Bega Cheese Ltd. † #   64,204 
 55,710   BHP Group Ltd. #   1,618,718 
 10,414   BlueScope Steel Ltd. #   88,512 
 2,353   Caltex Australia Ltd. #   40,942 
 1,657   CIMIC Group Ltd. #   52,083 
 9,800   Elders Ltd. #   42,815 
 43,780   Evolution Mining Ltd. #   134,120 
 32,397   Fortescue Metals Group Ltd. #   205,943 
 21,191   GrainCorp. Ltd. #   118,744 
 7,997   Iluka Resources Ltd. #   60,692 
 40,000   MMG Ltd. (HKD) * #   13,995 
 22,028   Newcrest Mining Ltd. #   494,675 
 25,969   Nufarm Ltd. #   74,880 
 17,735   OceanaGold Corp. (CAD)   48,587 
 11,968   Oil Search Ltd. #   59,657 
 15,859   Origin Energy Ltd. #   81,514 
 15,973   Santos Ltd. #   79,712 
 23,512   Saracen Mineral Holdings Ltd. * #   60,842 
 97,260   South32 Ltd. #   217,929 
 19,459   St. Barbara Ltd. #   40,171 
 8,446   Woodside Petroleum Ltd. #   216,535 
         3,888,605 
Austria: 0.3%     
 1,299   OMV AG #   63,414 
 1,336   Verbund—Oesterreichische Elektrizis AG #   70,092 
 2,399   Voestalpine AG † #   74,275 
         207,781 
Brazil: 1.8%     
 6,879   Cia de Saneamento Basico do Estado de Sao Paulo (ADR)   83,717 
 11,818   Cia Siderurgica Nacional SA (ADR)   50,936 
 19,739   Gerdau SA (ADR) †   76,785 
 16,786   Petroleo Brasileiro SA (ADR)   261,358 
 8,850   SLC Agricola SA   40,802 
 59,013   Vale SA (ADR)   793,135 
         1,306,733 
Canada: 11.4%     
 6,739   Agnico-Eagle Mines Ltd. (USD)   345,306 
 11,215   Alamos Gold, Inc.   67,801 
 9,840   Algonquin Power & Utilities Corp. †   119,503 
 28,663   B2Gold Corp. *   87,300 
 50,205   Barrick Gold Corp. (USD)   791,733 
 10,844   Canadian Natural Resources Ltd. (USD)   292,463 
 9,201   Cenovus Energy, Inc.   81,325 
 6,110   Centerra Gold, Inc. *   43,110 
 5,027   Detour Gold Corp. *   63,552 
 18,244   Enbridge, Inc. (USD)   658,244 
 13,495   EnCana Corp. (USD)   69,229 
 13,048   First Quantum Minerals Ltd.   124,214 
Number
of Shares		      Value 
      
Canada: (continued)     
 2,720   Husky Energy, Inc.  $25,831 
 13,414   IAMGOLD Corp. *   45,475 
 2,108   Imperial Oil Ltd. (USD)   58,328 
 35,837   Kinross Gold Corp. (USD) *   139,048 
 5,352   Kirkland Lake Gold Ltd.   231,077 
 12,100   Lundin Mining Corp.   66,762 
 59,633   Nutrien Ltd. (USD) †   3,187,980 
 2,705   Osisko Gold Royalties Ltd.   28,256 
 6,003   Pan American Silver Corp. (USD)   77,499 
 4,584   Pembina Pipeline Corp. †   171,012 
 4,857   Pretium Resources, Inc. *   48,654 
 14,300   Suncor Energy, Inc. (USD)   445,588 
 8,319   TC Energy Corp. (USD)   411,957 
 9,483   Teck Cominco Ltd. (USD)   218,678 
 28,264   Turquoise Hill Resources Ltd. *   35,256 
 3,576   Village Farms International, Inc. *   41,048 
 1,196   West Fraser Timber Co. Ltd.   54,640 
 12,736   Wheaton Precious Metals Corp. (USD)   307,957 
 27,212   Yamana Gold, Inc. (USD)   68,574 
         8,407,400 
Chile: 0.7%     
 54,975   Aguas Andinas SA   32,388 
 6,531   Antofagasta Plc (GBP) #   77,312 
 25,349   Empresas CMPC SA   69,444 
 8,655   Inversiones Aguas Metropolitanas SA   13,385 
 10,225   Sociedad Quimica y Minera de Chile SA (ADR)   318,100 
         510,629 
China / Hong Kong: 1.8%  
 75,600   Aluminum Corp of China Ltd. * #   26,850 
 25,740   Angang Steel Co. Ltd. #   11,742 
 218,614   China Agri-Industries Holdings Ltd. #   70,303 
 164,422   China BlueChemical Ltd. #   44,848 
 19,300   China Coal Energy Co. Ltd. #   8,037 
 16,000   China Gas Holdings Ltd. #   59,450 
 32,700   China Hongqiao Group Ltd. #   23,062 
 62,524   China Longyuan Power Group Corp. Ltd. #   40,171 
 67,200   China Molybdenum Co. Ltd. #   21,311 
 16,900   China Oilfield Services Ltd. (Class H) #   16,764 
 231,027   China Petroleum & Chemical Corp. #   157,364 
 30,591   China Shenhua Energy Co. Ltd. #   64,068 
 145,079   CNOOC Ltd. #   247,445 
 46,700   Fosun International Ltd. #   62,171 
 20,800   Health and Happiness H&H International Holdings Ltd. #   118,254 
 34,100   Huaneng Power International, Inc. #   20,080 
 21,300   Jiangxi Copper Co. Ltd. (Class H) #   28,384 
 31,400   Kunlun Energy Co. Ltd. #   27,413 
 28,700   Lee & Man Paper Manufacturing Ltd. #   20,077 
 33,200   Maanshan Iron and Steel Co. Ltd. (Class H) #   13,201 
 37,757   Nine Dragons Paper Holdings Ltd. #   33,505 
 189,540   PetroChina Co. Ltd. (Class-H) #   104,499 
 14,900   Yanzhou Coal Mining Co. Ltd. #   13,932 
 29,900   Zhaojin Mining Industry Co. Ltd. #   33,564 
 164,261   Zijin Mining Group Ltd. #   66,747 
         1,333,242 


 

See Notes to Financial Statements

20

 

 

Number
of Shares		      Value 
           
Denmark: 0.8%     
 3,909   Bakkafrost P/F (NOK) #  $218,415 
 4,004   Vestas Wind Systems A/S #   347,419 
         565,834 
Finland: 0.4%     
 3,886   Neste Oil Oyj #   132,312 
 12,969   Stora Enso Oyj (R Shares) #   152,843 
         285,155 
France: 2.1%     
 8,532   Suez #   123,296 
 20,627   Total SA #   1,158,777 
 11,318   Veolia Environnement SA #   276,010 
         1,558,083 
Germany: 1.0%     
 638   Aurubis AG #   31,207 
 44,305   E.ON SE #   481,433 
 6,655   Suedzucker AG #   112,949 
 9,308   ThyssenKrupp AG #   136,107 
         761,696 
Hungary: 0.1%     
 4,288   MOL Hungarian Oil & Gas Plc #   47,715 
India: 0.8%     
 15,998   Reliance Industries Ltd. 144A (GDR) #   578,349 
Indonesia: 0.1%     
 57,900   Indah Kiat Pulp and Paper Corp. Tbk PT #   38,486 
 28,100   Pabrik Kertas Tjiwi Kimia Tbk PT #   25,028 
 276,300   Perusahaan Perkebunan London Sumatra Indonesia Tbk PT #   21,910 
         85,424 
Ireland: 0.3%     
 12,403   Origin Enterprises Plc #   72,274 
 5,352   Smurfit Kappa Group Plc (GBP) #   162,317 
         234,591 
Italy: 0.5%     
 22,951   ENI S.p.A. #   382,184 
Japan: 6.1%     
 8,500   Calbee, Inc. #   229,727 
 2,700   Daio Paper Corp. #   31,835 
 3,817   Hitachi Metals Ltd. #   43,314 
 2,500   Hokuto Corp. #   42,228 
 1,900   Idemitsu Kosan Co. Ltd. #   57,506 
 9,800   Inpex Corp. #   88,882 
 10,964   JFE Holdings, Inc. #   161,555 
 30,500   JXTG Holdings, Inc. #   152,115 
 6,900   Kobe Steel Ltd. #   45,321 
 115,600   Kubota Corp. #   1,932,617 
 2,265   Kurita Water Industries Ltd. #   56,471 
 2,500   Mitsubishi Materials Corp. #   71,271 
 2,400   Nippon Paper Industries Co. Ltd. #   42,590 
 17,400   Nippon Steel Corp. #   299,663 
 28,414   Nippon Suisan Kaisha Ltd. #   176,475 
 24,950   Nisshin Seifun Group, Inc. #   570,225 
 21,876   Oji Holdings Corp. #   126,807 
 5,570   Rengo Co. Ltd. #   44,875 
 3,700   Sakata Seed Corp. #   108,379 
 3,883   Sumitomo Forestry Co. Ltd. #   46,709 
 5,200   Sumitomo Metal Mining Ltd. #   155,987 
         4,484,552 
Number
of Shares		      Value 
           
Luxembourg: 0.4%     
 12,112   Arcelormittal #  $216,983 
 2,130   Tenaris SA (ADR)   56,040 
 1,003   Ternium SA (ADR)   22,497 
         295,520 
Malaysia: 1.5%     
 147,730   Felda Global Ventures Holdings Bhd * #   40,066 
 21,551   Genting Plantation Bhd #   52,180 
 192,394   IOI Corp. Bhd #   197,887 
 34,778   Kuala Lumpur Kepong Bhd #   206,685 
 126,700   Malyan Banking Bhd #   272,400 
 1,800   Petronas Dagangan Bhd #   11,073 
 53,400   PPB Group Bhd #   241,527 
 42,600   Press Metal Aluminium Holdings Bhd #   45,355 
         1,067,173 
Mexico: 0.6%     
 5,281   Fresnillo Plc (GBP) #   58,576 
 20,040   Gruma, SAB de CV   187,907 
 67,764   Grupo Mexico, SAB de CV   179,783 
 3,532   Industrias Penoles, SAB de CV   45,649 
         471,915 
Netherlands: 1.9%  
 4,198   ForFarmers NV † #   35,604 
 8,325   OCI NV * #   228,928 
 33,792   Royal Dutch Shell Plc (GBP) #   1,109,650 
         1,374,182 
Norway: 3.0%     
 9,940   Equinor ASA #   197,285 
 43,323   Mowi ASA #   1,014,234 
 25,846   Norsk Hydro ASA #   92,622 
 1,721   Norway Royal Salmon ASA #   36,590 
 17,270   Yara International ASA #   839,423 
         2,180,154 
Peru: 0.2%     
 6,461   Cia de Minas Buenaventura SA (ADR)   107,705 
 1,609   Southern Copper Corp. (USD)   62,510 
         170,215 
Poland: 0.3%     
 4,703   Grupa Azoty SA #   52,901 
 2,574   KGHM Polska Miedz SA * #   71,550 
 2,624   Polski Koncern Naftowy Orlen SA #   63,359 
 14,597   Polskie Gornictwo Naftowe I Gazownictwo SA #   20,800 
         208,610 
Portugal: 0.1%     
 3,896   Galp Energia, SGPS, SA #   60,007 
 5,012   Navigator Co. SA #   19,170 
         79,177 
Russia: 2.7%     
 9,618   Evraz Plc (GBP) #   81,615 
 54,463   Gazprom PJSC (ADR) #   399,686 
 3,383   Lukoil PJSC (ADR) #   285,999 
 14,377   MMC Norilsk Nickel PJSC (ADR)   326,502 
 761   Novatek PJSC Reg S (GDR) #   161,766 
 1,815   Novolipetsk Steel PJSC Reg S (GDR) #   45,844 
 14,966   PhosAgro OAO Reg S (GDR) #   196,413 
           


 

See Notes to Financial Statements

21

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Number
of Shares		      Value 
           
Russia: (continued)     
 6,458   Polymetal International Plc (GBP) #  $82,063 
 10,518   Rosneft Oil Co. PJSC Reg S (GDR) #   69,014 
 3,557   Severstal PJSC Reg S (GDR)   59,935 
 32,231   Surgutneftegas OJSC (ADR) #   132,748 
 2,326   Tatneft PJSC (ADR) #   172,018 
         2,013,603 
Singapore: 1.2%     
 654,019   Golden Agri-Resources Ltd. #   140,419 
 256,164   Wilmar International Ltd. #   701,261 
         841,680 
South Africa: 1.3%     
 1,778   Anglo American Platinum Ltd. #   105,669 
 11,823   AngloGold Ashanti Ltd. (ADR)   210,568 
 766   Assore Ltd.   19,924 
 3,757   Astral Foods Ltd.   41,299 
 23,548   Gold Fields Ltd. (ADR)   127,395 
 21,062   Impala Platinum Holdings Ltd. * #   104,255 
 1,036   Kumba Iron Ore Ltd. #   36,685 
 13,151   Northam Platinum Ltd. *   55,024 
 12,535   Sappi Ltd.   48,793 
 5,116   Sasol Ltd. #   127,065 
 58,166   Sibanye Gold Ltd. * #   68,425 
         945,102 
South Korea: 1.0%     
 1,617   Hyundai Steel Co. #   58,628 
 239   Korea Zinc Co. Ltd. #   98,576 
 1,518   POSCO #   322,249 
 559   SK Energy Co. Ltd. #   77,052 
 419   SK Holdings Co. Ltd. #   84,315 
 366   S-Oil Corp. #   26,583 
 1,084   Woongjin Coway Co. Ltd. #   72,512 
         739,915 
Spain: 0.5%     
 2,926   Acerinox SA #   29,463 
 2,985   EDP Renovaveis SA   30,662 
 12,939   Repsol YPF SA #   203,353 
 4,524   Siemens Gamesa Renewable Energy SA #   75,305 
         338,783 
Sweden: 0.6%     
 3,988   Billerudkorsnas AB #   53,182 
 5,176   Boliden AB #   132,743 
 2,240   Holmen AB #   47,894 
 1,597   Lundin Petroleum AB #   49,800 
 11,536   SSAB AB (B Shares) #   35,224 
 13,648   Svenska Cellulosa AB #   118,830 
         437,673 
Switzerland: 0.5%     
 102,634   Glencore Plc (GBP) #   355,978 
Taiwan: 0.3%     
 238,472   China Steel Corp. #   191,656 
 15,920   Formosa Petrochemical Corp. #   56,852 
         248,508 
Number
of Shares		      Value 
           
Thailand: 0.3%     
 34,500   Energy Absolute PCL (NVDR) #  $62,747 
 12,500   PTT Exploration & Production PCL (NVDR) #   55,190 
 77,300   PTT PCL (NVDR) #   123,090 
         241,027 
Turkey: 0.1%     
 25,836   Eregli Demir ve Celik Fabrikalari TAS #   35,130 
 1,107   Tupras-Turkiye Petrol Rafinerileri AS #   21,982 
         57,112 
United Kingdom: 6.8%     
 19,148   Anglo American Plc #   548,213 
 172,563   BP Plc #   1,204,810 
 33,134   Centamin Plc #   48,307 
 51,677   Centrica Plc #   57,733 
 98,136   CNH Industrial NV (USD)   1,008,838 
 30,817   DS Smith Plc #   142,475 
 4,906   KAZ Minerals Plc #   37,767 
 8,275   Mondi Plc #   188,748 
 8,464   Pennon Group Plc #   80,004 
 21,017   Rio Tinto Plc #   1,303,624 
 4,783   Severn Trent Plc #   124,698 
 3,839   TechnipFMC Plc (USD)   99,584 
 13,726   United Utilities Group Plc #   136,923 
         4,981,724 
United States: 43.4%     
 6,348   AGCO Corp.   492,414 
 3,512   Alcoa Corp. *   82,216 
 740   American States Water Co.   55,678 
 4,507   Anadarko Petroleum Corp.   318,014 
 2,600   Andersons, Inc.   70,824 
 3,387   Apache Corp.   98,121 
 4,342   Aqua America, Inc.   179,629 
 55,318   Archer-Daniels-Midland Co.   2,256,974 
 8,061   Arconic, Inc.   208,135 
 4,632   Baker Hughes a GE Co.   114,086 
 13,934   Bunge Ltd.   776,263 
 3,820   Cabot Oil & Gas Corp.   87,707 
 968   California Water Service Group   49,010 
 22,014   CF Industries Holdings, Inc.   1,028,274 
 2,279   Chefs’ Warehouse, Inc. *   79,925 
 2,179   Cheniere Energy, Inc. *   149,153 
 17,184   Chevron Corp.   2,138,377 
 915   Cimarex Energy Co.   54,287 
 1,810   Concho Resources, Inc.   186,756 
 10,235   ConocoPhillips   624,335 
 780   Continental Resources, Inc. *   32,830 
 2,078   Cree, Inc. *   116,742 
 16,263   Darling International, Inc. *   323,471 
 31,457   Deere & Co.   5,212,740 
 3,746   Devon Energy Corp.   106,836 
 1,394   Diamondback Energy, Inc.   151,904 
 1,418   Domtar Corp.   63,144 
 5,233   EOG Resources, Inc.   487,506 
 2,298   EQT Corp.   36,331 
 1,835   Equitrans Midstream Corp.   36,168 
 38,226   Exxon Mobil Corp.   2,929,258 


 

See Notes to Financial Statements

22

 

 

Number
of Shares		      Value 
           
United States: (continued)      
 1,520   First Solar, Inc. *  $99,834 
 27,426   Freeport-McMoRan Copper & Gold, Inc.   318,416 
 6,697   Graphic Packaging Holding Co.   93,624 
 7,872   Halliburton Co.   179,009 
 987   Helmerich & Payne, Inc.   49,962 
 2,297   Hess Corp.   146,020 
 1,417   HollyFrontier Corp.   65,579 
 6,585   Ingredion, Inc.   543,197 
 9,018   International Paper Co.   390,660 
 676   Itron, Inc. *   42,297 
 17,563   Kinder Morgan, Inc.   366,715 
 1,065   Lindsay Corp.   87,554 
 2,782   Louisiana-Pacific Corp.   72,944 
 7,384   Marathon Oil Corp.   104,927 
 6,077   Marathon Petroleum Corp.   339,583 
 34,645   Mosaic Co.   867,164 
 3,459   National Oilwell Varco, Inc.   76,894 
 23,489   Newmont Mining Corp.   903,622 
 4,363   Noble Energy, Inc.   97,731 
 5,780   Nucor Corp.   318,478 
 6,762   Occidental Petroleum Corp.   339,993 
 3,714   ONEOK, Inc.   255,560 
 1,020   Ormat Technologies, Inc.   64,658 
 2,129   Packaging Corp. of America   202,936 
 4,114   Phillips 66   384,824 
 5,164   Pilgrim’s Pride Corp. *   131,114 
 1,519   Pioneer Natural Resources Co.   233,713 
 1,270   Reliance Steel & Aluminum Co.   120,167 
 1,240   Royal Gold, Inc.   127,088 
 12,504   Schlumberger Ltd.   496,909 
 27   Seaboard Corp.   111,692 
 3,828   Steel Dynamics, Inc.   115,606 
 2,097   Targa Resources Corp.   82,328 
 9,334   The Southern Co.   515,984 
 11,978   Tractor Supply Co.   1,303,206 
 29,162   Tyson Foods, Inc.   2,354,540 
 3,279   United States Steel Corp.   50,202 
Number
of Shares		      Value 
           
United States: (continued)     
 3,768   Valero Energy Corp.  $322,579 
 5,754   WestRock Co.   209,848 
 16,821   Weyerhaeuser Co.   443,065 
 10,925   Williams Companies, Inc.   306,337 
 743   Worthington Industries, Inc.   29,913 
         31,913,580 
Total Common Stocks
(Cost: $69,954,455)		   73,726,193 
MONEY MARKET FUND: 0.4%
(Cost: $315,091)		     
 315,091   Dreyfus Government Cash Management Fund – Institutional Shares   315,091 
Total Investments Before Collateral for Securities Loaned: 100.8%
(Cost: $70,269,546)		   74,041,284 
           
Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.7%
(Cost: $499,131)		     
Repurchase Agreement: 0.7%     
$499,131   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $499,235; (collateralized by various U.S. government and agency obligations, 3.68%, due 8/15/20 to 11/15/46, valued at $509,114 including accrued interest)   499,131 
Total Investments: 101.5%
(Cost: $70,768,677)		   74,540,415 
Liabilities in excess of other assets: (1.5)%   (1,066,776)
NET ASSETS: 100.0%  $73,473,639 


 

 

Definitions:
ADR American Depositary Receipt
CAD Canadian Dollar
GBP British Pound
GDR Global Depositary Receipt
HKD Hong Kong Dollar
NOK Norwegian Krone
NVDR Non-Voting Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $474,243.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $28,799,372 which represents 39.2% 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 $578,349, or 0.8% of net assets.

 

See Notes to Financial Statements

23

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments  Value 
Consumer Discretionary          1.9%          $1,422,427 
Consumer Staples   15.7    11,657,342 
Energy   30.2    22,340,970 
Financials   0.4    272,400 
Industrials   13.0    9,620,062 
Information Technology   0.4    258,873 
Materials   33.8    25,000,571 
Real Estate   0.6    476,297 
Utilities   3.6    2,677,251 
Money Market Fund   0.4    315,091 
    100.0%  $74,041,284 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		     Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		    Value 
Common Stocks                            
Argentina    $126,589     $—        $—        $126,589 
Australia     48,587      3,840,018      —      3,888,605 
Austria     —      207,781      —      207,781 
Brazil     1,306,733      —      —      1,306,733 
Canada     8,407,400      —      —      8,407,400 
Chile     433,317      77,312      —      510,629 
China / Hong Kong     —      1,333,242      —      1,333,242 
Denmark     —      565,834      —      565,834 
Finland     —      285,155      —      285,155 
France     —      1,558,083      —      1,558,083 
Germany     —      761,696      —      761,696 
Hungary     —      47,715      —      47,715 
India     —      578,349      —      578,349 
Indonesia     —      85,424      —      85,424 
Ireland     —      234,591      —      234,591 
Italy     —      382,184      —      382,184 
Japan     —      4,484,552      —      4,484,552 
Luxembourg     78,537      216,983      —      295,520 
Malaysia     —      1,067,173      —      1,067,173 
Mexico     413,339      58,576      —      471,915 
Netherlands     —      1,374,182      —      1,374,182 
Norway     —      2,180,154      —      2,180,154 
Peru     170,215      —      —      170,215 
Poland     —      208,610      —      208,610 
Portugal     —      79,177      —      79,177 
Russia     386,437      1,627,166      —      2,013,603 
Singapore     —      841,680      —      841,680 
South Africa     503,003      442,099      —      945,102 
South Korea     —      739,915      —      739,915 
Spain     30,662      308,121      —      338,783 
Sweden     —      437,673      —      437,673 
Switzerland     —      355,978      —      355,978 
Taiwan     —      248,508      —      248,508 
Thailand     —      241,027      —      241,027 
Turkey     —      57,112      —      57,112 
United Kingdom     1,108,422      3,873,302      —      4,981,724 
United States     31,913,580      —      —      31,913,580 
Money Market Fund     315,091      —      —      315,091 
Repurchase Agreement     —      499,131      —      499,131 
Total    $45,241,912     $29,298,503     $—     $74,540,415 

 

See Notes to Financial Statements

24

VANECK VECTORS OIL REFINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 100.1%    
Australia: 3.5%    
 33,625   Caltex Australia Ltd. #  $585,067 
Austria: 4.5%    
 15,211   OMV AG #   742,564 
Finland: 5.6%    
 27,425   Neste Oil Oyj #   933,774 
Greece: 1.5%    
 9,590   Motor Oil Hellas Corinth Refineries SA   245,725 
Hungary: 4.1%    
 62,199   MOL Hungarian Oil & Gas Plc #   692,125 
India: 7.1%    
 32,971   Reliance Industries Ltd. 144A (GDR) #   1,191,946 
Japan: 11.3%    
 9,200   Cosmo Energy Holdings Co. Ltd. #   208,648 
 25,568   Idemitsu Kosan Co. Ltd. #   773,843 
 182,300   JXTG Holdings, Inc. #   909,198 
         1,891,689 
Poland: 6.0%    
 12,447   Grupa Lotos SA #   282,814 
 29,412   Polski Koncern Naftowy Orlen SA #   710,177 
         992,991 
Portugal: 4.9%    
 52,927   Galp Energia, SGPS, SA #   815,196 
Number
of Shares		      Value 
           
South Korea: 9.4%     
 1,279   Hyundai Heavy Industries Holdings Co. Ltd. #  $359,351 
 5,256   SK Energy Co. Ltd. #   724,486 
 6,678   S-Oil Corp. #   485,028 
         1,568,865 
Taiwan: 4.2%       
 197,000   Formosa Petrochemical Corp. #   703,510 
Thailand: 3.9%     
 1,703,400   IRPC PCL (NVDR) #   278,113 
 170,100   Thai Oil PCL (NVDR) #   369,477 
         647,590 
Turkey: 2.1%     
 17,663   Tupras-Turkiye Petrol Rafinerileri AS #   350,739 
United States: 32.0%     
 7,515   Delek US Holdings, Inc.   304,508 
 16,151   HollyFrontier Corp.   747,468 
 22,072   Marathon Petroleum Corp.   1,233,383 
 11,719   PBF Energy, Inc.   366,805 
 15,327   Phillips 66   1,433,688 
 14,594   Valero Energy Corp.   1,249,392 
         5,335,244 
Total Common Stocks: 100.1%
(Cost: $20,267,733)		   16,697,025 
Liabilities in excess of other assets: (0.1)%   (14,076)
NET ASSETS: 100.0%  $16,682,949 


 

 

Definitions:

GDR Global Depositary Receipt
NVDR Non-Voting Depositary Receipt

Footnotes:

# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $11,116,056 which represents 66.6% of net assets.
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 $1,191,946, or 7.1% of net assets.

 

Summary of Investments by Sector  % of Investments  Value 
Energy          97.8%          $16,337,674 
Industrials   2.2    359,351 
    100.0%  $16,697,025 

 

See Notes to Financial Statements

25

VANECK VECTORS OIL REFINERS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                        
Australia  $—     $585,067     $—   $585,067 
Austria   —      742,564      —    742,564 
Finland   —      933,774      —    933,774 
Greece   245,725      —      —    245,725 
Hungary   —      692,125      —    692,125 
India   —      1,191,946      —    1,191,946 
Japan   —      1,891,689      —    1,891,689 
Poland   —      992,991      —    992,991 
Portugal   —      815,196      —    815,196 
South Korea   —      1,568,865      —    1,568,865 
Taiwan   —      703,510      —    703,510 
Thailand   —      647,590      —    647,590 
Turkey   —      350,739      —    350,739 
United States   5,335,244      —      —    5,335,244 
Total  $5,580,969     $11,116,056     $—   $16,697,025 

 

See Notes to Financial Statements

26

VANECK VECTORS OIL SERVICES ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 100.0%     
Luxembourg: 4.8%     
 1,483,222   Tenaris SA (ADR)  $39,023,571 
Netherlands: 4.3%     
 665,239   Core Laboratories NV (USD)   34,778,695 
United Kingdom: 11.0%     
 4,498,790   Ensco Rowan Plc (USD) †   38,374,679 
 4,688,401   Noble Corp. Plc (USD) *   8,767,310 
 1,618,726   TechnipFMC Plc (USD)   41,989,753 
         89,131,742 
United States: 79.9%    
 1,052,672   Apergy Corp. *   35,306,619 
 1,604,959   Baker Hughes a GE Co.   39,530,140 
 1,141,153   C&J Energy Services, Inc. *   13,442,782 
 1,476,851   Diamond Offshore Drilling, Inc. * †   13,099,668 
 525,242   Dril-Quip, Inc. *   25,211,616 
 3,397,295   Halliburton Co.   77,254,488 
 651,523   Helmerich & Payne, Inc.   32,980,094 
 3,866,611   McDermott International, Inc. * †   37,351,462 
 6,945,598   Nabors Industries Ltd.   20,142,234 
 1,742,460   National Oilwell Varco, Inc.   38,734,886 
 1,800,526   Oceaneering International, Inc. *   36,712,725 
 578,005   Oil States International, Inc. *   10,577,492 
 3,124,274   Patterson-UTI Energy, Inc.   35,960,394 
 2,256,464   RPC, Inc. †   16,269,106 
 4,023,662   Schlumberger Ltd.   159,900,328 
 3,175,228   Superior Energy Services, Inc. *   4,127,796 
 5,856,618   Transocean, Inc. *   37,540,921 
 975,644   US Silica Holdings, Inc. †   12,478,487 
         646,621,238 
Total Common Stocks
(Cost: $1,834,229,262)		   809,555,246 
MONEY MARKET FUND: 0.0%
(Cost: $71,083)		     
 71,083   Dreyfus Government Cash Management Fund – Institutional Shares   71,083 
Total Investments Before Collateral
for Securities Loaned: 100.0%
(Cost: $1,834,300,345)		   809,626,329 
Principal
Amount		      Value 
           
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.3%     
Repurchase Agreements: 4.3%     
$8,160,468   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $8,162,168; (collateralized by various U.S. government and agency obligations, 3.84%, due 6/1/46 to 7/1/49, valued at $8,323,677 including accrued interest)  $8,160,468 
 8,160,468   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $8,162,168; (collateralized by various U.S. government and agency obligations, 3.84% to 3.91%, due 7/2/19 to 1/20/63, valued at $8,323,677 including accrued interest)   8,160,468 
 1,715,989   Repurchase agreement dated 6/28/19 with Credit Agricole CIB, 2.45%, due 7/1/19, proceeds $1,716,339; (collateralized by U.S. government obligations, 3.91%, due 4/15/21, valued at $1,750,309 including accrued interest)   1,715,989 
 8,160,468   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $8,162,188; (collateralized by various U.S. government and agency obligations, 3.91% to 3.95%, due 7/5/19 to 9/9/49, valued at $8,323,677 including accrued interest)   8,160,468 
 8,160,468   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $8,162,182; (collateralized by various U.S. government and agency obligations, 3.95%, due 4/1/26 to 6/20/49, valued at $8,323,677 including accrued interest)   8,160,468 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $34,357,861)		   34,357,861 
Total Investments: 104.3%
(Cost: $1,868,658,206)		   843,984,190 
Liabilities in excess of other assets: (4.3)%   (34,672,533)
NET ASSETS: 100.0%  $809,311,657 


 

See Notes to Financial Statements

27

VANECK VECTORS OIL SERVICES ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:
ADR American Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $34,645,362.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments  Value 
Oil & Gas Drilling           23.1%         $186,865,300 
Oil & Gas Equipment & Services   76.9    622,689,946 
Money Market Fund   0.0    71,083 
    100.0%  $809,626,329 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks*  $809,555,246     $—     $—   $809,555,246 
Money Market Fund   71,083      —      —    71,083 
Repurchase Agreements   —      34,357,861      —    34,357,861 
Total  $809,626,329     $34,357,861     $—   $843,984,190 

 

* See Schedule of Investments for geographic sector breakouts.

 

See Notes to Financial Statements

28

VANECK VECTORS RARE EARTH/STRATEGIC METALS ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 97.2%     
Australia: 18.6%     
 10,569,343   Galaxy Resources Ltd. * † #  $9,109,344 
 2,200,222   Iluka Resources Ltd. #   16,698,321 
 4,736,866   Orocobre Ltd. * † #   9,422,162 
 22,848,416   Pilbara Minerals Ltd. * † #   8,769,535 
         43,999,362 
Canada: 10.8%     
 2,437,446   Cobalt 27 Capital Corp. *   7,890,106 
 7,427,306   Largo Resources Ltd. * †   10,287,679 
 1,853,084   Lithium Americas Corp. * †   7,487,495 
         25,665,280 
China / Hong Kong: 28.0%     
 32,839,680   China Molybdenum Co. Ltd. #   18,976,003 
 9,310,797   China Northern Rare Earth Group High-Tech Co. Ltd. #   17,461,627 
 6,277,150   Xiamen Tungsten Co. Ltd. #   13,091,370 
 5,349,101   Zhejiang Huayou Cobalt Co. Ltd. #   16,635,745 
         66,164,745 
France: 5.0%     
 176,667   Eramet SA #   11,776,190 
Japan: 9.0%       
 666,192   OSAKA Titanium Technologies Co. #   10,835,386 
 1,025,247   Toho Titanium Co. Ltd. #   10,461,548 
         21,296,934 
Malaysia: 5.1%     
 6,686,449   Lynas Corp. Ltd. (AUD) * #   12,087,006 
Netherlands: 5.5%     
 419,819   AMG Advanced Metallurgical † #   13,044,975 
South Africa: 5.2%     
 418,189   Assore Ltd.   10,877,288 
 4,989,471   Bushveld Minerals Ltd. (GBP) *   1,508,149 
         12,385,437 
United Kingdom: 5.4%     
 997,761   Tronox Holdings Plc (USD)   12,751,386 
United States: 4.6%     
 1,589,969   Livent Corp. *   11,002,586 
Total Common Stocks
(Cost: $245,703,258)		   230,173,901 
PREFERRED STOCKS: 3.3%     
Brazil: 3.3%
(Cost: $5,749,827)		     
 1,356,423   Cia de Ferro Ligas da Bahia, 6.55%   7,821,468 
MONEY MARKET FUND: 0.4%
(Cost: $837,068)		     
 837,068   Dreyfus Government Cash Management Fund – Institutional Shares   837,068 
Total Investments Before Collateral for Securities Loaned: 100.9%
(Cost: $252,290,153)		  238,832,437 
Principal
Amount		      Value 
           
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 17.1%     
Repurchase Agreements: 17.1%     
$9,618,000   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $9,620,004; (collateralized by various U.S. government and agency obligations, 3.95% due 6/1/46 to 7/1/49, valued at $9,810,360 including accrued interest)  $9,618,000 
 9,618,000   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $9,620,004; (collateralized by various U.S. government and agency obligations, 3.10% to 4.00%, due 7/2/19 to 1/20/63, valued at $9,810,360 including accrued interest)   9,618,000 
 2,022,221   Repurchase agreement dated 6/28/19 with Credit Agricole CIB, 2.45%, due 7/1/19, proceeds $2,022,634; (collateralized by U.S. government obligations, 3.10%, due 4/15/21, valued at $2,062,666 including accrued interest)   2,022,221 
 9,618,000   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $9,620,028; (collateralized by various U.S. government and agency obligations, 3.10% to 3.11%, due 7/5/19 to 9/9/49, valued at $9,810,360 including accrued interest)   9,618,000 
 9,618,000   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $9,620,020; (collateralized by various U.S. government and agency obligations, 3.11%, due 4/1/26 to 6/20/49, valued at $9,810,360 including accrued interest)   9,618,000 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $40,494,221)		   40,494,221 
Total Investments: 118.0%
(Cost: $292,784,374)		   279,326,658 
Liabilities in excess of other assets: (18.0)%   (42,599,659)
NET ASSETS: 100.0%  $236,726,999 


 

See Notes to Financial Statements

29

VANECK VECTORS RARE EARTH/STRATEGIC METALS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:

AUD Australian Dollar
GBP British Pound
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $37,313,441.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $168,369,212 which represents 71.1% of net assets.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		  % of Investments  Value 
Diversified Metals & Mining           30.4%        $72,735,739 
Materials   65.9    157,438,162 
Steel   3.3    7,821,468 
Money Market Fund   0.4    837,068 
    100.0%  $238,832,437 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

   Level 1
Quoted
Prices		    Level 2
Significant
Observable
Inputs		   Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                        
Australia  $—     $43,999,362     $—   $43,999,362 
Canada   25,665,280      —      —    25,665,280 
China / Hong Kong   —      66,164,745      —    66,164,745 
France   —      11,776,190      —    11,776,190 
Japan   —      21,296,934      —    21,296,934 
Malaysia   —      12,087,006      —    12,087,006 
Netherlands   —      13,044,975      —    13,044,975 
South Africa   12,385,437      —      —    12,385,437 
United Kingdom   12,751,386      —      —    12,751,386 
United States   11,002,586      —      —    11,002,586 
Preferred Stocks*   7,821,468      —      —    7,821,468 
Money Market Fund   837,068      —      —    837,068 
Repurchase Agreements   —      40,494,221      —    40,494,221 
Total  $70,463,225     $208,863,433     $—   $279,326,658 

 

* See Schedule of Investments for geographic sector breakouts.

 

See Notes to Financial Statements

30

VANECK VECTORS STEEL ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
           
COMMON STOCKS: 100.1%
Brazil: 19.0%
 597,579   Cia Siderurgica Nacional SA (ADR)  $2,575,565 
 658,401   Gerdau SA (ADR) †   2,561,180 
 450,074   Vale SA (ADR)   6,048,995 
         11,185,740 
India: 6.1%
 354,286   Vedanta Ltd. (ADR)   3,603,089 
Luxembourg: 17.3%
 166,668   ArcelorMittal (USD) †   3,005,024 
 112,508   Tenaris SA (ADR)   2,960,085 
 187,086   Ternium SA (ADR)   4,196,339 
         10,161,448 
South Korea: 4.5%
 49,295   POSCO (ADR)   2,615,593 
United Kingdom: 10.9%
 102,162   Rio Tinto Plc (ADR)   6,368,779 
United States: 42.3%
 245,005   AK Steel Holding Corp. * †   580,662 
 104,377   Allegheny Technologies, Inc. *   2,630,300 
 36,643   Carpenter Technology Corp.   1,758,131 
 252,440   Cleveland-Cliffs, Inc. †   2,693,535 
 90,859   Commercial Metals Co.   1,621,833 
 25,536   Gibraltar Industries, Inc. *   1,030,633 
 53,429   Nucor Corp.   2,943,938 
 8,547   Olympic Steel, Inc.   116,667 
 28,588   Reliance Steel & Aluminum Co.   2,704,997 
 29,074   Ryerson Holding Corp. *   242,186 
 20,733   Schnitzer Steel Industries, Inc.   542,583 
 88,979   Steel Dynamics, Inc.   2,687,166 
 50,281   SunCoke Energy, Inc. *   446,495 
 34,631   TimkenSteel Corp. *   281,550 
 177,836   United States Steel Corp.   2,722,669 
 45,716   Worthington Industries, Inc.   1,840,526 
         24,843,871 
Total Common Stocks
(Cost: $70,110,882)		   58,778,520 
Principal
Amount		      Value 
         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 10.7% 
Repurchase Agreements: 10.7% 
$1,497,048   Repurchase agreement dated 6/28/19 with BofA Securities, Inc., 2.50%, due 7/1/19, proceeds $1,497,360; (collateralized by various U.S. government and agency obligations, 3.12%, due 6/1/46 to 7/1/49, valued at $1,526,989 including accrued interest)  $1,497,048 
 1,497,048   Repurchase agreement dated 6/28/19 with Citigroup Global Markets, Inc., 2.50%, due 7/1/19, proceeds $1,497,360; (collateralized by various U.S. government and agency obligations, 3.12% to 3.13%, due 7/2/19 to 1/20/63, valued at $1,526,989 including accrued interest)   1,497,048 
 314,735   Repurchase agreement dated 6/28/19 with Credit Agricole CIB, 2.45%, due 7/1/19, proceeds $314,799; (collateralized by U.S. government obligations, to 3.13%, due 4/15/21, valued at $321,030 including accrued interest)   314,735 
 1,497,048   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,497,364; (collateralized by various U.S. government and agency obligations, 3.13%, due 7/5/19 to 9/9/49, valued at $1,526,989 including accrued interest)   1,497,048 
 1,497,048   Repurchase agreement dated 6/28/19 with Morgan Stanley & Co. LLC, 2.52%, due 7/1/19, proceeds $1,497,362; (collateralized by various U.S. government and agency obligations, 3.13%, due 4/1/26 to 6/20/49, valued at $1,526,989 including accrued interest)   1,497,048 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $6,302,927)		   6,302,927 
Total Investments: 110.8%
(Cost: $76,413,809)		   65,081,447 
Liabilities in excess of other assets: (10.8)%   (6,319,181)
NET ASSETS: 100.0%  $58,762,266 


 

See Notes to Financial Statements

31

VANECK VECTORS STEEL ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:
ADR American Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $6,186,734.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		   % of Investments  Value 
Energy            5.0%           $2,960,085 
Industrials    1.8    1,030,633 
Materials    93.2    54,787,802 
     100.0%  $58,778,520 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks*    $58,778,520   $—   $—   $58,778,520 
Repurchase Agreements     —    6,302,927    —    6,302,927 
Total    $58,778,520   $6,302,927   $—   $65,081,447 

 

* See Schedule of Investments for geographic sector breakouts.

 

See Notes to Financial Statements

32

VANECK VECTORS UNCONVENTIONAL OIL & GAS ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 99.8%
Canada: 14.2%
 37,598   ARC Resources Ltd.  $184,429 
 82,814   Cenovus Energy, Inc. (USD)   730,419 
 58,365   Crescent Point Energy Corp. (USD) †   192,605 
 140,356   EnCana Corp. (USD)   720,026 
 25,497   Enerplus Corp. (USD)   191,992 
 34,447   Husky Energy, Inc.   327,138 
 17,621   PrairieSky Royalty Ltd. †   248,117 
 24,601   Seven Generations Energy Ltd. *   120,864 
 24,241   Tourmaline Oil Corp.   309,424 
 36,342   Whitecap Resources, Inc.   118,197 
         3,143,211 
United States: 85.6%
 19,253   Anadarko Petroleum Corp.   1,358,492 
 22,600   Antero Resources Corp. *   124,978 
 19,325   Apache Corp.   559,845 
 24,661   Cabot Oil & Gas Corp.   566,217 
 6,552   Carrizo Oil & Gas, Inc. *   65,651 
 8,458   Centennial Resource Development, Inc. * †   64,196 
 119,298   Chesapeake Energy Corp. * †   232,631 
 7,648   Cimarex Energy Co.   453,756 
 11,388   CNX Resources Corp. *   83,246 
 10,528   Concho Resources, Inc.   1,086,279 
 28,242   ConocoPhillips   1,722,762 
 10,329   Continental Resources, Inc. *   434,748 
 31,779   Devon Energy Corp.   906,337 
 9,471   Diamondback Energy, Inc.   1,032,055 
 19,447   EOG Resources, Inc.   1,811,683 
 20,724   EQT Corp.   327,646 
 20,046   Hess Corp.   1,274,324 
 65,405   Marathon Oil Corp.   929,405 
 9,057   Matador Resources Co. *   180,053 
 10,909   Murphy Oil Corp.   268,907 
 6,014   National Fuel Gas Co.   317,238 
 30,047   Noble Energy, Inc.   673,053 
 22,073   Oasis Petroleum, Inc. *   125,375 
 29,655   Occidental Petroleum Corp.   1,491,053 
 24,727   Parsley Energy, Inc. *   470,060 
 4,013   PDC Energy, Inc. *   144,709 
 8,776   Pioneer Natural Resources Co.   1,350,275 
 14,685   QEP Resources, Inc. *   106,173 
 19,223   Range Resources Corp.   134,177 
 5,385   SM Energy Co.   67,420 
 31,528   Southwestern Energy Co. *   99,628 
 6,569   Whiting Petroleum Corp. * †   122,709 
 34,732   WPX Energy, Inc. *   399,765 
         18,984,846 
Total Common Stocks
(Cost: $34,640,718)		   22,128,057 
Number
of Shares		      Value 
         
MONEY MARKET FUND: 0.4%
(Cost: $89,141)
 89,141   Dreyfus Government Cash Management Fund – Institutional Shares  $89,141 
Total Investments Before Collateral for Securities Loaned: 100.2%
(Cost: $34,729,859)		   22,217,198 
           
Principal
Amount		         
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.1%
(Cost: $673,504)
Repurchase Agreement: 3.1%
$673,504   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $673,644; (collateralized by various U.S. government and agency obligations, 3.13%, due 8/15/20 to 11/15/46, valued at $686,974 including accrued interest)   673,504 
Total Investments: 103.3%
(Cost: $35,403,363)		   22,890,702 
Liabilities in excess of other assets: (3.3)%   (720,769)
NET ASSETS: 100.0%  $22,169,933 


 

See Notes to Financial Statements

33

VANECK VECTORS UNCONVENTIONAL OIL & GAS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $650,332.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		   % of Investments  Value 
Gas Utilities            1.4%           $317,238 
Integrated Oil & Gas    11.5    2,548,610 
Oil & Gas Exploration & Production    86.7    19,262,209 
Money Market Fund    0.4    89,141 
     100.0%  $22,217,198 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks*    $22,128,057   $—   $—   $22,128,057 
Money Market Fund     89,141    —    —    89,141 
Repurchase Agreement     —    673,504    —    673,504 
Total    $22,217,198   $673,504   $—   $22,890,702 

 

* See Schedule of Investments for geographic sector breakouts.

 

See Notes to Financial Statements

34

VANECK VECTORS URANIUM+NUCLEAR ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2019 (unaudited)

 

Number
of Shares		      Value 
         
COMMON STOCKS: 100.2%
Canada: 5.6%
 104,247   Cameco Corp. (USD)  $1,118,570 
 86,879   NexGen Energy Ltd. *   135,629 
 22,844   Uranium Participation Corp. *   73,422 
         1,327,621 
China / Hong Kong: 2.9%
 2,476,000   CGN Power Co. Ltd. Reg S 144A #   681,395 
Czech Republic: 4.5%
 44,446   CEZ AS #   1,074,964 
Finland: 5.6%
 60,299   Fortum OYJ #   1,334,699 
France: 4.1%
 77,731   Electricite de France SA #   981,487 
Japan: 15.0%
 50,700   Hokuriku Electric Power Co. * #   368,375 
 99,700   Kansai Electric Power Co., Inc. #   1,143,694 
 105,200   Kyushu Electric Power Co., Inc. #   1,034,241 
 197,500   Tokyo Electric Power Co., Inc. * #   1,032,273 
         3,578,583 
South Korea: 4.9%
 4,117   KEPCO Plant Service & Engineering Co. Ltd. #   111,509 
 95,676   Korea Electric Power Corp. (ADR) * †   1,062,004 
         1,173,513 
Spain: 4.3%
 40,002   Endesa SA † #   1,030,413 
United States: 53.3%
 11,607   BWX Technologies, Inc.   604,725 
 25,305   Dominion Energy, Inc.   1,956,582 
 21,926   Duke Energy Corp.   1,934,750 
 7,432   El Paso Electric Co.   486,053 
 23,753   Energy Fuels, Inc. * †   74,347 
 14,065   Entergy Corp.   1,447,710 
 32,952   Exelon Corp.   1,579,719 
 58,591   PG&E Corp. *   1,342,906 
 11,076   Pinnacle West Capital Corp.   1,042,141 
 13,913   PNM Resources, Inc.   708,311 
 25,651   Public Service Enterprise Group, Inc.   1,508,792 
         12,686,036 
Total Common Stocks
(Cost: $23,313,045)		   23,868,711 
Principal
Amount		      Value 
         
SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES ON LOAN: 7.7%
Repurchase Agreements: 7.7%
$1,000,000   Repurchase agreement dated 6/28/19 with Daiwa Capital Markets America, Inc., 2.53%, due 7/1/19, proceeds $1,000,211; (collateralized by various U.S. government and agency obligations, 3.79% to 3.83%, due 7/5/19 to 9/9/49, valued at $1,020,000 including accrued interest)  $1,000,000 
 832,784   Repurchase agreement dated 6/28/19 with HSBC Securities USA, Inc., 2.50%, due 7/1/19, proceeds $832,957; (collateralized by various U.S. government and agency obligations, 3.83% to 3.84%, due 8/15/20 to 11/15/46, valued at $849,440 including accrued interest)   832,784 
Total Short-Term Investments Held as Collateral for Securities on Loan
(Cost: $1,832,784)		   1,832,784 
Total Investments: 107.9%
(Cost: $25,145,829)		   25,701,495 
Liabilities in excess of other assets: (7.9)%   (1,873,731)
NET ASSETS: 100.0%  $23,827,764 


 

See Notes to Financial Statements

35

VANECK VECTORS URANIUM+NUCLEAR ENERGY ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:
ADR American Depositary Receipt
USD United States Dollar
Footnotes:
* Non-income producing
† Security fully or partially on loan. Total market value of securities on loan is $1,728,359.
# Security has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $8,793,050 which represents 36.9% 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.
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 $681,395, or 2.9% of net assets.

 

Summary of Investments by Sector
Excluding Collateral for Securities Loaned		   % of Investments  Value 
Energy            5.6%           $1,328,546 
Financials    0.3    73,422 
Industrials    3.0    716,234 
Utilities    91.1    21,750,509 
     100.0%  $23,868,711 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2019 is as follows:

 

     Level 1
Quoted
Prices		   Level 2
Significant
Observable
Inputs		 Level 3
Significant
Unobservable
Inputs		  Value 
Common Stocks                      
Canada    $1,327,621   $—   $—   $1,327,621 
China / Hong Kong     —    681,395    —    681,395 
Czech Republic     —    1,074,964    —    1,074,964 
Finland     —    1,334,699    —    1,334,699 
France     —    981,487    —    981,487 
Japan     —    3,578,583    —    3,578,583 
South Korea     1,062,004    111,509    —    1,173,513 
Spain     —    1,030,413    —    1,030,413 
United States     12,686,036    —    —    12,686,036 
Repurchase Agreements     —    1,832,784    —    1,832,784 
Total    $15,075,661   $10,625,834   $—   $25,701,495 

 

See Notes to Financial Statements

36

[This Page Intentionally Left Blank.]

 

VANECK VECTORS ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2019 (unaudited)

 

   Agribusiness
ETF		  Coal
ETF		  Gold Miners
ETF		  Junior
Gold Miners
ETF		   Low Carbon
Energy
ETF
Assets:                               
Investments, at value (1)                               
Unaffiliated issuers (2)    $700,003,830     $48,520,124     $4,718,268,412     $2,695,326,283      $89,882,579 
Affiliated issuers (3)     —      —      5,822,451,456      1,441,129,146       — 
Short-term investments held as collateral for securities loaned (4)     50,639,280      1,983,413      105,334,362      125,462,519       7,920,755 
Cash     —      5,869      13,732,291      151,768       — 
Cash denominated in foreign currency, at value (5)     561,198      19      335,138      39,512,360       23,164 
Receivables:                                    
Investment securities sold     160,444      —      334,809      186,199       23,146 
Shares sold     —      —      9,419      —       — 
Due from Adviser     —      —      —      —       — 
Dividends and interest     1,197,831      424,943      5,722,257      600,050       171,212 
Prepaid expenses     4,061      2,675      14,780      16,087       2,641 
Total assets     752,566,644      50,937,043      10,666,202,924      4,302,384,412       98,023,497 
                                     
Liabilities:                                    
Payables:                                    
Investment securities purchased     160,423      —      13,863,982      39,516,426       23,164 
Collateral for securities loaned     50,639,280      1,983,413      105,334,362      125,462,519       7,920,755 
Line of credit     811,834      286,555      —      —       — 
Shares redeemed     1,266,248      —      —      —       — 
Due to Adviser     295,691      12,121      4,075,517      1,625,003       32,030 
Due to custodian     6,925,595      —      —      —       — 
Deferred Trustee fees     438,286      20,078      867,404      210,116       10,886 
Accrued expenses     235,118      85,308      197,303      246,641       62,549 
Total liabilities     60,772,475      2,387,475      124,338,568      167,060,705       8,049,384 
NET ASSETS    $691,794,169     $48,549,568     $10,541,864,356     $4,135,323,707      $89,974,113 
Shares outstanding     10,350,000      3,650,000      411,252,500      117,987,446       1,383,298 
Net asset value, redemption and offering price per share    $66.84     $13.30     $25.63     $35.05      $65.04 
                                       
Net assets consist of:                                    
Aggregate paid in capital    $1,283,426,666     $365,519,797     $19,214,967,085     $8,406,933,794      $165,390,216 
Total distributable earnings (loss)     (591,632,497)     (316,970,229)     (8,673,102,729)     (4,271,610,087)      (75,416,103)
       $691,794,169     $48,549,568     $10,541,864,356     $4,135,323,707      $89,974,113 
(1)   Value of securities on loan    $47,707,038     $1,721,607     $99,484,839     $119,996,252      $7,642,382 
(2) Cost of investments — Unaffiliated issuers    $632,385,742     $59,263,012     $4,145,622,257     $2,542,906,087      $68,111,628 
(3) Cost of investments — Affiliated issuers    $—     $—     $5,327,440,993     $1,566,630,800      $— 
(4) Cost of short-term investments held as                                    
  collateral for securities loaned    $50,639,280     $1,983,413     $105,334,362     $125,462,519      $7,920,755 
(5) Cost of cash denominated in foreign currency    $558,468     $19     $335,138     $39,183,309      $23,164 

 

See Notes to Financial Statements

38

 

 

Natural
Resources
ETF		  Oil Refiners
ETF		  Oil Services
ETF		  Rare Earth/ Strategic Metals
ETF		  Steel
ETF		  Unconventional
Oil & Gas
ETF		  Uranium+Nuclear
Energy
ETF
                   
  $74,041,284       $16,697,025       $809,626,329       $238,832,437       $58,778,520       $22,217,198       $23,868,711 
   —      —      —      —      —      —      — 
                                               
   499,131      —      34,357,861      40,494,221      6,302,927      673,504      1,832,784 
   —      —      —      —      —      4,719      — 
                                               
   63,388      75,689      —      1,271,024      —      1,467      12,930 
                                               
   41,486      73,252      —      2,244,553      4,123,042      1,876      12,936 
   —      —      —      —      —      —      — 
   —      3,169      —      —      —      —      — 
   210,234      80,587      1,937,680      310,246      41,572      30,138      78,907 
   2,690      5,550      8,811      2,739      271      2,631      2,558 
   74,858,213      16,935,272      845,930,681      283,155,220      69,246,332      22,931,533      25,808,826 
                                               
   28,019      73,402      —      95,284      3,151,533      1,883      12,929 
   499,131      —      34,357,861      40,494,221      6,302,927      673,504      1,832,784 
   434,224      116,055      1,728,906      1,784,366      918,281      —      — 
   —      —      32      2,987,178      —      —      — 
   9,179      —      174,011      104,057      16,132      360      1,808 
   314,628      78      71,083      837,068      —      —      48,018 
   11,381      501      147,456      13,765      15,310      3,458      10,017 
   88,012      62,287      139,675      112,282      79,883      82,395      75,506 
   1,384,574      252,323      36,619,024      46,428,221      10,484,066      761,600      1,981,062 
  $73,473,639     $16,682,949     $809,311,657     $236,726,999     $58,762,266     $22,169,933     $23,827,764 
   2,000,000      600,000      54,660,863      15,674,962      1,500,000      1,850,000      466,632 
                                               
  $36.74     $27.80     $14.81     $15.10     $39.17     $11.98     $51.06 
                                               
  $107,447,468     $25,143,811     $2,255,076,498     $539,696,814     $202,006,050     $81,954,646     $104,090,593 
   (33,973,829)     (8,460,862)     (1,445,764,841)     (302,969,815)     (143,243,784)     (59,784,713)     (80,262,829)
  $73,473,639     $16,682,949     $809,311,657     $236,726,999     $58,762,266     $22,169,933     $23,827,764 
  $474,243     $—     $34,645,362     $37,313,441     $6,186,734     $650,332     $1,728,359 
  $70,269,546     $20,267,733     $1,834,300,345     $252,290,153     $70,110,882     $34,729,859     $23,313,045 
  $—     $—     $—     $—     $—     $—     $— 
                                               
  $499,131     $—     $34,357,861     $40,494,221     $6,302,927     $673,504     $1,832,784 
  $62,350     $75,500     $—     $1,265,431     $—     $1,467     $12,926 

 

See Notes to Financial Statements

39

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Period Ended June 30, 2019 (unaudited)

 

   Agribusiness
ETF		  Coal
ETF		  Gold Miners
ETF		  Junior
Gold Miners
ETF		  Low Carbon
Energy
ETF
Income:                              
Dividends – Unaffiliated issuers    $8,297,976     $2,058,870     $56,743     $1,844,231     $402,289 
Dividends – Affiliated issuers     —      —      88,218,716      11,049,281      — 
Securities lending income     893,036      24,590      794,024      1,266,156      33,247 
Foreign taxes withheld     (688,906)     (184,973)     (3,866,175)     (563,934)     (41,997)
Total Income     8,502,106      1,898,487      85,203,308      13,595,734      393,539 
                                    
Expenses:                                   
Management fees     1,862,870      130,432      24,746,311      9,957,802      218,504 
Professional fees     26,658      30,605      59,631      107,373      29,111 
Insurance     4,069      463      35,412      20,627      416 
Trustees’ fees and expenses     23,487      947      165,600      67,867      998 
Reports to shareholders     24,464      11,123      142,918      64,042      12,273 
Indicative optimized portfolio value fee     3,662      2,489      —      2,491      2,494 
Custodian fees     47,391      5,620      185,186      86,084      7,364 
Registration fees     2,492      2,492      105,804      18,267      2,495 
Transfer agent fees     1,196      1,196      1,196      1,196      1,196 
Fund accounting fees     27,765      5,536      —      123,537      5,335 
Interest     30,019      1,561      87,560      10,818      1,020 
Other     10,612      1,930      162,092      298,643      2,246 
Total expenses     2,064,685      194,394      25,691,710      10,758,747      283,452 
Waiver of management fees     —      (38,923)     —      —      (11,487)
Net expenses     2,064,685      155,471      25,691,710      10,758,747      271,965 
Net investment income     6,437,421      1,743,016      59,511,598      2,836,987      121,574 
                                    
Net realized gain (loss) on:                                   
Investments – unaffiliated issuers     (12,553,431)     (1,146,901)     (453,123,580)     (167,068,992)     (1,243,926)
Investments – affiliated issuers     —      —      (20,487,876)     241,085,077      — 
In-kind redemptions     43,271,847      159,219      453,123,579      186,150,999      1,310,168 
Foreign currency transactions and foreign denominated assets and liabilities     (246,765)     2,242      (197,617)     (111,426)     (1,938)
Net realized gain (loss)     30,471,651      (985,440)     (20,685,494)     260,055,658      64,304 
                                    
Net change in unrealized appreciation (depreciation) on:                                   
Investments – Unaffiliated issuers     79,463,353      2,098,299      (4)     242,632,179      14,077,432 
Investments – Affiliated issuers     —      —      1,921,265,422      138,967,863      — 
Foreign currency transactions and foreign denominated assets and liabilities     7,857      (7,445)     25,929      (124,607)     (1,513)
Net change in unrealized appreciation (depreciation)     79,471,210      2,090,854      1,921,291,347      381,475,435      14,075,919 
Net Increase in Net Assets Resulting from Operations    $116,380,282     $2,848,430     $1,960,117,451     $644,368,080     $14,261,797 

 

See Notes to Financial Statements

40

 

 

Natural
Resources
ETF		  Oil Refiners
ETF		  Oil Services
ETF		  Rare Earth/
Strategic Metals
ETF		  Steel
ETF		  Unconventional
Oil & Gas
ETF		  Uranium+Nuclear
Energy
ETF
                   
  $1,297,381       $388,038       $10,134,228       $1,579,737       $1,362,447       $209,117       $412,026 
   —      —      —      —      —      —      — 
   32,758      577      101,654      1,136,359      19,510      1,186      7,773 
   (89,621)     (22,784)     (97,384)     (133,759)     (10,172)     (6,995)     (25,524)
   1,240,518      365,831      10,138,498      2,582,337      1,371,785      203,308      394,275 
                                               
   181,858      63,620      1,526,958      375,503      154,772      66,802      63,312 
   32,374      29,986      30,204      28,978      29,780      28,895      27,591 
   486      131      7,851      1,037      742      355      127 
   1,528      242      22,241      2,300      1,523      821      367 
   8,648      6,218      34,220      16,511      11,564      8,992      8,147 
   3,059      2,482      2,491      3,829      —      1,497      3,071 
   23,784      13,431      17,128      7,735      9,233      2,880      4,994 
   2,496      4,307      6,564      3,012      1,245      2,711      2,496 
   1,225      1,236      1,196      1,196      1,196      1,196      1,196 
   20,066      5,316      35,521      6,889      4,599      3,832      4,500 
   4,728      2,271      20,987      24,739      3,930      370      1,011 
   1,900      1,524      21,409      7,876      2,194      1,683      1,442 
   282,152      130,764      1,726,770      479,605      220,778      120,034      118,254 
   (99,203)     (53,421)     (178,825)     (26,793)     (46,599)     (47,518)     (41,268)
   182,949      77,343      1,547,945      452,812      174,179      72,516      76,986 
   1,057,569      288,488      8,590,553      2,129,525      1,197,606      130,792      317,289 
                                               
   (500,712)     (1,165,759)     (209,577,199)     (22,984,684)     (2,082,151)     (2,213,608)     (25,290)
   —      —      —      —      —      —      — 
   2,123,942      (2,298,723)     (4,784,423)     4,322,629      1,766,272      (2,616,249)     453,441 
                                               
   (6,517)     2,587      —      (63,531)     —      115      1,184 
   1,616,713      (3,461,895)     (214,361,622)     (18,725,586)     (315,879)     (4,829,742)     429,335 
                                               
   7,518,230      5,658,843      333,929,665      27,993,325      6,225,933      8,493,598      (75,181)
   —      —      —      —      —      —      — 
                                               
   1,720      (555)     —      2,707      —      267      (720)
   7,519,950      5,658,288      333,929,665      27,996,032      6,225,933      8,493,865      (75,901)
                                               
  $10,194,232     $2,484,881     $128,158,596     $11,399,971     $7,107,660     $3,794,915     $670,723 

 

See Notes to Financial Statements

41

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

   Agribusiness ETF  Coal ETF
   For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
   (unaudited)     (unaudited)   
Operations:                
Net investment income    $6,437,421     $11,247,175     $1,743,016     $3,658,960 
Net realized gain (loss)     30,471,651      26,425,991      (985,440)     5,152,067 
Net change in unrealized appreciation (depreciation)     79,471,210      (78,237,487)     2,090,854      (23,299,853)
Net increase (decrease) in net assets resulting from operations     116,380,282      (40,564,321)     2,848,430      (14,488,826)
                             
Distributions to shareholders:                            
Dividends and Distributions     —      (12,001,800)     —      (3,625,600)
                             
Share transactions:**                            
Proceeds from sale of shares     —      253,505,524      —      37,840,160 
Cost of shares redeemed     (181,302,225)     (297,801,280)     (9,382,502)     (65,842,648)
Increase (Decrease) in net assets resulting from share transactions     (181,302,225)     (44,295,756)     (9,382,502)     (28,002,488)
Total increase (decrease) in net assets     (64,921,943)     (96,861,877)     (6,534,072)     (46,116,914)
Net Assets, beginning of period     756,716,112      853,577,989      55,083,640      101,200,554 
Net Assets, end of period    $691,794,169     $756,716,112   $48,549,568     $55,083,640 
                             
** Shares of Common Stock Issued (no par value)                            
Shares sold     —      4,100,000      —      2,200,000 
Shares redeemed     (2,900,000)     (4,700,000)     (700,000)     (4,150,000)
Net increase (decrease)     (2,900,000)     (600,000)     (700,000)     (1,950,000)

 

See Notes to Financial Statements

42

 

 

Gold Miners ETF  Junior Gold Miners ETF  Low Carbon Energy ETF
For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
(unaudited)     (unaudited)      (unaudited)   
                      
  $59,511,598     $54,277,346     $2,836,987     $20,158,325     $121,574     $388,213 
   (20,685,494)     (601,102,816)     260,055,658      (27,214,893)     64,304      (6,719,605)
   1,921,291,347      (18,619,340)     381,475,435      (619,710,123)     14,075,919      (1,788,978)
                                        
   1,960,117,451      (565,444,810)     644,368,080      (626,766,691)     14,261,797      (8,120,370)
                                        
   —      (51,959,513)     —      (19,534,693)     —      (499,871)
                                        
   294,355,009      5,960,338,004      482,583,417      1,806,805,925      —      2,944,806 
   (2,288,294,897)     (2,341,832,008)     (1,265,022,974)     (1,521,604,784)     (3,263,430)     (2,699,948)
                                        
   (1,993,939,888)     3,618,505,996      (782,439,557)     285,201,141      (3,263,430)     244,858 
   (33,822,437)     3,001,101,673      (138,071,477)     (361,100,243)     10,998,367      (8,375,383)
   10,575,686,793      7,574,585,120      4,273,395,184      4,634,495,427      78,975,746      87,351,129 
  $10,541,864,356     $10,575,686,793     $4,135,323,707     $4,273,395,184     $89,974,113     $78,975,746 
                                        
   12,750,000      284,350,000      16,000,000      57,450,000      —      50,000 
   (103,350,000)     (108,250,000)     (39,950,000)     (51,000,000)     (50,000)     (50,000)
   (90,600,000)     176,100,000      (23,950,000)     6,450,000      (50,000)     — 

 

See Notes to Financial Statements

43

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

   Natural Resources ETF  Oil Refiners ETF
   For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
   (unaudited)     (unaudited)   
Operations:            
Net investment income  $1,057,569     $2,177,109     $288,488     $1,074,205 
Net realized gain (loss)     1,616,713      2,307,544      (3,461,895)     2,132,774 
Net change in unrealized appreciation (depreciation)     7,519,950      (14,165,407)     5,658,288      (11,639,881)
Net increase (decrease) in net assets resulting from operations     10,194,232      (9,680,754)     2,484,881      (8,432,902)
                             
Distributions to shareholders:                            
Dividends and Distributions     —      (2,159,650)     —      (1,170,000)
                             
Share transactions:**                            
Proceeds from sale of shares     —      20,587,991      —      71,379,067 
Cost of shares redeemed     (14,002,724)     (35,327,984)     (34,311,148)     (23,907,520)
Increase (Decrease) in net assets resulting from share transactions     (14,002,724)     (14,739,993)     (34,311,148)     47,471,547 
Total increase (decrease) in net assets     (3,808,492)     (26,580,397)     (31,826,267)     37,868,645 
Net Assets, beginning of period     77,282,131      103,862,528      48,509,216      10,640,571 
Net Assets, end of period    $73,473,639     $77,282,131     $16,682,949     $48,509,216 
                             
** Shares of Common Stock Issued (no par value)                            
Shares sold     —      550,000      —      2,200,000 
Shares redeemed     (400,000)     (950,000)     (1,200,000)     (750,000)
Net increase (decrease)     (400,000)     (400,000)     (1,200,000)     1,450,000 

 

See Notes to Financial Statements

44

 

 

Oil Services ETF  Rare Earth/Strategic Metals ETF  Steel ETF
For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
(unaudited)      (unaudited)      (unaudited)    
                      
  $8,590,553     $20,914,787     $2,129,525     $4,738,473     $1,197,606     $3,613,616 
   (214,361,622)     (21,009,960)     (18,725,586)     (29,449,479)     (315,879)     13,351,999 
   333,929,665      (653,349,446)     27,996,032      (83,243,311)     6,225,933      (35,609,871)
                                        
   128,158,596      (653,444,619)     11,399,971      (107,954,317)     7,107,660      (18,644,256)
                                        
   —      (21,321,948)     —      (11,500,061)     —      (3,600,300)
                                        
   911,720,833      3,576,434,472      165,406,645      92,876,673      5,756,822      69,668,571 
   (1,275,402,554)     (3,508,098,084)     (32,617,162)     (63,091,508)     (11,636,249)     (140,826,609)
                                        
   (363,681,721)     68,336,388      132,789,483      29,785,165      (5,879,427)     (71,158,038)
   (235,523,125)     (606,430,179)     144,189,454      (89,669,213)     1,228,233      (93,402,594)
   1,044,834,782      1,651,264,961      92,537,545      182,206,758      57,534,033      150,936,627 
  $809,311,657     $1,044,834,782     $236,726,999     $92,537,545     $58,762,266     $57,534,033 
                                        
   57,750,000      156,300,000      11,050,000      3,300,000      150,000      1,450,000 
   (77,550,000)     (145,300,000)     (2,200,000)     (2,600,000)     (300,000)     (3,100,000)
   (19,800,000)     11,000,000      8,850,000      700,000      (150,000)     (1,650,000)

 

See Notes to Financial Statements

45

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

   Unconventional Oil & Gas ETF  Uranium+Nuclear Energy ETF
   For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018		  For the
Six Months
Ended
June 30,
2019		  For the Year
Ended
December 31,
2018
   (unaudited)     (unaudited)   
Operations:                            
Net investment income    $130,792     $508,185     $317,289     $716,050 
Net realized gain (loss)     (4,829,742)     (10,939,902)     429,335      502,306 
Net change in unrealized appreciation (depreciation)     8,493,865      (12,940,297)     (75,901)     234,878 
Net increase (decrease) in net assets resulting from operations     3,794,915      (23,372,014)     670,723      1,453,234 
                             
Distributions to shareholders:                            
Dividends and Distributions     —      (426,800)     —      (1,000,199)
                             
Share transactions:**                            
Proceeds from sale of shares     638,711      19,198,826      —      — 
Cost of shares redeemed     (12,326,308)     (34,540,419)     (2,503,957)     (2,606,938)
Decrease in net assets resulting from share transactions     (11,687,597)     (15,341,593)     (2,503,957)     (2,606,938)
Total decrease in net assets     (7,892,682)     (39,140,407)     (1,833,234)     (2,153,903)
Net Assets, beginning of period     30,062,615      69,203,022      25,660,998      27,814,901 
Net Assets, end of period    $22,169,933     $30,062,615     $23,827,764     $25,660,998 
                             
** Shares of Common Stock Issued (no par value)                            
Shares sold     50,000      1,200,000      —      — 
Shares redeemed     (950,000)     (2,850,000)     (50,000)     (50,000)
Net decrease     (900,000)     (1,650,000)     (50,000)     (50,000)

 

See Notes to Financial Statements

46

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Agribusiness ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
    2019   2018  2017  2016  2015  2014  
   (unaudited)                        
Net asset value, beginning of period        $57.11            $61.63            $51.38            $46.55            $52.59            $54.44      
Income from investment operations:                                            
Net investment income     0.53(a)     0.83(a)     0.83(a)     1.07      1.37      1.68   
Net realized and unrealized gain (loss) on investments     9.20      (4.39)     10.30      4.86      (6.07)     (1.84)  
Total from investment operations     9.73      (3.56)     11.13      5.93      (4.70)     (0.16)  
Less:                                            
Dividends from net investment income     —      (0.96)     (0.88)     (1.10)     (1.34)     (1.69)  
Net asset value, end of period     $66.84         $57.11         $61.63         $51.38         $46.55            $52.59   
Total return (b)     17.04%(c)     (5.76)%     21.68%     12.74%     (8.96)%     (0.13)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $691,794     $756,716     $853,578   $804,156     $835,551     $1,440,901   
Ratio of gross expenses to average net assets     0.55%(d)     0.54%     0.54%     0.53%     0.55%     0.57%  
Ratio of net expenses to average net assets     0.55%(d)     0.54%     0.54%     0.53%     0.55%     0.57%  
Ratio of net expenses to average net assets excluding interest expense     0.55%(d)     0.54%     0.53%     0.53%     0.54%     0.56%  
Ratio of net investment income to average net assets     1.73%(d)     1.32%     1.48%     2.04%     2.00%     1.77%  
Portfolio turnover rate (e)     13%(c)     16%     22%     15%     20%     14%  
                                             
   Coal ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019  2018  2017  2016   2015   2014  
   (unaudited)                                     
Net asset value, beginning of period     $12.66      $16.06      $12.37      $6.28      $14.64      $19.50   
Income from investment operations:                                            
Net investment income     0.45(a)     0.67(a)     0.53(a)     0.14      0.29      0.34   
Net realized and unrealized gain (loss) on investments     0.19      (3.25)     3.73      6.08      (8.36)     (4.83)  
Total from investment operations     0.64      (2.58)     4.26      6.22      (8.07)     (4.49)  
Less:                                            
Dividends from net investment income     —      (0.82)     (0.57)     (0.13)     (0.29)     (0.37)  
Net asset value, end of period    $13.30    $12.66    $16.06      $12.37    $  6.28    $14.64   
Total return (b)     5.06%(c)     (15.97)%     34.42%     99.10%     (55.14)%     (23.07)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $48,550     $55,084     $101,201     $101,395     $39,248     $114,905   
Ratio of gross expenses to average net assets     0.75%(d)     0.64%     0.64%     0.62%     0.66%     0.63%  
Ratio of net expenses to average net assets     0.60%(d)     0.60%     0.60%     0.59%     0.59%     0.59%  
Ratio of net expenses to average net assets excluding interest expense     0.59%(d)     0.59%     0.59%(f)     0.59%     0.59%     0.59%  
Ratio of net investment income to average net assets     6.68%(d)     4.19%     3.80%(f)     1.66%     2.31%     1.75%  
Portfolio turnover rate (e)     8%(c)     24%     39%     40%     36%     27%  
                                             
 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Includes expense offset arrangements of 0.01%

 

See Notes to Financial Statements

47

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Gold Miners ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                      
Net asset value, beginning of period     $21.07        $23.25        $20.92        $13.72        $18.43        $21.16       
Income from investment operations:                                            
Net investment income     0.13(a)(h)     0.14(a)     0.10(a)     0.03      0.12      0.12   
Net realized and unrealized gain (loss) on investments     4.43      (2.21)     2.41      7.23      (4.71)     (2.73)  
Total from investment operations     4.56      (2.07)     2.51      7.26      (4.59)     (2.61)  
Less:                                            
Dividends from net investment income     —      (0.11)     (0.18)     (0.06)     (0.12)     (0.12)  
Net asset value, end of period             $25.63             $21.07            $23.25             $20.92            $13.72            $18.43   
Total return (b)     21.64%(c)     (8.92)%     11.99%     52.91%     (24.93)%     (12.31)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $10,541,864   $10,575,687   $7,574,585   $9,685,012   $4,316,718    $5,495,447    
Ratio of gross expenses to average net assets     0.52%(d)     0.52%     0.53%     0.51%     0.52%     0.53%  
Ratio of net expenses to average net assets     0.52%(d)     0.52%     0.53%     0.51%     0.52%     0.53%  
Ratio of net expenses to average net assets excluding interest expense     0.52%(d)     0.52%     0.53%     0.51%     0.52%     0.53%  
Ratio of net investment income to average net assets     1.20%(d)(h)     0.66%     0.42%     0.21%     0.66%     0.52%  
Portfolio turnover rate (e)     11%(c)     15%     12%     26%     24%     18%  
 
   Junior Gold Miners ETF  
   For the
Six Months
Ended
June 30,  		  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                     
Net asset value, beginning of period     $30.11      $34.21      $31.72      $19.22      $24.04      $30.90   
Income from investment operations:                                            
Net investment income     0.02(a)     0.14(a)     0.05(a)     0.14      0.15      0.00(a)(f)  
Net realized and unrealized gain (loss) on investments     4.92      (4.10)     2.45      13.87      (4.83)     (6.68)  
Total from investment operations     4.94      (3.96)     2.50      14.01      (4.68)     (6.68)  
Less:                                            
Dividends from net investment income     —      (0.14)     (0.01)     (1.51)     (0.14)     (0.18)  
Net asset value, end of period     $35.05      $30.11      $34.21      $31.72      $19.22      $24.04   
Total return (b)     16.41%(c)     (11.58)%     7.89%     73.75%     (19.48)%     (21.60)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $4,135,324   $4,273,395   $4,634,495   $3,454,333   $1,300,681    $1,522,690    
Ratio of gross expenses to average net assets     0.54%(d)     0.53%     0.55%(g)     0.52%(g)     0.56%     0.55%(g)  
Ratio of net expenses to average net assets     0.54%(d)     0.53%     0.54%(g)     0.52%(g)     0.56%     0.55%(g)  
Ratio of net expenses to average net assets excluding interest expense and taxes     0.53%(d)     0.53%     0.53%(g)     0.52%(g)     0.55%     0.54%(g)  
Ratio of net investment income (loss) to average net assets     0.14%(d)     0.45%     0.16%(g)     0.14%(g)     0.66%     (0.01)%(g)  
Portfolio turnover rate (e)     12%(c)     28%     67%     58%     47%     65%  
                                             
 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(f) Amount represents less than $0.005 per share
(g) The ratios presented do not reflect the Fund’s proportionate share of income and expenses form the Fund’s investment in underlying funds.
(h) Net Investment income per share reflects non-recurring dividends which amounted to $0.04 per average share outstanding. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 0.79%.

 

See Notes to Financial Statements

48

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Low Carbon Energy ETF  
   For the
Six Months
Ended
June 30,		  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                      
Net asset value, beginning of period        $55.10        $60.94        $50.62        $54.57        $54.09        $55.90     
Income from investment operations:                                            
Net investment income     0.09(a)     0.26(a)     1.12(a)     1.38      0.46      0.12   
Net realized and unrealized gain (loss) on investments     9.85      (5.76)     9.97      (4.26)     0.33      (1.82)  
Total from investment operations     9.94      (5.50)     11.09      (2.88)     0.79      (1.70)  
Less:                                            
Dividends from net investment income     —      (0.34)     (0.77)     (1.07)     (0.31)     (0.11)  
Net asset value, end of period      $65.04       $55.10       $60.94       $50.62     $54.57     $54.09   
Total return (b)     18.04%(c)     (9.02)%     21.90%     (5.26)%     1.45%     (3.04)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $89,974   $78,976   $87,351   $64,958   $91,857   $82,937   
Ratio of gross expenses to average net assets     0.65%(d)     0.65%     0.67%     0.64%     0.62%     0.64%  
Ratio of net expenses to average net assets     0.62%(d)     0.63%     0.63%     0.62%     0.62%     0.62%  
Ratio of net expenses to average net assets excluding interest expense     0.62%(d)     0.62%     0.62%     0.62%     0.62%     0.62%  
Ratio of net investment income to average net assets     0.28%(d)     0.44%     1.94%     2.04%     0.88%     0.18%  
Portfolio turnover rate (e)     17%(c)     31%     21%     32%     27%     31%  
 
   Natural Resources ETF  
   For the
Six Months
Ended
June 30,  		  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                     
Net asset value, beginning of period     $32.20      $37.09      $32.31      $26.38      $33.73      $37.46   
Income from investment operations:                                            
Net investment income     0.51(a)     0.81(a)     0.72(a)     0.66      0.81      0.82   
Net realized and unrealized gain (loss) on investments     4.03      (4.78)     4.81      5.91      (7.37)     (3.70)  
Total from investment operations     4.54      (3.97)     5.53      6.57      (6.56)     (2.88)  
Less:                                            
Dividends from net investment                                            
income     —      (0.92)     (0.75)     (0.64)     (0.79)     (0.85)  
Net asset value, end of period     $36.74      $32.20      $37.09      $32.31      $26.38      $33.73   
Total return (b)     14.10%(c)     (10.69)%     17.14%     24.93%     (19.48)%     (7.71)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $73,474   $77,282   $103,863   $95,323   $76,511   $86,023   
Ratio of gross expenses to average net assets     0.78%(d)     0.72%     0.80%     0.77%     0.75%     0.73%  
Ratio of net expenses to average net assets     0.50%(d)     0.50%     0.50%     0.50%     0.50%     0.50%  
Ratio of net expenses to average net assets excluding interest expense .     0.49%(d)     0.49%     0.49%     0.49%     0.49%     0.49%  
Ratio of net investment income to average net assets     2.91%(d)     2.21%     2.09%     2.18%     2.66%     2.10%  
Portfolio turnover rate (e)     16%(c)     23%     34%     37%     9%     13%  
 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

49

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Oil Refiners ETF      
   For the            For the Period     
   Six Months            August 18,     
   Ended            2015(a) through     
   June 30,  For the Year Ended December 31,  December 31,     
   2019  2018  2017  2016  2015     
   (unaudited)                      
Net asset value, beginning of period         $26.95      $30.40      $20.86      $19.69     $19.75          
Income from investment operations:                                            
Net investment income     0.32(b)     0.74(b)     0.61(b)     0.73      0.07          
Net realized and unrealized gain (loss) on investments     0.53      (3.54)     9.38      1.15      (0.04)         
Total from investment operations     0.85      (2.80)     9.99      1.88      0.03          
Less:                                            
Dividends from net investment income     —      (0.52)     (0.37)     (0.71)     (0.07)         
Distributions from net realized capital gains     —      (0.13)     (0.08)     —      —          
Return of capital     —      —      —      —      (0.02)         
Total dividends and distributions     —      (0.65)     (0.45)     (0.71)     (0.09)         
Net asset value, end of period  $27.80   $26.95      $30.40      $20.86     $19.69          
Total return (c)     3.15%(d)     (9.22)%     47.91%     9.55%     0.16%(d)         
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $16,683   $48,509   $10,641   $3,129   $3,938          
Ratio of gross expenses to average net assets     1.03%(e)     0.72%     2.71%     3.42%     4.98%(e)         
Ratio of net expenses to average net assets     0.61%(e)     0.60%     0.59%     0.59%     0.59%(e)         
Ratio of net expenses to average net assets excluding interest expense     0.59%(e)     0.59%     0.59%     0.59%     0.59%(e)         
Ratio of net investment income to average net assets     2.27%(e)     2.32%     2.43%     2.85%     1.19%(e)         
Portfolio turnover rate (f)     10%(d)     31%     24%     15%     12%(d)         
                                             
                                             
   Oil Services ETF  
   For the                           
   Six Months                         
   Ended                         
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                
Net asset value, beginning of period  $14.03           $26.02           $33.36           $26.44           $35.89           $48.10   
Income from investment operations:                                            
Net investment income     0.16(b)     0.35(b)     0.90(b)     0.46      0.63      0.85   
Net realized and unrealized gain (loss) on investments     0.62      (12.04)     (7.56)     6.93      (9.45)     (12.20)  
Total from investment operations     0.78      (11.69)     (6.66)     7.39      (8.82)     (11.35)  
Less:                                            
Dividends from net investment income     —      (0.30)     (0.68)     (0.47)     (0.63)     (0.86)  
Net asset value, end of period  $14.81      $14.03      $26.02      $33.36      $26.44      $35.89   
Total return (c)     5.56%(d)     (44.93)%     (19.95)%     27.92%     (24.58)%     (23.64)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $809,312   $1,044,835   $1,651,265   $1,218,137   $1,118,901   $929,834   
Ratio of gross expenses to average net assets     0.40%(e)     0.38%     0.39%     0.40%     0.39%     0.39%  
Ratio of net expenses to average net assets     0.35%(e)     0.35%     0.35%     0.35%     0.35%     0.35%  
Ratio of net expenses to average net assets excluding interest expense     0.35%(e)     0.35%     0.35%     0.35%     0.35%     0.35%  
Ratio of net investment income to average net assets     1.97%(e)     1.44%     3.36%     1.70%     2.30%     1.99%  
Portfolio turnover rate (f)     10%(d)     22%     34%     24%     18%     15%  

 

 
(a) Commencement of operations
(b) Calculated based upon average shares outstanding
(c) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(d) Not Annualized
(e) Annualized
(f) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

50

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Rare Earth/Strategic Metals ETF  
   For the                      
   Six Months                      
   Ended                      
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                      
Net asset value, beginning of period       $13.56       $29.75        $16.90        $13.68      $25.49      $35.98   
Income from investment operations:                                            
Net investment income     0.21(a)     0.66(a)     0.44(a)     0.12      0.51      0.65   
Net realized and unrealized gain (loss) on investments     1.33      (15.16)     13.28      3.48      (11.68)     (10.75)  
Total from investment operations     1.54      (14.50)     13.72      3.60      (11.17)     (10.10)  
Less:                                            
Dividends from net investment income     —      (1.69)     (0.87)     (0.38)     (0.64)     (0.39)  
Net asset value, end of period    $15.10     $13.56     $29.75     $16.90      $13.68     $25.49   
Total return (b)     11.36%(c)     (48.70)%     81.43%     26.35%     (43.76)%     (28.07)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $236,727   $92,538   $182,207   $42,663   $28,381   $57,986   
Ratio of gross expenses to average net assets     0.64%(d)     0.63%     0.73%     0.86%     0.82%     0.72%  
Ratio of net expenses to average net assets     0.60%(d)     0.59%     0.61%     0.61%     0.57%     0.58%  
Ratio of net expenses to average net assets excluding interest expense     0.57%(d)     0.57%     0.57%     0.57%     0.57%     0.57%  
Ratio of net investment income to average net assets     2.84%(d)     2.73%     1.99%     1.43%     2.01%     1.55%  
Portfolio turnover rate (e)     31%(c)     68%     57%     104%     49%     37%  
                                             
                                             
   Steel ETF  
   For the                               
   Six Months                                  
   Ended                                  
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                           
Net asset value, beginning of period    $34.87     $45.74     $37.82     $19.52      $35.45    $49.76   
Income from investment operations:                                            
Net investment income     0.74(a)     1.30(a)     0.92(a)     0.42      1.03      1.13   
Net realized and unrealized gain (loss) on investments     3.56      (9.99)     8.12      18.28      (15.92)     (14.28)  
Total from investment operations     4.30      (8.69)     9.04      18.70      (14.89)     (13.15)  
Less:                                            
Dividends from net investment income     —      (2.18)     (1.12)     (0.40)     (1.02)     (1.16)  
Return of capital     —      —      —      —      (0.02)     —   
Total dividends     —      (2.18)     (1.12)     (0.40)     (1.04)     (1.16)  
Net asset value, end of period  $39.17      $34.87   $45.74   $37.82    $19.52      $35.45   
Total return (b)     12.33%(c)     (18.94)%     23.86%     95.77%     (42.03)%     (26.44)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $58,762   $57,534   $150,937   $185,324   $44,904   $69,127   
Ratio of gross expenses to average net assets     0.71%(d)     0.61%     0.62%     0.60%     0.69%     0.63%  
Ratio of net expenses to average net assets     0.56%(d)     0.56%     0.56%     0.55%     0.55%     0.55%  
Ratio of net expenses to average net assets excluding interest expense     0.55%(d)     0.55%     0.55%     0.55%     0.55%     0.55%  
Ratio of net investment income to average net assets     3.87%(d)     2.80%     2.25%     1.88%     3.76%     2.43%  
Portfolio turnover rate (e)     10%(c)     16%     31%     20%     15%     11%  

 

 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

51

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

   Unconventional Oil & Gas ETF  
   For the                 
   Six Months                 
   Ended                 
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                 
Net asset value, beginning of period     $10.93      $15.73      $18.25      $13.24      $22.12      $28.43   
Income from investment operations:                                            
Net investment income     0.06(a)     0.10(a)     0.09(a)     0.09      0.32      0.30   
Net realized and unrealized gain (loss) on investments     0.99      (4.81)     (2.50)     4.98      (8.86)     (6.32)  
Total from investment operations     1.05      (4.71)     (2.41)     5.07      (8.54)     (6.02)  
Less:                                            
Dividends from net investment income     —      (0.09)     (0.11)     (0.06)     (0.34)     (0.29)  
Net asset value, end of period     $11.98      $10.93      $15.73     $18.25      $13.24      $22.12   
Total return (b)     9.61%(c)     (29.96)%     (13.20)%     38.31%     (38.60)%     (21.18)%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)  $22,170   $30,063   $69,203   $59,324   $38,398   $61,937   
Ratio of gross expenses to average net assets     0.90%(d)     0.61%     0.70%     0.71%     0.72%     0.67%  
Ratio of net expenses to average net assets     0.54%(d)     0.54%     0.54%     0.54%     0.54%     0.54%  
Ratio of net expenses to average net assets excluding interest expense     0.54%(d)     0.54%     0.54%     0.54%     0.54%     0.54%  
Ratio of net investment income to average net assets     0.98%(d)     0.65%     0.56%     0.63%     1.62%     1.07%  
Portfolio turnover rate (e)     14%(c)     17%     17%     23%     22%     11%  
                                             
                                             
   Uranium+Nuclear Energy ETF  
   For the                 
   Six Months                 
   Ended                 
   June 30,  For the Year Ended December 31,  
   2019  2018  2017  2016  2015  2014  
   (unaudited)                                     
Net asset value, beginning of period     $49.67      $49.09      $47.55      $45.25      $51.50      $48.11   
Income from investment operations:                                            
Net investment income     0.63(a)     1.30(a)     1.35(a)     2.08      1.87      1.27   
Net realized and unrealized gain (loss) on investments     0.76      1.22      2.57      1.94      (6.63)     3.39   
Total from investment operations     1.39      2.52      3.92      4.02      (4.76)     4.66   
Less:                                            
Dividends from net investment income     —      (1.94)     (2.38)     (1.72)     (1.49)     (1.27)  
Net asset value, end of period     $51.06     $49.67      $49.09      $47.55     $45.25     $51.50   
Total return (b)     2.80%(c)     5.15%     8.27%     8.87%     (9.26)%     9.61%  
Ratios/Supplemental Data                                            
Net assets, end of period (000’s)    $23,828     $25,661     $27,815     $34,076     $39,211     $67,812   
Ratio of gross expenses to average net assets     0.93%(d)     0.85%     0.89%     0.79%     0.70%     0.76%  
Ratio of net expenses to average net assets     0.61%(d)     0.60%     0.61%     0.61%     0.61%     0.60%  
Ratio of net expenses to average net assets excluding interest expense     0.60%(d)     0.60%     0.60%     0.60%     0.60%     0.60%  
Ratio of net investment income to average net assets     2.51%(d)     2.58%     2.67%     3.37%     2.34%     1.89%  
Portfolio turnover rate (e)     8%(c)     32%     19%     36%     27%     31%  

 

 
(a) Calculated based upon average shares outstanding
(b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c) Not Annualized
(d) Annualized
(e) Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

52

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

June 30, 2019 (unaudited)

 

Note 1—Fund Organization—VanEck Vectors ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and offers multiple investment portfolios, each of which represents a separate series of the Trust.

 

These financial statements relate only to the following investment portfolios: Agribusiness ETF, Coal ETF, Gold Miners ETF, Junior Gold Miners ETF, Low Carbon Energy ETF (formerly known as Global Alternative Energy ETF), Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Steel ETF, Unconventional Oil & Gas ETF and Uranium+Nuclear Energy ETF (each a “Fund” and, together, the “Funds”). Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in substantially the same weighting as their index.

 

Fund   Diversification Classification
Agribusiness ETF   Non-Diversified
Coal ETF   Non-Diversified
Gold Miners ETF   Non-Diversified
Junior Gold Miners ETF   Non-Diversified
Low Carbon Energy ETF   Non-Diversified
Natural Resources ETF   Diversified
Oil Refiners ETF   Non-Diversified
Oil Services ETF   Non-Diversified
Rare Earth/Strategic Metals ETF   Non-Diversified
Steel ETF   Non-Diversified
Unconventional Oil & Gas ETF   Non-Diversified
Uranium+Nuclear Energy ETF   Non-Diversified

 

Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

 

The Funds are investment companies and are following accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946 Financial Services—Investment Companies.

 

The following is a summary of significant accounting policies followed by the Funds.

 

A. 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 are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ 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 debt securities 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. The Pricing Committee of the Adviser 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.
53

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

  The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes it does not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. 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, periodic comparisons to valuations provided by other independent pricing services, 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 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 each Fund’s own assumptions in determining the fair value of investments).
   
  A summary of the input and the levels used to value the Funds’ investments 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.
   
B. Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
   
C. Dividends and Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP.
   
D. Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statement of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations.
   
E. Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and
54

 

 

  prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments.
   
F. Repurchase Agreements—The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Adviser, to generate income from their excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Fund acquires securities from a seller, subject to resale to the seller at an agreed upon price and date. A Fund, through its custodian/securities lending agent, takes possession of securities collateralizing the repurchase agreement. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain their right to sell the underlying securities at market value and may claim any resulting loss against the seller. Repurchase agreements held as of June 30, 2019 are reflected in the Schedules of Investments.
   
G. Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of setoff in those agreements allows the Funds to set off any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and/or securities as collateral for derivative instruments, securities lending and repurchase agreements. For financial reporting purposes, the Funds present securities lending and repurchase agreement assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Collateral held at June 30, 2019 is presented in the Schedules of Investments. Refer to related disclosures in Note 2F (Repurchase Agreements) and Note 9 (Securities Lending).
   
H. Other—Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. Interest income, including amortization of premiums and discounts, is accrued as earned.

 

In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.

 

Note 3—Investment Management and Other Agreements—Van Eck Associates Corporation (the “Adviser”) is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.50% of each Fund’s average daily net assets (except for Oil Services ETF). The management fee rate for Oil Services ETF is 0.35%. The Adviser has agreed, until at least May 1, 2020, to waive management fees and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding expense limitations listed in the table below.

55

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

The current expense limitations for the period ended June 30, 2019, are as follows:

 

Fund  Expense
Limitations
Agribusiness ETF   0.56%
Coal ETF   0.59 
Gold Miners ETF   0.53 
Junior Gold Miners ETF   0.56 
Low Carbon Energy ETF   0.62 
Natural Resources ETF   0.49 
Oil Refiners ETF   0.59 
Oil Services ETF   0.35 
Rare Earth/Strategic Metals ETF   0.57 
Steel ETF   0.55 
Unconventional Oil & Gas ETF   0.54 
Uranium+Nuclear Energy ETF   0.60 

 

Refer to Statement of Operations for the amounts waived/assumed by the Adviser.

 

In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ distributor (the “Distributor”). Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.

 

Note 4—Investments—For the period ended June 30, 2019, the cost of purchases and proceeds from sales of investments other than U.S. government obligations and short-term obligations (excluding in-kind transactions described in Note 6) were as follows:

 

Fund  Cost of Investments
Purchased		  Proceeds from
Investments Sold
Agribusiness ETF  $97,991,435   $100,629,971 
Coal ETF   6,116,739    4,234,083 
Gold Miners ETF   1,142,176,840    1,090,782,289 
Junior Gold Miners ETF   477,556,233    477,207,222 
Low Carbon Energy ETF   15,174,755    15,156,408 
Natural Resources ETF   12,390,170    11,555,551 
Oil Refiners ETF   2,574,780    6,208,282 
Oil Services ETF   99,003,245    90,185,916 
Rare Earth/Strategic Metals ETF   94,272,399    49,200,393 
Steel ETF   5,905,851    6,022,228 
Unconventional Oil & Gas ETF   3,661,591    3,561,205 
Uranium+Nuclear Energy ETF   2,350,433    1,944,921 

 

Note 5—Income Taxes—As of June 30, 2019, for Federal income tax purposes, the identified cost, gross unrealized appreciation and depreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) of investments owned were as follows:

 

Fund  Tax
Cost of
Investments		  Gross Unrealized
Appreciation		  Gross Unrealized
Depreciation		  Net Unrealized
Appreciation
(Depreciation)
Agribusiness ETF  $698,738,619     $141,941,924     $(90,037,433)    $51,904,491 
Coal ETF   62,674,373    1,010,291    (13,181,127)   (12,170,836)
Gold Miners ETF   9,606,349,889    1,590,998,432    (551,294,091)   1,039,704,341 
Junior Gold Miners ETF   4,320,407,025    606,741,910    (665,230,987)   (58,489,077)
Low Carbon Energy ETF   75,763,205    24,051,068    (2,010,939)   22,040,129 
Natural Resources ETF   71,383,598    8,559,426    (5,402,609)   3,156,817 
Oil Refiners ETF   20,651,265    447,546    (4,401,786)   (3,954,240)
Oil Services ETF   1,868,688,161    —    (1,024,703,971)   (1,024,703,971)
Rare Earth/Strategic Metals ETF   304,783,760    12,582,809    (38,039,911)   (25,457,102)
Steel ETF   77,600,712    2,279,099    (14,798,364)   (12,519,265)
Unconventional Oil & Gas ETF   36,293,221    287,977    (13,690,496)   (13,402,519)
Uranium+Nuclear Energy ETF   25,279,625    2,974,317    (2,552,447)   421,870 
56

 

 

The tax character of dividends paid to shareholders during the year ended December 31, 2018 was as follows:

 

Fund  Ordinary
Income
Agribusiness ETF  $12,001,800 
Coal ETF   3,625,600 
Gold Miners ETF   51,959,513 
Junior Gold Miners ETF   19,534,693 
Low Carbon Energy ETF   499,871 
Natural Resources ETF   2,159,650 
Oil Refiners ETF   1,170,000 
Oil Services ETF   21,321,948 
Rare Earth/Strategic Metals ETF   11,500,061 
Steel ETF   3,600,300 
Unconventional Oil & Gas ETF   426,800 
Uranium+Nuclear Energy ETF   1,000,200 

 

The tax character of current year distributions will be determined at the end of the current fiscal year.

 

At December 31, 2018, the Funds had capital loss carryforwards available to offset future capital gains, as follows:

 

Fund  Short-Term
Capital Losses
with No Expiration		  Long-Term
Capital Losses
with No Expiration		  Total
Agribusiness ETF  $(178,974,364)  $(501,609,337)  $(680,583,701)
Coal ETF   (23,645,586)   (281,923,863)   (305,569,449)
Gold Miners ETF   (1,328,717,435)   (8,426,684,721)   (9,755,402,156)
Junior Gold Miners ETF   (1,611,478,906)   (2,871,409,789)   (4,482,888,695)
Low Carbon Energy ETF   (4,812,502)   (92,797,499)   (97,610,001)
Natural Resources ETF   (2,894,228)   (36,910,511)   (39,804,739)
Oil Refiners ETF   —    —    — 
Oil Services ETF   (65,420,955)   (149,843,535)   (215,264,490)
Rare Earth/Strategic Metals ETF   (69,312,136)   (192,969,308)   (262,281,444)
Steel ETF   (7,198,907)   (124,475,440)   (131,674,347)
Unconventional Oil & Gas ETF   (6,808,108)   (34,933,761)   (41,741,869)
Uranium+Nuclear Energy ETF   (13,913,162)   (67,998,589)   (81,911,751)

 

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.

 

The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2019, the Funds did not incur any interest or penalties.

 

Note 6—Capital Share Transactions—As of June 30, 2019, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”), consisting of 50,000 shares, or multiples thereof.

 

The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities

57

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

subject to various conditions, including a requirement to maintain on deposit at the Custodian for the benefit of the Funds, collateral consisting of cash in the form of U.S. dollars at least equal to 115% of the daily marked to market value of the missing Deposit Securities.

 

Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to The Bank of New York Mellon. In addition, the Funds may impose certain variable fees for creations and redemptions with respect to transactions in Creation Units for cash, or on transactions effected outside the clearing process, which are treated as increases in capital. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.

 

For the period ended June 30, 2019 the Funds had in-kind contributions and redemptions as follows:

 

Fund  In-Kind Contributions  In-Kind Redemptions
Agribusiness ETF       $—            $170,663,937     
Coal ETF   —    9,378,888 
Gold Miners ETF   294,349,957    2,287,445,444 
Junior Gold Miners ETF   482,834,230    1,265,120,603 
Low Carbon Energy ETF   —    3,261,778 
Natural Resources ETF   —    13,545,718 
Oil Refiners ETF   —    30,265,404 
Oil Services ETF   911,667,529    1,275,276,933 
Rare Earth/Strategic Metals ETF   113,904,409    22,736,192 
Steel ETF   5,756,949    10,276,064 
Unconventional Oil & Gas ETF   638,586    12,326,649 
Uranium+Nuclear Energy ETF   —    2,490,447 

 

This table represents the accumulation of each Fund’s daily net in-kind shareholder transactions including rebalancing activity, while the Statements of Changes in Net Assets reflect shareholder transactions including any cash component of the transactions.

 

Note 7—Principal Risks—The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The Adviser uses a “passive” or index approach to achieve each Fund’s investment objective by investing in a portfolio of securities that generally replicates the Fund’s index. Each of the Funds (except for Natural Resources ETF) is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse political and economic developments and local/regional conflicts. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers.

 

As a result of events involving Ukraine and the Russian Federation, the United States and the European Union 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.

 

At June 30, 2019, the Adviser owned 2,500 shares of Gold Miners ETF.

 

A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.

 

Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.

58

 

 

The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.

 

Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with The Bank of New York Mellon, the securities lending agent and also the Funds’ custodian. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value plus accrued interest on the securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and/or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. The Funds may pay reasonable finders,’ administrative and custodial fees in connection with a loan of its securities. Securities lending income is disclosed as such in the Statements of Operations. The collateral for securities loaned is recognized in the Schedules of Investments and the Statements of Assets and Liabilities. The cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in repurchase agreements collateralized by obligations of the U.S. Treasury and/or Government Agencies. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related collateral at June 30, 2019 are presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities.

 

The following table presents repurchase agreements held as collateral by type of security on loan as of June 30, 2019:

 

   Gross Amount of Recognized
Liabilities for Securities
Loaned in the Statements of
Assets and Liabilities*
Fund  Equity Securities
Agribusiness ETF         $50,639,280       
Coal ETF   1,983,413 
Gold Miners ETF   105,334,362 
Junior Gold Miners ETF   125,462,519 
Low Carbon Energy ETF   7,920,755 
Natural Resources ETF   499,131 
Oil Services ETF   34,357,861 
Rare Earth/Strategic Metals ETF   40,494,221 
Steel ETF   6,302,927 
Unconventional Oil & Gas ETF   673,504 
Uranium+Nuclear Energy ETF   1,832,784 
* Remaining contractual maturity of the agreements: overnight and continuous

 

Note 10—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2019, the following Funds borrowed under this Facility:

59

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

Fund  Days Outstanding  Average Daily
Loan Balance		  Average
Interest Rate		  Outstanding Loan
Balance as of
June 30, 2019
Agribusiness ETF   162   $1,734,202    3.84%  $811,834 
Coal ETF   76    190,640    3.85    286,555 
Gold Miners ETF   89    8,930,486    3.84    — 
Junior Gold Miners ETF   44    2,273,175    3.86    — 
Low Carbon Energy ETF   59    136,098    3.83    — 
Natural Resources ETF   143    295,168    3.84    434,224 
Oil Refiners ETF   132    141,506    3.84    116,055 
Oil Services ETF   98    2,026,080    3.83    1,728,906 
Rare Earth/Strategic Metals ETF   147    990,139    3.84    1,784,366 
Steel ETF   76    361,996    3.83    918,281 
Uranium+Nuclear Energy ETF   80    85,559    3.84    — 

 

 

Note 11—Custodian Fees—The Funds have entered into an expense offset agreement with the custodian wherein they receive a credit toward the reduction of custodian fees whenever there are uninvested cash balances. The Funds could have invested their cash balances elsewhere if they had not agreed to a reduction in fees under the expense offset agreement with the custodian. For the period ended June 30, 2019, there were offsets to custodian fees and these amounts are reflected in custody expense in the Statements of Operations.

 

Note 12—Recent Accounting Pronouncements—The Funds early adopted certain provisions of Accounting Standards Update No. 2018–13 Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018–13”) that eliminate and modify certain disclosure requirements for fair value measurements. The adoption of certain provisions of the ASU 2018–13 had no material effect on financial statements and related disclosures. Management is currently evaluating the potential impact of additional requirements, not yet adopted, of the ASU 2018–13 to financial statements. Public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018–13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years.

 

Note 13—Subsequent Event Review—The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.

60

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2019 (unaudited)

 

At a meeting held on June 13, 2019 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck Vectors® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Vectors Africa Index ETF, Agribusiness ETF, Agriculture Producers ETF, Brazil Small-Cap ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, ChinaAMC CSI 300 ETF, [ChinaAMC] Environmental Protection ETF, [ChinaAMC] Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, ChinaAMC SME-ChiNext ETF, Coal ETF, Egypt Index ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Frontier Index ETF, Gold Miners ETF, Hard Assets Producers Extra Liquid ETF, India Small-Cap Index ETF, Indonesia Index ETF, Internet ETF, Israel ETF, Junior Gold Miners ETF, Kuwait Index ETF, Low Carbon Energy ETF (formerly Global Alternative Energy ETF), Metals ETF, MLP ETF, Mongolia ETF, Natural Resources ETF, Ned Davis [Long/Flat] International Equity ETF, Ned Davis [Long/Flat] US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF, Steel ETF, Telecom ETF, Unconventional Oil & Gas ETF, Uranium+Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck Vectors ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF (together, the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”

 

The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.

 

In preparation for the Renewal Meeting, the Trustees held a meeting on May 10, 2019. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance and expenses (for those Funds which had begun operations) of the Funds and the Funds’ peer funds (other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund except for the VanEck Vectors ChinaAMC CSI 300 ETF seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds.

 

The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 10, 2019 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds to the extent necessary to prevent the operating expenses of each of the Funds from exceeding agreed

61

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2019 (unaudited) (continued)

 

upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Foreign Institutional Investors Scheme funds. The Trustees also noted that the Sub-Adviser is a wholly-owned subsidiary of China Asset Management Co., Ltd., one of China’s largest asset management companies measured by fund assets under management.

 

The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance of each of the Funds that had commenced operations prior to the date of the Renewal Meeting (the “Operating Funds”), the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Operating Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Operating Funds was satisfactory.

 

The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.

 

As noted above, the Trustees were also provided various data from Broadridge comparing the Operating Funds’ expenses and performance to that of other ETFs. The Trustees noted that the information provided showed that each Operating Fund had management fees (after the effect of any applicable fee waiver) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Low Carbon Energy ETF (formerly Global Alternative Energy ETF), Russia ETF, Unconventional Oil & Gas ETF and Vietnam ETF, which had management fees (after the effect of any applicable fee waiver) greater than the average and/or median of its respective peer group of funds. The Trustees also noted that the information provided showed that each Operating Fund had a total expense ratio (after the effect of any applicable expense limitation) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Africa Index ETF, Coal ETF, Egypt Index ETF, Low Carbon Energy ETF (formerly Global Alternative Energy ETF), Oil Refiners ETF, Russia ETF, Russia Small-Cap ETF, Unconventional Oil & Gas ETF, Uranium+Nuclear Energy ETF and Vietnam ETF, which had a total expense ratio (after the effect of any applicable expense limitation) greater than the average and/or median of its respective peer group of funds. With respect to these Operating Funds, the Trustees reviewed the amount by which these Operating Funds’ management fees and/or total expense ratios (after the effect of any applicable expense limitation) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Operating Funds were reasonable in light of the performance of the Operating Funds and the quality of services received.

 

The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds.

 

The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Operating Fund. The Trustees reviewed each Operating Fund’s asset size, expense ratio and expense cap and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Operating Funds invest, potential variability in the net assets of these Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Operating Funds effectively incorporate the benefits of economies of scale. The Trustees noted that the Adviser has capped expenses on each Operating Fund since its inception, although the cap was not necessarily exceeded each year. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Operating Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Operating Fund and the other factors discussed above and that the advisory fee rate for each Operating Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the

62

 

 

profits earned by the Adviser with respect to the Funds that were profitable to the Adviser were reasonable in light of the nature and quality of the services received by such Funds. The Trustees also considered information from the Sub-Adviser informing them that the Sub-Adviser did not earn any profits from managing the China Funds.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability to the Adviser of VanEck Vectors Agriculture Producers ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, [ChinaAMC] Environmental Protection ETF, [ChinaAMC] Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Frontier Index ETF, Hard Assets Producers Extra Liquid ETF, Internet ETF, Kuwait Index ETF, Metals ETF, MLP ETF, Mongolia ETF, Ned Davis [Long/Flat] International Equity ETF, Ned Davis [Long/Flat] US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF and Telecom ETF because the Funds had not yet commenced operations at the time of the Renewal Meeting. The Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, each of these Funds although they concluded that the nature, quality and extent of the services to be provided by the Adviser (and the Sub-Adviser, with respect to those Funds in respect of which the Sub-Adviser had been retained) were appropriate based on the Trustees’ knowledge of the Adviser and Sub-Adviser (to the extent applicable) and their personnel and the operations of the other series of the Trust.

 

The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 10, 2019 meeting as part of their consideration of the Agreements.

 

In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that each Agreement is in the best interest of each Fund and such Fund’s shareholders.

63

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2019 (unaudited) (continued)

 

Bitcoin Strategy ETF

 

At a meeting held on June 13, 2019 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck Vectors® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of the investment management agreement between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Vectors Bitcoin Strategy ETF (the “Fund”).

 

The Board’s approval of the Investment Management Agreement was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.

 

In preparation for the Renewal Meeting, the Trustees held a meeting on May 10, 2019. At that meeting, the Trustees received materials from the Adviser. The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on information obtained through discussions with the Adviser and its affiliates at the Renewal Meeting and the May 10, 2019 meeting regarding the proposed management of the Fund and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and its affiliates, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Fund. In evaluating the terms of the Investment Management Agreement at the Renewal Meeting and the May 10, 2019 meeting, the Trustees considered the terms and scope of services that the Adviser would provide under the Investment Management Agreement, including the Adviser’s commitment to waive certain fees and/or pay expenses of the Fund to the extent necessary to prevent the operating expenses of the Fund from exceeding agreed upon limits for a period of at least one year following the effective date of the Fund’s registration statement. The Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of the Fund to the Adviser because the Fund has not yet commenced operations. The Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Fund by the Adviser, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.

 

The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 10, 2019 meeting as part of their consideration of the Investment Management Agreement.

 

In voting to approve the continuation of the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that the Investment Management Agreement is in the best interest of the Fund and its shareholders.

64

 

 

Long/Flat Commodity ETF

 

At a meeting held on June 13, 2019 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck Vectors® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of the investment management agreement between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Vectors Long/Flat Commodity ETF (the “Fund”).

 

The Board’s approval of the Investment Management Agreement was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.

 

In preparation for the Renewal Meeting, the Trustees held a meeting on May 10, 2019. At that meeting, the Trustees received materials from the Adviser. The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on information obtained through discussions with the Adviser and its affiliates at the Renewal Meeting and the May 10, 2019 meeting regarding the proposed management of the Fund and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and its affiliates, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Fund. In evaluating the terms of the Investment Management Agreement at the Renewal Meeting and the May 10, 2019 meeting, the Trustees considered the terms and scope of services that the Adviser would provide under the Investment Management Agreement, including the Adviser’s agreement to pay all of the direct expenses of the Fund (excluding interest expense, trading expenses, taxes, accrued deferred tax liability and extraordinary expenses). The Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of the Fund to the Adviser because the Fund has not yet commenced operations. The Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Fund by the Adviser, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.

 

The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 10, 2019 meeting as part of their consideration of the Investment Management Agreement.

 

In voting to approve the continuation of the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that the Investment Management Agreement is in the best interest of the Fund and its shareholders.

65

 

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the respective Fund’s prospectus and summary prospectus, which includes more complete information. Investing involves substantial risk and high volatility, including possible loss of principal. 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 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

 

Additional information about the VanEck Vectors ETF Trust’s (the “Trust”) Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at https://www.sec.gov.

 

The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORTs are available on the Commission’s website at https://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Fund’s complete schedule of portfolio holdings is also available by calling 800.826.2333 or by visiting vaneck.com.

 

 

Investment Adviser: Van Eck Associates Corporation    
Distributor: Van Eck Securities Corporation    
  666 Third Avenue, New York, NY 10017    
  vaneck.com    
Account Assistance: 800.826.2333   HASAR
 

Item 2. CODE OF ETHICS.

  Not applicable.

Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.

  Not applicable.

Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

  Not applicable.


Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

     Not applicable.

Item 6. SCHEDULE OF INVESTMENTS.

     Information included in Item 1.

Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
        MANAGEMENT INVESTMENT COMPANIES.

     Not applicable.

Item 8. PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

     Not applicable.

Item 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
        COMPANY AND AFFILIATED PURCHASERS.

     Not applicable.

Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     Not applicable.

Item 11. 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 period covered by this report that
     has materially affected, or is reasonably likely to materially affect, the
     registrant's internal control over financial reporting.

Item 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
         INVESTMENT COMPANIES.

(a)  Not applicable.

(b)  Not applicable.

Item 13. EXHIBITS.

(a)(1) Not applicable.

(a)(2) A separate certification for each principal executive officer and
       principal financial officer of the registrant as required by Rule 30a-2(a)
       under the Act (17 CFR 270.30a-2(a)) is attached as Exhibit 99.CERT.

(b)  Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
     furnished as Exhibit 99.906CERT.
 


                                   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 (Signature and Title) /s/ John J. Crimmins, Treasurer & Chief Financial Officer
                         ---------------------------------------------------------
Date September 6, 2019
     ------------------

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 (Signature and Title) /s/ Jan F. van Eck, Chief Executive Officer
                        --------------------------------------------
Date September 6, 2019
     ------------------

By (Signature and Title)  /s/ John J. Crimmins, Treasurer & Chief Financial Officer
                        -----------------------------------------------------------

Date September 6, 2019
     ------------------