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 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, 2023
Item 1. Reports to Shareholders
 |
SEMI-ANNUAL REPORT June 30, 2023 (unaudited) |
| Agribusiness ETF | MOO |
| Future of Food ETF | YUMY |
| Gold Miners ETF | GDX® |
| Green Metals ETF | GMET |
| 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 |
| Uranium+Nuclear Energy ETF | NLR |
| 800.826.2333 | vaneck.com |
Certain information contained in this President’s 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, 2023.
VANECK ETF TRUST
June 30, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways.” The three major forces—monetary policy, government spending and economic growth—are negative or muted. This remains my view despite events in the last few months, discussed at the end of this letter.
Discussion
To recap this cycle: stocks and bonds historically do not perform well when the Fed tightens monetary conditions, and that’s just what the Fed announced it would be doing at the end of 2021. This would include raising rates and changing its balance sheet actions, which doesn’t create a great environment for financial assets.
There are three things investors continue to face, none of which is particularly positive for financial assets.
| 1. | Monetary Policy: Tightening |
Money supply exploded during the COVID–19 pandemic, but it started shrinking in late 2022. This withdrawal of money supply is bad for stock and bond returns.
A second, modern component to monetary policy is the Fed balance sheet. After buying bonds during the pandemic, the Fed has now started shrinking the balance sheet—from a high of almost $9 trillion in early 2022, assets dropped to just short of $8.4 trillion by the end of June.1 The Fed has only shrunk its balance sheet once before, so we are facing an unknown.
As we’ve been saying since the summer of 2022, when wage inflation was confirmed, what the Fed is fighting is wage inflation. That is the kind of inflation that is endemic and hard to manage once it takes hold, not least because it creates a spiraling effect. And this is the battle that is at full pitch—the labor market has remained strong.
While headline inflation is falling, we are still in the “higher for longer” camp. The Fed seems likely to continue holding, or even raising, interest rates and will probably continue to shrink its balance sheet. This is not supportive of stock or bond markets.
| 2. | Fiscal Tightening |
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, who won control of the House of Representatives, are looking to slow government spending. And even Democrats like Larry Summers believe that stimulus spending during the pandemic led to inflation. The debt ceiling compromise and the Supreme Court rejection of student debt relief continue this trend.
| 3. | Global Growth is at Low Levels |
Both Chinese and European growth, for different reasons, were slow in 2022. Over the last 20 years, the U.S. and China have been the two main pillars of global growth. In China, the post-COVID-19 growth has been more domestic and consumer-led, not enough to overcome the property sector malaise.
China growth estimates range from low (1% to 3%) to “high” (4% to 5%). Many “bulls” point to China as a potential catalyst for a better-than-expected economic outlook. I don’t see it. In coming years, we will likely have to look to India, Indonesia and Africa to take up the baton as pillars of higher percentage global growth.
I don’t believe that we will escape these three dampeners on stock and bond returns in 2023—higher interest rates, no government spending growth and tepid global growth. We will need upside corporate profitability surprises or high Chinese growth to substantially boost markets this year, in our view.
However, after the 2022 losses, bond investments are now offering attractive yields, so this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) Because of higher interest rates, bonds can offer adequate returns, as they did in the 1970s even though that decade was the worst for interest rates in the last 100 years.
| 3 |
VANECK ETF TRUST
PRESIDENT’S LETTER
(unaudited) (continued)
Outlook
My basic outlook favoring bonds hasn’t changed. But I should address two events of the first half of this year—monetary stimuli and AI (artificial intelligence).
There were two unexpected monetary stimuli in early 2023, but I think both are temporary. The first was the wave of money from Asia at year-end: Japanese bond buying of approximately $600 billion and Chinese money supply growth post-COVID-19. The second monetary stimulus was the credit the Fed provided to banks during the mini-bank crisis of March. While I believe this crisis will prove to be idiosyncratic in nature, I’m worried that it could lead to a contraction of credit, but this may be offset by China reopening. Also, I think it is important to note that substantially less credit flows to the real economy from banks (through loans they continue to hold) and much more through alternative credit funds. These funds typically don’t offer daily liquidity, so any credit crunch is likely to be extenuated over several quarters. So, I don’t see these two events as significantly changing the “sideways” trajectory of 2023.
AI and the instant success of ChatGPT have driven another wave of enthusiasm for tech stocks, but the valuations seem stretched to me. And large-cap earnings are still on a downward or flat trajectory, so I’m not chasing this rally.
My final thought is that, while I think the Fed won’t stimulate for a while, this is a good time to get positioned in assets that would benefit from that stimulus, namely gold and BTC (bitcoin).
We thank you for investing with VanEck. On the following pages, you will find financial statements for each of the funds for the six month period ended June 30, 2023. 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
CEO and President
VanEck ETF Trust
July 7, 2023
PS The investing outlook can change suddenly, as it certainly did in 2021. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
1 U.S. Federal Reserve: FEDERAL RESERVE Statistical Release, June 22, 2023, https://www.federalreserve.gov/releases/h41/20230629/
2 What to Buy? Bonds. When? Now, https://www.vaneck.com/us/en/blogs/investment-outlook/jan-van-eck-what-to-buy-bonds-when-now/.
3 https://www.vaneck.com/us/en/subscribe/
| 4 |
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, 2023 to June 30, 2023.
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.
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) |
||||||
| Agribusiness ETF | |||||||||
| Actual | $1,000.00 | $949.80 | 0.54% | $2.61 | |||||
| Hypothetical (b) | $1,000.00 | $1,022.12 | 0.54% | $2.71 | |||||
| Future of Food ETF | |||||||||
| Actual | $1,000.00 | $957.70 | 0.71% | $3.45 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.27 | 0.71% | $3.56 | |||||
| Gold Miners ETF | |||||||||
| Actual | $1,000.00 | $1,047.10 | 0.52% | $2.64 | |||||
| Hypothetical (b) | $1,000.00 | $1,022.22 | 0.52% | $2.61 | |||||
| Green Metals ETF | |||||||||
| Actual | $1,000.00 | $958.60 | 0.67% | $3.25 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.47 | 0.67% | $3.36 | |||||
| Junior Gold Miners ETF | |||||||||
| Actual | $1,000.00 | $997.00 | 0.53% | $2.62 | |||||
| Hypothetical (b) | $1,000.00 | $1,022.17 | 0.53% | $2.66 | |||||
| Low Carbon Energy ETF | |||||||||
| Actual | $1,000.00 | $1,107.00 | 0.65% | $3.40 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.57 | 0.65% | $3.26 | |||||
| Natural Resources ETF | |||||||||
| Actual | $1,000.00 | $979.50 | 0.52% | $2.55 | |||||
| Hypothetical (b) | $1,000.00 | $1,022.22 | 0.52% | $2.61 |
| 5 |
VANECK ETF TRUST
EXPLANATION OF EXPENSES
(unaudited) (continued)
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) |
||||||
| Oil Refiners ETF | |||||||||
| Actual | $1,000.00 | $970.60 | 0.62% | $3.03 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.72 | 0.62% | $3.11 | |||||
| Oil Services ETF | |||||||||
| Actual | $1,000.00 | $946.10 | 0.35% | $1.69 | |||||
| Hypothetical (b) | $1,000.00 | $1,023.06 | 0.35% | $1.76 | |||||
| Rare Earth/Strategic Metals ETF | |||||||||
| Actual | $1,000.00 | $1,091.10 | 0.57% | $2.96 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.97 | 0.57% | $2.86 | |||||
| Steel ETF | |||||||||
| Actual | $1,000.00 | $1,107.40 | 0.56% | $2.93 | |||||
| Hypothetical (b) | $1,000.00 | $1,022.02 | 0.56% | $2.81 | |||||
| Uranium+Nuclear Energy ETF | |||||||||
| Actual | $1,000.00 | $1,083.30 | 0.61% | $3.15 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.77 | 0.61% | $3.06 |
| (a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2023), 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 the days in the fiscal year (to reflect the one-half year period). |
| (b) | Assumes annual return of 5% before expenses |
| 6 |
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.0% | ||||||||
| Australia: 2.3% | ||||||||
| Incitec Pivot Ltd. | 5,710,900 | $ | 10,442,282 | |||||
| Treasury Wine Estates Ltd. † | 1,974,433 | 14,795,465 | ||||||
| 25,237,747 | ||||||||
| Brazil: 3.2% | ||||||||
| Rumo SA | 3,676,900 | 16,921,057 | ||||||
| Yara International ASA (NOK) | 505,135 | 17,880,776 | ||||||
| 34,801,833 | ||||||||
| Canada: 5.9% | ||||||||
| Nutrien Ltd. (USD) | 1,105,009 | 65,250,782 | ||||||
| Chile: 3.1% | ||||||||
| Sociedad Quimica y Minera de Chile SA (ADR) | 463,891 | 33,687,765 | ||||||
| China: 4.5% | ||||||||
| China Mengniu Dairy Co. Ltd. (HKD) * | 5,133,000 | 19,397,592 | ||||||
| Wilmar International Ltd. (SGD) | 10,672,151 | 30,044,603 | ||||||
| 49,442,195 | ||||||||
| Denmark: 1.2% | ||||||||
| Bakkafrost P/F (NOK) | 153,902 | 9,223,889 | ||||||
| Schouw & Co. A/S | 42,721 | 3,375,959 | ||||||
| 12,599,848 | ||||||||
| Germany: 8.0% | ||||||||
| Bayer AG | 1,370,517 | 75,851,114 | ||||||
| K+S AG | 654,408 | 11,409,037 | ||||||
| 87,260,151 | ||||||||
| Indonesia: 0.3% | ||||||||
| Golden Agri-Resources Ltd. (SGD) | 16,910,145 | 3,066,017 | ||||||
| Israel: 0.9% | ||||||||
| ICL Group Ltd. (USD) † | 1,763,348 | 9,663,147 | ||||||
| Japan: 4.3% | ||||||||
| Kubota Corp. † | 2,361,830 | 34,517,117 | ||||||
| Maruha Nichiro Corp. | 133,200 | 2,237,744 | ||||||
| NH Foods Ltd. | 257,000 | 6,946,239 | ||||||
| Nissui Corp. | 875,900 | 3,927,298 | ||||||
| 47,628,398 | ||||||||
| Malaysia: 2.4% | ||||||||
| IOI Corp. Bhd | 6,578,155 | 5,266,359 | ||||||
| Kuala Lumpur Kepong Bhd | 1,548,670 | 7,301,591 | ||||||
| PPB Group Bhd | 1,896,980 | 6,397,100 | ||||||
| Sime Darby Plantation Bhd | 8,275,800 | 7,370,767 | ||||||
| 26,335,817 | ||||||||
| Netherlands: 0.6% | ||||||||
| OCI NV | 274,137 | 6,583,291 | ||||||
| Norway: 3.2% | ||||||||
| Leroy Seafood Group ASA | 835,164 | 3,175,163 | ||||||
| Mowi ASA † | 1,414,427 | 22,483,332 | ||||||
| Salmar ASA † | 243,157 | 9,817,065 | ||||||
| 35,475,560 | ||||||||
| Russia: 0.0% | ||||||||
| PhosAgro PJSC ∞ | 97,916 | 0 | ||||||
| PhosAgro PJSC (USD) (GDR) ∞ | 1 | 0 | ||||||
| Number of Shares | Value | |||||||
| Russia (continued) | ||||||||
| PhosAgro PJSC (USD) (GDR) ∞ | 1,892 | $ | 0 | |||||
| 0 | ||||||||
| Singapore: 0.8% | ||||||||
| Charoen Pokphand Indonesia Tbk PT (IDR) * | 24,668,900 | 8,671,220 | ||||||
| Switzerland: 0.9% | ||||||||
| Bucher Industries AG | 22,779 | 10,085,083 | ||||||
| Taiwan: 0.5% | ||||||||
| Taiwan Fertilizer Co. Ltd. | 2,547,000 | 4,955,265 | ||||||
| Thailand: 0.7% | ||||||||
| Charoen Pokphand Foods PCL (NVDR) | 14,198,136 | 7,894,125 | ||||||
| United Kingdom: 4.3% | ||||||||
| CNH Industrial NV (USD) | 3,023,151 | 43,533,374 | ||||||
| Genus Plc | 148,431 | 4,094,872 | ||||||
| 47,628,246 | ||||||||
| United States: 52.9% | ||||||||
| AGCO Corp. | 168,937 | 22,201,701 | ||||||
| Archer-Daniels-Midland Co. | 819,343 | 61,909,557 | ||||||
| Balchem Corp. | 65,011 | 8,764,133 | ||||||
| Beyond Meat, Inc. * † | 184,460 | 2,394,291 | ||||||
| Bunge Ltd. | 344,981 | 32,548,957 | ||||||
| CF Industries Holdings, Inc. | 406,530 | 28,221,313 | ||||||
| Corteva, Inc. | 1,222,853 | 70,069,477 | ||||||
| Darling Ingredients, Inc. * | 420,081 | 26,796,967 | ||||||
| Deere & Co. | 228,978 | 92,779,596 | ||||||
| Elanco Animal Health, Inc. * | 1,027,276 | 10,334,397 | ||||||
| FMC Corp. | 307,812 | 32,117,104 | ||||||
| Mosaic Co. | 749,431 | 26,230,085 | ||||||
| Neogen Corp. * | 473,134 | 10,290,664 | ||||||
| Pilgrim’s Pride Corp. * | 137,599 | 2,957,002 | ||||||
| Toro Co. | 249,589 | 25,370,722 | ||||||
| Tyson Foods, Inc. | 712,834 | 36,383,047 | ||||||
| Zoetis, Inc. | 534,468 | 92,040,734 | ||||||
| 581,409,747 | ||||||||
| Total Common Stocks (Cost: $1,269,499,543) | 1,097,676,237 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.3% | ||||||||
| Money Market Fund: 4.3% (Cost: $47,253,786) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 47,253,786 | 47,253,786 | ||||||
| Total Investments: 104.3% (Cost: $1,316,753,329) | 1,144,930,023 | |||||||
| Liabilities in excess of other assets: (4.3)% | (46,729,052) | |||||||
| NET ASSETS: 100.0% | $ | 1,098,200,971 | ||||||
See Notes to Financial Statements
| 7 |
VANECK AGRIBUSINESS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
| ADR | American Depositary Receipt |
| GDR | Global Depositary Receipt |
| HKD | Hong Kong Dollar |
| IDR | Indonesian Rupiah |
| NOK | Norwegian Krone |
| NVDR | Non-Voting Depositary Receipt |
| SGD | Singapore Dollar |
| USD | United States Dollar |
| Footnotes: | |
| † | Security fully or partially on loan. Total market value of securities on loan is $47,671,200. |
| * | Non-income producing |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Consumer Staples | 30.5 | % | $ | 334,381,351 | ||||
| Materials | 29.6 | 325,274,455 | ||||||
| Industrials | 22.4 | 245,408,649 | ||||||
| Health Care | 17.5 | 192,611,782 | ||||||
| 100.0 | % | $ | 1,097,676,237 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | — | $ | 25,237,747 | $ | — | $ | 25,237,747 | ||||||||
| Brazil | 16,921,057 | 17,880,776 | — | 34,801,833 | ||||||||||||
| Canada | 65,250,782 | — | — | 65,250,782 | ||||||||||||
| Chile | 33,687,765 | — | — | 33,687,765 | ||||||||||||
| China | — | 49,442,195 | — | 49,442,195 | ||||||||||||
| Denmark | — | 12,599,848 | — | 12,599,848 | ||||||||||||
| Germany | — | 87,260,151 | — | 87,260,151 | ||||||||||||
| Indonesia | — | 3,066,017 | — | 3,066,017 | ||||||||||||
| Israel | 9,663,147 | — | — | 9,663,147 | ||||||||||||
| Japan | — | 47,628,398 | — | 47,628,398 | ||||||||||||
| Malaysia | 6,397,100 | 19,938,717 | — | 26,335,817 | ||||||||||||
| Netherlands | — | 6,583,291 | — | 6,583,291 | ||||||||||||
| Norway | — | 35,475,560 | — | 35,475,560 | ||||||||||||
| Russia | — | — | 0 | 0 | ||||||||||||
| Singapore | — | 8,671,220 | — | 8,671,220 | ||||||||||||
| Switzerland | — | 10,085,083 | — | 10,085,083 | ||||||||||||
| Taiwan | — | 4,955,265 | — | 4,955,265 | ||||||||||||
| Thailand | — | 7,894,125 | — | 7,894,125 | ||||||||||||
| United Kingdom | 43,533,374 | 4,094,872 | — | 47,628,246 | ||||||||||||
| United States | 581,409,747 | — | — | 581,409,747 | ||||||||||||
| Money Market Fund | 47,253,786 | — | — | 47,253,786 | ||||||||||||
| Total Investments | $ | 804,116,758 | $ | 340,813,265 | $ | 0 | $ | 1,144,930,023 | ||||||||
See Notes to Financial Statements
| 8 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 95.8% | ||||||||
| Brazil: 1.9% | ||||||||
| Yara International ASA (NOK) | 1,847 | $ | 65,380 | |||||
| Canada: 5.1% | ||||||||
| Maple Leaf Foods, Inc. | 2,200 | 43,027 | ||||||
| Nutrien Ltd. (USD) | 2,280 | 134,634 | ||||||
| 177,661 | ||||||||
| China: 1.7% | ||||||||
| Vitasoy International Holdings Ltd. (HKD) | 48,000 | 59,829 | ||||||
| Denmark: 4.2% | ||||||||
| Novozymes A/S | 3,091 | 144,195 | ||||||
| France: 2.9% | ||||||||
| Danone SA | 1,628 | 99,751 | ||||||
| Germany: 3.2% | ||||||||
| Symrise AG | 1,052 | 110,285 | ||||||
| Ireland: 3.4% | ||||||||
| Kerry Group Plc | 1,228 | 118,655 | ||||||
| Isle of Man: 0.3% | ||||||||
| Agronomics Ltd. * | 76,708 | 10,142 | ||||||
| Japan: 2.0% | ||||||||
| Kubota Corp. | 4,800 | 70,150 | ||||||
| Mexico: 4.0% | ||||||||
| Orbia Advance Corp. SAB de CV | 64,280 | 138,226 | ||||||
| Netherlands: 0.7% | ||||||||
| Corbion NV | 1,060 | 25,313 | ||||||
| Norway: 0.2% | ||||||||
| Atlantic Sapphire ASA * † | 10,900 | 6,653 | ||||||
| Philippines: 0.6% | ||||||||
| Monde Nissin Corp. 144A | 147,600 | 21,457 | ||||||
| Sweden: 3.0% | ||||||||
| Oatly Group AB (ADR) * † | 50,452 | 103,427 | ||||||
| Switzerland: 9.4% | ||||||||
| Bucher Industries AG | 216 | 95,631 | ||||||
| Givaudan SA | 40 | 132,737 | ||||||
| Number of Shares | Value | |||||||
| Switzerland (continued) | ||||||||
| Nestle SA | 768 | $ | 92,425 | |||||
| 320,793 | ||||||||
| United States: 53.2% | ||||||||
| AppHarvest, Inc. * | 39,524 | 14,624 | ||||||
| Archer-Daniels-Midland Co. | 1,156 | 87,347 | ||||||
| Balchem Corp. | 308 | 41,521 | ||||||
| Ball Corp. | 1,844 | 107,339 | ||||||
| Benson Hill, Inc. * † | 14,124 | 18,361 | ||||||
| Berry Global Group, Inc. | 696 | 44,781 | ||||||
| Beyond Meat, Inc. * † | 1,589 | 20,625 | ||||||
| Bunge Ltd. | 1,652 | 155,866 | ||||||
| Conagra Brands, Inc. | 1,584 | 53,412 | ||||||
| Corteva, Inc. | 3,295 | 188,804 | ||||||
| Deere & Co. | 500 | 202,595 | ||||||
| FMC Corp. | 1,457 | 152,023 | ||||||
| Ingredion, Inc. | 2,044 | 216,563 | ||||||
| International Flavors & Fragrances, Inc. | 1,016 | 80,863 | ||||||
| John Bean Technologies Corp. | 532 | 64,532 | ||||||
| Kellogg Co. | 780 | 52,572 | ||||||
| Lindsay Corp. | 664 | 79,242 | ||||||
| Local Bounti Corp. * | 427 | 1,161 | ||||||
| Titan International, Inc. * | 3,380 | 38,802 | ||||||
| Trimble, Inc. * | 1,732 | 91,692 | ||||||
| Valmont Industries, Inc. | 408 | 118,749 | ||||||
| 1,831,474 | ||||||||
| Total Common Stocks (Cost: $4,121,540) | 3,303,391 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.8% | ||||||||
| Money Market Fund: 3.8% (Cost: $129,532) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 129,532 | 129,532 | ||||||
| Total Investments: 99.6% (Cost: $4,251,072) | 3,432,923 | |||||||
| Other assets less liabilities: 0.4% | 12,557 | |||||||
| NET ASSETS: 100.0% | $ | 3,445,480 | ||||||
Definitions:
| ADR | American Depositary Receipt |
| HKD | Hong Kong Dollar |
| NOK | Norwegian Krone |
| USD | United States Dollar |
| Footnotes: | |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $140,439. |
| 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 $21,457, or 0.6% of net assets. |
See Notes to Financial Statements
| 9 |
VANECK FUTURE OF FOOD ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Materials | 41.3 | % | $ | 1,366,101 | ||||
| Consumer Staples | 35.3 | 1,165,756 | ||||||
| Industrials | 20.3 | 669,700 | ||||||
| Information Technology | 2.8 | 91,692 | ||||||
| Financials | 0.3 | 10,142 | ||||||
| 100.0 | % | $ | 3,303,391 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Brazil | $ | — | $ | 65,380 | $ | — | $ | 65,380 | ||||||||
| Canada | 177,661 | — | — | 177,661 | ||||||||||||
| China | — | 59,829 | — | 59,829 | ||||||||||||
| Denmark | — | 144,195 | — | 144,195 | ||||||||||||
| France | — | 99,751 | — | 99,751 | ||||||||||||
| Germany | — | 110,285 | — | 110,285 | ||||||||||||
| Ireland | — | 118,655 | — | 118,655 | ||||||||||||
| Isle of Man | 10,142 | — | — | 10,142 | ||||||||||||
| Japan | — | 70,150 | — | 70,150 | ||||||||||||
| Mexico | 138,226 | — | — | 138,226 | ||||||||||||
| Netherlands | — | 25,313 | — | 25,313 | ||||||||||||
| Norway | — | 6,653 | — | 6,653 | ||||||||||||
| Philippines | — | 21,457 | — | 21,457 | ||||||||||||
| Sweden | 103,427 | — | — | 103,427 | ||||||||||||
| Switzerland | — | 320,793 | — | 320,793 | ||||||||||||
| United States | 1,831,474 | — | — | 1,831,474 | ||||||||||||
| Money Market Fund | 129,532 | — | — | 129,532 | ||||||||||||
| Total Investments | $ | 2,390,462 | $ | 1,042,461 | $ | — | $ | 3,432,923 | ||||||||
See Notes to Financial Statements
| 10 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Australia: 15.0% | ||||||||
| Capricorn Metals Ltd. * ‡ | 19,801,508 | $ | 53,740,413 | |||||
| Emerald Resources NL * † ‡ | 31,420,095 | 43,021,088 | ||||||
| Evolution Mining Ltd. † ‡ | 96,649,234 | 210,265,036 | ||||||
| Gold Road Resources Ltd. † ‡ | 56,799,887 | 56,862,082 | ||||||
| Newcrest Mining Ltd. | 34,728,519 | 619,036,381 | ||||||
| Northern Star Resources Ltd. † ‡ | 60,580,647 | 493,172,045 | ||||||
| OceanaGold Corp. (CAD) ‡ | 37,257,384 | 73,487,075 | ||||||
| Perseus Mining Ltd. ‡ | 72,051,096 | 79,979,786 | ||||||
| Ramelius Resources Ltd. ‡ | 51,931,829 | 44,125,000 | ||||||
| Regis Resources Ltd. † ‡ | 39,766,727 | 48,987,882 | ||||||
| Silver Lake Resources Ltd. * † ‡ | 48,969,075 | 31,905,452 | ||||||
| West African Resources Ltd. * ‡ | 53,911,234 | 31,472,069 | ||||||
| 1,786,054,309 | ||||||||
| Brazil: 6.0% | ||||||||
| Wheaton Precious Metals Corp. (USD) † | 16,444,118 | 710,714,780 | ||||||
| Burkina Faso: 0.6% | ||||||||
| IAMGOLD Corp. (USD) * † ‡ | 25,227,313 | 66,347,833 | ||||||
| Canada: 42.6% | ||||||||
| Agnico Eagle Mines Ltd. (USD) † | 17,951,432 | 897,212,571 | ||||||
| Alamos Gold, Inc. (USD) ‡ | 20,862,068 | 248,675,851 | ||||||
| Aya Gold & Silver, Inc. * † ‡ | 6,127,970 | 39,317,185 | ||||||
| B2Gold Corp. (USD) ‡ | 68,200,130 | 243,474,464 | ||||||
| Barrick Gold Corp. (USD) | 63,742,241 | 1,079,156,140 | ||||||
| Dundee Precious Metals, Inc. ‡ | 9,932,776 | 65,680,552 | ||||||
| Endeavour Silver Corp. (USD) * ‡ | 10,074,560 | 29,115,478 | ||||||
| Equinox Gold Corp. (USD) * † ‡ | 16,440,340 | 75,296,757 | ||||||
| First Majestic Silver Corp. (USD) † ‡ | 14,451,726 | 81,652,252 | ||||||
| Fortuna Silver Mines, Inc. (USD) * † ‡ | 15,288,118 | 49,533,502 | ||||||
| Franco-Nevada Corp. (USD) | 6,968,308 | 993,680,721 | ||||||
| K92 Mining, Inc. * ‡ | 12,271,755 | 53,325,215 | ||||||
| Kinross Gold Corp. (USD) ‡ | 64,654,197 | 308,400,520 | ||||||
| MAG Silver Corp. (USD) * ‡ | 5,429,295 | 60,482,346 | ||||||
| New Gold, Inc. (USD) * ‡ | 35,978,593 | 38,856,881 | ||||||
| Osisko Gold Royalties Ltd. (USD) † ‡ | 9,729,339 | 149,539,941 | ||||||
| Pan American Silver Corp. (USD) † ‡ | 19,194,835 | 279,860,694 | ||||||
| Sandstorm Gold Ltd. (USD) ‡ | 15,783,834 | 80,813,230 | ||||||
| SilverCrest Metals, Inc. (USD) * † ‡ | 7,754,615 | 45,442,044 | ||||||
| SSR Mining, Inc. (USD) † ‡ | 10,877,233 | 154,239,164 | ||||||
| Torex Gold Resources, Inc. * ‡ | 4,521,298 | 64,304,424 | ||||||
| Wesdome Gold Mines Ltd. * ‡ | 7,504,718 | 39,132,858 | ||||||
| 5,077,192,790 | ||||||||
| Number of Shares | Value | |||||||
| China: 5.2% | ||||||||
| Zhaojin Mining Industry Co. Ltd. (HKD) † ‡ | 137,429,500 | $ | 173,395,042 | |||||
| Zijin Mining Group Co. Ltd. (HKD) ‡ | 302,166,000 | 447,437,415 | ||||||
| 620,832,457 | ||||||||
| Egypt: 0.6% | ||||||||
| Centamin Plc (GBP) ‡ | 61,014,148 | 70,866,905 | ||||||
| Kyrgyzstan: 0.6% | ||||||||
| Centerra Gold, Inc. (CAD) ‡ | 11,518,793 | 69,117,111 | ||||||
| Peru: 0.8% | ||||||||
| Cia de Minas Buenaventura SAA (ADR) ‡ | 13,363,056 | 98,218,462 | ||||||
| South Africa: 5.7% | ||||||||
| DRDGOLD Ltd. (ADR) † ‡ | 4,553,709 | 48,360,390 | ||||||
| Gold Fields Ltd. (ADR) † | 35,916,718 | 496,728,210 | ||||||
| Harmony Gold Mining Co. Ltd. (ADR) ‡ | 32,553,506 | 136,724,725 | ||||||
| 681,813,325 | ||||||||
| Tanzania: 3.9% | ||||||||
| AngloGold Ashanti Ltd. (ADR) ‡ | 22,100,618 | 466,102,034 | ||||||
| Turkey: 0.8% | ||||||||
| Eldorado Gold Corp. (USD) * † | 9,737,942 | 98,353,214 | ||||||
| United Kingdom: 2.6% | ||||||||
| Endeavour Mining Plc (CAD) † ‡ | 13,022,418 | 312,459,302 | ||||||
| United States: 15.5% | ||||||||
| Coeur Mining, Inc. * ‡ | 17,544,352 | 49,825,960 | ||||||
| Hecla Mining Co. ‡ | 32,267,704 | 166,178,675 | ||||||
| Newmont Corp. | 28,858,755 | 1,231,114,488 | ||||||
| Royal Gold, Inc. ‡ | 3,459,210 | 397,048,124 | ||||||
| 1,844,167,247 | ||||||||
| Total Common Stocks (Cost: $12,147,070,815) | 11,902,239,769 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.4% | ||||||||
| Money Market Fund: 0.4% (Cost: $44,964,475) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 44,964,475 | 44,964,475 | ||||||
| Total Investments: 100.3% (Cost: $12,192,035,290) | 11,947,204,244 | |||||||
| Liabilities in excess of other assets: (0.3)% | (38,148,873) | |||||||
| NET ASSETS: 100.0% | $ | 11,909,055,371 | ||||||
See Notes to Financial Statements
| 11 |
VANECK GOLD MINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
| ADR | American Depositary Receipt |
| CAD | Canadian Dollar |
| GBP | British Pound |
| HKD | Hong Kong Dollar |
| USD | United States Dollar |
| Footnotes: | |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $80,701,201. |
| ‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Gold | 93.7 | % | $ | 11,150,657,592 | ||||
| Silver | 5.9 | 706,140,133 | ||||||
| Precious Metals & Minerals | 0.4 | 45,442,044 | ||||||
| 100.0 | % | $ | 11,902,239,769 | |||||
See Notes to Financial Statements
| 12 |
Transactions in securities of affiliates for the period ended June 30, 2023 were as follows:
| Value 12/31/2022 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2023 | ||||||||
| Alamos Gold, Inc. | $205,708,403 | $55,235,509 | $(51,045,273) | $20,709,661 | $1,054,026 | $18,067,551 | $248,675,851 | |||||||
| AngloGold Ashanti Ltd. | 421,250,192 | 108,757,549 | (108,027,976) | 29,374,936 | 3,827,955 | 14,747,333 | 466,102,034 | |||||||
| Aya Gold & Silver, Inc. | 36,219,878 | 11,389,671 | (6,627,502) | 241,192 | – | (1,906,054) | 39,317,185 | |||||||
| B2Gold Corp. | 198,829,515 | 84,954,589 | (38,618,761) | 7,113,028 | 4,620,228 | (8,803,907) | 243,474,464 | |||||||
| Capricorn Metals Ltd. | 60,639,778 | 14,134,420 | (12,488,059) | 2,274,909 | – | (10,820,635) | 53,740,413 | |||||||
| Centamin Plc | 81,495,953 | 17,973,292 | (16,286,465) | (224,126) | 1,625,806 | (12,091,749) | 70,866,905 | |||||||
| Centerra Gold, Inc. | 59,014,494 | 17,206,757 | (16,437,166) | 1,085,516 | 1,216,311 | 8,247,509 | 69,117,110 | |||||||
| Cia de Minas Buenaventura SAA | 97,965,488 | 25,467,967 | (21,931,597) | (3,478,253) | 1,063,546 | 194,857 | 98,218,462 | |||||||
| Coeur Mining, Inc. | 48,923,959 | 18,585,556 | (9,332,318) | 568,211 | – | (8,919,448) | 49,825,960 | |||||||
| DRDGOLD Ltd. | 33,159,785 | 9,111,141 | (9,947,127) | 2,234,808 | 470,560 | 13,801,783 | 48,360,390 | |||||||
| Dundee Precious Metals, Inc. | 47,434,105 | 16,002,805 | (15,323,494) | 4,461,974 | 838,264 | 13,105,162 | 65,680,552 | |||||||
| Eldorado Gold Corp. | 80,041,390 | 22,208,223 | (20,927,328) | 2,819,259 | – | 14,211,670 | –(a) | |||||||
| Emerald Resources NL | – | 47,096,535 | (613,481) | (56,697) | – | (3,405,269) | 43,021,088 | |||||||
| Endeavour Mining Plc | 272,623,252 | 70,783,181 | (68,644,192) | 12,873,298 | 5,310,831 | 24,823,763 | 312,459,302 | |||||||
| Endeavour Silver Corp. | 31,843,407 | 8,041,860 | (6,946,885) | (700,123) | – | (3,122,781) | 29,115,478 | |||||||
| Equinox Gold Corp. | 51,858,919 | 17,549,874 | (14,609,137) | (133,251) | – | 20,630,352 | 75,296,757 | |||||||
| Evolution Mining Ltd. | 193,675,761 | 43,087,653 | (46,279,157) | 5,655,329 | 1,285,644 | 14,125,450 | 210,265,036 | |||||||
| First Majestic Silver Corp. | 113,580,650 | 24,693,007 | (16,638,675) | (1,926,147) | 159,827 | (38,056,583) | 81,652,252 | |||||||
| Fortuna Silver Mines, Inc. | 56,398,523 | 12,568,612 | (11,375,168) | 195,799 | – | (8,254,264) | 49,533,502 | |||||||
| Gold Fields Ltd. | 478,159,484 | 130,777,059 | (302,857,598) | 97,215,815 | 11,080,607 | 93,433,450 | –(a) | |||||||
| Gold Road Resources Ltd. | 64,292,600 | 14,232,397 | (13,906,971) | 2,664,584 | 189,172 | (10,420,528) | 56,862,082 | |||||||
| Harmony Gold Mining Co. Ltd. | 108,915,631 | 28,871,682 | (28,806,314) | 3,923,661 | – | 23,820,065 | 136,724,725 | |||||||
| Hecla Mining Co. | 174,714,054 | 42,958,010 | (37,460,855) | 8,458,541 | 414,476 | (22,491,075) | 166,178,675 | |||||||
| IAMGOLD Corp. | 64,050,910 | 15,039,975 | (14,800,983) | 848,961 | – | 1,208,970 | 66,347,833 | |||||||
| K92 Mining, Inc. | 68,361,763 | 16,461,460 | (13,254,971) | (2,122,584) | – | (16,120,453) | 53,325,215 | |||||||
| Kinross Gold Corp. | 266,228,145 | 65,980,474 | (73,088,833) | 718,489 | 4,051,420 | 48,562,245 | 308,400,520 | |||||||
| MAG Silver Corp. | – | 67,874,067 | (866,621) | (87,481) | – | (6,437,619) | 60,482,346 | |||||||
| New Gold, Inc. | 34,655,550 | 8,192,151 | (8,535,505) | 402,614 | – | 4,142,071 | 38,856,881 | |||||||
| Northern Star Resources Ltd. | 447,846,466 | 105,467,582 | (112,295,685) | 23,199,237 | 4,441,080 | 28,954,445 | 493,172,045 | |||||||
| OceanaGold Corp. | 69,497,545 | 19,231,684 | (16,649,385) | 180,346 | 369,863 | 1,226,885 | 73,487,075 | |||||||
| Osisko Gold Royalties Ltd. | 115,363,105 | 32,816,882 | (30,777,001) | 6,358,660 | 881,294 | 25,778,295 | 149,539,941 | |||||||
| Pan American Silver Corp. | 178,290,511 | 212,007,075 | (55,646,563) | (8,467,155) | 3,253,561 | (46,323,174) | 279,860,694 | |||||||
| Perseus Mining Ltd. | 101,580,825 | 24,331,426 | (21,214,483) | 8,108,481 | 504,810 | (32,826,463) | 79,979,786 | |||||||
| Ramelius Resources Ltd. | – | 52,413,868 | (651,038) | (61,865) | – | (7,575,965) | 44,125,000 | |||||||
| Regis Resources Ltd. | 54,855,943 | 11,729,456 | (11,525,993) | (1,554,096) | – | (4,517,428) | 48,987,882 | |||||||
| Royal Gold, Inc. | 383,500,042 | 100,941,083 | (92,103,985) | 18,063,431 | 2,730,272 | (13,352,447) | 397,048,124 |
See Notes to Financial Statements
| 13 |
VANECK GOLD MINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Transactions in securities of affiliates for the period ended June 30, 2023 were as follows: (continued)
| Value 12/31/2022 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2023 | ||||||||
| Sandstorm Gold Ltd. | 81,298,870 | 20,753,024 | (17,858,006) | (1,402,277) | 494,571 | (1,978,381) | 80,813,230 | |||||||
| Silver Lake Resources Ltd. | 39,070,300 | 8,750,988 | (7,949,881) | (1,382,081) | – | (6,583,874) | 31,905,452 | |||||||
| SilverCrest Metals, Inc. | 45,623,274 | 11,568,558 | (9,970,721) | (363,404) | – | (1,415,663) | 45,442,044 | |||||||
| SSR Mining, Inc. | 167,794,658 | 37,633,572 | (34,471,615) | 2,592,059 | 1,574,653 | (19,309,510) | 154,239,164 | |||||||
| Torex Gold Resources, Inc. | 51,060,705 | 15,372,815 | (14,165,226) | 3,024,421 | – | 9,011,709 | 64,304,424 | |||||||
| Wesdome Gold Mines Ltd. | 40,768,741 | 9,343,429 | (8,782,584) | (1,640,811) | – | (555,917) | 39,132,858 | |||||||
| West African Resources Ltd. | 42,653,378 | 8,530,386 | (7,399,131) | (763,962) | – | (11,548,602) | 31,472,069 | |||||||
| Yamana Gold, Inc. | 276,431,736 | 58,355,514 | (351,105,117) | 61,096,866 | 1,095 | (44,778,999) | – | |||||||
| Zhaojin Mining Industry Co. Ltd. | 149,510,918 | 40,514,953 | (40,675,265) | 10,413,117 | 827,660 | 13,631,319 | 173,395,042 | |||||||
| Zijin Mining Group Co. Ltd. | 399,648,130 | 111,465,577 | (104,445,076) | 64,512,462 | 9,131,056 | (23,743,678) | 447,437,415 | |||||||
| $5,994,836,736 | $1,896,463,348 | $(1,923,365,167) | $377,025,352 | $61,418,588 | $26,364,418 | $5,776,243,263 |
| (a) | Security held by the Fund, however not classified as an affiliate at the end of the reporting period. |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | 73,487,075 | $ | 1,712,567,234 | $ | — | $ | 1,786,054,309 | ||||||||
| Brazil | 710,714,780 | — | — | 710,714,780 | ||||||||||||
| Burkina Faso | 66,347,833 | — | — | 66,347,833 | ||||||||||||
| Canada | 5,077,192,790 | — | — | 5,077,192,790 | ||||||||||||
| China | — | 620,832,457 | — | 620,832,457 | ||||||||||||
| Egypt | — | 70,866,905 | — | 70,866,905 | ||||||||||||
| Kyrgyzstan | 69,117,111 | — | — | 69,117,111 | ||||||||||||
| Peru | 98,218,462 | — | — | 98,218,462 | ||||||||||||
| South Africa | 681,813,325 | — | — | 681,813,325 | ||||||||||||
| Tanzania | 466,102,034 | — | — | 466,102,034 | ||||||||||||
| Turkey | 98,353,214 | — | — | 98,353,214 | ||||||||||||
| United Kingdom | 312,459,302 | — | — | 312,459,302 | ||||||||||||
| United States | 1,844,167,247 | — | — | 1,844,167,247 | ||||||||||||
| Money Market Fund | 44,964,475 | — | — | 44,964,475 | ||||||||||||
| Total Investments | $ | 9,542,937,648 | $ | 2,404,266,596 | $ | — | $ | 11,947,204,244 | ||||||||
See Notes to Financial Statements
| 14 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Australia: 18.3% | ||||||||
| Allkem Ltd. * | 50,486 | $ | 542,521 | |||||
| Glencore Plc (GBP) | 360,765 | 2,047,669 | ||||||
| IGO Ltd. | 37,632 | 383,813 | ||||||
| Iluka Resources Ltd. | 22,606 | 168,199 | ||||||
| Liontown Resources Ltd. * | 157,540 | 299,780 | ||||||
| Lynas Rare Earths Ltd. * | 73,934 | 339,482 | ||||||
| Pilbara Minerals Ltd. | 209,599 | 688,364 | ||||||
| 4,469,828 | ||||||||
| Canada: 8.8% | ||||||||
| Hudbay Minerals, Inc. (USD) | 15,892 | 76,282 | ||||||
| Ivanhoe Mines Ltd. * | 37,952 | 347,039 | ||||||
| Lithium Americas Corp. (USD) * † | 9,271 | 187,367 | ||||||
| Teck Resources Ltd. (USD) | 36,250 | 1,526,125 | ||||||
| 2,136,813 | ||||||||
| Chile: 1.5% | ||||||||
| Lundin Mining Corp. (CAD) | 48,112 | 377,406 | ||||||
| China: 23.3% | ||||||||
| Beijing Easpring Material Technology Co. Ltd. | 28,200 | 196,210 | ||||||
| Chengxin Lithium Group Co. Ltd. | 60,700 | 266,584 | ||||||
| China Northern Rare Earth Group High-Tech Co. Ltd. | 176,568 | 583,350 | ||||||
| China Rare Earth Resources And Technology Co. Ltd. | 49,600 | 202,220 | ||||||
| Ganfeng Lithium Group Co. Ltd. | 76,320 | 642,538 | ||||||
| GEM Co. Ltd. * | 372,000 | 354,303 | ||||||
| Jiangxi Copper Co. Ltd. | 43,703 | 114,479 | ||||||
| MMG Ltd. (HKD) * | 232,000 | 67,702 | ||||||
| Mongolia Xingye Silver&Tin Mining Co. Ltd. * | 83,600 | 102,401 | ||||||
| Nanjing Hanrui Cobalt Co. Ltd. | 18,500 | 82,669 | ||||||
| Ningbo Shanshan Co. Ltd. | 108,700 | 226,692 | ||||||
| Shenghe Resources Holding Co. Ltd. * | 109,300 | 193,852 | ||||||
| Tianqi Lithium Corp. | 93,200 | 899,261 | ||||||
| Tongling Nonferrous Metals Group Co. Ltd. | 558,600 | 222,748 | ||||||
| Western Mining Co. Ltd. | 140,500 | 203,514 | ||||||
| Youngy Co. Ltd. | 16,800 | 154,766 | ||||||
| Yunnan Chihong Zinc&Germanium Co. Ltd. | 265,900 | 183,901 | ||||||
| Yunnan Copper Co. Ltd. | 114,800 | 175,183 | ||||||
| Yunnan Tin Co. Ltd. | 77,600 | 166,437 | ||||||
| Zhejiang Huayou Cobalt Co. Ltd. | 103,730 | 656,435 | ||||||
| 5,695,245 | ||||||||
| Germany: 0.9% | ||||||||
| Aurubis AG | 2,651 | 227,577 | ||||||
| Japan: 3.0% | ||||||||
| Mitsubishi Materials Corp. | 7,600 | 136,599 | ||||||
| Number of Shares | Value | |||||||
| Japan (continued) | ||||||||
| Sumitomo Metal Mining Co. Ltd. | 17,900 | $ | 576,891 | |||||
| 713,490 | ||||||||
| Liechtenstein: 2.5% | ||||||||
| Antofagasta Plc (GBP) | 32,384 | 602,868 | ||||||
| Mexico: 7.3% | ||||||||
| Grupo Mexico SAB de CV | 262,300 | 1,260,380 | ||||||
| Southern Copper Corp. (USD) | 7,163 | 513,874 | ||||||
| 1,774,254 | ||||||||
| Poland: 1.1% | ||||||||
| KGHM Polska Miedz SA | 9,602 | 266,068 | ||||||
| Russia: 0.0% | ||||||||
| MMC Norilsk Nickel PJSC * ∞ | 4,405 | 0 | ||||||
| MMC Norilsk Nickel PJSC (ADR) * ∞ | 2 | 0 | ||||||
| 0 | ||||||||
| South Africa: 10.6% | ||||||||
| Anglo American Platinum Ltd. | 4,654 | 209,597 | ||||||
| Anglo American Plc (GBP) | 56,174 | 1,601,172 | ||||||
| Impala Platinum Holdings Ltd. | 55,990 | 371,624 | ||||||
| Northam Platinum Holdings Ltd. * | 15,358 | 102,011 | ||||||
| Sibanye Stillwater Ltd. (ADR) † | 45,894 | 286,379 | ||||||
| 2,570,783 | ||||||||
| Sweden: 2.7% | ||||||||
| Boliden AB | 23,037 | 666,584 | ||||||
| United States: 16.8% | ||||||||
| Albemarle Corp. | 6,734 | 1,502,288 | ||||||
| Freeport-McMoRan, Inc. | 52,296 | 2,091,839 | ||||||
| Livent Corp. * † | 11,048 | 303,047 | ||||||
| MP Materials Corp. * † | 8,079 | 184,848 | ||||||
| 4,082,022 | ||||||||
| Zambia: 3.1% | ||||||||
| First Quantum Minerals Ltd. (CAD) | 32,081 | 759,810 | ||||||
| Total Common Stocks (Cost: $29,784,565) |
24,342,748 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.6% | ||||||||
| Money Market Fund: 1.6% (Cost: $384,877) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 384,877 | 384,877 | ||||||
| Total Investments: 101.5% (Cost: $30,169,442) |
|
|
|
|
|
|
24,727,625 |
|
| Liabilities in excess of other assets: (1.5)% | (366,238) | |||||||
| NET ASSETS: 100.0% | $ | 24,361,387 | ||||||
See Notes to Financial Statements
| 15 |
VANECK GREEN METALS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Definitions: | |
| ADR | American Depositary Receipt |
| CAD | Canadian Dollar |
| GBP | British Pound |
| HKD | Hong Kong Dollar |
| USD | United States Dollar |
| Footnotes: | |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $830,302. |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments |
Value | ||||||
| Diversified Metals & Mining | 57.5 | % | $ | 13,984,665 | ||||
| Copper | 22.0 | 5,351,853 | ||||||
| Specialty Chemicals | 15.7 | 3,840,410 | ||||||
| Precious Metals & Minerals | 4.0 | 969,610 | ||||||
| Electrical Components & Equipment | 0.8 | 196,210 | ||||||
| 100.0 | % | $ | 24,342,748 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | — | $ | 4,469,828 | $ | — | $ | 4,469,828 | ||||||||
| Canada | 2,136,813 | — | — | 2,136,813 | ||||||||||||
| Chile | 377,406 | — | — | 377,406 | ||||||||||||
| China | — | 5,695,245 | — | 5,695,245 | ||||||||||||
| Germany | — | 227,577 | — | 227,577 | ||||||||||||
| Japan | — | 713,490 | — | 713,490 | ||||||||||||
| Liechtenstein | — | 602,868 | — | 602,868 | ||||||||||||
| Mexico | 1,774,254 | — | — | 1,774,254 | ||||||||||||
| Poland | — | 266,068 | — | 266,068 | ||||||||||||
| Russia | — | — | 0 | 0 | ||||||||||||
| South Africa | 388,390 | 2,182,393 | — | 2,570,783 | ||||||||||||
| Sweden | — | 666,584 | — | 666,584 | ||||||||||||
| United States | 4,082,022 | — | — | 4,082,022 | ||||||||||||
| Zambia | 759,810 | — | — | 759,810 | ||||||||||||
| Money Market Fund | 384,877 | — | — | 384,877 | ||||||||||||
| Total Investments | $ | 9,903,572 | $ | 14,824,053 | $ | 0 | $ | 24,727,625 | ||||||||
See Notes to Financial Statements
| 16 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Australia: 16.4% | ||||||||
| Alkane Resources Ltd. * † | 19,646,352 | $ | 9,299,176 | |||||
| Aurelia Metals Ltd. * † | 46,673,620 | 2,924,552 | ||||||
| Australian Strategic Materials Ltd. * | 1 | 1 | ||||||
| Bellevue Gold Ltd. * † | 33,270,696 | 28,440,758 | ||||||
| Capricorn Metals Ltd. * | 14,180,381 | 38,484,924 | ||||||
| De Grey Mining Ltd. * | 53,857,363 | 48,766,426 | ||||||
| Evolution Mining Ltd. | 59,928,410 | 130,377,125 | ||||||
| Firefinch Ltd. * †∞ | 54,133,739 | 1,621,535 | ||||||
| Gold Road Resources Ltd. | 44,148,199 | 44,196,541 | ||||||
| Kingsgate Consolidated Ltd. * † | 11,855,939 | 11,948,172 | ||||||
| OceanaGold Corp. (CAD) | 26,064,325 | 51,409,702 | ||||||
| Perseus Mining Ltd. | 53,485,410 | 59,371,083 | ||||||
| Ramelius Resources Ltd. † | 42,554,215 | 36,157,108 | ||||||
| Red 5 Ltd. * † | 119,345,758 | 15,281,083 | ||||||
| Regis Resources Ltd. | 27,783,460 | 34,225,921 | ||||||
| Resolute Mining Ltd. * † | 80,301,811 | 21,096,310 | ||||||
| Silver Lake Resources Ltd. * | 33,785,093 | 22,012,437 | ||||||
| Silver Mines Ltd. * † | 61,366,015 | 7,421,358 | ||||||
| St Barbara Ltd. * † | 27,417,993 | 8,899,266 | ||||||
| Tietto Minerals Ltd. * | 37,017,445 | 11,526,212 | ||||||
| West African Resources Ltd. * | 36,723,994 | 21,438,576 | ||||||
| Westgold Resources Ltd. * | 16,556,961 | 16,056,182 | ||||||
| 620,954,448 | ||||||||
| Burkina Faso: 1.1% | ||||||||
| IAMGOLD Corp. (USD) * | 15,926,187 | 41,885,872 | ||||||
| Canada: 57.5% | ||||||||
| Alamos Gold, Inc. (USD) ‡ | 21,096,142 | 251,466,013 | ||||||
| Americas Gold & Silver Corp. (USD) * † | 9,756,425 | 3,444,018 | ||||||
| Archer Exploration Corp. * | 1,075,827 | 126,018 | ||||||
| Aris Mining Corp. † | 5,477,164 | 13,203,970 | ||||||
| Arizona Metals Corp. * † | 5,027,843 | 11,550,835 | ||||||
| Artemis Gold, Inc. * † | 6,454,730 | 23,218,980 | ||||||
| Aya Gold & Silver, Inc. * † | 4,441,115 | 28,494,288 | ||||||
| B2Gold Corp. (USD) | 52,912,992 | 188,899,381 | ||||||
| Calibre Mining Corp. * † | 14,086,732 | 14,797,323 | ||||||
| Dakota Gold Corp. (USD) * | 2,667,495 | 7,789,085 | ||||||
| Discovery Silver Corp. * † | 11,812,230 | 7,319,878 | ||||||
| Dundee Precious Metals, Inc. | 5,495,270 | 36,337,512 | ||||||
| Endeavour Silver Corp. (USD) * † | 7,927,893 | 22,911,611 | ||||||
| Equinox Gold Corp. (USD) * † | 10,643,996 | 48,749,502 | ||||||
| Filo Corp. * † | 3,643,274 | 71,062,083 | ||||||
| First Majestic Silver Corp. (USD) † | 11,524,317 | 65,112,391 | ||||||
| Fortuna Silver Mines, Inc. (USD) * † | 12,041,895 | 39,015,740 | ||||||
| Gatos Silver, Inc. (USD) * † | 1,558,834 | 5,892,393 | ||||||
| Gold Royalty Corp. (USD) † | 4,917,702 | 8,704,333 | ||||||
| GoldMining, Inc. (USD) * † | 7,359,798 | 6,631,914 | ||||||
| i-80 Gold Corp. * † | 7,772,849 | 17,504,697 | ||||||
| K92 Mining, Inc. * † | 8,593,361 | 37,341,263 | ||||||
| Karora Resources, Inc. * † | 6,742,393 | 20,636,079 | ||||||
| Number of Shares | Value | |||||||
| Canada (continued) | ||||||||
| Kinross Gold Corp. (USD) | 59,262,550 | $ | 282,682,363 | |||||
| Liberty Gold Corp. * † | 11,599,216 | 3,813,081 | ||||||
| Lundin Gold, Inc. † | 3,927,439 | 47,043,195 | ||||||
| MAG Silver Corp. (USD) * † | 3,076,368 | 34,270,740 | ||||||
| Marathon Gold Corp. * † | 13,657,461 | 8,360,131 | ||||||
| McEwen Mining, Inc. (USD) * † | 1,810,688 | 13,018,847 | ||||||
| Metalla Royalty & Streaming Ltd. (USD) * † | 2,416,382 | 10,487,098 | ||||||
| New Found Gold Corp. * † | 4,049,765 | 20,168,488 | ||||||
| New Gold, Inc. (USD) * † | 23,584,577 | 25,471,343 | ||||||
| New Pacific Metals Corp. * † | 4,050,642 | 8,785,447 | ||||||
| Novagold Resources, Inc. (USD) * | 7,528,461 | 30,038,559 | ||||||
| Orla Mining Ltd. * † | 8,777,605 | 36,881,529 | ||||||
| Osisko Gold Royalties Ltd. (USD) † | 5,864,441 | 90,136,458 | ||||||
| Osisko Mining, Inc. * † | 12,367,208 | 30,094,396 | ||||||
| Pan American Silver Corp. (USD) † | 15,553,317 | 226,767,362 | ||||||
| Prime Mining Corp. * † | 3,839,711 | 5,194,092 | ||||||
| Sandstorm Gold Ltd. (USD) † | 10,168,577 | 52,063,114 | ||||||
| Seabridge Gold, Inc. (USD) * † | 3,073,978 | 37,041,435 | ||||||
| Silvercorp Metals, Inc. (USD) † | 7,650,325 | 21,573,916 | ||||||
| SilverCrest Metals, Inc. (USD) * † | 5,350,098 | 31,351,574 | ||||||
| Skeena Resources Ltd. * † | 2,959,225 | 14,290,155 | ||||||
| SSR Mining, Inc. (USD) | 7,165,895 | 101,612,391 | ||||||
| Sulliden Mining Capital, Inc. * | 1,689,990 | 31,929 | ||||||
| Torex Gold Resources, Inc. * | 2,765,364 | 39,330,550 | ||||||
| Triple Flag Precious Metals Corp. (USD) | 3,047,721 | 41,997,595 | ||||||
| Victoria Gold Corp. * † | 1,622,019 | 9,463,054 | ||||||
| Wesdome Gold Mines Ltd. * † | 5,157,224 | 26,892,005 | ||||||
| 2,179,070,154 | ||||||||
| China: 1.6% | ||||||||
| Real Gold Mining Ltd. (HKD) *∞ | 19,287,400 | 0 | ||||||
| Zhaojin Mining Industry Co. Ltd. (HKD) | 46,812,700 | 59,063,668 | ||||||
| 59,063,668 | ||||||||
| Egypt: 1.2% | ||||||||
| Centamin Plc (GBP) | 38,365,229 | 44,560,567 | ||||||
| Indonesia: 0.9% | ||||||||
| Bumi Resources Minerals Tbk PT * | 3,717,377,800 | 33,721,086 | ||||||
| Jersey, Channel Islands: 0.2% | ||||||||
| Caledonia Mining Corp. Plc (USD) | 582,519 | 6,768,871 | ||||||
| Kyrgyzstan: 1.1% | ||||||||
| Centerra Gold, Inc. (CAD) † | 6,843,938 | 41,066,214 | ||||||
See Notes to Financial Statements
| 17 |
VANECK JUNIOR GOLD MINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| Mexico: 3.6% | ||||||||
| GoGold Resources, Inc. (CAD) * † | 13,647,029 | $ | 15,676,164 | |||||
| Industrias Penoles SAB de CV * † | 8,592,863 | 120,461,914 | ||||||
| 136,138,078 | ||||||||
| Peru: 1.9% | ||||||||
| Cia de Minas Buenaventura SAA (ADR) | 8,218,767 | 60,407,937 | ||||||
| Hochschild Mining Plc (GBP) | 14,671,567 | 13,238,237 | ||||||
| 73,646,174 | ||||||||
| South Africa: 2.1% | ||||||||
| DRDGOLD Ltd. (ADR) † | 954,456 | 10,136,323 | ||||||
| Harmony Gold Mining Co. Ltd. (ADR) | 16,204,975 | 68,060,895 | ||||||
| 78,197,218 | ||||||||
| Turkey: 2.7% | ||||||||
| Eldorado Gold Corp. (USD) * † | 5,766,293 | 58,239,560 | ||||||
| Koza Altin Isletmeleri AS | 44,192,123 | 42,305,453 | ||||||
| 100,545,013 | ||||||||
| United Kingdom: 5.8% | ||||||||
| Endeavour Mining Plc | 8,435,470 | 202,798,763 | ||||||
| Greatland Gold Plc * † | 200,504,075 | 18,353,592 | ||||||
| 221,152,355 | ||||||||
| Number of Shares | Value | |||||||
| United States: 3.8% | ||||||||
| Argonaut Gold, Inc. (CAD) * † | 29,810,025 | $ | 11,939,780 | |||||
| Aura Minerals, Inc. (BRL) (BDR) | 1,514,880 | 10,092,919 | ||||||
| Coeur Mining, Inc. * † | 10,723,169 | 30,453,800 | ||||||
| Hecla Mining Co. | 17,753,260 | 91,429,289 | ||||||
| 143,915,788 | ||||||||
| Total Common Stocks (Cost: $4,430,278,308) | 3,780,685,506 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 2.2% | ||||||||
| Money Market Fund: 2.2% (Cost: $83,919,759) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 83,919,759 | 83,919,759 | ||||||
| Total Investments: 102.1% (Cost: $4,514,198,067) |
|
|
|
|
|
|
3,864,605,265 |
|
| Liabilities in excess of other assets: (2.1)% | (78,134,669) | |||||||
| NET ASSETS: 100.0% | $ | 3,786,470,596 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| BDR | Brazilian Depositary Receipt |
| BRL | Brazilian Real |
| CAD | Canadian Dollar |
| GBP | British Pound |
| HKD | Hong Kong Dollar |
| USD | United States Dollar |
| Footnotes: | |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $202,070,631. |
| ‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments |
Value | ||||||
| Gold | 77.1 | % | $ | 2,915,659,729 | ||||
| Silver | 15.2 | 574,670,577 | ||||||
| Precious Metals & Minerals | 4.3 | 162,332,515 | ||||||
| Diversified Metals & Mining | 3.4 | 128,022,685 | ||||||
| 100.0 | % | $ | 3,780,685,506 | |||||
See Notes to Financial Statements
| 18 |
Transactions in securities of affiliates for the period ended June 30, 2023 were as follows:
| Value 12/31/2022 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2023 | ||||||||
| Alamos Gold, Inc. | $–(a) | $85,817,363 | $(17,711,215) | $5,798,725 | $778,457 | $19,977,712 | $251,466,013 |
| (a) | Security held by the Fund, however not classified as an affiliate at the beginning of the reporting period. |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | 51,409,702 | $ | 567,923,211 | $ | 1,621,535 | $ | 620,954,448 | ||||||||
| Burkina Faso | 41,885,872 | — | — | 41,885,872 | ||||||||||||
| Canada | 2,179,070,154 | — | — | 2,179,070,154 | ||||||||||||
| China | — | 59,063,668 | — | 59,063,668 | ||||||||||||
| Egypt | — | 44,560,567 | — | 44,560,567 | ||||||||||||
| Indonesia | 33,721,086 | — | — | 33,721,086 | ||||||||||||
| Jersey, Channel Islands | 6,768,871 | — | — | 6,768,871 | ||||||||||||
| Kyrgyzstan | 41,066,214 | — | — | 41,066,214 | ||||||||||||
| Mexico | 136,138,078 | — | — | 136,138,078 | ||||||||||||
| Peru | 60,407,937 | 13,238,237 | — | 73,646,174 | ||||||||||||
| South Africa | 78,197,218 | — | — | 78,197,218 | ||||||||||||
| Turkey | 58,239,560 | 42,305,453 | — | 100,545,013 | ||||||||||||
| United Kingdom | 18,353,592 | 202,798,763 | — | 221,152,355 | ||||||||||||
| United States | 143,915,788 | — | — | 143,915,788 | ||||||||||||
| Money Market Fund | 83,919,759 | — | — | 83,919,759 | ||||||||||||
| Total Investments | $ | 2,933,093,831 | $ | 929,889,899 | $ | 1,621,535 | $ | 3,864,605,265 | ||||||||
See Notes to Financial Statements
| 19 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.0% | ||||||||
| Austria: 0.5% | ||||||||
| Verbund AG | 12,433 | $ | 997,263 | |||||
| Brazil: 1.7% | ||||||||
| Centrais Eletricas Brasileiras SA (ADR)† | 241,534 | 1,997,486 | ||||||
| Cia Energetica de Minas Gerais (ADR) † | 433,755 | 1,140,776 | ||||||
| Cia Paranaense de Energia (ADR) | 29,826 | 256,802 | ||||||
| 3,395,064 | ||||||||
| Canada: 2.4% | ||||||||
| Ballard Power Systems, Inc. (USD) * † | 90,665 | 395,300 | ||||||
| Boralex, Inc. † | 34,366 | 936,771 | ||||||
| Canadian Solar, Inc. (USD) * † | 17,645 | 682,685 | ||||||
| Innergex Renewable Energy, Inc. † | 51,023 | 475,816 | ||||||
| Northland Power, Inc. | 96,945 | 2,024,251 | ||||||
| TransAlta Renewables, Inc. † | 41,031 | 352,868 | ||||||
| 4,867,691 | ||||||||
| Chile: 0.5% | ||||||||
| Enel Americas SA* | 7,422,529 | 990,010 | ||||||
| China: 17.2% | ||||||||
| BYD Co. Ltd. (HKD) | 303,500 | 9,730,872 | ||||||
| China Everbright Environment Group Ltd. (HKD) | 1,228,000 | 485,346 | ||||||
| China Longyuan Power Group Corp. Ltd. (HKD) | 680,000 | 702,301 | ||||||
| Daqo New Energy Corp. (ADR) * | 22,275 | 884,318 | ||||||
| GCL Technology Holdings Ltd. (HKD) † | 7,285,000 | 1,691,122 | ||||||
| JinkoSolar Holding Co. Ltd. (ADR) * † | 11,877 | 527,101 | ||||||
| Li Auto, Inc. (ADR) * | 232,576 | 8,163,418 | ||||||
| NIO, Inc. (ADR) * | 544,322 | 5,274,480 | ||||||
| Xinyi Solar Holdings Ltd. (HKD) | 2,122,000 | 2,463,445 | ||||||
| XPeng, Inc. (ADR) * | 214,501 | 2,878,603 | ||||||
| Zhejiang Leapmotor Technologies Ltd. (HKD) 144A * † | 311,900 | 1,848,492 | ||||||
| 34,649,498 | ||||||||
| Denmark: 8.6% | ||||||||
| Orsted AS 144A | 72,714 | 6,892,089 | ||||||
| ROCKWOOL International A/S | 2,953 | 763,515 | ||||||
| Vestas Wind Systems A/S * | 361,677 | 9,614,123 | ||||||
| 17,269,727 | ||||||||
| France: 0.4% | ||||||||
| Neoen SA 144A | 27,470 | 870,658 | ||||||
| Germany: 0.7% | ||||||||
| Encavis AG * | 43,328 | 711,577 | ||||||
| Nordex SE * † | 53,623 | 652,019 | ||||||
| 1,363,596 | ||||||||
| Number of Shares | Value | |||||||
| Ireland: 1.5% | ||||||||
| Kingspan Group Plc | 44,458 | $ | 2,958,752 | |||||
| Italy: 6.9% | ||||||||
| Enel SpA | 1,976,955 | 13,327,024 | ||||||
| ERG SpA | 21,379 | 630,408 | ||||||
| 13,957,432 | ||||||||
| Japan: 0.4% | ||||||||
| Horiba Ltd.† | 14,184 | 814,428 | ||||||
| New Zealand: 2.0% | ||||||||
| Contact Energy Ltd. | 283,621 | 1,409,210 | ||||||
| Mercury NZ Ltd. | 245,206 | 978,395 | ||||||
| Meridian Energy Ltd. | 466,672 | 1,604,275 | ||||||
| 3,991,880 | ||||||||
| Norway: 0.2% | ||||||||
| NEL ASA * | 391,879 | 461,297 | ||||||
| Portugal: 1.0% | ||||||||
| EDP Renovaveis SA * | 98,399 | 1,965,995 | ||||||
| South Korea: 5.9% | ||||||||
| Hanwha Solutions Corp. * | 35,018 | 1,129,253 | ||||||
| Samsung SDI Co. Ltd. | 20,838 | 10,640,599 | ||||||
| 11,769,852 | ||||||||
| Spain: 8.3% | ||||||||
| Acciona SA † | 9,489 | 1,610,843 | ||||||
| Atlantica Sustainable Infrastructure Plc (USD) | 25,895 | 606,979 | ||||||
| Iberdrola SA | 1,110,123 | 14,494,221 | ||||||
| 16,712,043 | ||||||||
| Sweden: 2.6% | ||||||||
| Nibe Industrier AB | 541,407 | 5,140,288 | ||||||
| Switzerland: 0.4% | ||||||||
| Landis+Gyr Group AG | 8,223 | 707,545 | ||||||
| Taiwan: 0.3% | ||||||||
| Simplo Technology Co. Ltd. | 62,000 | 655,757 | ||||||
| Thailand: 0.5% | ||||||||
| Energy Absolute PCL (NVDR) | 688,200 | 1,108,237 | ||||||
| United Kingdom: 1.1% | ||||||||
| Drax Group Plc | 123,888 | 913,837 | ||||||
| Johnson Matthey Plc | 58,528 | 1,300,686 | ||||||
| 2,214,523 | ||||||||
| United States: 36.9% | ||||||||
| Array Technologies, Inc. * | 40,589 | 917,311 | ||||||
| Badger Meter, Inc. | 7,212 | 1,064,203 | ||||||
| Bloom Energy Corp. * † | 48,187 | 787,857 | ||||||
| Brookfield Renewable Corp. | 43,031 | 1,356,337 | ||||||
| ChargePoint Holdings, Inc. * † | 96,411 | 847,453 | ||||||
| EnerSys | 12,265 | 1,330,998 | ||||||
| Enphase Energy, Inc. * | 41,088 | 6,881,418 | ||||||
| First Solar, Inc. * | 31,617 | 6,010,075 | ||||||
| Fisker, Inc. * † | 57,812 | 326,060 | ||||||
| FuelCell Energy, Inc. * † | 126,324 | 272,860 | ||||||
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. † | 30,410 | 760,250 | ||||||
| Installed Building Products, Inc. | 6,114 | 856,938 | ||||||
See Notes to Financial Statements
| 20 |
| Number of Shares | Value | |||||||
| United States (continued) | ||||||||
| Lucid Group, Inc. * † | 293,267 | $ | 2,020,610 | |||||
| NextEra Energy, Inc. | 211,180 | 15,669,556 | ||||||
| Ormat Technologies, Inc. † | 13,999 | 1,126,360 | ||||||
| Owens Corning | 26,324 | 3,435,282 | ||||||
| Plug Power, Inc. * † | 168,509 | 1,750,808 | ||||||
| QuantumScape Corp. * † | 107,735 | 860,803 | ||||||
| Rivian Automotive, Inc. * † | 175,446 | 2,922,930 | ||||||
| SolarEdge Technologies, Inc. * | 19,492 | 5,244,323 | ||||||
| Sunnova Energy International, Inc. * † | 21,903 | 401,044 | ||||||
| Sunrun, Inc. * | 58,843 | 1,050,936 | ||||||
| Tesla, Inc. * | 69,748 | 18,257,934 | ||||||
| 74,152,346 | ||||||||
| Total Common Stocks (Cost: $222,263,656) | 201,013,882 | |||||||
| Number of Shares | Value | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 5.5% | ||||||||
| Money Market Fund: 5.5% (Cost: $11,021,593) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 11,021,593 | $ | 11,021,593 | |||||
| Total Investments: 105.5% (Cost: $233,285,249) | 212,035,475 | |||||||
| Liabilities in excess of other assets: (5.5)% | (11,134,037) | |||||||
| NET ASSETS: 100.0% | $ | 200,901,438 | ||||||
Definitions:
| ADR | American Depositary Receipt |
| HKD | Hong Kong Dollar |
| NVDR | Non-Voting Depositary Receipt |
| USD | United States Dollar |
Footnotes:
| † | Security fully or partially on loan. Total market value of securities on loan is $20,519,016. |
| * | Non-income producing |
| 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 $9,611,239, or 4.8% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Utilities | 37.6 | % | $ | 75,551,389 | ||||
| Consumer Discretionary | 26.4 | 53,141,140 | ||||||
| Information Technology | 19.0 | 38,267,018 | ||||||
| Industrials | 15.4 | 30,864,146 | ||||||
| Materials | 1.2 | 2,429,939 | ||||||
| Financials | 0.4 | 760,250 | ||||||
| 100.0 | % | $ | 201,013,882 | |||||
See Notes to Financial Statements
| 21 |
VANECK LOW CARBON ENERGY ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Austria | $ | — | $ | 997,263 | $ | — | $ | 997,263 | ||||||||
| Brazil | 3,395,064 | — | — | 3,395,064 | ||||||||||||
| Canada | 4,867,691 | — | — | 4,867,691 | ||||||||||||
| Chile | 990,010 | — | — | 990,010 | ||||||||||||
| China | 17,727,920 | 16,921,578 | — | 34,649,498 | ||||||||||||
| Denmark | — | 17,269,727 | — | 17,269,727 | ||||||||||||
| France | — | 870,658 | — | 870,658 | ||||||||||||
| Germany | — | 1,363,596 | — | 1,363,596 | ||||||||||||
| Ireland | — | 2,958,752 | — | 2,958,752 | ||||||||||||
| Italy | — | 13,957,432 | — | 13,957,432 | ||||||||||||
| Japan | — | 814,428 | — | 814,428 | ||||||||||||
| New Zealand | — | 3,991,880 | — | 3,991,880 | ||||||||||||
| Norway | — | 461,297 | — | 461,297 | ||||||||||||
| Portugal | — | 1,965,995 | — | 1,965,995 | ||||||||||||
| South Korea | — | 11,769,852 | — | 11,769,852 | ||||||||||||
| Spain | 606,979 | 16,105,064 | — | 16,712,043 | ||||||||||||
| Sweden | — | 5,140,288 | — | 5,140,288 | ||||||||||||
| Switzerland | — | 707,545 | — | 707,545 | ||||||||||||
| Taiwan | — | 655,757 | — | 655,757 | ||||||||||||
| Thailand | — | 1,108,237 | — | 1,108,237 | ||||||||||||
| United Kingdom | — | 2,214,523 | — | 2,214,523 | ||||||||||||
| United States | 74,152,346 | — | — | 74,152,346 | ||||||||||||
| Money Market Fund | 11,021,593 | — | — | 11,021,593 | ||||||||||||
| Total Investments | $ | 112,761,603 | $ | 99,273,872 | $ | — | $ | 212,035,475 | ||||||||
See Notes to Financial Statements
| 22 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Argentina: 0.1% | ||||||||
| YPF SA (ADR) * † | 7,810 | $ | 116,291 | |||||
| Australia: 7.5% | ||||||||
| Alumina Ltd. † | 54,664 | 50,663 | ||||||
| Ampol Ltd. | 4,730 | 94,418 | ||||||
| Bega Cheese Ltd. † | 12,932 | 24,620 | ||||||
| BHP Group Ltd. | 118,611 | 3,563,001 | ||||||
| BlueScope Steel Ltd. | 10,682 | 146,904 | ||||||
| Costa Group Holdings Ltd. † | 21,739 | 39,531 | ||||||
| Elders Ltd. † | 8,681 | 38,109 | ||||||
| Evolution Mining Ltd. † | 33,610 | 73,120 | ||||||
| Fortescue Metals Group Ltd. † | 36,885 | 546,915 | ||||||
| Glencore Plc (GBP) | 160,975 | 913,680 | ||||||
| GrainCorp Ltd. † | 11,878 | 62,096 | ||||||
| IGO Ltd. † | 15,611 | 159,218 | ||||||
| Inghams Group Ltd. † | 18,612 | 32,565 | ||||||
| Lynas Rare Earths Ltd.* † | 21,729 | 99,773 | ||||||
| Mineral Resources Ltd. † | 3,873 | 185,349 | ||||||
| Newcrest Mining Ltd. | 16,619 | 296,234 | ||||||
| Northern Star Resources Ltd. † | 20,945 | 170,508 | ||||||
| Nufarm Ltd. | 17,794 | 60,544 | ||||||
| Origin Energy Ltd. | 34,005 | 190,983 | ||||||
| Perseus Mining Ltd. | 25,382 | 28,175 | ||||||
| Pilbara Minerals Ltd. † | 62,610 | 205,624 | ||||||
| Rio Tinto Plc (GBP) | 24,244 | 1,542,337 | ||||||
| Santos Ltd. | 61,406 | 307,014 | ||||||
| South32 Ltd. | 106,071 | 266,843 | ||||||
| Washington H Soul Pattinson & Co. Ltd. † | 4,568 | 96,901 | ||||||
| Woodside Energy Group Ltd. † | 37,658 | 870,435 | ||||||
| Worley Ltd. | 7,257 | 76,571 | ||||||
| 10,142,131 | ||||||||
| Austria: 0.3% | ||||||||
| Mayr Melnhof Karton AG | 266 | 38,990 | ||||||
| OMV AG | 2,798 | 118,787 | ||||||
| Verbund AG | 1,159 | 92,964 | ||||||
| voestalpine AG | 2,619 | 94,100 | ||||||
| 344,841 | ||||||||
| Brazil: 3.2% | ||||||||
| Adecoagro SA (USD) † | 6,065 | 56,768 | ||||||
| BrasilAgro - Co. Brasileira de Propriedades Agricolas | 2,950 | 14,989 | ||||||
| BRF SA (ADR)* † | 60,852 | 115,619 | ||||||
| Cia de Saneamento Basico do Estado de Sao Paulo SABESP (ADR) | 7,051 | 83,484 | ||||||
| Cia Siderurgica Nacional SA (ADR) | 31,063 | 80,453 | ||||||
| Cosan SA | 23,800 | 88,115 | ||||||
| CSN Mineracao SA | 11,200 | 9,705 | ||||||
| Engie Brasil Energia SA | 1,800 | 17,049 | ||||||
| Gerdau SA (ADR) | 27,092 | 141,420 | ||||||
| Minerva SA | 15,050 | 33,164 | ||||||
| Neoenergia SA | 5,800 | 25,525 | ||||||
| Number of Shares | Value | |||||||
| Brazil (continued) | ||||||||
| Petroleo Brasileiro SA (ADR) | 73,902 | $ | 1,022,065 | |||||
| PRIO SA* | 15,050 | 115,683 | ||||||
| Sao Martinho SA | 8,850 | 62,651 | ||||||
| SLC Agricola SA | 5,481 | 43,425 | ||||||
| Suzano SA | 23,550 | 215,875 | ||||||
| Vale SA (ADR) | 106,320 | 1,426,814 | ||||||
| Wheaton Precious Metals Corp. (USD) | 8,434 | 364,517 | ||||||
| Yara International ASA (NOK) | 9,221 | 326,405 | ||||||
| 4,243,726 | ||||||||
| British Virgin Islands: 0.0% | ||||||||
| Lee & Man Paper Manufacturing Ltd. (HKD) | 36,300 | 12,083 | ||||||
| Nine Dragons Paper Holdings Ltd. (HKD) | 48,057 | 29,669 | ||||||
| 41,752 | ||||||||
| Canada: 8.3% | ||||||||
| Agnico Eagle Mines Ltd. (USD) | 9,202 | 459,916 | ||||||
| Alamos Gold, Inc. | 7,332 | 87,436 | ||||||
| Algonquin Power & Utilities Corp. † | 7,097 | 58,728 | ||||||
| AltaGas Ltd. † | 5,548 | 99,786 | ||||||
| ARC Resources Ltd.† | 12,109 | 161,697 | ||||||
| B2Gold Corp. | 23,873 | 85,154 | ||||||
| Ballard Power Systems, Inc. * † | 2,494 | 10,932 | ||||||
| Barrick Gold Corp. (USD) | 32,516 | 550,496 | ||||||
| Boralex, Inc. † | 1,041 | 28,376 | ||||||
| Cameco Corp. (USD) † | 10,097 | 316,339 | ||||||
| Canadian Natural Resources Ltd. (USD) | 21,400 | 1,203,964 | ||||||
| Canadian Solar, Inc. (USD) * † | 526 | 20,351 | ||||||
| Canadian Utilities Ltd. | 2,381 | 61,736 | ||||||
| Canfor Corp. * † | 1,834 | 32,959 | ||||||
| Cenovus Energy, Inc. | 26,962 | 458,451 | ||||||
| Emera, Inc. † | 5,394 | 222,404 | ||||||
| Enbridge, Inc. (USD) | 40,154 | 1,491,721 | ||||||
| Filo Corp.* | 1,507 | 29,394 | ||||||
| First Majestic Silver Corp. † | 4,993 | 28,262 | ||||||
| Franco-Nevada Corp. | 3,552 | 506,823 | ||||||
| Innergex Renewable Energy, Inc. † | 1,561 | 14,557 | ||||||
| Ivanhoe Mines Ltd. * † | 13,270 | 121,343 | ||||||
| Kinross Gold Corp. (USD) | 22,665 | 108,112 | ||||||
| Lundin Gold, Inc. | 1,767 | 21,165 | ||||||
| Maple Leaf Foods, Inc. † | 4,171 | 81,576 | ||||||
| Methanex Corp. | 706 | 29,206 | ||||||
| Northland Power, Inc. | 2,580 | 53,871 | ||||||
| Novagold Resources, Inc. (USD) * | 4,262 | 17,005 | ||||||
| Nutrien Ltd. (USD) | 28,387 | 1,676,252 | ||||||
| Osisko Gold Royalties Ltd. † | 3,424 | 52,683 | ||||||
| Pan American Silver Corp. (USD) † | 6,785 | 98,925 | ||||||
| Pembina Pipeline Corp. | 10,922 | 343,776 | ||||||
| Sandstorm Gold Ltd. † | 4,614 | 23,676 | ||||||
See Notes to Financial Statements
| 23 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| Canada (continued) | ||||||||
| SSR Mining, Inc. (USD) † | 3,825 | $ | 54,239 | |||||
| Stella-Jones, Inc. | 1,858 | 95,789 | ||||||
| Suncor Energy, Inc. (USD) | 25,996 | 762,203 | ||||||
| TC Energy Corp. (USD) | 19,838 | 801,654 | ||||||
| Teck Resources Ltd. (USD) | 11,743 | 494,380 | ||||||
| Tourmaline Oil Corp. † | 6,301 | 297,229 | ||||||
| TransAlta Renewables, Inc. | 1,097 | 9,434 | ||||||
| West Fraser Timber Co. Ltd. † | 1,714 | 147,418 | ||||||
| 11,219,418 | ||||||||
| Chile: 0.6% | ||||||||
| Empresas CMPC SA | 33,365 | 63,806 | ||||||
| Empresas Copec SA | 7,386 | 54,786 | ||||||
| Hortifrut SA | 14,490 | 23,691 | ||||||
| Lundin Mining Corp. (CAD) | 15,256 | 119,673 | ||||||
| Sociedad Quimica y Minera de Chile SA (ADR) | 8,113 | 589,166 | ||||||
| 851,122 | ||||||||
| China: 1.8% | ||||||||
| Aluminum Corp. of China Ltd. (HKD) | 88,600 | 38,345 | ||||||
| Angang Steel Co. Ltd. (HKD) | 30,840 | 8,094 | ||||||
| Beijing Enterprises Water Group Ltd. (HKD) | 41,100 | 9,776 | ||||||
| China Coal Energy Co. Ltd. (HKD) | 38,600 | 28,740 | ||||||
| China Gas Holdings Ltd. (HKD) | 53,200 | 61,009 | ||||||
| China Hongqiao Group Ltd. (HKD) | 60,700 | 49,575 | ||||||
| China Longyuan Power Group Corp. Ltd. (HKD) | 34,829 | 35,971 | ||||||
| China Petroleum & Chemical Corp. (HKD) | 479,427 | 281,853 | ||||||
| China Shenhua Energy Co. Ltd. (HKD) | 66,891 | 204,980 | ||||||
| CMOC Group Ltd. (HKD) † | 84,600 | 44,538 | ||||||
| ENN Energy Holdings Ltd. (HKD) | 15,000 | 187,607 | ||||||
| Hong Kong & China Gas Co. Ltd. (HKD) | 215,705 | 186,784 | ||||||
| Jiangxi Copper Co. Ltd. (HKD) | 25,600 | 39,569 | ||||||
| JinkoSolar Holding Co. Ltd. (ADR) * † | 515 | 22,856 | ||||||
| Kunlun Energy Co. Ltd. (HKD) | 73,700 | 58,053 | ||||||
| Maanshan Iron & Steel Co. Ltd. (HKD)† | 32,900 | 5,814 | ||||||
| PetroChina Co. Ltd. (HKD) | 413,240 | 286,914 | ||||||
| Power Assets Holdings Ltd. (HKD) | 26,800 | 140,675 | ||||||
| Shandong Gold Mining Co. Ltd. (HKD) 144A | 12,950 | 23,801 | ||||||
| United Tractors Tbk PT (IDR) | 30,100 | 46,682 | ||||||
| Wilmar International Ltd. (SGD) | 100,064 | 281,704 | ||||||
| Xinyi Solar Holdings Ltd. (HKD) | 50,000 | 58,045 | ||||||
| Yankuang Energy Group Co. Ltd. (HKD)† | 27,800 | 79,811 | ||||||
| Number of Shares | Value | |||||||
| China (continued) | ||||||||
| Zhaojin Mining Industry Co. Ltd. (HKD) | 23,900 | $ | 30,155 | |||||
| Zijin Mining Group Co. Ltd. (HKD) | 106,461 | 157,644 | ||||||
| 2,368,995 | ||||||||
| Cyprus: 0.0% | ||||||||
| Novolipetsk Steel PJSC (RUB) * ∞ | 26,910 | 0 | ||||||
| Czech Republic: 0.1% | ||||||||
| CEZ AS † | 3,100 | 128,118 | ||||||
| Denmark: 0.5% | ||||||||
| Bakkafrost P/F (NOK) | 2,824 | 169,252 | ||||||
| Orsted AS 144A | 1,942 | 184,070 | ||||||
| Vestas Wind Systems A/S * | 10,059 | 267,389 | ||||||
| 620,711 | ||||||||
| Egypt: 0.0% | ||||||||
| Abou Kir Fertilizers & Chemical Industries | 17,228 | 24,985 | ||||||
| Centamin Plc (GBP) | 21,590 | 25,076 | ||||||
| 50,061 | ||||||||
| Finland: 0.8% | ||||||||
| Kemira Oyj | 3,379 | 53,893 | ||||||
| Metsa Board Oyj † | 4,950 | 36,511 | ||||||
| Neste Oyj | 8,355 | 321,635 | ||||||
| Stora Enso Oyj | 17,736 | 205,735 | ||||||
| UPM-Kymmene Oyj | 16,277 | 484,914 | ||||||
| 1,102,688 | ||||||||
| France: 2.2% | ||||||||
| Aguas Andinas SA (CLP) | 27,451 | 9,514 | ||||||
| Eramet SA | 190 | 17,375 | ||||||
| Neoen SA 144A | 807 | 25,578 | ||||||
| TotalEnergies SE | 45,717 | 2,623,886 | ||||||
| Veolia Environnement SA | 7,152 | 226,358 | ||||||
| Voltalia SA * | 340 | 5,409 | ||||||
| 2,908,120 | ||||||||
| Germany: 3.1% | ||||||||
| Aurubis AG | 698 | 59,920 | ||||||
| Bayer AG | 55,803 | 3,088,411 | ||||||
| E.ON SE | 22,842 | 291,740 | ||||||
| Encavis AG * | 1,200 | 19,708 | ||||||
| K+S AG | 10,541 | 183,773 | ||||||
| Nordex SE * | 1,210 | 14,713 | ||||||
| Siemens Energy AG * | 9,767 | 172,667 | ||||||
| SMA Solar Technology AG * | 144 | 17,610 | ||||||
| Suedzucker AG | 3,417 | 60,876 | ||||||
| Uniper SE * † | 49,379 | 263,739 | ||||||
| VERBIO Vereinigte BioEnergie AG | 201 | 8,090 | ||||||
| 4,181,247 | ||||||||
| Greece: 0.0% | ||||||||
| Terna Energy SA | 545 | 12,005 | ||||||
| Hong Kong: 0.1% | ||||||||
| China Resources Gas Group Ltd. | 17,700 | 60,695 | ||||||
| Hungary: 0.1% | ||||||||
| MOL Hungarian Oil & Gas Plc | 7,325 | 64,040 | ||||||
See Notes to Financial Statements
| 24 |
| Number of Shares | Value | |||||||
| India: 1.6% | ||||||||
| Reliance Industries Ltd. (USD) 144A (GDR) | 33,920 | $ | 2,112,362 | |||||
| Indonesia: 0.2% | ||||||||
| Adaro Energy Indonesia Tbk PT | 258,700 | 38,502 | ||||||
| Aneka Tambang Tbk | 156,700 | 20,445 | ||||||
| Golden Agri-Resources Ltd. (SGD) | 356,119 | 64,569 | ||||||
| Indah Kiat Pulp & Paper Tbk PT | 80,100 | 45,531 | ||||||
| Merdeka Copper Gold Tbk PT * | 250,747 | 51,330 | ||||||
| Vale Indonesia Tbk PT | 47,900 | 20,215 | ||||||
| 240,592 | ||||||||
| Ireland: 0.2% | ||||||||
| Smurfit Kappa Group Plc (GBP) | 8,094 | 271,162 | ||||||
| Israel: 0.2% | ||||||||
| Energix-Renewable Energies Ltd. | 2,628 | 8,533 | ||||||
| Enlight Renewable Energy Ltd. * | 1,173 | 20,660 | ||||||
| ICL Group Ltd. | 40,866 | 224,036 | ||||||
| 253,229 | ||||||||
| Italy: 0.7% | ||||||||
| ACEA SpA † | 396 | 5,179 | ||||||
| Eni SpA | 44,809 | 644,969 | ||||||
| ERG SpA | 574 | 16,926 | ||||||
| Snam SpA | 40,625 | 212,281 | ||||||
| 879,355 | ||||||||
| Japan: 2.2% | ||||||||
| Chubu Electric Power Co., Inc. | 12,400 | 151,023 | ||||||
| Daio Paper Corp. † | 2,600 | 20,443 | ||||||
| ENEOS Holdings, Inc. | 56,600 | 194,224 | ||||||
| Idemitsu Kosan Co. Ltd. | 3,600 | 72,114 | ||||||
| Inpex Corp. † | 19,000 | 208,396 | ||||||
| JFE Holdings, Inc. | 10,864 | 155,060 | ||||||
| Kubota Corp. † | 52,700 | 770,188 | ||||||
| Kumiai Chemical Industry Co. Ltd. | 3,800 | 29,630 | ||||||
| Kurita Water Industries Ltd. † | 1,065 | 40,820 | ||||||
| Maruha Nichiro Corp. | 2,136 | 35,885 | ||||||
| NH Foods Ltd. | 4,300 | 116,221 | ||||||
| Nippon Sanso Holdings Corp. † | 3,000 | 65,069 | ||||||
| Nippon Steel Corp. † | 18,000 | 376,101 | ||||||
| Nisshin Seifun Group, Inc. | 10,250 | 126,488 | ||||||
| Nissui Corp. | 15,314 | 68,664 | ||||||
| Oji Holdings Corp. | 24,076 | 89,872 | ||||||
| Sakata Seed Corp. | 1,700 | 49,181 | ||||||
| Sumitomo Forestry Co. Ltd. † | 4,183 | 101,434 | ||||||
| Sumitomo Metal Mining Co. Ltd. | 5,200 | 167,589 | ||||||
| Tokyo Gas Co. Ltd. | 7,500 | 163,360 | ||||||
| 3,001,762 | ||||||||
| Number of Shares | Value | |||||||
| Kazakhstan: 0.1% | ||||||||
| NAC Kazatomprom JSC (USD) (GDR) | 6,076 | $ | 163,141 | |||||
| Liechtenstein: 0.1% | ||||||||
| Antofagasta Plc (GBP) | 7,797 | 145,151 | ||||||
| Luxembourg: 0.2% | ||||||||
| ArcelorMittal SA | 10,778 | 294,015 | ||||||
| Malaysia: 0.4% | ||||||||
| IOI Corp. Bhd | 124,694 | 99,828 | ||||||
| Kuala Lumpur Kepong Bhd | 23,978 | 113,050 | ||||||
| Petronas Dagangan Bhd | 4,400 | 20,928 | ||||||
| Petronas Gas Bhd | 13,600 | 48,660 | ||||||
| PPB Group Bhd | 25,800 | 87,004 | ||||||
| Press Metal Aluminium Holdings Bhd | 75,100 | 75,799 | ||||||
| QL Resources Bhd | 55,100 | 63,275 | ||||||
| United Plantations BHD | 8,600 | 28,522 | ||||||
| 537,066 | ||||||||
| Mexico: 0.5% | ||||||||
| Fresnillo Plc (GBP) | 3,328 | 25,851 | ||||||
| Gruma SAB de CV | 10,265 | 164,463 | ||||||
| Grupo Mexico SAB de CV | 72,214 | 346,996 | ||||||
| Industrias Penoles SAB de CV * | 3,582 | 50,216 | ||||||
| Southern Copper Corp. (USD) | 1,995 | 143,121 | ||||||
| 730,647 | ||||||||
| Netherlands: 0.2% | ||||||||
| OCI NV | 5,137 | 123,363 | ||||||
| Ternium SA (ADR) | 4,598 | 182,311 | ||||||
| 305,674 | ||||||||
| Norway: 2.4% | ||||||||
| Aker BP ASA † | 78,993 | 1,856,754 | ||||||
| Austevoll Seafood ASA | 4,925 | 34,082 | ||||||
| Equinor ASA | 18,901 | 551,405 | ||||||
| Grieg Seafood ASA † | 2,568 | 16,100 | ||||||
| Mowi ASA | 25,188 | 400,382 | ||||||
| NEL ASA * † | 17,173 | 20,215 | ||||||
| Norsk Hydro ASA | 31,049 | 185,438 | ||||||
| Salmar ASA | 3,608 | 145,667 | ||||||
| Var Energi ASA | 7,741 | 21,085 | ||||||
| 3,231,128 | ||||||||
| Peru: 0.0% | ||||||||
| Cia de Minas Buenaventura SAA (ADR) | 5,129 | 37,698 | ||||||
| Poland: 0.2% | ||||||||
| KGHM Polska Miedz SA | 3,194 | 88,505 | ||||||
| Polski Koncern Naftowy ORLEN SA | 11,555 | 183,278 | ||||||
| 271,783 | ||||||||
| Portugal: 0.2% | ||||||||
| EDP Renovaveis SA * | 3,145 | 62,836 | ||||||
| Galp Energia SGPS SA | 9,462 | 110,552 | ||||||
| Navigator Co. SA | 6,681 | 22,630 | ||||||
| 196,018 | ||||||||
| Russia: 0.0% | ||||||||
| Evraz Plc (GBP) *∞ | 10,824 | 0 | ||||||
| Gazprom PJSC ∞ | 125,520 | 0 | ||||||
See Notes to Financial Statements
| 25 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| Russia (continued) | ||||||||
| LUKOIL PJSC ∞ | 3,739 | $ | 0 | |||||
| MMC Norilsk Nickel PJSC *∞ | 1,284 | 0 | ||||||
| MMC Norilsk Nickel PJSC (ADR) *∞ | 17 | 0 | ||||||
| Novatek PJSC ∞ | 19,580 | 0 | ||||||
| PhosAgro PJSC ∞ | 4,623 | 0 | ||||||
| PhosAgro PJSC (USD) (GDR) ∞ | 1 | 0 | ||||||
| PhosAgro PJSC (USD) (GDR) ∞ | 89 | 0 | ||||||
| Polyus PJSC (USD) (GDR) *∞ | 1,669 | 0 | ||||||
| Ros Agro Plc (USD) (GDR) *∞ | 4,076 | 0 | ||||||
| Rosneft Oil Co. PJSC ∞ | 13,000 | 0 | ||||||
| Severstal PAO (USD) (GDR) *∞ | 4,118 | 0 | ||||||
| Surgutneftegas PJSC ∞ | 371,430 | 0 | ||||||
| Tatneft PJSC (ADR) *∞ | 2,680 | 0 | ||||||
| 0 | ||||||||
| Saudi Arabia: 0.0% | ||||||||
| S-Oil Corp. (KRW) | 820 | 41,665 | ||||||
| Singapore: 0.2% | ||||||||
| Charoen Pokphand Indonesia Tbk PT (IDR) * | 414,300 | 145,628 | ||||||
| First Resources Ltd. | 20,100 | 20,722 | ||||||
| Keppel Infrastructure Trust | 47,735 | 18,017 | ||||||
| Olam Group Ltd. | 50,509 | 52,067 | ||||||
| 236,434 | ||||||||
| South Africa: 1.2% | ||||||||
| African Rainbow Minerals Ltd. | 2,436 | 25,605 | ||||||
| Anglo American Platinum Ltd. | 1,060 | 47,738 | ||||||
| Anglo American Plc (GBP) | 28,702 | 818,116 | ||||||
| Gold Fields Ltd. (ADR) | 16,668 | 230,519 | ||||||
| Harmony Gold Mining Co. Ltd. (ADR) | 11,527 | 48,413 | ||||||
| Impala Platinum Holdings Ltd. | 15,972 | 106,012 | ||||||
| Northam Platinum Holdings Ltd. * | 5,548 | 36,851 | ||||||
| Omnia Holdings Ltd. | 9,447 | 30,074 | ||||||
| Royal Bafokeng Platinum Ltd. | 1,197 | 7,912 | ||||||
| Sasol Ltd. | 11,532 | 142,343 | ||||||
| Sibanye Stillwater Ltd. | 52,754 | 81,063 | ||||||
| 1,574,646 | ||||||||
| South Korea: 0.6% | ||||||||
| Coway Co. Ltd. | 559 | 18,680 | ||||||
| CS Wind Corp. | 247 | 16,269 | ||||||
| Hyundai Steel Co. | 1,950 | 50,249 | ||||||
| Korea Zinc Co. Ltd. | 203 | 75,401 | ||||||
| POSCO Holdings, Inc. | 1,672 | 494,832 | ||||||
| SK Innovation Co. Ltd. * | 1,104 | 133,842 | ||||||
| SK, Inc. | 707 | 80,198 | ||||||
| 869,471 | ||||||||
| Spain: 1.6% | ||||||||
| Atlantica Sustainable Infrastructure Plc (USD) | 693 | 16,244 | ||||||
| Number of Shares | Value | |||||||
| Spain (continued) | ||||||||
| Corp. ACCIONA Energias Renovables SA † | 587 | $ | 19,634 | |||||
| Enagas SA † | 4,506 | 88,543 | ||||||
| Iberdrola SA | 124,932 | 1,631,163 | ||||||
| Repsol SA † | 25,481 | 370,528 | ||||||
| 2,126,112 | ||||||||
| Sweden: 0.8% | ||||||||
| Billerud AB | 6,978 | 53,028 | ||||||
| Boliden AB | 6,349 | 183,710 | ||||||
| Epiroc AB | 12,330 | 233,208 | ||||||
| Holmen AB | 2,833 | 101,670 | ||||||
| Husqvarna AB † | 23,382 | 211,845 | ||||||
| SSAB AB | 14,383 | 99,586 | ||||||
| Svenska Cellulosa AB SCA † | 18,685 | 238,162 | ||||||
| 1,121,209 | ||||||||
| Switzerland: 0.1% | ||||||||
| Bucher Industries AG | 371 | 164,255 | ||||||
| Taiwan: 0.3% | ||||||||
| China Steel Corp. | 271,472 | 256,711 | ||||||
| Formosa Petrochemical Corp. | 22,920 | 62,132 | ||||||
| Sinon Corp. | 22,000 | 25,248 | ||||||
| Taiwan Fertilizer Co. Ltd. | 42,200 | 82,101 | ||||||
| 426,192 | ||||||||
| Tanzania: 0.1% | ||||||||
| AngloGold Ashanti Ltd. (ADR) | 7,828 | 165,092 | ||||||
| Thailand: 0.4% | ||||||||
| B Grimm Power PCL (NVDR) | 9,700 | 9,529 | ||||||
| Charoen Pokphand Foods PCL (NVDR) | 223,500 | 124,265 | ||||||
| PTT Exploration & Production PCL (NVDR) | 27,300 | 115,675 | ||||||
| PTT PCL (NVDR) | 272,300 | 257,741 | ||||||
| SCG Packaging PCL (NVDR) | 36,100 | 37,994 | ||||||
| 545,204 | ||||||||
| Turkey: 0.2% | ||||||||
| Eldorado Gold Corp. (USD) * † | 3,413 | 34,471 | ||||||
| Eregli Demir ve Celik Fabrikalari TAS * | 35,055 | 49,655 | ||||||
| Gubre Fabrikalari TAS * | 4,561 | 47,655 | ||||||
| Hektas Ticaret TAS * | 58,308 | 67,292 | ||||||
| Iskenderun Demir ve Celik AS * | 3,477 | 4,621 | ||||||
| Koza Altin Isletmeleri AS | 17,914 | 17,149 | ||||||
| Turkiye Petrol Rafinerileri AS | 17,488 | 53,663 | ||||||
| 274,506 | ||||||||
| United Kingdom: 6.1% | ||||||||
| BP Plc | 335,205 | 1,953,766 | ||||||
| Centrica Plc | 110,725 | 174,770 | ||||||
| CNH Industrial NV (USD) | 53,515 | 770,616 | ||||||
| DS Smith Plc | 41,452 | 143,592 | ||||||
| Endeavour Mining Plc (CAD) | 3,451 | 82,803 | ||||||
| Genus Plc | 3,675 | 101,385 | ||||||
| Kumba Iron Ore Ltd. (ZAR) | 1,313 | 30,743 | ||||||
| Mondi Plc | 14,946 | 228,265 | ||||||
| Pennon Group Plc | 2,679 | 24,232 | ||||||
See Notes to Financial Statements
| 26 |
| Number of Shares | Value | |||||||
| United Kingdom (continued) | ||||||||
| Severn Trent Plc | 2,394 | $ | 78,128 | |||||
| Shell Plc | 132,759 | 3,964,636 | ||||||
| SSE Plc | 21,170 | 496,967 | ||||||
| TechnipFMC Plc (USD) * | 8,660 | 143,929 | ||||||
| United Utilities Group Plc | 6,907 | 84,545 | ||||||
| 8,278,377 | ||||||||
| United States: 50.0% | ||||||||
| A.O. Smith Corp. | 1,261 | 91,776 | ||||||
| Advanced Drainage Systems, Inc. | 680 | 77,370 | ||||||
| AGCO Corp. | 3,534 | 464,438 | ||||||
| Alcoa Corp. | 4,134 | 140,267 | ||||||
| Ameresco, Inc. * † | 328 | 15,951 | ||||||
| American States Water Co. | 377 | 32,799 | ||||||
| American Vanguard Corp. | 1,562 | 27,913 | ||||||
| American Water Works Co., Inc. | 2,002 | 285,786 | ||||||
| Andersons, Inc. | 1,806 | 83,347 | ||||||
| Antero Resources Corp. * | 5,242 | 120,723 | ||||||
| APA Corp. | 6,098 | 208,369 | ||||||
| Archer-Daniels-Midland Co. | 30,722 | 2,321,354 | ||||||
| ATI, Inc. * | 2,972 | 131,452 | ||||||
| Atmos Energy Corp. | 2,501 | 290,966 | ||||||
| Baker Hughes Co. | 20,083 | 634,824 | ||||||
| Boise Cascade Co. | 1,220 | 110,227 | ||||||
| Bunge Ltd. | 8,482 | 800,277 | ||||||
| California Water Service Group | 573 | 29,584 | ||||||
| Cal-Maine Foods, Inc. | 2,304 | 103,680 | ||||||
| CF Industries Holdings, Inc. | 11,015 | 764,661 | ||||||
| ChampionX Corp. | 3,897 | 120,963 | ||||||
| Cheniere Energy, Inc. | 4,757 | 724,777 | ||||||
| Chesapeake Energy Corp. † | 2,225 | 186,188 | ||||||
| Chevron Corp. | 37,624 | 5,920,136 | ||||||
| Chord Energy Corp. | 803 | 123,501 | ||||||
| Civitas Resources, Inc. | 1,349 | 93,580 | ||||||
| Clearway Energy, Inc. | 832 | 23,762 | ||||||
| Cleveland-Cliffs, Inc. * | 11,832 | 198,304 | ||||||
| Commercial Metals Co. | 2,700 | 142,182 | ||||||
| ConocoPhillips | 24,014 | 2,488,091 | ||||||
| Corteva, Inc. | 40,323 | 2,310,508 | ||||||
| Coterra Energy, Inc. | 14,749 | 373,150 | ||||||
| CVR Partners LP | 362 | 29,206 | ||||||
| Darling Ingredients, Inc. * | 8,940 | 570,283 | ||||||
| Deere & Co. | 16,814 | 6,812,865 | ||||||
| Devon Energy Corp. | 12,653 | 611,646 | ||||||
| Diamondback Energy, Inc. | 3,421 | 449,383 | ||||||
| Elanco Animal Health, Inc. * | 26,427 | 265,856 | ||||||
| EOG Resources, Inc. | 11,574 | 1,324,529 | ||||||
| EQT Corp. | 7,117 | 292,722 | ||||||
| Essential Utilities, Inc. | 2,720 | 108,555 | ||||||
| Exxon Mobil Corp. | 80,177 | 8,598,983 | ||||||
| Farmland Partners, Inc. † | 2,689 | 32,833 | ||||||
| First Solar, Inc. * | 1,035 | 196,743 | ||||||
| FMC Corp. | 7,063 | 736,953 | ||||||
| Franklin Electric Co., Inc. | 410 | 42,189 | ||||||
| Freeport-McMoRan, Inc. | 33,060 | 1,322,400 | ||||||
| Number of Shares | Value | |||||||
| United States (continued) | ||||||||
| Fresh Del Monte Produce, Inc. | 2,136 | $ | 54,917 | |||||
| Graphic Packaging Holding Co. | 9,494 | 228,141 | ||||||
| Green Plains, Inc. * | 591 | 19,054 | ||||||
| Halliburton Co. | 17,851 | 588,904 | ||||||
| Hecla Mining Co. | 10,619 | 54,688 | ||||||
| Hess Corp. | 5,511 | 749,220 | ||||||
| HF Sinclair Corp. | 3,110 | 138,737 | ||||||
| Howmet Aerospace, Inc. | 9,581 | 474,834 | ||||||
| Imperial Oil Ltd. | 3,525 | 180,339 | ||||||
| Ingredion, Inc. | 3,612 | 382,691 | ||||||
| International Paper Co. | 10,732 | 341,385 | ||||||
| Itron, Inc. * | 466 | 33,599 | ||||||
| Kinder Morgan, Inc. | 38,875 | 669,427 | ||||||
| Lindsay Corp. | 621 | 74,110 | ||||||
| Louisiana-Pacific Corp. | 2,189 | 164,131 | ||||||
| LSB Industries, Inc. * | 2,927 | 28,831 | ||||||
| Marathon Oil Corp. | 12,218 | 281,258 | ||||||
| Marathon Petroleum Corp. | 8,414 | 981,072 | ||||||
| Matador Resources Co. | 2,183 | 114,215 | ||||||
| Mission Produce, Inc. * † | 2,388 | 28,943 | ||||||
| Mosaic Co. | 18,747 | 656,145 | ||||||
| Murphy Oil Corp. | 2,904 | 111,223 | ||||||
| Murphy USA, Inc. | 394 | 122,577 | ||||||
| National Fuel Gas Co. | 1,741 | 89,418 | ||||||
| New Fortress Energy, Inc. † | 1,479 | 39,608 | ||||||
| Newmont Corp. | 14,801 | 631,411 | ||||||
| NextEra Energy, Inc. | 20,774 | 1,541,431 | ||||||
| NiSource, Inc. | 8,169 | 223,422 | ||||||
| NOV, Inc. | 7,760 | 124,470 | ||||||
| Nucor Corp. | 5,849 | 959,119 | ||||||
| Occidental Petroleum Corp. | 17,669 | 1,038,937 | ||||||
| ONEOK, Inc. | 8,829 | 544,926 | ||||||
| Ormat Technologies, Inc. † | 615 | 49,483 | ||||||
| Ovintiv, Inc. † | 4,828 | 183,802 | ||||||
| Packaging Corp. of America | 2,744 | 362,647 | ||||||
| PDC Energy, Inc. | 1,700 | 120,938 | ||||||
| Pentair Plc | 1,695 | 109,497 | ||||||
| PG&E Corp. * | 35,932 | 620,905 | ||||||
| Phillips 66 | 9,798 | 934,533 | ||||||
| Pilgrim’s Pride Corp. * | 2,267 | 48,718 | ||||||
| Pioneer Natural Resources Co. | 4,613 | 955,721 | ||||||
| Plug Power, Inc. * † | 5,516 | 57,311 | ||||||
| PotlatchDeltic Corp. | 2,439 | 128,901 | ||||||
| Primo Water Corp. | 1,587 | 19,901 | ||||||
| Range Resources Corp. | 4,648 | 136,651 | ||||||
| Rayonier, Inc. | 4,589 | 144,095 | ||||||
| Reliance Steel & Aluminum Co. | 1,362 | 369,906 | ||||||
| Reliance Worldwide Corp. Ltd. (AUD) | 6,967 | 19,142 | ||||||
| Royal Gold, Inc. | 1,221 | 140,146 | ||||||
| Schlumberger NV | 28,249 | 1,387,591 | ||||||
| Scotts Miracle-Gro Co. † | 2,349 | 147,259 | ||||||
| Seaboard Corp. | 15 | 53,411 | ||||||
| SJW Group | 295 | 20,682 | ||||||
See Notes to Financial Statements
| 27 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| United States (continued) | ||||||||
| SolarEdge Technologies, Inc. * | 577 | $ | 155,242 | |||||
| Southern Co. | 21,605 | 1,517,751 | ||||||
| Southwestern Energy Co. * | 19,430 | 116,774 | ||||||
| Steel Dynamics, Inc. | 3,711 | 404,239 | ||||||
| SunPower Corp. * † | 887 | 8,693 | ||||||
| Sylvamo Corp. | 1,117 | 45,183 | ||||||
| Targa Resources Corp. | 4,415 | 335,981 | ||||||
| Tenaris SA (ADR) | 13,805 | 413,460 | ||||||
| The Williams Companies, Inc. | 24,105 | 786,546 | ||||||
| Toro Co. | 5,899 | 599,633 | ||||||
| Tractor Supply Co. | 6,204 | 1,371,704 | ||||||
| Tyson Foods, Inc. | 15,828 | 807,861 | ||||||
| UGI Corp. | 4,131 | 111,413 | ||||||
| United States Steel Corp. | 5,228 | 130,752 | ||||||
| Valero Energy Corp. | 7,147 | 838,343 | ||||||
| Vital Farms, Inc. * | 1,448 | 17,362 | ||||||
| Watts Water Technologies, Inc. | 278 | 51,077 | ||||||
| Westrock Co. | 7,944 | 230,932 | ||||||
| Weyerhaeuser Co. | 22,812 | 764,430 | ||||||
| Xylem, Inc. | 2,462 | 277,270 | ||||||
| 67,503,121 | ||||||||
| Zambia: 0.2% | ||||||||
| First Quantum Minerals Ltd. (CAD) | 12,999 | 307,870 | ||||||
| Total Common Stocks (Cost: $128,168,066) | 134,760,898 | |||||||
| Number of Shares | Value | |||||||
| PREFERRED SECURITIES: 0.1% (Cost: $97,651) | ||||||||
| Brazil: 0.1% | ||||||||
| Klabin SA | 101,700 | $ | 92,339 | |||||
| MASTER LIMITED PARTNERSHIPS: 0.1% | ||||||||
| United States: 0.1% | ||||||||
| Plains All American Pipeline LP | 8,834 | 124,560 | ||||||
| Western Midstream Partners LP | 3,818 | 101,253 | ||||||
| Total Master Limited Partnerships (Cost: $221,747) | 225,813 | |||||||
| Total Investments Before Collateral for Securities Loaned: 100.1% (Cost: $128,487,464) | 135,079,050 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.5% | ||||||||
| Money Market Fund: 1.5% (Cost: $2,060,840) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 2,060,840 | 2,060,840 | ||||||
| Total Investments: 101.6% (Cost: $130,548,304) | 137,139,890 | |||||||
| Liabilities in excess of other assets: (1.6)% | (2,209,810) | |||||||
| NET ASSETS: 100.0% | $ | 134,930,080 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| AUD | Australia Dollar |
| CAD | Canadian Dollar |
| CLP | Chilean Peso |
| GBP | British Pound |
| GDR | Global Depositary Receipt |
| HKD | Hong Kong Dollar |
| IDR | Indonesian Rupiah |
| KRW | Korean Won |
| NOK | Norwegian Krone |
| NVDR | Non-Voting Depositary Receipt |
| RUB | Russian Ruble |
| SGD | Singapore Dollar |
| USD | United States Dollar |
| ZAR | South African Rand |
| Footnotes: | |
| † | Security fully or partially on loan. Total market value of securities on loan is $6,966,285. |
| * | Non-income producing |
See Notes to Financial Statements
| 28 |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| 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 $2,345,811, or 1.7% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Energy | 44.5 | % | $ | 60,135,654 | ||||
| Materials | 27.0 | 36,533,137 | ||||||
| Industrials | 9.0 | 12,136,268 | ||||||
| Utilities | 8.3 | 11,142,897 | ||||||
| Consumer Staples | 6.2 | 8,389,441 | ||||||
| Health Care | 2.6 | 3,455,651 | ||||||
| Consumer Discretionary | 1.2 | 1,614,396 | ||||||
| Real Estate | 0.8 | 1,070,259 | ||||||
| Information Technology | 0.3 | 504,446 | ||||||
| Financials | 0.1 | 96,901 | ||||||
| 100.0 | % | $ | 135,079,050 | |||||
See Notes to Financial Statements
| 29 |
VANECK NATURAL RESOURCES ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Argentina | $ | 116,291 | $ | — | $ | — | $ | 116,291 | ||||||||
| Australia | — | 10,142,131 | — | 10,142,131 | ||||||||||||
| Austria | — | 344,841 | — | 344,841 | ||||||||||||
| Brazil | 3,917,321 | 326,405 | — | 4,243,726 | ||||||||||||
| British Virgin Islands | — | 41,752 | — | 41,752 | ||||||||||||
| Canada | 11,219,418 | — | — | 11,219,418 | ||||||||||||
| Chile | 827,431 | 23,691 | — | 851,122 | ||||||||||||
| China | 22,856 | 2,346,139 | — | 2,368,995 | ||||||||||||
| Cyprus | — | — | 0 | 0 | ||||||||||||
| Czech Republic | 128,118 | — | — | 128,118 | ||||||||||||
| Denmark | — | 620,711 | — | 620,711 | ||||||||||||
| Egypt | — | 50,061 | — | 50,061 | ||||||||||||
| Finland | — | 1,102,688 | — | 1,102,688 | ||||||||||||
| France | 9,514 | 2,898,606 | — | 2,908,120 | ||||||||||||
| Germany | — | 4,181,247 | — | 4,181,247 | ||||||||||||
| Greece | — | 12,005 | — | 12,005 | ||||||||||||
| Hong Kong | — | 60,695 | — | 60,695 | ||||||||||||
| Hungary | — | 64,040 | — | 64,040 | ||||||||||||
| India | — | 2,112,362 | — | 2,112,362 | ||||||||||||
| Indonesia | — | 240,592 | — | 240,592 | ||||||||||||
| Ireland | — | 271,162 | — | 271,162 | ||||||||||||
| Israel | — | 253,229 | — | 253,229 | ||||||||||||
| Italy | — | 879,355 | — | 879,355 | ||||||||||||
| Japan | — | 3,001,762 | — | 3,001,762 | ||||||||||||
| Kazakhstan | — | 163,141 | — | 163,141 | ||||||||||||
| Liechtenstein | — | 145,151 | — | 145,151 | ||||||||||||
| Luxembourg | — | 294,015 | — | 294,015 | ||||||||||||
| Malaysia | 248,389 | 288,677 | — | 537,066 | ||||||||||||
| Mexico | 704,796 | 25,851 | — | 730,647 | ||||||||||||
| Netherlands | 182,311 | 123,363 | — | 305,674 | ||||||||||||
| Norway | — | 3,231,128 | — | 3,231,128 | ||||||||||||
| Peru | 37,698 | — | — | 37,698 | ||||||||||||
| Poland | — | 271,783 | — | 271,783 | ||||||||||||
| Portugal | — | 196,018 | — | 196,018 | ||||||||||||
| Russia | — | — | 0 | 0 | ||||||||||||
| Saudi Arabia | — | 41,665 | — | 41,665 | ||||||||||||
| Singapore | — | 236,434 | — | 236,434 | ||||||||||||
| South Africa | 353,769 | 1,220,877 | — | 1,574,646 | ||||||||||||
| South Korea | — | 869,471 | — | 869,471 | ||||||||||||
| Spain | 16,244 | 2,109,868 | — | 2,126,112 | ||||||||||||
| Sweden | — | 1,121,209 | — | 1,121,209 | ||||||||||||
| Switzerland | — | 164,255 | — | 164,255 | ||||||||||||
| Taiwan | — | 426,192 | — | 426,192 | ||||||||||||
| Tanzania | 165,092 | — | — | 165,092 | ||||||||||||
| Thailand | — | 545,204 | — | 545,204 | ||||||||||||
| Turkey | 34,471 | 240,035 | — | 274,506 | ||||||||||||
| United Kingdom | 997,348 | 7,281,029 | — | 8,278,377 | ||||||||||||
| United States | 67,483,979 | 19,142 | — | 67,503,121 | ||||||||||||
| Zambia | 307,870 | — | — | 307,870 | ||||||||||||
| Preferred Securities * | 92,339 | — | — | 92,339 | ||||||||||||
| Master Limited Partnerships * | 225,813 | — | — | 225,813 | ||||||||||||
| Money Market Fund | 2,060,840 | — | — | 2,060,840 | ||||||||||||
| Total Investments | $ | 89,151,908 | $ | 47,987,982 | $ | 0 | $ | 137,139,890 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 30 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares |
Value | |||||||
| COMMON STOCKS: 100.0% | ||||||||
| Australia: 3.6% | ||||||||
| Ampol Ltd. † | 57,407 | $ | 1,145,927 | |||||
| Austria: 4.7% | ||||||||
| OMV AG | 34,915 | 1,482,296 | ||||||
| Finland: 5.7% | ||||||||
| Neste Oyj | 46,828 | 1,802,699 | ||||||
| Greece: 1.8% | ||||||||
| Motor Oil Hellas Corinth Refineries SA | 22,553 | 570,842 | ||||||
| Hungary: 4.3% | ||||||||
| MOL Hungarian Oil & Gas Plc | 155,696 | 1,361,195 | ||||||
| India: 8.4% | ||||||||
| Reliance Industries Ltd. (USD) 144A (GDR) | 43,107 | 2,684,481 | ||||||
| Japan: 10.6% | ||||||||
| Cosmo Energy Holdings Co. Ltd. | 21,900 | 597,544 | ||||||
| ENEOS Holdings, Inc. | 426,400 | 1,463,197 | ||||||
| Idemitsu Kosan Co. Ltd. | 64,668 | 1,295,411 | ||||||
| 3,356,152 | ||||||||
| Poland: 5.7% | ||||||||
| Polski Koncern Naftowy ORLEN SA | 114,892 | 1,822,348 | ||||||
| Portugal: 4.7% | ||||||||
| Galp Energia SGPS SA | 128,640 | 1,502,997 | ||||||
| Number of Shares |
Value | |||||||
| Saudi Arabia: 1.8% | ||||||||
| S-Oil Corp. (KRW) | 11,460 | $ | 582,293 | |||||
| South Korea: 6.2% | ||||||||
| HD Hyundai Co. Ltd. | 16,081 | 733,953 | ||||||
| SK Innovation Co. Ltd. * | 10,257 | 1,243,498 | ||||||
| 1,977,451 | ||||||||
| Taiwan: 4.3% | ||||||||
| Formosa Petrochemical Corp. | 505,000 | 1,368,956 | ||||||
| Thailand: 2.6% | ||||||||
| Bangchak Corp. PCL (NVDR) | 308,300 | 318,107 | ||||||
| Thai Oil PCL (NVDR) | 416,900 | 521,626 | ||||||
| 839,733 | ||||||||
| Turkey: 3.0% | ||||||||
| Turkiye Petrol Rafinerileri AS | 307,266 | 942,856 | ||||||
| United States: 32.6% | ||||||||
| Delek US Holdings, Inc. | 14,719 | 352,520 | ||||||
| HF Sinclair Corp. | 31,758 | 1,416,724 | ||||||
| Marathon Petroleum Corp. | 22,777 | 2,655,798 | ||||||
| Par Pacific Holdings, Inc. * | 13,047 | 347,181 | ||||||
| PBF Energy, Inc. | 30,805 | 1,261,157 | ||||||
| Phillips 66 | 22,508 | 2,146,813 | ||||||
| Valero Energy Corp. | 18,604 | 2,182,249 | ||||||
| 10,362,442 | ||||||||
| Total Common Stocks (Cost: $33,306,405) | 31,802,668 | |||||||
| Total Investments: 100.0% (Cost: $33,306,405) | 31,802,668 | |||||||
| Liabilities in excess of other assets: 0.0% | (11,640) | |||||||
| NET ASSETS: 100.0% | $ | 31,791,028 | ||||||
Definitions:
| GDR | Global Depositary Receipt |
| KRW | Korean Won |
| NVDR | Non-Voting Depositary Receipt |
| USD | United States Dollar |
Footnotes:
| † | Security fully or partially on loan. Total market value of securities on loan is $164,702. |
| * | Non-income producing |
| 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 $2,684,481, or 8.4% of net assets. |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Energy | 100.0 | % | $ | 31,802,668 | ||||
See Notes to Financial Statements
| 31 |
VANECK OIL REFINERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | — | $ | 1,145,927 | $ | — | $ | 1,145,927 | ||||||||
| Austria | — | 1,482,296 | — | 1,482,296 | ||||||||||||
| Finland | — | 1,802,699 | — | 1,802,699 | ||||||||||||
| Greece | — | 570,842 | — | 570,842 | ||||||||||||
| Hungary | — | 1,361,195 | — | 1,361,195 | ||||||||||||
| India | — | 2,684,481 | — | 2,684,481 | ||||||||||||
| Japan | — | 3,356,152 | — | 3,356,152 | ||||||||||||
| Poland | — | 1,822,348 | — | 1,822,348 | ||||||||||||
| Portugal | — | 1,502,997 | — | 1,502,997 | ||||||||||||
| Saudi Arabia | — | 582,293 | — | 582,293 | ||||||||||||
| South Korea | — | 1,977,451 | — | 1,977,451 | ||||||||||||
| Taiwan | — | 1,368,956 | — | 1,368,956 | ||||||||||||
| Thailand | 318,107 | 521,626 | — | 839,733 | ||||||||||||
| Turkey | — | 942,856 | — | 942,856 | ||||||||||||
| United States | 10,362,442 | — | — | 10,362,442 | ||||||||||||
| Total Investments | $ | 10,680,549 | $ | 21,122,119 | $ | — | $ | 31,802,668 | ||||||||
See Notes to Financial Statements
| 32 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares |
Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Bermuda: 4.4% | ||||||||
| Valaris Ltd. (USD) * | 1,528,076 | $ | 96,161,823 | |||||
| United Kingdom: 4.9% | ||||||||
| TechnipFMC Plc (USD) * | 6,393,795 | 106,264,873 | ||||||
| United States: 90.6% | ||||||||
| Baker Hughes Co. | 5,931,627 | 187,498,729 | ||||||
| Cactus, Inc. | 1,910,779 | 80,864,167 | ||||||
| ChampionX Corp. † | 3,682,563 | 114,306,756 | ||||||
| Core Laboratories, Inc. † | 700,035 | 16,275,814 | ||||||
| Dril-Quip, Inc. * † | 762,113 | 17,734,370 | ||||||
| Expro Group Holdings NV * † | 1,878,981 | 33,295,543 | ||||||
| Halliburton Co. | 7,354,625 | 242,629,079 | ||||||
| Helix Energy Solutions Group, Inc. * | 4,019,541 | 29,664,213 | ||||||
| Helmerich & Payne, Inc. † | 2,327,264 | 82,501,509 | ||||||
| Liberty Energy, Inc. | 3,837,986 | 51,313,873 | ||||||
| Nabors Industries Ltd. * † | 271,436 | 25,251,691 | ||||||
| NexTier Oilfield Solutions, Inc. * † | 4,608,744 | 41,202,171 | ||||||
| Noble Corp. Plc * | 2,320,181 | 95,846,677 | ||||||
| NOV, Inc. | 5,982,074 | 95,952,467 | ||||||
| Oceaneering International, Inc. * | 2,518,584 | 47,097,521 | ||||||
| Number of Shares |
Value | |||||||
| United States (continued) | ||||||||
| Patterson-UTI Energy, Inc. | 4,964,584 | $ | 59,426,070 | |||||
| ProPetro Holding Corp. * | 2,171,091 | 17,889,790 | ||||||
| RPC, Inc. | 4,243,052 | 30,337,822 | ||||||
| Schlumberger NV | 8,750,011 | 429,800,540 | ||||||
| Select Water Solutions, Inc. | 3,409,605 | 27,617,800 | ||||||
| Tenaris SA (ADR) † | 3,796,775 | 113,713,411 | ||||||
| Transocean Ltd. * † | 14,945,750 | 104,769,708 | ||||||
| US Silica Holdings, Inc. * | 1,985,350 | 24,082,295 | ||||||
| 1,969,072,016 | ||||||||
| Total Common Stocks (Cost: $2,395,528,197) | 2,171,498,712 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.9% | ||||||||
| Money Market Fund: 0.9% (Cost: $18,462,075) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 18,462,075 | 18,462,075 | ||||||
| Total Investments: 100.8% (Cost: $2,413,990,272) | 2,189,960,787 | |||||||
| Liabilities in excess of other assets: (0.8)% | (18,214,736) | |||||||
| NET ASSETS: 100.0% | $ | 2,171,746,051 | ||||||
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 $151,904,221. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Oil & Gas Equipment & Services | 78.7 | % | $ | 1,707,541,234 | ||||
| Oil & Gas Drilling | 21.3 | 463,957,478 | ||||||
| 100.0 | % | $ | 2,171,498,712 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
| Common Stocks * | $ | 2,171,498,712 | $ | — | $ | — | $ | 2,171,498,712 | ||||||||
| Money Market Fund | 18,462,075 | — | — | 18,462,075 | ||||||||||||
| Total Investments | $ | 2,189,960,787 | $ | — | $ | — | $ | 2,189,960,787 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 33 |
VANECK RARE EARTH/STRATEGIC METALS ETF
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares |
Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Australia: 36.9% | ||||||||
| Allkem Ltd. * | 3,808,709 | $ | 40,928,283 | |||||
| AVZ Minerals Ltd. *∞ | 52,906,510 | 11,093,424 | ||||||
| Core Lithium Ltd. * † | 20,719,826 | 12,545,162 | ||||||
| Iluka Resources Ltd. | 3,183,134 | 23,684,006 | ||||||
| ioneer Ltd. * † | 20,158,225 | 4,599,613 | ||||||
| Lake Resources NL * † | 14,677,308 | 2,969,068 | ||||||
| Liontown Resources Ltd. * | 17,905,478 | 34,072,030 | ||||||
| Lynas Rare Earths Ltd. * † | 6,945,713 | 31,892,581 | ||||||
| Pilbara Minerals Ltd. † | 15,683,642 | 51,508,164 | ||||||
| Sayona Mining Ltd. * † | 96,443,551 | 11,364,011 | ||||||
| 224,656,342 | ||||||||
| Brazil: 4.2% | ||||||||
| Sigma Lithium Corp. (USD) * † | 635,766 | 25,621,370 | ||||||
| Canada: 7.7% | ||||||||
| Lithium Americas Corp. (USD) * † | 1,279,701 | 25,862,757 | ||||||
| Patriot Battery Metals, Inc. * | 1,110,808 | 12,633,788 | ||||||
| Standard Lithium Ltd. (USD) * † | 1,884,965 | 8,482,343 | ||||||
| 46,978,888 | ||||||||
| China: 33.0% | ||||||||
| Baoji Titanium Industry Co. Ltd. * | 2,967,180 | 13,829,242 | ||||||
| China Northern Rare Earth Group High-Tech Co. Ltd. | 12,935,112 | 42,735,360 | ||||||
| Ganfeng Lithium Group Co. Ltd. (HKD) 144A * † | 3,589,840 | 23,543,820 | ||||||
| Jinduicheng Molybdenum Co. Ltd. * | 10,404,465 | 15,969,013 | ||||||
| Shenghe Resources Holding Co. Ltd. * | 15,370,687 | 27,261,154 | ||||||
| Number of Shares |
Value | |||||||
| China (continued) | ||||||||
| Tianqi Lithium Corp. (HKD) * † | 973,200 | $ | 6,802,041 | |||||
| Xiamen Tungsten Co. Ltd. | 9,333,424 | 24,463,967 | ||||||
| Zhejiang Huayou Cobalt Co. Ltd. | 7,341,300 | 46,458,002 | ||||||
| 201,062,599 | ||||||||
| France: 1.8% | ||||||||
| Eramet SA | 122,775 | 11,227,639 | ||||||
| Netherlands: 3.3% | ||||||||
| AMG Critical Materials NV | 385,506 | 19,997,633 | ||||||
| United States: 13.0% | ||||||||
| Livent Corp. * † | 1,149,474 | 31,530,072 | ||||||
| MP Materials Corp. * † | 1,147,497 | 26,254,731 | ||||||
| Piedmont Lithium, Inc. * † | 170,639 | 9,847,577 | ||||||
| Tronox Holdings Plc | 929,413 | 11,812,839 | ||||||
| 79,445,219 | ||||||||
| Total Common Stocks (Cost: $546,007,497) | 608,989,690 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 5.1% | ||||||||
| Money Market Fund: 5.1% (Cost: $31,159,446) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 31,159,446 | 31,159,446 | ||||||
| Total Investments: 105.0% (Cost: $577,166,943) | 640,149,136 | |||||||
| Liabilities in excess of other assets: (5.0)% | (30,521,040) | |||||||
| NET ASSETS: 100.0% | $ | 609,628,096 | ||||||
Definitions:
| HKD | Hong Kong Dollar |
| USD | United States Dollar |
Footnotes:
| * | Non-income producing |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| † | Security fully or partially on loan. Total market value of securities on loan is $151,388,488. |
| 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 $23,543,820, or 3.9% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Materials | 100.0 | % | $ | 608,989,690 | ||||
See Notes to Financial Statements
| 34 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices |
Level 2 Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | — | $ | 213,562,918 | $ | 11,093,424 | $ | 224,656,342 | ||||||||
| Brazil | 25,621,370 | — | — | 25,621,370 | ||||||||||||
| Canada | 46,978,888 | — | — | 46,978,888 | ||||||||||||
| China | — | 201,062,599 | — | 201,062,599 | ||||||||||||
| France | — | 11,227,639 | — | 11,227,639 | ||||||||||||
| Netherlands | — | 19,997,633 | — | 19,997,633 | ||||||||||||
| United States | 79,445,219 | — | — | 79,445,219 | ||||||||||||
| Money Market Fund | 31,159,446 | — | — | 31,159,446 | ||||||||||||
| Total Investments | $ | 183,204,923 | $ | 445,850,789 | $ | 11,093,424 | $ | 640,149,136 | ||||||||
The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2023. Transfers in/out are assessed at the beginning of the year.
Common Stock | |||
| Balance as of December 31, 2022 | $ | 22,081,219 | |
| Realized gain (loss) | (5,253,560) | ||
| Net change in unrealized appreciation (depreciation) | (1,953,138) | ||
| Purchases | — | ||
| Sales | (3,781,097) | ||
| Transfers in/out of level 3 | — | ||
| Balance as of June 30, 2023 | $ | 11,093,424 | |
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2023:
| Value as of June 30, 2023 | Valuation Technique | Unobservable Input Description(1) | Unobservable Input | Impact to Valuation from an Increase in Input(2) | |||||||||||||||
| Common Stock | |||||||||||||||||||
| $11,093,424 | Transaction | Sales transaction | 100 | % | Increase | ||||||||||||||
| Approach | Discount for lack of marketability | 10 | % | Decrease | |||||||||||||||
(1) In determining certain of these inputs, management evaluates a variety of factors including economic condition, industry and market developments, market valuations of comparable companies and company specific developments.
(2) This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases or decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.
See Notes to Financial Statements
| 35 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.0% | ||||||||
| Australia: 10.7% | ||||||||
| Rio Tinto Plc (ADR) † | 191,718 | $ | 12,239,277 | |||||
| Brazil: 19.0% | ||||||||
| Cia Siderurgica Nacional SA (ADR) | 1,790,475 | 4,637,330 | ||||||
| Gerdau SA (ADR) | 940,418 | 4,908,982 | ||||||
| Vale SA (ADR) | 896,853 | 12,035,768 | ||||||
| 21,582,080 | ||||||||
| Canada: 0.7% | ||||||||
| Algoma Steel Group, Inc. (USD) † | 113,716 | 807,384 | ||||||
| Luxembourg: 4.8% | ||||||||
| ArcelorMittal SA (USD) † | 198,800 | 5,435,192 | ||||||
| Netherlands: 4.3% | ||||||||
| Ternium SA (ADR) | 122,923 | 4,873,897 | ||||||
| South Korea: 4.8% | ||||||||
| POSCO Holdings, Inc. (ADR) † | 73,575 | 5,440,871 | ||||||
| United States: 55.7% | ||||||||
| ATI, Inc. * | 128,054 | 5,663,828 | ||||||
| Carpenter Technology Corp. | 53,307 | 2,992,122 | ||||||
| Cleveland-Cliffs, Inc. * | 305,479 | 5,119,828 | ||||||
| Commercial Metals Co. | 105,256 | 5,542,781 | ||||||
| Gibraltar Industries, Inc. * | 33,391 | 2,100,962 | ||||||
| Nucor Corp. | 50,462 | 8,274,759 | ||||||
| Olympic Steel, Inc. | 12,223 | 598,927 | ||||||
| Number of Shares | Value | |||||||
| United States (continued) | ||||||||
| Reliance Steel & Aluminum Co. | 19,648 | $ | 5,336,200 | |||||
| Ryerson Holding Corp. | 39,273 | 1,703,663 | ||||||
| Schnitzer Steel Industries,Inc. | 29,827 | 894,512 | ||||||
| Steel Dynamics, Inc. | 54,523 | 5,939,190 | ||||||
| SunCoke Energy, Inc. | 91,923 | 723,434 | ||||||
| Tenaris SA (ADR) | 197,885 | 5,926,656 | ||||||
| TimkenSteel Corp. * | 48,175 | 1,039,135 | ||||||
| United States Steel Corp. | 214,918 | 5,375,099 | ||||||
| Warrior Met Coal, Inc. | 57,083 | 2,223,383 | ||||||
| Worthington Industries, Inc. | 54,631 | 3,795,215 | ||||||
| 63,249,694 | ||||||||
| Total Common Stocks (Cost: $128,525,614) | 113,628,395 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 6.8% | ||||||||
| Money Market Fund: 6.8% (Cost: $7,730,911) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 7,730,911 | 7,730,911 | ||||||
| Total Investments: 106.8% (Cost: $136,256,525) | 121,359,306 | |||||||
| Liabilities in excess of other assets: (6.8)% | (7,753,572 | ) | ||||||
| NET ASSETS: 100.0% | $ | 113,605,734 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| USD | United States Dollar |
| Footnotes: | |
| † | Security fully or partially on loan. Total market value of securities on loan is $16,734,951. |
| * | Non-income producing |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Materials | 92.9 | % | $ | 105,600,777 | ||||
| Energy | 5.2 | 5,926,656 | ||||||
| Industrials | 1.9 | 2,100,962 | ||||||
| 100.0 | % | $ | 113,628,395 | |||||
See Notes to Financial Statements
| 36 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks * | $ | 113,628,395 | $ | — | $ | — | $ | 113,628,395 | ||||||||
| Money Market Fund | 7,730,911 | — | — | 7,730,911 | ||||||||||||
| Total Investments | $ | 121,359,306 | $ | — | $ | — | $ | 121,359,306 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 37 |
VANECK URANIUM+NUCLEAR ENERGY ETF
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.8% | ||||||||
| Australia: 9.4% | ||||||||
| Boss Energy Ltd. * † | 852,700 | $ | 1,774,714 | |||||
| Deep Yellow Ltd. * | 1,890,000 | 959,485 | ||||||
| Paladin Energy Ltd. * | 6,038,157 | 2,967,473 | ||||||
| 5,701,672 | ||||||||
| Canada: 19.0% | ||||||||
| Cameco Corp. (USD) † | 129,021 | 4,042,228 | ||||||
| Denison Mines Corp. (USD) * † | 2,112,789 | 2,640,986 | ||||||
| Fission Uranium Corp. * † | 1,701,085 | 784,177 | ||||||
| Global Atomic Corp. * † | 503,391 | 1,133,652 | ||||||
| NexGen Energy Ltd. (USD) * † | 616,365 | 2,903,079 | ||||||
| 11,504,122 | ||||||||
| China: 5.5% | ||||||||
| CGN Mining Co. Ltd. (HKD) * † | 6,685,000 | 694,681 | ||||||
| CGN Power Co. Ltd. (HKD) 144A | 10,990,000 | 2,653,848 | ||||||
| 3,348,529 | ||||||||
| Czech Republic: 5.3% | ||||||||
| CEZ AS | 77,590 | 3,206,662 | ||||||
| Finland: 5.1% | ||||||||
| Fortum Oyj | 228,904 | 3,062,744 | ||||||
| Italy: 5.1% | ||||||||
| Endesa SA † | 143,049 | 3,073,221 | ||||||
| Jersey, Channel Islands: 3.4% | ||||||||
| Yellow Cake Plc 144A * † | 397,506 | 2,070,087 | ||||||
| Kazakhstan: 4.4% | ||||||||
| NAC Kazatomprom JSC (USD) (GDR) | 98,414 | 2,642,416 | ||||||
| Number of Shares | Value | |||||||
| South Korea: 2.3% | ||||||||
| KEPCO Engineering & Construction Co., Inc. | 26,121 | $ | 1,383,902 | |||||
| United States: 40.3% | ||||||||
| BWX Technologies, Inc. | 41,670 | 2,982,322 | ||||||
| Centrus Energy Corp. * | 36,107 | 1,175,644 | ||||||
| Constellation Energy Corp. | 52,404 | 4,797,586 | ||||||
| Energy Fuels, Inc. * † | 382,189 | 2,384,859 | ||||||
| NuScale Power Corp. * | 94,951 | 645,667 | ||||||
| PG&E Corp. * | 241,514 | 4,173,362 | ||||||
| Public Service Enterprise Group, Inc. | 75,473 | 4,725,365 | ||||||
| Uranium Energy Corp. * † | 815,021 | 2,771,071 | ||||||
| Ur-Energy, Inc. * † | 683,885 | 718,079 | ||||||
| 24,373,955 | ||||||||
| Total Common Stocks (Cost: $53,414,518) | 60,367,310 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 10.2% | ||||||||
| Money Market Fund: 10.2% (Cost: $6,161,710) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 6,161,710 | 6,161,710 | ||||||
| Total Investments: 110.0% (Cost: $59,576,228) | 66,529,020 | |||||||
| Liabilities in excess of other assets: (10.0)% | (6,022,384) | |||||||
| NET ASSETS: 100.0% | $ | 60,506,636 | ||||||
| Definitions: | |
| GDR | Global Depositary Receipt |
| HKD | Hong Kong Dollar |
| USD | United States Dollar |
| Footnotes: | |
| † | Security fully or partially on loan. Total market value of securities on loan is $15,126,709. |
| * | Non-income producing |
| 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 $4,723,935, or 7.8% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Energy | 43.8 | % | $ | 26,458,893 | ||||
| Utilities | 42.6 | 25,692,787 | ||||||
| Industrials | 11.7 | 7,081,978 | ||||||
| Materials | 1.9 | 1,133,652 | ||||||
| 100.0 | % | $ | 60,367,310 | |||||
See Notes to Financial Statements
| 38 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | — | $ | 5,701,672 | $ | — | $ | 5,701,672 | ||||||||
| Canada | 11,504,122 | — | — | 11,504,122 | ||||||||||||
| China | — | 3,348,529 | — | 3,348,529 | ||||||||||||
| Czech Republic | 3,206,662 | — | — | 3,206,662 | ||||||||||||
| Finland | — | 3,062,744 | — | 3,062,744 | ||||||||||||
| Italy | — | 3,073,221 | — | 3,073,221 | ||||||||||||
| Jersey, Channel Islands | — | 2,070,087 | — | 2,070,087 | ||||||||||||
| Kazakhstan | — | 2,642,416 | — | 2,642,416 | ||||||||||||
| South Korea | — | 1,383,902 | — | 1,383,902 | ||||||||||||
| United States | 24,373,955 | — | — | 24,373,955 | ||||||||||||
| Money Market Fund | 6,161,710 | — | — | 6,161,710 | ||||||||||||
| Total Investments | $ | 45,246,449 | $ | 21,282,571 | $ | — | $ | 66,529,020 | ||||||||
See Notes to Financial Statements
| 39 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Agribusiness ETF | Future of Food ETF | Gold Miners ETF | Green Metals ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Investments, at value (1) | ||||||||||||||||
| Unaffiliated issuers (2) | $ | 1,097,676,237 | $ | 3,303,391 | $ | 6,125,996,506 | $ | 24,342,748 | ||||||||
| Affiliated issuers (3) | — | — | 5,776,243,263 | — | ||||||||||||
| Short-term investments held as collateral for securities loaned (4) | 47,253,786 | 129,532 | 44,964,475 | 384,877 | ||||||||||||
| Cash | — | 138,599 | 1,205,702 | 2 | ||||||||||||
| Cash denominated in foreign currency, at value (5) | 225,714 | — | 9,718,984 | 368,623 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold | — | — | 57,754,372 | — | ||||||||||||
| Dividends and interest | 2,890,321 | 14,525 | 2,623,524 | 15,638 | ||||||||||||
| Prepaid expenses | 2,290 | — | 21,050 | — | ||||||||||||
| Total assets | 1,148,048,348 | 3,586,047 | 12,018,527,876 | 25,111,888 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payables: | ||||||||||||||||
| Shares of beneficial interest redeemed | — | — | 57,756,928 | — | ||||||||||||
| Collateral for securities loaned | 47,253,786 | 129,532 | 44,964,475 | 384,877 | ||||||||||||
| Line of credit | 1,376,855 | — | — | 353,373 | ||||||||||||
| Due to Adviser | 447,847 | 1,937 | 5,121,233 | 12,110 | ||||||||||||
| Due to custodian | 924 | 9,098 | — | — | ||||||||||||
| Deferred Trustee fees | 597,540 | — | 1,441,545 | — | ||||||||||||
| Accrued expenses | 170,425 | — | 188,324 | 141 | ||||||||||||
| Total liabilities | 49,847,377 | 140,567 | 109,472,505 | 750,501 | ||||||||||||
| NET ASSETS | $ | 1,098,200,971 | $ | 3,445,480 | $ | 11,909,055,371 | $ | 24,361,387 | ||||||||
| Shares outstanding | 13,450,000 | 200,000 | 396,452,500 | 900,000 | ||||||||||||
| Net asset value, redemption and offering price per share | $ | 81.65 | $ | 17.23 | $ | 30.04 | $ | 27.07 | ||||||||
| Net Assets consist of: | ||||||||||||||||
| Aggregate paid in capital | $ | 2,024,922,721 | $ | 4,418,225 | $ | 23,334,188,897 | $ | 31,307,497 | ||||||||
| Total distributable earnings (loss) | (926,721,750 | ) | (972,745 | ) | (11,425,133,526 | ) | (6,946,110 | ) | ||||||||
| NET ASSETS | $ | 1,098,200,971 | $ | 3,445,480 | $ | 11,909,055,371 | $ | 24,361,387 | ||||||||
| (1) Value of securities on loan | $ | 47,671,200 | $ | 140,439 | $ | 80,701,201 | $ | 830,302 | ||||||||
| (2) Cost of investments - Unaffiliated issuers | $ | 1,269,499,543 | $ | 4,121,540 | $ | 5,912,381,012 | $ | 29,784,565 | ||||||||
| (3) Cost of investments - Affiliated issuers | $ | — | $ | — | $ | 6,234,689,803 | $ | — | ||||||||
| (4) Cost of short-term investments held as collateral for securities loaned | $ | 47,253,786 | $ | 129,532 | $ | 44,964,475 | $ | 384,877 | ||||||||
| (5) Cost of cash denominated in foreign currency | $ | 230,741 | $ | — | $ | 9,718,691 | $ | 367,181 | ||||||||
See Notes to Financial Statements
| 40 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Junior Gold Miners ETF | Low Carbon Energy ETF | Natural Resources ETF | Oil Refiners ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Investments, at value (1) | ||||||||||||||||
| Unaffiliated issuers (2) | $ | 3,529,219,493 | $ | 201,013,882 | $ | 135,079,050 | $ | 31,802,668 | ||||||||
| Affiliated issuers (3) | 251,466,013 | — | — | — | ||||||||||||
| Short-term investments held as collateral for securities loaned (4) | 83,919,759 | 11,021,593 | 2,060,840 | — | ||||||||||||
| Cash | 6,631,841 | — | — | 332 | ||||||||||||
| Cash denominated in foreign currency, at value (5) | 633,377 | 1,782,472 | 434,283 | 371 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold | — | — | 7,211,089 | — | ||||||||||||
| Due from Adviser | — | — | — | 4,873 | ||||||||||||
| Dividends and interest | 962,956 | 424,546 | 364,835 | 136,328 | ||||||||||||
| Prepaid expenses | 6,945 | 440 | — | 46 | ||||||||||||
| Total assets | 3,872,840,384 | 214,242,933 | 145,150,097 | 31,944,618 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased | 107,105 | — | — | — | ||||||||||||
| Shares of beneficial interest redeemed | — | — | 7,228,404 | — | ||||||||||||
| Collateral for securities loaned | 83,919,759 | 11,021,593 | 2,060,840 | — | ||||||||||||
| Line of credit | — | 2,095,378 | 765,152 | 105,715 | ||||||||||||
| Due to Adviser | 1,606,760 | 81,687 | 56,589 | — | ||||||||||||
| Due to custodian | — | 13,979 | 29,497 | — | ||||||||||||
| Deferred Trustee fees | 377,251 | 19,301 | 14,855 | 996 | ||||||||||||
| Accrued expenses | 358,913 | 109,557 | 64,680 | 46,879 | ||||||||||||
| Total liabilities | 86,369,788 | 13,341,495 | 10,220,017 | 153,590 | ||||||||||||
| NET ASSETS | $ | 3,786,470,596 | $ | 200,901,438 | $ | 134,930,080 | $ | 31,791,028 | ||||||||
| Shares outstanding | 106,587,446 | 1,633,298 | 2,800,000 | 1,050,000 | ||||||||||||
| Net asset value, redemption and offering price per share | $ | 35.52 | $ | 123.00 | $ | 48.19 | $ | 30.28 | ||||||||
| Net Assets consist of: | ||||||||||||||||
| Aggregate paid in capital | $ | 9,364,535,094 | $ | 287,657,175 | $ | 177,028,680 | $ | 43,664,140 | ||||||||
| Total distributable earnings (loss) | (5,578,064,498 | ) | (86,755,737 | ) | (42,098,600 | ) | (11,873,112 | ) | ||||||||
| NET ASSETS | $ | 3,786,470,596 | $ | 200,901,438 | $ | 134,930,080 | $ | 31,791,028 | ||||||||
| (1) Value of securities on loan | $ | 202,070,631 | $ | 20,519,016 | $ | 6,966,285 | $ | 164,702 | ||||||||
| (2) Cost of investments - Unaffiliated issuers | $ | 4,241,493,282 | $ | 222,263,656 | $ | 128,487,464 | $ | 33,306,405 | ||||||||
| (3) Cost of investments - Affiliated issuers | $ | 188,785,026 | $ | — | $ | — | $ | — | ||||||||
| (4) Cost of short-term investments held as collateral for securities loaned | $ | 83,919,759 | $ | 11,021,593 | $ | 2,060,840 | $ | — | ||||||||
| (5) Cost of cash denominated in foreign currency | $ | 638,779 | $ | 1,781,142 | $ | 435,177 | $ | 371 | ||||||||
See Notes to Financial Statements
| 41 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Oil Services ETF | Rare Earth/ Strategic Metals ETF | Steel ETF | Uranium+Nuclear Energy ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Investments, at value (1) | ||||||||||||||||
| Unaffiliated issuers (2) | $ | 2,171,498,712 | $ | 608,989,690 | $ | 113,628,395 | $ | 60,367,310 | ||||||||
| Short-term investments held as collateral for securities loaned (3) | 18,462,075 | 31,159,446 | 7,730,911 | 6,161,710 | ||||||||||||
| Cash | 4,487 | 13,746 | 346,319 | — | ||||||||||||
| Cash denominated in foreign currency, at value (4) | — | 1,231,301 | — | 314 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold | — | — | 3,469,417 | — | ||||||||||||
| Shares of beneficial interest sold | 14,381,356 | — | — | — | ||||||||||||
| Dividends and interest | 2,471,985 | 443,540 | 68,877 | 789,379 | ||||||||||||
| Prepaid expenses | — | 1,554 | 208 | 62 | ||||||||||||
| Total assets | 2,206,818,615 | 641,839,277 | 125,244,127 | 67,318,775 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased | 14,381,486 | — | 3,778,992 | — | ||||||||||||
| Collateral for securities loaned | 18,462,075 | 31,159,446 | 7,730,911 | 6,161,710 | ||||||||||||
| Line of credit | 1,404,252 | 605,334 | — | 577,580 | ||||||||||||
| Due to Adviser | 613,746 | 253,378 | 36,449 | 11,488 | ||||||||||||
| Due to custodian | — | — | — | 630 | ||||||||||||
| Deferred Trustee fees | 206,442 | 26,183 | 20,871 | 13,557 | ||||||||||||
| Accrued expenses | 4,563 | 166,840 | 71,170 | 47,174 | ||||||||||||
| Total liabilities | 35,072,564 | 32,211,181 | 11,638,393 | 6,812,139 | ||||||||||||
| NET ASSETS | $ | 2,171,746,051 | $ | 609,628,096 | $ | 113,605,734 | $ | 60,506,636 | ||||||||
| Shares outstanding | 7,550,543 | 7,324,987 | 1,775,000 | 1,016,632 | ||||||||||||
| Net asset value, redemption and offering price per share | $ | 287.63 | $ | 83.23 | $ | 64.00 | $ | 59.52 | ||||||||
| Net Assets consist of: | ||||||||||||||||
| Aggregate paid in capital | $ | 4,258,859,373 | $ | 879,190,031 | $ | 288,160,297 | $ | 137,241,301 | ||||||||
| Total distributable earnings (loss) | (2,087,113,322 | ) | (269,561,935 | ) | (174,554,563 | ) | (76,734,665 | ) | ||||||||
| NET ASSETS | $ | 2,171,746,051 | $ | 609,628,096 | $ | 113,605,734 | $ | 60,506,636 | ||||||||
| (1) Value of securities on loan | $ | 151,904,221 | $ | 151,388,488 | $ | 16,734,951 | $ | 15,126,709 | ||||||||
| (2) Cost of investments - Unaffiliated issuers | $ | 2,395,528,197 | $ | 546,007,497 | $ | 128,525,614 | $ | 53,414,518 | ||||||||
| (3) Cost of short-term investments held as collateral for securities loaned | $ | 18,462,075 | $ | 31,159,446 | $ | 7,730,911 | $ | 6,161,710 | ||||||||
| (4) Cost of cash denominated in foreign currency | $ | — | $ | 1,235,989 | $ | — | $ | 314 | ||||||||
See Notes to Financial Statements
| 42 |
VANECK ETF TRUST
For the Period Ended June 30, 2023 (unaudited)
| Agribusiness ETF | Future of Food ETF | Gold Miners ETF | Green Metals ETF | |||||||||||||
| Income: | ||||||||||||||||
| Dividends - unaffiliated issuers | $ | 23,836,198 | $ | 50,644 | $ | 74,539,276 | $ | 459,871 | ||||||||
| Dividends - affiliated issuers | — | — | 61,418,588 | — | ||||||||||||
| Interest | 3,519 | 3,680 | 78,757 | 261 | ||||||||||||
| Securities lending income | 1,178,894 | 9,994 | 396,317 | 4,356 | ||||||||||||
| Foreign taxes withheld | (1,550,184 | ) | (6,023 | ) | (11,852,964 | ) | (30,018 | ) | ||||||||
| Total income | 23,468,427 | 58,295 | 124,579,974 | 434,470 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 3,090,882 | 11,639 | 32,471,255 | 74,342 | ||||||||||||
| Professional fees | 25,374 | — | 32,609 | — | ||||||||||||
| Custody and accounting fees | 83,545 | — | 192,781 | — | ||||||||||||
| Reports to shareholders | 51,823 | — | 242,575 | — | ||||||||||||
| Trustees’ fees and expenses | 21,945 | — | 170,246 | — | ||||||||||||
| Registration fees | 2,950 | — | 9,910 | — | ||||||||||||
| Insurance | 13,891 | — | 64,792 | — | ||||||||||||
| Interest and taxes | 39,311 | 597 | 268,264 | 10,093 | ||||||||||||
| Other | 2,057 | — | 28,154 | — | ||||||||||||
| Total expenses | 3,331,778 | 12,236 | 33,480,586 | 84,435 | ||||||||||||
| Net investment income | 20,136,649 | 46,059 | 91,099,388 | 350,035 | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Investments - unaffiliated issuers | (21,857,770 | ) | (105,139 | ) | (87,877,860 | ) | (626,840 | ) | ||||||||
| Investments - affiliated issuers | — | — | 28,474,378 | — | ||||||||||||
| In-kind redemptions - unaffiliated issuers | 32,196,998 | — | 360,821,813 | — | ||||||||||||
| In-kind redemptions - affiliated issuers | — | — | 348,550,974 | — | ||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | (69,013 | ) | 609 | (513,631 | ) | (80,350 | ) | |||||||||
| Net realized gain (loss) | 10,270,215 | (104,530 | ) | 649,455,674 | (707,190 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments - unaffiliated issuers | (90,640,510 | ) | (149,120 | ) | (187,308,453 | ) | (1,231,433 | ) | ||||||||
| Investments - affiliated issuers | — | — | 26,364,418 | — | ||||||||||||
| Foreign currency translations and foreign denominated assets and liabilities | (27,122 | ) | (44 | ) | 5,345 | 94,669 | ||||||||||
| Net change in unrealized appreciation (depreciation) | (90,667,632 | ) | (149,164 | ) | (160,938,690 | ) | (1,136,764 | ) | ||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (60,260,768 | ) | $ | (207,635 | ) | $ | 579,616,372 | $ | (1,493,919 | ) | |||||
See Notes to Financial Statements
| 43 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2023 (unaudited)
| Junior Gold Miners ETF | Low Carbon Energy ETF | Natural Resources ETF | Oil Refiners ETF | |||||||||||||
| Income: | ||||||||||||||||
| Dividends - unaffiliated issuers | $ | 19,731,470 | $ | 1,940,412 | $ | 2,832,521 | $ | 823,955 | ||||||||
| Dividends - affiliated issuers | 778,457 | — | — | — | ||||||||||||
| Interest | 173,849 | 3,183 | 73 | 934 | ||||||||||||
| Securities lending income | 958,589 | 359,207 | 33,414 | 819 | ||||||||||||
| Foreign taxes withheld | (2,151,283 | ) | (167,198 | ) | (168,489 | ) | (86,784 | ) | ||||||||
| Total income | 19,491,082 | 2,135,604 | 2,697,519 | 738,924 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 9,959,015 | 503,110 | 334,747 | 90,079 | ||||||||||||
| Professional fees | 24,519 | 20,472 | — | 22,034 | ||||||||||||
| Custody and accounting fees | 208,061 | 44,150 | — | 39,323 | ||||||||||||
| Reports to shareholders | 76,828 | 15,472 | — | 5,765 | ||||||||||||
| Trustees’ fees and expenses | 51,390 | 2,393 | — | 792 | ||||||||||||
| Registration fees | 6,329 | 2,950 | — | 2,950 | ||||||||||||
| Insurance | 27,586 | 3,690 | — | 1,976 | ||||||||||||
| Interest | 98,042 | 56,619 | 18,041 | 5,284 | ||||||||||||
| Other | 5,381 | 2,540 | — | 323 | ||||||||||||
| Total expenses | 10,457,151 | 651,396 | 352,788 | 168,526 | ||||||||||||
| Waiver of management fees | — | — | — | (56,949 | ) | |||||||||||
| Net expenses | 10,457,151 | 651,396 | 352,788 | 111,577 | ||||||||||||
| Net investment income | 9,033,931 | 1,484,208 | 2,344,731 | 627,347 | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Investments - unaffiliated issuers | (118,033,218 | ) | (6,906,105 | ) | (2,782,556 | ) | (722,337 | ) | ||||||||
| Investments - affiliated issuers | 763,612 | — | — | — | ||||||||||||
| In-kind redemptions - unaffiliated issuers | 45,565,808 | 4,368,597 | 5,840,940 | 544,870 | ||||||||||||
| In-kind redemptions - affiliated issuers | 5,035,113 | — | — | — | ||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | (175,292 | ) | 53,334 | 1,577 | (11,526 | ) | ||||||||||
| Net realized gain (loss) | (66,843,977 | ) | (2,484,174 | ) | 3,059,961 | (188,993 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments - unaffiliated issuers | 18,052,348 | 21,667,795 | (7,389,579 | ) | (1,527,923 | ) | ||||||||||
| Investments - affiliated issuers | 19,977,712 | — | — | — | ||||||||||||
| Foreign currency translations and foreign denominated assets and liabilities | (8,469 | ) | (5,913 | ) | (1,353 | ) | 1,756 | |||||||||
| Net change in unrealized appreciation (depreciation) | 38,021,591 | 21,661,882 | (7,390,932 | ) | (1,526,167 | ) | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (19,788,455 | ) | $ | 20,661,916 | $ | (1,986,240 | ) | $ | (1,087,813 | ) | |||||
See Notes to Financial Statements
| 44 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2023 (unaudited)
| Oil Services ETF | Rare Earth/ Strategic Metals ETF | Steel ETF | Uranium+ Nuclear Energy ETF | |||||||||||||
| Income: | ||||||||||||||||
| Dividends | $ | 18,267,956 | $ | 3,742,645 | $ | 2,391,843 | $ | 1,249,598 | ||||||||
| Interest | 12,776 | 6,365 | 1,807 | 1,249 | ||||||||||||
| Securities lending income | 98,496 | 2,295,236 | 28,257 | 49,966 | ||||||||||||
| Foreign taxes withheld | (1,466 | ) | (211,090 | ) | (58,349 | ) | (146,241 | ) | ||||||||
| Total income | 18,377,762 | 5,833,156 | 2,363,558 | 1,154,572 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 4,140,705 | 1,600,288 | 300,545 | 143,678 | ||||||||||||
| Professional fees | — | 21,450 | 18,962 | 21,292 | ||||||||||||
| Custody and accounting fees | — | 84,275 | 16,519 | 32,219 | ||||||||||||
| Reports to shareholders | — | 45,673 | 10,216 | 6,818 | ||||||||||||
| Trustees’ fees and expenses | — | 9,757 | 1,056 | 838 | ||||||||||||
| Registration fees | — | 2,950 | 2,950 | 2,950 | ||||||||||||
| Insurance | — | 7,766 | 2,298 | 1,077 | ||||||||||||
| Interest | 43,943 | 42,677 | 6,905 | 3,588 | ||||||||||||
| Other | — | 5,142 | 141 | 108 | ||||||||||||
| Total expenses | 4,184,648 | 1,819,978 | 359,592 | 212,568 | ||||||||||||
| Waiver of management fees | — | — | (22,087 | ) | (36,567 | ) | ||||||||||
| Net expenses | 4,184,648 | 1,819,978 | 337,505 | 176,001 | ||||||||||||
| Net investment income | 14,193,114 | 4,013,178 | 2,026,053 | 978,571 | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Investments | (72,023,261 | ) | (4,696,790 | ) | (1,870,489 | ) | (427,528 | ) | ||||||||
| In-kind redemptions | 210,847,050 | 26,665,824 | 3,758,990 | 964,077 | ||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | — | (104,508 | ) | — | (8,289 | ) | ||||||||||
| Net realized gain | 138,823,789 | 21,864,526 | 1,888,501 | 528,260 | ||||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments - unaffiliated issuers | (288,335,233 | ) | 36,541,720 | 1,644,464 | 3,275,860 | |||||||||||
| Investments - affiliated issuers | (20,931,349 | ) | — | — | — | |||||||||||
| Foreign currency translations and foreign denominated assets and liabilities | — | (13,229 | ) | — | (209 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) | (309,266,582 | ) | 36,528,491 | 1,644,464 | 3,275,651 | |||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (156,249,679 | ) | $ | 62,406,195 | $ | 5,559,018 | $ | 4,782,482 | |||||||
See Notes to Financial Statements
| 45 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Agribusiness ETF | Future of Food ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 20,136,649 | $ | 27,997,715 | $ | 46,059 | $ | 37,285 | ||||||||
| Net realized gain (loss) | 10,270,215 | 91,786,465 | (104,530 | ) | (97,107 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) | (90,667,632 | ) | (320,314,104 | ) | (149,164 | ) | (703,908 | ) | ||||||||
| Net decrease in net assets resulting from operations | (60,260,768 | ) | (200,529,924 | ) | (207,635 | ) | (763,730 | ) | ||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (28,899,290 | ) | — | (38,400 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | — | 815,012,259 | 955,231 | 1,030,333 | ||||||||||||
| Cost of shares redeemed | (182,561,270 | ) | (427,267,809 | ) | — | — | ||||||||||
| Increase (decrease) in net assets resulting from share transactions | (182,561,270 | ) | 387,744,450 | 955,231 | 1,030,333 | |||||||||||
| Total increase (decrease) in net assets | (242,822,038 | ) | 158,315,236 | 747,596 | 228,203 | |||||||||||
| Net Assets, beginning of period | 1,341,023,009 | 1,182,707,773 | 2,697,884 | 2,469,681 | ||||||||||||
| Net Assets, end of period | $ | 1,098,200,971 | $ | 1,341,023,009 | $ | 3,445,480 | $ | 2,697,884 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | — | 8,000,000 | 50,000 | 50,000 | ||||||||||||
| Shares redeemed | (2,150,000 | ) | (4,800,000 | ) | — | — | ||||||||||
| Net increase (decrease) | (2,150,000 | ) | 3,200,000 | 50,000 | 50,000 | |||||||||||
See Notes to Financial Statements
| 46 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Gold Miners ETF | Green Metals ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 91,099,388 | $ | 194,459,737 | $ | 350,035 | $ | 531,803 | ||||||||
| Net realized gain (loss) | 649,455,674 | (35,147,047 | ) | (707,190 | ) | (981,419 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) | (160,938,690 | ) | (1,357,895,743 | ) | (1,136,764 | ) | (4,556,176 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | 579,616,372 | (1,198,583,053 | ) | (1,493,919 | ) | (5,005,792 | ) | |||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (197,981,341 | ) | — | (580,000 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 1,609,036,692 | 3,035,577,589 | 3,264,880 | 14,040,492 | ||||||||||||
| Cost of shares redeemed | (2,213,641,291 | ) | (2,978,056,133 | ) | — | (1,560,818 | ) | |||||||||
| Increase (decrease) in net assets resulting from share transactions | (604,604,599 | ) | 57,521,456 | 3,264,880 | 12,479,674 | |||||||||||
| Total increase (decrease) in net assets | (24,988,227 | ) | (1,339,042,938 | ) | 1,770,961 | 6,893,882 | ||||||||||
| Net Assets, beginning of period | 11,934,043,598 | 13,273,086,536 | 22,590,426 | 15,696,544 | ||||||||||||
| Net Assets, end of period | $ | 11,909,055,371 | $ | 11,934,043,598 | $ | 24,361,387 | $ | 22,590,426 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 51,900,000 | 102,100,000 | 100,000 | 400,000 | ||||||||||||
| Shares redeemed | (71,450,000 | ) | (100,900,000 | ) | — | (50,000 | ) | |||||||||
| Net increase (decrease) | (19,550,000 | ) | 1,200,000 | 100,000 | 350,000 | |||||||||||
See Notes to Financial Statements
| 47 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Junior Gold Miners ETF | Low Carbon Energy ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 9,033,931 | $ | 24,814,522 | $ | 1,484,208 | $ | 2,650,521 | ||||||||
| Net realized loss | (66,843,977 | ) | (171,074,964 | ) | (2,484,174 | ) | (7,306,893 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) | 38,021,591 | (486,420,375 | ) | 21,661,882 | (81,994,860 | ) | ||||||||||
| Net increase (decrease) in net assets resulting from operations | (19,788,455 | ) | (632,680,817 | ) | 20,661,916 | (86,651,232 | ) | |||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (19,233,209 | ) | — | (2,600,048 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 291,251,529 | 674,457,723 | 5,969,931 | — | ||||||||||||
| Cost of shares redeemed | (222,003,550 | ) | (780,321,178 | ) | (23,880,402 | ) | (13,347,688 | ) | ||||||||
| Increase (decrease) in net assets resulting from share transactions | 69,247,979 | (105,863,455 | ) | (17,910,471 | ) | (13,347,688 | ) | |||||||||
| Total increase (decrease) in net assets | 49,459,524 | (757,777,481 | ) | 2,751,445 | (102,598,968 | ) | ||||||||||
| Net Assets, beginning of period | 3,737,011,072 | 4,494,788,553 | 198,149,993 | 300,748,961 | ||||||||||||
| Net Assets, end of period | $ | 3,786,470,596 | $ | 3,737,011,072 | $ | 200,901,438 | $ | 198,149,993 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 7,600,000 | 19,250,000 | 50,000 | — | ||||||||||||
| Shares redeemed | (5,900,000 | ) | (21,700,000 | ) | (200,000 | ) | (100,000 | ) | ||||||||
| Net increase (decrease) | 1,700,000 | (2,450,000 | ) | (150,000 | ) | (100,000 | ) | |||||||||
See Notes to Financial Statements
| 48 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Natural Resources ETF | Oil Refiners ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 2,344,731 | $ | 4,585,616 | $ | 627,347 | $ | 1,230,395 | ||||||||
| Net realized gain (loss) | 3,059,961 | (79,726 | ) | (188,993 | ) | 62,100 | ||||||||||
| Net change in unrealized appreciation (depreciation) | (7,390,932 | ) | (2,081,912 | ) | (1,526,167 | ) | (745,083 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | (1,986,240 | ) | 2,423,978 | (1,087,813 | ) | 547,412 | ||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (4,599,900 | ) | — | (1,200,000 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 14,006,011 | 74,958,129 | — | 41,125,018 | ||||||||||||
| Cost of shares redeemed | (19,773,184 | ) | (27,346,895 | ) | (6,112,874 | ) | (21,154,594 | ) | ||||||||
| Increase (decrease) in net assets resulting from share transactions | (5,767,173 | ) | 47,611,234 | (6,112,874 | ) | 19,970,424 | ||||||||||
| Total increase (decrease) in net assets | (7,753,413 | ) | 45,435,312 | (7,200,687 | ) | 19,317,836 | ||||||||||
| Net Assets, beginning of period | 142,683,493 | 97,248,181 | 38,991,715 | 19,673,879 | ||||||||||||
| Net Assets, end of period | $ | 134,930,080 | $ | 142,683,493 | $ | 31,791,028 | $ | 38,991,715 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 300,000 | 1,450,000 | — | 1,250,000 | ||||||||||||
| Shares redeemed | (400,000 | ) | (600,000 | ) | (200,000 | ) | (725,000 | ) | ||||||||
| Net increase (decrease) | (100,000 | ) | 850,000 | (200,000 | ) | 525,000 | ||||||||||
See Notes to Financial Statements
| 49 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Oil Services ETF | Rare Earth/Strategic Metals ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 14,193,114 | $ | 23,646,493 | $ | 4,013,178 | $ | 5,943,123 | ||||||||
| Net realized gain | 138,823,789 | 588,746,639 | 21,864,526 | 25,061,182 | ||||||||||||
| Net change in unrealized appreciation (depreciation) | (309,266,582 | ) | 532,821,388 | 36,528,491 | (338,277,114 | ) | ||||||||||
| Net increase (decrease) in net assets resulting from operations | (156,249,679 | ) | 1,145,214,520 | 62,406,195 | (307,272,809 | ) | ||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (23,400,039 | ) | — | (9,819,927 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 2,692,584,145 | 4,621,472,112 | 24,158,949 | 149,331,401 | ||||||||||||
| Cost of shares redeemed | (2,948,975,885 | ) | (5,302,018,149 | ) | (108,144,016 | ) | (214,892,139 | ) | ||||||||
| Decrease in net assets resulting from share transactions | (256,391,740 | ) | (680,546,037 | ) | (83,985,067 | ) | (65,560,738 | ) | ||||||||
| Total increase (decrease) in net assets | (412,641,419 | ) | 441,268,444 | (21,578,872 | ) | (382,653,474 | ) | |||||||||
| Net Assets, beginning of period | 2,584,387,470 | 2,143,119,026 | 631,206,968 | 1,013,860,442 | ||||||||||||
| Net Assets, end of period | $ | 2,171,746,051 | $ | 2,584,387,470 | $ | 609,628,096 | $ | 631,206,968 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 9,300,000 | 17,300,000 | 300,000 | 1,500,000 | ||||||||||||
| Shares redeemed | (10,250,000 | ) | (20,400,000 | ) | (1,250,000 | ) | (2,300,000 | ) | ||||||||
| Net decrease | (950,000 | ) | (3,100,000 | ) | (950,000 | ) | (800,000 | ) | ||||||||
See Notes to Financial Statements
| 50 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Steel ETF | Uranium+Nuclear Energy ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 2,026,053 | $ | 5,167,089 | $ | 978,571 | $ | 744,394 | ||||||||
| Net realized gain (loss) | 1,888,501 | (2,138,152 | ) | 528,260 | 1,597,739 | |||||||||||
| Net change in unrealized appreciation (depreciation) | 1,644,464 | 3,726,233 | 3,275,651 | (941,706 | ) | |||||||||||
| Net increase in net assets resulting from operations | 5,559,018 | 6,755,170 | 4,782,482 | 1,400,427 | ||||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (5,238,962 | ) | — | (1,100,017 | ) | ||||||||||
| Return of capital | — | (11,016 | ) | — | — | |||||||||||
| Total distributions | — | (5,249,978 | ) | — | (1,100,017 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 63,015,007 | 82,321,434 | 4,144,110 | 24,539,686 | ||||||||||||
| Cost of shares redeemed | (54,665,470 | ) | (95,953,186 | ) | (2,901,841 | ) | (5,585,128 | ) | ||||||||
| Increase (decrease) in net assets resulting from share transactions | 8,349,537 | (13,631,752 | ) | 1,242,269 | 18,954,558 | |||||||||||
| Total increase (decrease) in net assets | 13,908,555 | (12,126,560 | ) | 6,024,751 | 19,254,968 | |||||||||||
| Net Assets, beginning of period | 99,697,179 | 111,823,739 | 54,481,885 | 35,226,917 | ||||||||||||
| Net Assets, end of period | $ | 113,605,734 | $ | 99,697,179 | $ | 60,506,636 | $ | 54,481,885 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 950,000 | 1,300,000 | 75,000 | 450,000 | ||||||||||||
| Shares redeemed | (900,000 | ) | (1,675,000 | ) | (50,000 | ) | (100,000 | ) | ||||||||
| Net increase (decrease) | 50,000 | (375,000 | ) | 25,000 | 350,000 | |||||||||||
See Notes to Financial Statements
| 51 |
VANECK ETF TRUST
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 52 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | For the period December 1, 2021 (commencement of operations) through December 31, 2021. |
| (b) | Calculated based upon average shares outstanding |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 53 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 54 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | For the period November 10, 2021 (commencement of operations) through December 31, 2021. |
| (b) | Calculated based upon average shares outstanding |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 55 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 56 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 57 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Periods after December 31, 2021 reflect a unitary management fee structure. |
| (f) | Annualized |
| (g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 58 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 59 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | On April 15, 2020, the Fund effected a 1 for 20 reverse share split (See Note 11). Per share data has been adjusted to reflect the reverse share split. |
| (b) | Calculated based upon average shares outstanding |
| (c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
| (d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (e) | Not Annualized |
| (f) | Periods after December 31, 2021 reflect a unitary management fee structure. |
| (g) | Annualized |
| (h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 60 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | On April 15, 2020, the Fund effected a 1 for 3 reverse share split (See Note 11). Per share data has been adjusted to reflect the reverse share split. |
| (b) | Calculated based upon average shares outstanding |
| (c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
| (d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (e) | Not Annualized |
| (f) | Annualized |
| (g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 61 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 62 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 63 |
VANECK ETF TRUST
June 30, 2023 (unaudited)
Note 1—Fund Organization—VanEck 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 investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
| Fund | Diversification Classification |
| Agribusiness ETF | Non-Diversified |
| Future of Food ETF | Non-Diversified |
| Gold Miners ETF | Non-Diversified |
| Green Metals 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 |
| Uranium+Nuclear Energy ETF | Non-Diversified |
Each Fund’s investment objective (except for Future of Food ETF) is to replicate as closely as possible, before fees and expenses, the price and yield performance of its index which are listed in the table below.
| Fund | Index |
| Agribusiness ETF | MVIS® Global Agribusiness Index |
| Gold Miners ETF | NYSE® Arca® Gold Miners Index® |
| Green Metals ETF | MVIS® Global Clean-Tech Metals Index |
| Junior Gold Miners ETF | MVIS® Global Junior Gold Miners Index |
| Low Carbon Energy ETF | MVIS Global Low Carbon Energy Index |
| Natural Resources ETF | VanEck® Natural Resources Index |
| Oil Refiners ETF | MVIS® Global Oil Refiners Index |
| Oil Services ETF | MVIS® US Listed Oil Services 25 Index |
| Rare Earth/Strategic Metals ETF | MVIS® Global Rare Earth/Strategic Metals Index |
| Steel ETF | NYSE® Arca® Steel Index |
| Uranium+Nuclear Energy ETF | MVIS® Global Uranium & Nuclear Energy Index |
Each Fund, except for Future of Food ETF, 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 approximately the same weighting as their index. The Future of Food ETF is an actively managed ETF that seeks long-term capital appreciation and invests primarily in securities of companies engaged in Agri-Food technology and innovation.
Van Eck Associates Corporation (the “Adviser”) is the investment adviser for the Funds.
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 follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
| 64 |
| 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. 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). | |
| Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. 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. Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern 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 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 categorized as Level 1 in the fair value hierarchy. The Board of Trustees (“Trustees”) has designated the Adviser as valuation designee to perform the Funds’ fair value determinations, subject to board oversight and certain reporting and other requirements. The Adviser has adopted policies and procedures reasonably designed to comply with the requirements. 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 they do 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 categorized 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. | |
| 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 |
| 65 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
| 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 net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
| C. | 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 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) and net change in unrealized appreciation (depreciation) 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 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. | 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 offset in those agreements allows the Funds to offset 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 receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at June 30, 2023 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
| G. | 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. |
| The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
| 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. |
| 66 |
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 each Fund’s average daily net assets. The Adviser has agreed, until at least May 1, 2024, 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, and extraordinary expenses) from exceeding the expense limitations for the Funds listed in the table below.
The management fee rates and expense limitations for the period ended June 30, 2023, are as follows:
| Fund | Management Fees | Expense Limitations | ||||||
| Agribusiness ETF | 0.50 | % | 0.56 | % | ||||
| Gold Miners ETF | 0.50 | 0.53 | ||||||
| Junior Gold Miners ETF | 0.50 | 0.56 | ||||||
| Low Carbon Energy ETF | 0.50 | 0.62 | ||||||
| Oil Refiners ETF | 0.50 | 0.59 | ||||||
| Rare Earth/Strategic Metals ETF | 0.50 | 0.57 | ||||||
| Steel ETF | 0.50 | 0.55 | ||||||
| Uranium+Nuclear Energy ETF | 0.50 | 0.60 | ||||||
Refer to the Statements of Operations for amounts waived/assumed by the Adviser.
The Future of Food ETF, Green Metals ETF, and effective January 1, 2022, Natural Resources ETF and Oil Services ETF utilize a unitary management fee structure where the Adviser is responsible for all expenses of the Fund, (excluding the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) until at least May 1, 2024.
| Fund | Unitary Management Fee Rate | |||
| Future of Food ETF | 0.69 | % | ||
| Green Metals ETF | 0.59 | |||
| Natural Resources ETF | 0.49 | |||
| Oil Services ETF | 0.35 | |||
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—Capital Share Transactions—As of June 30, 2023, 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”).
The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of a designated portfolio of securities (“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, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 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 transfer agent. In addition, the Funds may impose variable fees on the purchase or redemption of Creation
| 67 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
Note 5—Investments—For the period ended June 30, 2023, purchases and sales of investments (excluding short-term investments and in-kind capital share transactions) and the purchases and sales of investments resulting from in-kind capital share transactions (excluding short-term investments) were as follows:
| In-Kind Capital Share Transactions | ||||||||||||||||
| Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
| Agribusiness ETF | $ | 75,976,030 | $ | 62,807,277 | $ | — | $ | 175,107,027 | ||||||||
| Future of Food ETF | 296,375 | 232,856 | 906,105 | — | ||||||||||||
| Gold Miners ETF | 1,123,605,640 | 986,391,825 | 1,609,587,495 | 2,214,283,887 | ||||||||||||
| Green Metals ETF | 3,163,523 | 1,940,240 | 2,378,635 | — | ||||||||||||
| Junior Gold Miners ETF | 489,221,127 | 439,813,698 | 290,049,525 | 221,349,971 | ||||||||||||
| Low Carbon Energy ETF | 16,095,011 | 15,171,679 | 5,049,868 | 22,259,266 | ||||||||||||
| Natural Resources ETF | 24,762,038 | 22,657,067 | 13,654,410 | 19,321,341 | ||||||||||||
| Oil Refiners ETF | 3,302,051 | 3,681,394 | — | 5,137,243 | ||||||||||||
| Oil Services ETF | 206,553,236 | 192,260,655 | 2,692,436,105 | 2,949,108,839 | ||||||||||||
| Rare Earth/Strategic Metals ETF | 100,830,425 | 117,502,483 | 18,032,578 | 81,667,663 | ||||||||||||
| Steel ETF | 10,400,343 | 8,828,964 | 63,014,716 | 54,303,130 | ||||||||||||
| Uranium+Nuclear Energy ETF | 19,077,552 | 18,262,265 | 4,062,874 | 2,839,236 | ||||||||||||
Note 6—Income Taxes—As of June 30, 2023, for Federal income tax purposes, the identified cost, gross unrealized appreciation, 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 | $ | 1,332,939,088 | $ | 46,890,061 | $ | (234,899,126 | ) | $ | (188,009,065 | ) | ||||||
| Future of Food ETF | 4,251,072 | 92,580 | (910,729 | ) | (818,149 | ) | ||||||||||
| Gold Miners ETF | 12,226,483,321 | 908,992,566 | (1,188,271,643 | ) | (279,279,077 | ) | ||||||||||
| Green Metals ETF | 30,326,998 | 1,662,240 | (7,261,613 | ) | (5,599,373 | ) | ||||||||||
| Junior Gold Miners ETF | 4,657,823,623 | 261,221,138 | (1,054,439,496 | ) | (793,218,358 | ) | ||||||||||
| Low Carbon Energy ETF | 233,665,172 | 30,650,286 | (52,279,983 | ) | (21,629,697 | ) | ||||||||||
| Natural Resources ETF | 131,055,845 | 14,998,061 | (8,914,016 | ) | 6,084,045 | |||||||||||
| Oil Refiners ETF | 33,603,811 | 1,555,755 | (3,356,898 | ) | (1,801,143 | ) | ||||||||||
| Oil Services ETF | 2,414,672,813 | 45,783,662 | (270,495,688 | ) | (224,712,026 | ) | ||||||||||
| Rare Earth/Strategic Metals ETF | 599,817,350 | 149,854,752 | (109,522,966 | ) | 40,331,786 | |||||||||||
| Steel ETF | 137,496,965 | 4,683,344 | (20,821,003 | ) | (16,137,659 | ) | ||||||||||
| Uranium+Nuclear Energy ETF | 60,528,382 | 7,838,708 | (1,838,070 | ) | 6,000,638 | |||||||||||
The tax character of dividends paid to shareholders will be determined at the end of the current fiscal year.
At December 31, 2022, 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 | $ | (222,942,771 | ) | $ | (554,532,601 | ) | $ | (777,475,372 | ) | |||
| Future of Food ETF | (98,221 | ) | – | (98,221 | ) | |||||||
| Gold Miners ETF | (2,025,014,743 | ) | (9,862,528,556 | ) | (11,887,543,299 | ) | ||||||
| Green Metals ETF | (975,397 | ) | (37,520 | ) | (1,012,917 | ) | ||||||
| Junior Gold Miners ETF | (1,682,967,033 | ) | (3,088,915,036 | ) | (4,771,882,069 | ) | ||||||
| Low Carbon Energy ETF | (9,742,287 | ) | (54,443,163 | ) | (64,185,450 | ) | ||||||
| Natural Resources ETF | (10,260,864 | ) | (43,588,429 | ) | (53,849,293 | ) | ||||||
| Oil Refiners ETF | (5,157,696 | ) | (5,355,728 | ) | (10,513,424 | ) | ||||||
| Oil Services ETF | (306,893,389 | ) | (1,708,561,033 | ) | (2,015,454,422 | ) | ||||||
| Rare Earth/Strategic Metals ETF | (75,995,355 | ) | (247,299,039 | ) | (323,294,394 | ) | ||||||
| Steel ETF | (16,288,914 | ) | (146,024,957 | ) | (162,313,871 | ) | ||||||
| Uranium+Nuclear Energy ETF | (13,904,116 | ) | (71,429,462 | ) | (85,333,578 | ) | ||||||
| 68 |
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, 2023, the Funds did not incur any interest or penalties.
Note 7—Principal Risks— Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) 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 economic developments and political conflicts, or natural or other disasters, such as the recent coronavirus outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets. Certain securities of Chinese issuers are, or may in the future become restricted, and the Funds may be forced to sell such restricted securities and incur a loss as a result.
Following Russia’s large-scale invasion of Ukraine, governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but trading limitations have remained. There is no assurance that these disruptions will not continue.
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 a Trustee can elect to defer receipt of 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 of the Trust 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. Effective January 1, 2022, Natural Resources ETF and Oil Services ETF converted to a unitary management fee structure. For these Funds, the liability of the Plan shown as “Deferred Trustee fees” in the Statements of Asset and Liabilities represents amounts accrued through December 31, 2021. Future of Food ETF and Green
| 69 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Metals ETF commenced operations with a unitary management fee and therefore bear no costs or liabilities relative to the Plan.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of 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. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. 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 Fund 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 cash collateral, if any, at June 30, 2023 is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of June 30, 2023:
| Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
| Agribusiness ETF | $ | 47,671,200 | $ | 47,253,786 | $ | 2,600,972 | $ | 49,854,758 | ||||||||
| Future of Food ETF | 140,439 | 129,532 | 21,487 | 151,019 | ||||||||||||
| Gold Miners ETF | 80,701,201 | 44,964,475 | 37,916,993 | 82,881,468 | ||||||||||||
| Green Metals ETF | 830,302 | 384,877 | 468,241 | 853,118 | ||||||||||||
| Junior Gold Miners ETF | 202,070,631 | 83,919,759 | 127,014,364 | 210,934,123 | ||||||||||||
| Low Carbon Energy ETF | 20,519,016 | 11,021,593 | 9,952,814 | 20,974,407 | ||||||||||||
| Natural Resources ETF | 6,966,285 | 2,060,840 | 5,212,797 | 7,273,637 | ||||||||||||
| Oil Refiners ETF | 164,702 | – | 173,380 | 173,380 | ||||||||||||
| Oil Services ETF | 151,904,221 | 18,462,075 | 131,222,986 | 149,685,061 | ||||||||||||
| Rare Earth/Strategic Metals ETF | 151,388,488 | 31,159,446 | 123,905,814 | 155,065,260 | ||||||||||||
| Steel ETF | 16,734,951 | 7,730,911 | 9,484,000 | 17,214,911 | ||||||||||||
| Uranium+Nuclear Energy ETF | 15,126,709 | 6,161,710 | 9,641,557 | 15,803,267 | ||||||||||||
| 70 |
The following table represents money market fund investments held as collateral by type of security on loan as of June 30, 2023:
| Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||
| Fund | Equity Securities | |||
| Agribusiness ETF | $ | 47,253,786 | ||
| Future of Food ETF | 129,532 | |||
| Gold Miners ETF | 44,964,475 | |||
| Green Metals ETF | 384,877 | |||
| Junior Gold Miners ETF | 83,919,759 | |||
| Low Carbon Energy ETF | 11,021,593 | |||
| Natural Resources ETF | 2,060,840 | |||
| Oil Services ETF | 18,462,075 | |||
| Rare Earth/Strategic Metals ETF | 31,159,446 | |||
| Steel ETF | 7,730,911 | |||
| Uranium+Nuclear Energy ETF | 6,161,710 | |||
| * | Remaining contractual maturity: 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 based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2023, the following Funds borrowed under this Facility:
| Fund | Days Outstanding |
Average Daily Loan Balance |
Average Interest Rate | |||||||||
| Agribusiness ETF | 138 | $1,519,677 | 6.14 | % | ||||||||
| Gold Miners ETF | 106 | 10,263,960 | 5.93 | |||||||||
| Green Metals ETF | 179 | 323,945 | 6.10 | |||||||||
| Junior Gold Miners ETF | 49 | 9,985,369 | 5.98 | |||||||||
| Low Carbon Energy ETF | 179 | 1,855,544 | 6.10 | |||||||||
| Natural Resources ETF | 174 | 612,039 | 6.09 | |||||||||
| Oil Refiners ETF | 168 | 157,218 | 6.09 | |||||||||
| Oil Services ETF | 81 | 3,243,423 | 6.01 | |||||||||
| Rare Earth/Strategic Metals ETF | 139 | 1,337,527 | 6.09 | |||||||||
| Steel ETF | 129 | 292,707 | 5.99 | |||||||||
| Uranium+Nuclear Energy ETF | 109 | 188,364 | 6.26 | |||||||||
Outstanding loan balances as of June 30, 2023, if any, are reflected in the Statements of Assets and Liabilities.
Note 11—Share Split— In 2020, the Board of Trustees approved a 1 for 20 reverse share split for Oil Services ETF, and 1 for 3 reverse share split for Rare Earth/Strategic Metals ETF. On April 15, 2020, shares began trading on a split-adjusted basis. The Financial Highlights prior to April 15, 2020 have been adjusted to reflect these reverse share splits.
| 71 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
June 30, 2023 (unaudited)
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 Africa Index ETF, Agribusiness ETF, Brazil Small-Cap ETF, China Growth Leaders ETF, ChiNext ETF, Digital India ETF, Egypt Index ETF, Gold Miners ETF, Green Metals ETF, India Growth Leaders ETF, Indonesia Index ETF, Israel ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Steel 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 the VanEck China Growth Leaders ETF and 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 5, 2023. 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 of the Funds and the Funds’ peer funds (certain other registered funds), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability (or the absence of profitability) of the Adviser and the Sub-Adviser (with respect to the China Funds) 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 has a different investment objective 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 5, 2023 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, where applicable, (i) (with respect to the VanEck Digital India ETF, Green Metals ETF, Natural Resources ETF and Oil Services ETF) (the “Unitary Funds”) the Adviser’s agreement to pay all of the direct expenses of the Funds (excluding the fee payment under the Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) and (ii) (with respect to all other Funds) (the “Non-Unitary Funds”) 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 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.
| 72 |
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 Fund, the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each 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 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 Funds’ expenses and performance to that of certain other registered funds. The Trustees noted that the information provided showed that each Fund (except as noted) had management fees (after the effect of any applicable fee waiver) below the average and median of its respective peer group of funds, each of the VanEck Agribusiness ETF, Gold Miners ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Rare Earth/Strategic Metals ETF and Uranium + Nuclear Energy ETF had management fees (after the effect of any applicable fee waiver) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF and Vietnam ETF had management fees above the average and below the median of its respective peer group of funds, each of the VanEck Green Metals ETF and Natural Resources ETF had management fees above the average and median of its respective peer group of funds, the VanEck Digital India ETF had management fees above the average and equal to the median of its peer group of funds, and the VanEck Oil Services ETF had management fees equal to the average and median of its peer group of funds. The Trustees also noted that the information provided showed that each Fund (except as noted) had a total expense ratio (after the effect of any applicable expense limitation) below the average and median of its respective peer group of funds, each of the VanEck Brazil Small-Cap ETF, Gold Miners ETF, and Oil Services ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF, Israel ETF, Junior Gold Miners ETF and Vietnam ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and above the median of its respective peer group of funds, each of the VanEck ChiNext ETF, Digital India ETF, Green Metals ETF and Oil Refiners ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and equal to the median of its respective peer group of funds, each of the VanEck Egypt Index ETF, Low Carbon Energy ETF and Uranium + Nuclear Energy ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and median of its respective peer group of funds, and the VanEck India Growth Leaders ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and below the median of its peer group of funds. The Trustees reviewed the amount by which certain Funds’ management fees and/or total expense ratios (after the effect of any applicable fee waivers and/or expense limitations) 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 management fees paid by the Funds were reasonable in light of the performance of the 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 and the fact that the Sub-Adviser had not identified any such monetary benefits.
The Trustees also considered information provided by the Adviser and Sub-Adviser (with respect to the China Funds) about their overall profitability and profitability or loss in respect of each Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap, as applicable, 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 potential variability in the net assets of the Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The
| 73 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
June 30, 2023 (unaudited) (continued)
Trustees also evaluated the extent to which management fees for the Funds effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders of the Unitary Funds and noted that the Adviser has capped expenses on each of the Non-Unitary Funds 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 Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an 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 and the profits earned by the Sub-Adviser with respect to the China Funds, if any, were reasonable in light of the nature and quality of the services received by such Funds.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 5, 2023 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, at the time of their considerations, each Agreement is in the best interest of each Fund and such Fund’s shareholders.
VanEck Future of Food ETF
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 Associates Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Future of Food 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 5, 2023. At that meeting, the
Trustees discussed the information the Adviser 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 of the Fund and the Fund’s peer funds (certain other registered funds), information about the advisory services provided to the Fund and the personnel providing those services, and the profitability (or the absence of profitability) and the benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. In addition, as noted below, the Trustees reviewed certain performance information for the Fund which was not provided by Broadridge and which did not compare the Fund’s performance to the performance of its peer group. The Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Fund.
The Independent Trustees’ consideration of the Investment Management Agreement 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 5, 2023 meeting regarding the 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, including the background and experience of the portfolio managers and others involved in the management and administration of the Fund. The Trustees also considered the terms of, and scope of services that the Adviser provides under, the Investment Management Agreement, including the Adviser’s agreement to pay all of the direct expenses of the Fund (excluding the fee payment under the Investment Management
| 74 |
Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses).
In evaluating the performance of the Fund, the Trustees reviewed various performance metrics, including various data from Broadridge comparing the Fund’s performance to that of certain other registered funds. The Trustees also considered information from the Adviser regarding the performance of the Fund against its benchmark. The Trustees noted that the Fund had underperformed its benchmark for the one-year period ended December 31, 2022 and the period since its inception on November 30, 2021 through December 31, 2022, but also that the Fund had outperformed another benchmark that the Adviser informed the Board was more representative of the Fund’s investment strategy for the one-year period ended December 31, 2022. Based on the totality of the foregoing, the Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.
The Trustees also considered information relating to the financial condition of the Adviser and the current status, as they understood it, of the Adviser’s compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Fund’s expenses and performance to that of certain other registered funds. The Trustees noted that the information provided showed that the Fund had management fees above the average and median of its peer group of funds. The Trustees also noted that the information provided showed that the Fund had a total expense ratio above the average and median of its peer group of funds. The Trustees reviewed the amount by which the Fund’s management fees and total expense ratio exceeded the average and median of its peer group 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 management fees paid by the Fund were reasonable in light of the performance of the Fund and the quality of services received.
The Trustees also considered the benefits, other than the fees under the Investment Management Agreement, received by the Adviser from serving as adviser to the Fund.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and the fact that the Adviser did not earn any profits from managing the Fund. The Trustees reviewed the Fund’s asset size and expense ratio and noted that the Investment Management Agreement does not include breakpoints in the advisory fee rates as asset levels in the Fund increase. The Trustees considered the potential variability in the net assets of the Fund 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 Fund effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for the Fund is reasonable and appropriate in relation to the current asset size of the Fund and the other factors discussed above and that the advisory fee rate for the Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 5, 2023 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, at the time of their considerations, the Investment Management Agreement is in the best interest of the Fund and the Fund’s shareholders.
| 75 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
June 30, 2023 (unaudited) (continued)
VanEck CMCI Commodity Strategy ETF
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 CMCI Commodity Strategy ETF (formerly VanEck Commodity Index 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 5, 2023. At that meeting, the Trustees received materials from the Adviser. The Independent Trustees’ consideration of the Investment Management Agreement 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 5, 2023 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, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Fund. The Trustees considered the terms of, 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 (inclusive of any subsidiary expenses) excluding the fee payment under the Investment Management Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes 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 had 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 5, 2023 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, at the time of their considerations, the Investment Management Agreement is in the best interest of the Fund and its shareholders.
| 76 |
VANECK ETF TRUST
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for many Funds, redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2022 to December 31, 2022 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
| 77 |
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 ETF Trust (the “Trust”) 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 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 http://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-PORT filings are available on the Commission’s website at http://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: | VanEck Associates Corporation | ||
| Distributor: | VanEck Securities Corporation | ||
| 666 Third Avenue, New York, NY 10017 | |||
| vaneck.com | |||
| Account Assistance: | 800.826.2333 | NRSAR |
 |
SEMI-ANNUAL REPORT June 30, 2023 (unaudited) |
| Africa Index ETF | AFK |
| Brazil Small-Cap ETF | BRF |
| China Growth Leaders ETF | GLCN |
| ChiNext ETF | CNXT |
| Digital India ETF | DGIN |
| Egypt Index ETF | EGPT |
| India Growth Leaders ETF | GLIN |
| Indonesia Index ETF | IDX |
| Israel ETF | ISRA |
| Vietnam ETF | VNM |
| 800.826.2333 | vaneck.com |
Certain information contained in this President’s 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, 2023.
VANECK ETF TRUST
June 30, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways.” The three major forces—monetary policy, government spending and economic growth—are negative or muted. This remains my view despite events in the last few months, discussed at the end of this letter.
Discussion
To recap this cycle: stocks and bonds historically do not perform well when the Fed tightens monetary conditions, and that’s just what the Fed announced it would be doing at the end of 2021. This would include raising rates and changing its balance sheet actions, which doesn’t create a great environment for financial assets.
There are three things investors continue to face, none of which is particularly positive for financial assets.
1. Monetary Policy: Tightening
Money supply exploded during the COVID–19 pandemic, but it started shrinking in late 2022. This withdrawal of money supply is bad for stock and bond returns.
A second, modern component to monetary policy is the Fed balance sheet. After buying bonds during the pandemic, the Fed has now started shrinking the balance sheet—from a high of almost $9 trillion in early 2022, assets dropped to just short of $8.4 trillion by the end of June.1 The Fed has only shrunk its balance sheet once before, so we are facing an unknown.
As we’ve been saying since the summer of 2022, when wage inflation was confirmed, what the Fed is fighting is wage inflation. That is the kind of inflation that is endemic and hard to manage once it takes hold, not least because it creates a spiraling effect. And this is the battle that is at full pitch—the labor market has remained strong.
While headline inflation is falling, we are still in the “higher for longer” camp. The Fed seems likely to continue holding, or even raising, interest rates and will probably continue to shrink its balance sheet. This is not supportive of stock or bond markets.
2. Fiscal Tightening
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, who won control of the House of Representatives, are looking to slow government spending. And even Democrats like Larry Summers believe that stimulus spending during the pandemic led to inflation. The debt ceiling compromise and the Supreme Court rejection of student debt relief continue this trend.
3. Global Growth is at Low Levels
Both Chinese and European growth, for different reasons, were slow in 2022. Over the last 20 years, the U.S. and China have been the two main pillars of global growth. In China, the post-COVID-19 growth has been more domestic and consumer-led, not enough to overcome the property sector malaise.
China growth estimates range from low (1% to 3%) to “high” (4% to 5%). Many “bulls” point to China as a potential catalyst for a better-than-expected economic outlook. I don’t see it. In coming years, we will likely have to look to India, Indonesia and Africa to take up the baton as pillars of higher percentage global growth.
I don’t believe that we will escape these three dampeners on stock and bond returns in 2023—higher interest rates, no government spending growth and tepid global growth. We will need upside corporate profitability surprises or high Chinese growth to substantially boost markets this year, in our view.
However, after the 2022 losses, bond investments are now offering attractive yields, so this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) Because of higher interest rates, bonds can offer adequate returns, as they did in the 1970s even though that decade was the worst for interest rates in the last 100 years.
| 1 |
VANECK ETF TRUST
PRESIDENT’S LETTER
(unaudited) (continued)
Outlook
My basic outlook favoring bonds hasn’t changed. But I should address two events of the first half of this year—monetary stimuli and AI (artificial intelligence).
There were two unexpected monetary stimuli in early 2023, but I think both are temporary. The first was the wave of money from Asia at year-end: Japanese bond buying of approximately $600 billion and Chinese money supply growth post-COVID-19. The second monetary stimulus was the credit the Fed provided to banks during the mini-bank crisis of March. While I believe this crisis will prove to be idiosyncratic in nature, I’m worried that it could lead to a contraction of credit, but this may be offset by China reopening. Also, I think it is important to note that substantially less credit flows to the real economy from banks (through loans they continue to hold) and much more through alternative credit funds. These funds typically don’t offer daily liquidity, so any credit crunch is likely to be extenuated over several quarters. So, I don’t see these two events as significantly changing the “sideways” trajectory of 2023.
AI and the instant success of ChatGPT have driven another wave of enthusiasm for tech stocks, but the valuations seem stretched to me. And large-cap earnings are still on a downward or flat trajectory, so I’m not chasing this rally.
My final thought is that, while I think the Fed won’t stimulate for a while, this is a good time to get positioned in assets that would benefit from that stimulus, namely gold and BTC (bitcoin).
We thank you for investing with VanEck. On the following pages, you will find financial statements for each of the funds for the six month period ended June 30, 2023. 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
CEO and President
VanEck ETF Trust
July 7, 2023
PS The investing outlook can change suddenly. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”.3 Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
1 U.S. Federal Reserve: FEDERAL RESERVE Statistical Release, June 22, 2023, https://www.federalreserve.gov/releases/h41/20230629/
2 What to Buy? Bonds. When? Now, https://www.vaneck.com/us/en/blogs/investment-outlook/jan-van-eck-what-to-buy-bonds-when-now/.
3 https://www.vaneck.com/us/en/subscribe/
| 2 |
VANECK ETF TRUST
(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, 2023 to June 30, 2023.
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.
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) |
||||||
| Africa Index ETF | |||||||||
| Actual | $1,000.00 | $932.10 | 1.23% | $5.89 | |||||
| Hypothetical (b) | $1,000.00 | $1,018.70 | 1.23% | $6.16 | |||||
| Brazil Small-Cap ETF | |||||||||
| Actual | $1,000.00 | $1,333.30 | 0.67% | $3.88 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.47 | 0.67% | $3.36 | |||||
| China Growth Leaders ETF | |||||||||
| Actual | $1,000.00 | $911.60 | 0.60% | $2.84 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.82 | 0.60% | $3.01 | |||||
| ChiNext ETF | |||||||||
| Actual | $1,000.00 | $906.30 | 0.65% | $3.07 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.57 | 0.65% | $3.26 | |||||
| Digital India ETF | |||||||||
| Actual | $1,000.00 | $1,119.40 | 0.76% | $3.99 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.03 | 0.76% | $3.81 | |||||
| Egypt Index ETF | |||||||||
| Actual | $1,000.00 | $938.70 | 1.81% | $8.70 | |||||
| Hypothetical (b) | $1,000.00 | $1,015.82 | 1.81% | $9.05 | |||||
| India Growth Leaders ETF | |||||||||
| Actual | $1,000.00 | $1,115.30 | 0.95% | $4.98 | |||||
| Hypothetical (b) | $1,000.00 | $1,020.08 | 0.95% | $4.76 |
| 3 |
VANECK ETF TRUST
EXPLANATION OF EXPENSES
(unaudited) (continued)
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) |
||||||
| Indonesia Index ETF | |||||||||
| Actual | $1,000.00 | $1,044.00 | 0.59% | $2.99 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.87 | 0.59% | $2.96 | |||||
| Israel ETF | |||||||||
| Actual | $1,000.00 | $987.50 | 0.60% | $2.96 | |||||
| Hypothetical (b) | $1,000.00 | $1,021.82 | 0.60% | $3.01 | |||||
| Vietnam ETF | |||||||||
| Actual | $1,000.00 | $1,132.60 | 0.78% | $4.12 | |||||
| Hypothetical (b) | $1,000.00 | $1,020.93 | 0.78% | $3.91 |
| (a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2023), 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 the days in the fiscal year (to reflect the one-half year period). |
| (b) | Assumes annual return of 5% before expenses |
| 4 |
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.3% | ||||||||
| Australia: 5.1% | ||||||||
| AVZ Minerals Ltd. *∞ | 1,399,901 | $ | 293,531 | |||||
| Paladin Energy Ltd. * | 2,013,752 | 989,665 | ||||||
| Perseus Mining Ltd. | 922,306 | 1,023,799 | ||||||
| 2,306,995 | ||||||||
| Canada: 8.1% | ||||||||
| B2Gold Corp. (USD) | 40,604 | 144,956 | ||||||
| Barrick Gold Corp. (USD) | 72,132 | 1,221,195 | ||||||
| Ivanhoe Mines Ltd. * † | 253,408 | 2,317,201 | ||||||
| 3,683,352 | ||||||||
| China: 3.7% | ||||||||
| CMOC Group Ltd. (HKD) † | 3,219,000 | 1,694,638 | ||||||
| Egypt: 4.9% | ||||||||
| Centamin Plc (GBP) | 495,211 | 575,179 | ||||||
| Commercial International Bank Egypt SAE (USD) (GDR) † | 1,469,764 | 1,675,531 | ||||||
| 2,250,710 | ||||||||
| Ghana: 2.2% | ||||||||
| Kosmos Energy Ltd. (USD) * | 168,633 | 1,010,112 | ||||||
| India: 1.1% | ||||||||
| MakeMyTrip Ltd. (USD) * | 18,836 | 508,195 | ||||||
| Indonesia: 0.8% | ||||||||
| Golden Agri-Resources Ltd. (SGD) | 2,028,600 | 367,810 | ||||||
| Kenya: 5.1% | ||||||||
| Equity Group Holdings Plc | 3,543,400 | 963,976 | ||||||
| Safaricom Plc | 10,810,500 | 1,345,546 | ||||||
| 2,309,522 | ||||||||
| Morocco: 15.8% | ||||||||
| Attijariwafa Bank | 65,825 | 2,950,736 | ||||||
| Bank of Africa | 59,617 | 1,065,369 | ||||||
| Banque Centrale Populaire | 89,162 | 2,371,736 | ||||||
| Co. Sucrerie Marocaine et de Raffinage | 41,437 | 815,792 | ||||||
| 7,203,633 | ||||||||
| Nigeria: 5.4% | ||||||||
| Guaranty Trust Holding Co. Plc | 15,748,709 | 720,529 | ||||||
| MTN Nigeria Communications Plc | 2,940,775 | 1,050,991 | ||||||
| Zenith Bank Plc | 14,952,315 | 670,886 | ||||||
| 2,442,406 | ||||||||
| Norway: 0.1% | ||||||||
| Scatec ASA 144A | 9,500 | 62,304 | ||||||
| South Africa: 33.3% | ||||||||
| Absa Group Ltd. | 64,498 | 573,532 | ||||||
| African Rainbow Minerals Ltd. | 8,953 | 94,106 | ||||||
| Anglo American Platinum Ltd. † | 5,008 | 225,540 | ||||||
| Anglo American Plc (GBP) | 67,444 | 1,922,409 | ||||||
| Aspen Pharmacare Holdings Ltd. | 25,059 | 243,538 | ||||||
| AVI Ltd. | 22,556 | 81,147 | ||||||
| Number of Shares | Value | |||||||
| South Africa (continued) | ||||||||
| Bid Corp. Ltd. | 18,227 | $ | 398,758 | |||||
| Bidvest Group Ltd. | 15,718 | 217,683 | ||||||
| Capitec Bank Holdings Ltd. † | 7,781 | 645,764 | ||||||
| Clicks Group Ltd. † | 17,192 | 237,787 | ||||||
| Discovery Ltd. * | 35,720 | 275,776 | ||||||
| Exxaro Resources Ltd. | 12,339 | 107,220 | ||||||
| FirstRand Ltd. | 401,374 | 1,457,099 | ||||||
| Gold Fields Ltd. (ADR) | 59,889 | 828,265 | ||||||
| Growthpoint Properties Ltd. | 267,233 | 164,941 | ||||||
| Harmony Gold Mining Co. Ltd. (ADR) † | 31,909 | 134,018 | ||||||
| Impala Platinum Holdings Ltd. | 60,243 | 399,853 | ||||||
| Investec Plc (GBP) | 44,399 | 248,817 | ||||||
| Life Healthcare Group Holdings Ltd. | 61,135 | 66,503 | ||||||
| Momentum Metropolitan Holdings | 92,101 | 88,138 | ||||||
| Mr Price Group Ltd. | 18,607 | 141,408 | ||||||
| MTN Group Ltd. | 97,278 | 712,087 | ||||||
| MultiChoice Group | 19,238 | 97,243 | ||||||
| Naspers Ltd. | 7,673 | 1,381,076 | ||||||
| Nedbank Group Ltd. | 33,204 | 401,850 | ||||||
| Netcare Ltd. | 95,150 | 72,579 | ||||||
| Northam Platinum Holdings Ltd. * | 16,524 | 109,756 | ||||||
| Old Mutual Ltd. | 320,447 | 205,606 | ||||||
| Pepkor Holdings Ltd. 144A | 103,106 | 90,034 | ||||||
| Remgro Ltd. | 36,429 | 283,564 | ||||||
| Resilient REIT Ltd. | 22,210 | 49,743 | ||||||
| Sanlam Ltd. | 137,605 | 425,025 | ||||||
| Sappi Ltd. † | 22,426 | 46,309 | ||||||
| Sasol Ltd. (ADR) † | 39,069 | 483,674 | ||||||
| Shoprite Holdings Ltd. | 35,349 | 422,425 | ||||||
| Sibanye Stillwater Ltd. (ADR) † | 49,352 | 307,956 | ||||||
| SPAR Group Ltd. † | 11,688 | 65,062 | ||||||
| Standard Bank Group Ltd. | 100,176 | 942,309 | ||||||
| Thungela Resources Ltd. | 9,925 | 77,566 | ||||||
| Tiger Brands Ltd. † | 9,146 | 80,659 | ||||||
| Vodacom Group Ltd. † | 35,757 | 221,987 | ||||||
| Woolworths Holdings Ltd. | 54,625 | 206,582 | ||||||
| 15,235,394 | ||||||||
| Tanzania: 3.0% | ||||||||
| AngloGold Ashanti Ltd. (ADR) † | 28,504 | 601,149 | ||||||
| Helios Towers Plc (GBP) * | 653,999 | 776,990 | ||||||
| 1,378,139 | ||||||||
| United Arab Emirates: 3.6% | ||||||||
| Itissalat Al-Maghrib (MAD) | 170,348 | 1,633,869 | ||||||
| United Kingdom: 4.8% | ||||||||
| Airtel Africa Plc 144A | 723,959 | 992,197 | ||||||
| Endeavour Mining Plc | 44,200 | 1,062,621 | ||||||
| Kumba Iron Ore Ltd. (ZAR) | 4,959 | 116,112 | ||||||
| 2,170,930 | ||||||||
See Notes to Financial Statements
| 5 |
VANECK AFRICA INDEX ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| United States: 0.7% | ||||||||
| Royal Caribbean Cruises Ltd. * | 3,158 | $ | 327,611 | |||||
| Zambia: 2.6% | ||||||||
| First Quantum Minerals Ltd. (CAD) | 50,652 | 1,199,648 | ||||||
| Zimbabwe: 0.0% | ||||||||
| Delta Corp. Ltd. | 15,980 | 5,897 | ||||||
| Ecocash Holdings Zimbabwe Ltd. * | 32,900 | 823 | ||||||
| 6,720 | ||||||||
| Total Common Stocks (Cost: $44,322,413) | 45,791,988 | |||||||
| Number of Shares | Value | |||||||
| RIGHTS: 0.0% (Cost: $0) | ||||||||
| Morocco: 0.0% | ||||||||
| Bank of Africa, MAD 170.00, exp. 10/03/23 * | 25 | $ | 7 | |||||
| Total Investments Before Collateral for Securities Loaned: 100.3% (Cost: $44,322,413) | 45,791,995 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 2.4% | ||||||||
| Money Market Fund: 2.4% (Cost: $1,116,905) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 1,116,905 | 1,116,905 | ||||||
| Total Investments: 102.7% (Cost: $45,439,318) | 46,908,900 | |||||||
| Liabilities in excess of other assets: (2.7)% | (1,215,180) | |||||||
| NET ASSETS: 100.0% | $ | 45,693,720 | ||||||
Definitions:
| ADR | American Depositary Receipt |
| CAD | Canadian Dollar |
| GBP | British Pound |
| GDR | Global Depositary Receipt |
| HKD | Hong Kong Dollar |
| MAD | Moroccan Dirham |
| SGD | Singapore Dollar |
| USD | United States Dollar |
| ZAR | South African Rand |
Footnotes:
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $5,708,154. |
| 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 $1,144,535, or 2.5% of net assets. |
See Notes to Financial Statements
| 6 |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Financials | 34.8 | % | $ | 15,967,074 | ||||
| Materials | 32.3 | 14,801,916 | ||||||
| Communication Services | 14.9 | 6,830,908 | ||||||
| Consumer Discretionary | 5.8 | 2,654,906 | ||||||
| Consumer Staples | 5.5 | 2,475,337 | ||||||
| Energy | 4.8 | 2,184,563 | ||||||
| Health Care | 0.8 | 382,620 | ||||||
| Industrials | 0.5 | 217,683 | ||||||
| Real Estate | 0.5 | 214,684 | ||||||
| Utilities | 0.1 | 62,304 | ||||||
| 100.0 | % | $ | 45,791,995 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | — | $ | 2,013,464 | $ | 293,531 | $ | 2,306,995 | ||||||||
| Canada | 3,683,352 | — | — | 3,683,352 | ||||||||||||
| China | — | 1,694,638 | — | 1,694,638 | ||||||||||||
| Egypt | 1,675,531 | 575,179 | — | 2,250,710 | ||||||||||||
| Ghana | 1,010,112 | — | — | 1,010,112 | ||||||||||||
| India | 508,195 | — | — | 508,195 | ||||||||||||
| Indonesia | — | 367,810 | — | 367,810 | ||||||||||||
| Kenya | 2,309,522 | — | — | 2,309,522 | ||||||||||||
| Morocco | 4,831,897 | 2,371,736 | — | 7,203,633 | ||||||||||||
| Nigeria | 1,771,520 | 670,886 | — | 2,442,406 | ||||||||||||
| Norway | — | 62,304 | — | 62,304 | ||||||||||||
| South Africa | 5,094,161 | 10,141,233 | — | 15,235,394 | ||||||||||||
| Tanzania | 601,149 | 776,990 | — | 1,378,139 | ||||||||||||
| United Arab Emirates | 1,633,869 | — | — | 1,633,869 | ||||||||||||
| United Kingdom | 992,197 | 1,178,733 | — | 2,170,930 | ||||||||||||
| United States | 327,611 | — | — | 327,611 | ||||||||||||
| Zambia | 1,199,648 | — | — | 1,199,648 | ||||||||||||
| Zimbabwe | 6,720 | — | — | 6,720 | ||||||||||||
| Rights * | 7 | — | — | 7 | ||||||||||||
| Money Market Fund | 1,116,905 | — | — | 1,116,905 | ||||||||||||
| Total Investments | $ | 26,762,396 | $ | 19,852,973 | $ | 293,531 | $ | 46,908,900 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 7 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 90.6% | ||||||||
| Automobiles & Components: 0.8% | ||||||||
| Mahle Metal Leve SA | 29,200 | $ | 283,816 | |||||
| Banks: 1.4% | ||||||||
| Inter & Co., Inc. (BDR) * | 155,300 | 480,346 | ||||||
| Capital Goods: 2.9% | ||||||||
| Aeris Industria E Comercio De Equipamentos Para Geracao De Energia SA * | 232,150 | 64,483 | ||||||
| Armac Locacao Logistica E Servicos SA | 57,650 | 180,359 | ||||||
| Iochpe Maxion SA | 74,552 | 194,469 | ||||||
| Kepler Weber SA | 70,800 | 139,879 | ||||||
| Mills Estruturas e Servicos de Engenharia SA | 82,100 | 193,239 | ||||||
| Tupy SA | 40,400 | 221,229 | ||||||
| 993,658 | ||||||||
| Commercial & Professional Services: 1.6% | ||||||||
| Ambipar Participacoes e Empreendimentos SA | 33,350 | 151,699 | ||||||
| Boa Vista Servicos SA * | 125,050 | 207,363 | ||||||
| Orizon Valorizacao de Residuos SA * | 24,500 | 190,803 | ||||||
| 549,865 | ||||||||
| Consumer Discretionary Distribution & Retail: 2.7% | ||||||||
| Grupo SBF SA | 75,700 | 210,111 | ||||||
| Pet Center Comercio e Participacoes SA | 199,650 | 274,362 | ||||||
| Via SA * | 968,600 | 434,921 | ||||||
| 919,394 | ||||||||
| Consumer Durables & Apparel: 9.0% | ||||||||
| Cury Construtora e Incorporadora SA | 97,300 | 326,149 | ||||||
| Cyrela Brazil Realty SA Empreendimentos e Participacoes | 175,600 | 738,237 | ||||||
| Direcional Engenharia SA | 62,500 | 256,490 | ||||||
| Ez Tec Empreendimentos e Participacoes SA | 110,502 | 425,096 | ||||||
| Grendene SA | 150,350 | 234,873 | ||||||
| Guararapes Confeccoes SA | 64,300 | 103,671 | ||||||
| MRV Engenharia e Participacoes SA | 234,500 | 566,636 | ||||||
| Vivara Participacoes SA | 75,100 | 446,691 | ||||||
| 3,097,843 | ||||||||
| Consumer Services: 7.6% | ||||||||
| Afya Ltd. * † | 18,087 | 253,942 | ||||||
| Anima Holding SA * | 189,700 | 166,000 | ||||||
| Arco Platform Ltd. * † | 3,528 | 42,830 | ||||||
| Arcos Dorados Holdings, Inc. | 70,235 | 719,909 | ||||||
| Cogna Educacao SA * | 1,066,150 | 725,878 | ||||||
| Cruzeiro do Sul Educacional SA | 55,650 | 44,746 | ||||||
| YDUQS Participacoes SA * | 138,150 | 571,850 | ||||||
| Zamp SA * | 114,700 | 108,994 | ||||||
| 2,634,149 | ||||||||
| Number of Shares | Value | |||||||
| Consumer Staples Distribution & Retail: 1.7% | ||||||||
| Cia Brasileira de Distribuicao (ADR) * † | 94,127 | $ | 362,389 | |||||
| Dimed SA Distribuidora da Medicamentos | 62,650 | 167,479 | ||||||
| Empreendimentos Pague Menos SA * | 66,757 | 56,465 | ||||||
| 586,333 | ||||||||
| Energy: 8.2% | ||||||||
| 3R Petroleum Oleo e Gas SA * | 163,201 | 1,017,406 | ||||||
| AES Brasil Energia SA | 177,772 | 454,807 | ||||||
| Enauta Participacoes SA | 60,400 | 173,321 | ||||||
| Karoon Energy Ltd. * | 400,952 | 528,596 | ||||||
| Modec, Inc. * † | 15,400 | 149,491 | ||||||
| Petroreconcavo SA | 128,800 | 515,663 | ||||||
| 2,839,284 | ||||||||
| Financial Services: 0.8% | ||||||||
| BR Advisory Partners Participacoes SA | 38,150 | 115,051 | ||||||
| Vinci Partners Investments Ltd. | 16,678 | 155,439 | ||||||
| 270,490 | ||||||||
| Food, Beverage & Tobacco: 8.3% | ||||||||
| Adecoagro SA † | 46,476 | 435,015 | ||||||
| BrasilAgro - Co. Brasileira de Propriedades Agricolas | 44,200 | 226,252 | ||||||
| BRF SA (ADR) * † | 450,973 | 856,849 | ||||||
| Camil Alimentos SA * | 76,900 | 113,386 | ||||||
| Jalles Machado SA | 120,500 | 189,249 | ||||||
| Marfrig Global Foods SA | 250,000 | 379,579 | ||||||
| Minerva SA | 193,200 | 428,912 | ||||||
| Tres Tentos Agroindustrial SA | 94,400 | 253,339 | ||||||
| 2,882,581 | ||||||||
| Health Care Equipment & Services: 5.2% | ||||||||
| Centro De Imagem Diagnosticos SA * | 28,650 | 142,407 | ||||||
| Fleury SA * | 227,987 | 764,210 | ||||||
| Hospital Mater Dei SA | 31,900 | 71,019 | ||||||
| Odontoprev SA | 175,740 | 460,619 | ||||||
| Oncoclinicas do Brasil Servicos Medicos SA * | 142,500 | 300,583 | ||||||
| Qualicorp Consultoria e Corretora de Seguros SA | 73,100 | 73,891 | ||||||
| 1,812,729 | ||||||||
| Insurance: 1.1% | ||||||||
| IRB-Brasil Resseguros SA * | 42,373 | 385,394 | ||||||
| Materials: 5.4% | ||||||||
| Cia Brasileira de Aluminio | 144,450 | 152,046 | ||||||
| Dexco SA * | 304,600 | 531,183 | ||||||
| ERO Copper Corp. * † | 46,970 | 950,214 | ||||||
| Irani Papel e Embalagem SA | 80,250 | 155,365 | ||||||
| Largo, Inc. * † | 18,920 | 80,788 | ||||||
| 1,869,596 | ||||||||
| Media & Entertainment: 0.4% | ||||||||
| VTEX * | 29,333 | 140,799 | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 0.3% | ||||||||
| Blau Farmaceutica SA | 24,450 | 95,028 | ||||||
See Notes to Financial Statements
| 8 |
| Number of Shares | Value | |||||||
| Real Estate Management & Development: 8.3% | ||||||||
| Aliansce Sonae Shopping Centers SA | 334,744 | $ | 1,723,286 | |||||
| Iguatemi SA | 166,250 | 778,440 | ||||||
| JHSF Participacoes SA | 195,500 | 207,822 | ||||||
| LOG Commercial Properties e Participacoes SA | 28,600 | 139,709 | ||||||
| 2,849,257 | ||||||||
| Semiconductors & Semiconductor Equipment: 1.6% | ||||||||
| SMART Global Holdings, Inc. * † | 18,585 | 539,151 | ||||||
| Software & Services: 2.3% | ||||||||
| Clear Sale SA * | 54,100 | 75,701 | ||||||
| Locaweb Servicos de Internet SA 144A | 193,500 | 346,734 | ||||||
| Sinqia SA * | 48,650 | 224,646 | ||||||
| Sonda SA | 303,512 | 147,581 | ||||||
| 794,662 | ||||||||
| Technology Hardware & Equipment: 0.7% | ||||||||
| Ituran Location and Control Ltd. | 7,369 | 171,992 | ||||||
| Multilaser Industrial SA * | 161,600 | 84,037 | ||||||
| 256,029 | ||||||||
| Telecommunication Services: 0.5% | ||||||||
| Oi SA * | 439,386 | 96,352 | ||||||
| Unifique Telecomunicacoes SA | 95,950 | 82,360 | ||||||
| 178,712 | ||||||||
| Transportation: 11.1% | ||||||||
| Azul SA (ADR) * † | 73,726 | 1,009,309 | ||||||
| EcoRodovias Infraestrutura e Logistica SA | 253,140 | 343,638 | ||||||
| Gol Linhas Aereas Inteligentes SA (ADR) * † | 80,371 | 438,826 | ||||||
| Hidrovias do Brasil SA * | 322,500 | 214,183 | ||||||
| Log-in Logistica Intermodal SA * | 10,550 | 113,075 | ||||||
| Movida Participacoes SA | 96,100 | 211,339 | ||||||
| Santos Brasil Participacoes SA | 510,600 | 1,083,433 | ||||||
| SIMPAR SA | 228,650 | 429,298 | ||||||
| 3,843,101 | ||||||||
| Utilities: 8.7% | ||||||||
| Alupar Investimento SA | 175,606 | 1,099,509 | ||||||
| Cia de Saneamento de Minas Gerais Copasa * | 126,688 | 559,594 | ||||||
| Cia de Saneamento do Parana * | 228,950 | 1,045,246 | ||||||
| Omega Energia SA * | 127,402 | 300,665 | ||||||
| 3,005,014 | ||||||||
| Total Common Stocks (Cost: $29,615,352) | 31,307,231 | |||||||
| PREFERRED SECURITIES: 9.5% | ||||||||
| Banks: 3.2% | ||||||||
| Banco ABC Brasil SA* | 56,320 | 224,306 | ||||||
| Banco do Estado do Rio Grande do Sul SA | 145,750 | 456,591 | ||||||
| Number of Shares | Value | |||||||
| Banks (continued) | ||||||||
| Banco Pan SA* | 228,500 | $ | 436,652 | |||||
| 1,117,549 | ||||||||
| Capital Goods: 2.2% | ||||||||
| Marcopolo SA | 380,559 | 414,083 | ||||||
| Randon SA Implementos e Participacoes | 135,400 | 344,142 | ||||||
| 758,225 | ||||||||
| Consumer; Cyclical: 0.8% | ||||||||
| Alpargatas SA* | 132,750 | 257,837 | ||||||
| Energy: 2.2% | ||||||||
| Raizen SA | 823,500 | 756,735 | ||||||
| Information Technology: 1.1% | ||||||||
| Cia de Ferro Ligas da Bahia | 24,050 | 243,453 | ||||||
| Taurus Armas SA | 47,950 | 150,914 | ||||||
| 394,367 | ||||||||
| Total Preferred Securities (Cost: $2,345,596) | 3,284,713 | |||||||
| Total Investments Before Collateral for Securities Loaned: 100.1% (Cost: $31,960,948) | 34,591,944 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 6.7% | ||||||||
| Money Market Fund: 6.7% (Cost: $2,301,920) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 2,301,920 | 2,301,920 | ||||||
| Total Investments: 106.8% (Cost: $34,262,868) | 36,893,864 | |||||||
| Liabilities in excess of other assets: (6.8)% | (2,351,596) | |||||||
| NET ASSETS: 100.0% | $ | 34,542,268 | ||||||
See Notes to Financial Statements
| 9 |
VANECK BRAZIL SMALL-CAP ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
| ADR | American Depositary Receipt |
| BDR | Brazilian Depositary Receipt |
Footnotes:
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $3,947,034. |
| 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 $346,734, or 1.0% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Consumer Discretionary | 20.1 | % | $ | 6,935,202 | ||||
| Industrials | 17.8 | 6,144,849 | ||||||
| Consumer Staples | 10.8 | 3,726,751 | ||||||
| Utilities | 10.0 | 3,459,821 | ||||||
| Energy | 9.1 | 3,141,213 | ||||||
| Real Estate | 8.2 | 2,849,257 | ||||||
| Financials | 6.5 | 2,253,779 | ||||||
| Information Technology | 5.7 | 1,984,209 | ||||||
| Health Care | 5.5 | 1,907,757 | ||||||
| Materials | 5.4 | 1,869,596 | ||||||
| Communication Services | 0.9 | 319,510 | ||||||
| 100.0 | % | $ | 34,591,944 | |||||
See Notes to Financial Statements
| 10 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Automobiles & Components | $ | 283,816 | $ | — | $ | — | $ | 283,816 | ||||||||
| Banks | 480,346 | — | — | 480,346 | ||||||||||||
| Capital Goods | 993,658 | — | — | 993,658 | ||||||||||||
| Commercial & Professional Services | 549,865 | — | — | 549,865 | ||||||||||||
| Consumer Discretionary Distribution & Retail | 919,394 | — | — | 919,394 | ||||||||||||
| Consumer Durables & Apparel | 3,097,843 | — | — | 3,097,843 | ||||||||||||
| Consumer Services | 2,634,149 | — | — | 2,634,149 | ||||||||||||
| Consumer Staples Distribution & Retail | 586,333 | — | — | 586,333 | ||||||||||||
| Energy | 2,161,197 | 678,087 | — | 2,839,284 | ||||||||||||
| Financial Services | 270,490 | — | — | 270,490 | ||||||||||||
| Food, Beverage & Tobacco | 2,882,581 | — | — | 2,882,581 | ||||||||||||
| Health Care Equipment & Services | 1,812,729 | — | — | 1,812,729 | ||||||||||||
| Insurance | 385,394 | — | — | 385,394 | ||||||||||||
| Materials | 1,869,596 | — | — | 1,869,596 | ||||||||||||
| Media & Entertainment | 140,799 | — | — | 140,799 | ||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 95,028 | — | — | 95,028 | ||||||||||||
| Real Estate Management & Development | 2,849,257 | — | — | 2,849,257 | ||||||||||||
| Semiconductors & Semiconductor Equipment | 539,151 | — | — | 539,151 | ||||||||||||
| Software & Services | 794,662 | — | — | 794,662 | ||||||||||||
| Technology Hardware & Equipment | 256,029 | — | — | 256,029 | ||||||||||||
| Telecommunication Services | 178,712 | — | — | 178,712 | ||||||||||||
| Transportation | 3,843,101 | — | — | 3,843,101 | ||||||||||||
| Utilities | 3,005,014 | — | — | 3,005,014 | ||||||||||||
| Preferred Securities * | 3,284,713 | — | — | 3,284,713 | ||||||||||||
| Money Market Fund | 2,301,920 | — | — | 2,301,920 | ||||||||||||
| Total Investments | $ | 36,215,777 | $ | 678,087 | $ | — | $ | 36,893,864 | ||||||||
| * | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
| 11 |
VANECK CHINA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.6% | ||||||||
| Automobiles & Components: 0.1% | ||||||||
| Zhejiang Qianjiang Motorcycle Co. Ltd. * | 6,100 | $ | 15,313 | |||||
| Banks: 0.5% | ||||||||
| Bank of Chengdu Co. Ltd. * | 39,600 | 66,548 | ||||||
| Capital Goods: 6.2% | ||||||||
| Dongguan Dingtong Precision Metal Co. Ltd. | 1,500 | 20,166 | ||||||
| Greentown Management Holdings Co. Ltd. 144A * | 12,000 | 9,564 | ||||||
| Guangzhou Haoyang Electronic Co. Ltd. | 1,900 | 28,636 | ||||||
| Guangzhou KDT Machinery Co. Ltd. | 8,360 | 22,617 | ||||||
| Hangzhou Weiguang Electronic Co. Ltd. | 2,700 | 10,053 | ||||||
| Hangzhou Zhongtai Cryogenic Technology Corp. | 4,600 | 9,151 | ||||||
| Hoyuan Green Energy Co. Ltd. * | 3,740 | 38,415 | ||||||
| Jiangsu Hengli Hydraulic Co. Ltd. | 10,144 | 89,825 | ||||||
| Jiangxi Special Electric Motor Co. Ltd. * | 32,800 | 53,945 | ||||||
| Jingjin Equipment, Inc. | 5,800 | 25,041 | ||||||
| Keda Industrial Group Co. Ltd. | 31,500 | 49,312 | ||||||
| Morimatsu International Holdings Co. Ltd. * | 9,000 | 7,422 | ||||||
| Nantong Jianghai Capacitor Co. Ltd. | 12,100 | 35,470 | ||||||
| Ningbo Haitian Precision Machinery Co. Ltd. | 2,000 | 9,170 | ||||||
| Shanghai Hanbell Precise Machinery Co. Ltd. | 13,000 | 44,698 | ||||||
| Shanxi Coal International Energy Group Co. Ltd. | 20,100 | 40,056 | ||||||
| Shijiazhuang Shangtai Technology Co. Ltd. | 6,800 | 52,882 | ||||||
| TBEA Co. Ltd. * | 74,700 | 229,358 | ||||||
| TKD Science and Technology Co. Ltd. | 5,840 | 13,353 | ||||||
| Warom Technology, Inc. Co. | 3,300 | 12,085 | ||||||
| Xinte Energy Co. Ltd. * † | 29,200 | 62,171 | ||||||
| 863,390 | ||||||||
| Consumer Durables & Apparel: 4.7% | ||||||||
| Biem.L.Fdlkk Garment Co. Ltd. | 10,900 | 53,139 | ||||||
| Chow Tai Seng Jewellery Co. Ltd. | 9,100 | 22,287 | ||||||
| DR Corp. Ltd. | 9,000 | 47,633 | ||||||
| Ecovacs Robotics Co. Ltd. | 4,100 | 43,930 | ||||||
| Huali Industrial Group Co. Ltd. | 24,300 | 163,243 | ||||||
| Li Ning Co. Ltd. * | 54,500 | 294,287 | ||||||
| Tonze New Energy Technology Co. Ltd. | 5,500 | 10,587 | ||||||
| Wenzhou Yuanfei Pet Toys Products Co. Ltd. | 4,620 | 9,609 | ||||||
| Number of Shares | Value | |||||||
| Consumer Durables & Apparel (continued) | ||||||||
| Zhejiang Cayi Vacuum Container Co. Ltd. | 2,400 | $ | 12,800 | |||||
| 657,515 | ||||||||
| Consumer Services: 0.3% | ||||||||
| East Buy Holding Ltd. 144A * † | 10,500 | 34,309 | ||||||
| Energy: 12.4% | ||||||||
| Anhui Hengyuan Coal Industry and Electricity Power Co. Ltd. | 12,100 | 12,973 | ||||||
| Guanghui Energy Co. Ltd. | 100,400 | 94,880 | ||||||
| Guizhou Panjiang Refined Coal Co. Ltd. | 19,700 | 18,836 | ||||||
| Inner Mongolia Yitai Coal Co. Ltd. | 54,700 | 74,910 | ||||||
| Jinneng Holding Shanxi Coal Industry Co. Ltd. | 39,800 | 51,250 | ||||||
| Jizhong Energy Resources Co. Ltd. | 29,300 | 25,722 | ||||||
| PetroChina Co. Ltd. | 1,422,000 | 987,301 | ||||||
| Pingdingshan Tianan Coal Mining Co. Ltd. | 30,200 | 31,324 | ||||||
| Shaanxi Coal Industry Co. Ltd. | 74,700 | 186,971 | ||||||
| Shandong Xinchao Energy Corp. Ltd. * | 108,700 | 37,885 | ||||||
| Shanxi Lanhua Sci-Tech Venture Co. Ltd. | 18,720 | 21,080 | ||||||
| Shanxi Lu’an Environmental Energy Development Co. Ltd. | 24,500 | 55,027 | ||||||
| Yankuang Energy Group Co. Ltd. | 28,700 | 118,146 | ||||||
| 1,716,305 | ||||||||
| Food, Beverage & Tobacco: 12.8% | ||||||||
| Anhui Yingjia Distillery Co. Ltd. | 4,500 | 39,541 | ||||||
| Cheng De Lolo Co. Ltd. | 23,200 | 28,262 | ||||||
| China Feihe Ltd. 144A | 92,000 | 51,348 | ||||||
| Chongqing Brewery Co. Ltd. | 4,800 | 60,865 | ||||||
| Jiangsu King’s Luck Brewery JSC Ltd. | 11,400 | 82,878 | ||||||
| JiuGui Liquor Co. Ltd. | 5,500 | 68,337 | ||||||
| Luzhou Laojiao Co. Ltd. | 16,428 | 473,926 | ||||||
| Meihua Holdings Group Co. Ltd. | 40,600 | 49,920 | ||||||
| Shanxi Xinghuacun Fen Wine Factory Co. Ltd. | 9,595 | 244,403 | ||||||
| Sichuan Swellfun Co. Ltd. | 4,400 | 35,748 | ||||||
| Wuliangye Yibin Co. Ltd. | 28,330 | 638,616 | ||||||
| 1,773,844 | ||||||||
| Health Care Equipment & Services: 5.6% | ||||||||
| Andon Health Co. Ltd. | 6,300 | 30,570 | ||||||
| Dian Diagnostics Group Co. Ltd. | 14,000 | 49,390 | ||||||
| Guangzhou Kingmed Diagnostics Group Co. Ltd. | 6,500 | 67,561 | ||||||
| Guangzhou Wondfo Biotech Co. Ltd. | 7,830 | 28,686 | ||||||
| Hangzhou Alltest Biotech Co. Ltd. | 888 | 6,373 | ||||||
| Jiangsu Bioperfectus Technologies Co. Ltd. * | 577 | 4,383 | ||||||
| JiangXi Sanxin Medtec Co. Ltd. | 11,440 | 10,749 | ||||||
See Notes to Financial Statements
| 12 |
| Number of Shares | Value | |||||||
| Health Care Equipment & Services (continued) | ||||||||
| Sansure Biotech, Inc. | 6,676 | $ | 15,478 | |||||
| Shanghai Labway Clinical Laboratory Co. Ltd. | 5,300 | 12,623 | ||||||
| Shanghai MicroPort Endovascular MedTech Group Co. Ltd. | 800 | 19,776 | ||||||
| Shenzhen Mindray Bio-Medical Electronics Co. Ltd. | 10,344 | 427,422 | ||||||
| Shenzhen YHLO Biotech Co. Ltd. | 7,900 | 20,036 | ||||||
| Suzhou Iron Technology Co. Ltd. | 1,900 | 8,478 | ||||||
| Tofflon Science & Technology Group Co. Ltd. | 10,800 | 33,821 | ||||||
| Wuhan Easydiagnosis Biomedicine Co. Ltd. | 3,825 | 13,637 | ||||||
| Zhejiang Gongdong Medical Technology Co. Ltd. | 2,700 | 20,799 | ||||||
| 769,782 | ||||||||
| Household & Personal Products: 0.1% | ||||||||
| Tongling Jieya Biologic Technology Co. Ltd. | 2,000 | 9,966 | ||||||
| Industrials: 0.0% | ||||||||
| Sichuan Languang Justbon Services Group Co. Ltd. ∞ | 3,300 | 0 | ||||||
| Materials: 20.3% | ||||||||
| Anhui Annada Titanium Industry Co. Ltd. | 4,800 | 7,521 | ||||||
| Anhui Guangxin Agrochemical Co. Ltd. | 8,300 | 30,905 | ||||||
| Anhui Jinhe Industrial Co. Ltd. | 7,000 | 22,764 | ||||||
| Canmax Technologies Co. Ltd. | 16,520 | 81,573 | ||||||
| Chengxin Lithium Group Co. Ltd. | 12,100 | 53,141 | ||||||
| China Hongqiao Group Ltd. | 57,600 | 47,043 | ||||||
| China Jushi Co. Ltd. | 54,300 | 105,865 | ||||||
| China Northern Rare Earth Group High-Tech Co. Ltd. | 53,300 | 176,094 | ||||||
| CNSIG Inner Mongolia Chemical Industry Co. Ltd. | 25,720 | 31,891 | ||||||
| Dalian Bio-Chem Co. Ltd. | 3,220 | 4,493 | ||||||
| Dongyue Group Ltd. † | 32,000 | 24,033 | ||||||
| Fufeng Group Ltd. † | 30,000 | 15,202 | ||||||
| Fujian Yongan Forestry Group * | 7,100 | 11,897 | ||||||
| Ganfeng Lithium Group Co. Ltd. | 43,300 | 364,542 | ||||||
| Guangzhou Tinci Materials Technology Co. Ltd. | 38,900 | 221,030 | ||||||
| Huafon Chemical Co. Ltd. | 41,800 | 39,470 | ||||||
| Hubei Shuanghuan Science and Technology Stock Co. Ltd. * | 7,900 | 9,262 | ||||||
| Hubei Yihua Chemical Industry Co. Ltd. | 18,500 | 29,264 | ||||||
| Hunan Haili Chemical Industry Co. Ltd. * | 9,000 | 9,622 | ||||||
| Inner Mongolia ERDOS Resources Co. Ltd. | 16,552 | 20,449 | ||||||
| Number of Shares | Value | |||||||
| Materials (continued) | ||||||||
| Jiangsu Changhai Composite Materials Co. Ltd. | 9,700 | $ | 18,489 | |||||
| Jiangsu Flag Chemical Industry Co. Ltd. | 9,900 | 14,144 | ||||||
| Jiangsu Sopo Chemical Co. | 12,900 | 11,592 | ||||||
| Jiangxi Chenguang New Materials Co. Ltd. | 5,798 | 14,209 | ||||||
| KBC Corp. Ltd. * | 2,210 | 52,196 | ||||||
| Lecron Industrial Development Group Co. Ltd. * | 27,500 | 26,832 | ||||||
| Lier Chemical Co. Ltd. | 10,800 | 19,194 | ||||||
| Nantong Jiangshan Agrochemical & Chemical LLC | 5,655 | 18,472 | ||||||
| Qinghai Salt Lake Industry Co. Ltd. * | 83,900 | 221,478 | ||||||
| Satellite Chemical Co. Ltd. | 39,355 | 81,053 | ||||||
| Shandong Fiberglass Group Co. Ltd. | 8,780 | 9,062 | ||||||
| Shandong Haihua Co. Ltd. | 12,400 | 11,637 | ||||||
| Shandong Hualu Hengsheng Chemical Co. Ltd. | 34,600 | 145,870 | ||||||
| Shanghai Chlor-Alkali Chemical Co. Ltd. | 7,500 | 9,265 | ||||||
| Shenghe Resources Holding Co. Ltd. * | 28,300 | 50,192 | ||||||
| Shinghwa Advanced Material Group Co. Ltd. | 3,000 | 24,473 | ||||||
| Sichuan Anning Iron and Titanium Co. Ltd. | 6,900 | 30,514 | ||||||
| Sichuan Hebang Biotechnology Co. Ltd. | 128,100 | 42,892 | ||||||
| Sichuan Meifeng Chemical * | 11,100 | 12,462 | ||||||
| Sichuan Yahua Industrial Group Co. Ltd. | 25,300 | 61,991 | ||||||
| Sinomine Resource Group Co. Ltd. | 12,380 | 87,023 | ||||||
| Snowsky Salt Industry Group Co. Ltd. | 33,800 | 36,954 | ||||||
| Tangshan Sunfar Silicon Industry Co. Ltd. | 5,000 | 13,618 | ||||||
| Tianqi Lithium Corp. | 25,900 | 249,902 | ||||||
| Xinjiang Xuefeng Sci-Tech Group Co. Ltd. | 12,700 | 14,484 | ||||||
| YongXing Special Materials Technology Co. Ltd. | 9,330 | 80,584 | ||||||
| Youngy Co. Ltd. | 4,400 | 40,534 | ||||||
| Zangge Mining Co. Ltd. | 11,500 | 35,751 | ||||||
| Zhejiang Jiahua Energy Chemical Industry Co. Ltd. | 19,100 | 24,758 | ||||||
| Zhejiang Oceanking Development Co. Ltd. | 4,400 | 7,225 | ||||||
| Zhejiang Xinan Chemical Industrial Group Co. Ltd. | 27,840 | 41,904 | ||||||
| 2,814,815 | ||||||||
| Media & Entertainment: 8.0% | ||||||||
| 37 Interactive Entertainment Network Technology Group Co. Ltd. | 32,200 | 154,660 | ||||||
| Focus Technology Co. Ltd. | 5,900 | 32,554 | ||||||
See Notes to Financial Statements
| 13 |
VANECK CHINA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| Media & Entertainment (continued) | ||||||||
| G-bits Network Technology Xiamen Co. Ltd. | 900 | $ | 60,757 | |||||
| Heilongjiang Publishing & Media Co. Ltd. * | 10,100 | 15,818 | ||||||
| Hubei Century Network Technology Co. Ltd. | 7,380 | 25,148 | ||||||
| Kingnet Network Co. Ltd. * | 31,300 | 67,873 | ||||||
| Tencent Holdings Ltd. | 17,900 | 758,923 | ||||||
| 1,115,733 | ||||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 11.4% | ||||||||
| Asymchem Laboratories Tianjin Co. Ltd. | 1,600 | 25,980 | ||||||
| Beijing Hotgen Biotech Co. Ltd. * | 1,345 | 7,852 | ||||||
| Beijing Wantai Biological Pharmacy Enterprise Co. Ltd. | 17,745 | 163,153 | ||||||
| Changchun High & New Technology Industry Group, Inc. | 7,300 | 137,104 | ||||||
| Chengdu Kanghua Biological Products Co. Ltd. | 2,000 | 18,134 | ||||||
| China Medical System Holdings Ltd. | 27,000 | 44,051 | ||||||
| Chongqing Zhifei Biological Products Co. Ltd. | 55,400 | 337,418 | ||||||
| Daan Gene Co. Ltd. | 22,700 | 31,153 | ||||||
| Getein Biotech, Inc. | 6,200 | 10,997 | ||||||
| Guangdong Hybribio Biotech Co. Ltd. | 9,950 | 13,733 | ||||||
| Hangzhou Biotest Biotech Co. Ltd. | 1,983 | 7,768 | ||||||
| Hubei Jumpcan Pharmaceutical Co. Ltd. * | 7,500 | 29,982 | ||||||
| Hunan Jiudian Pharmaceutical Co. Ltd. | 5,900 | 21,435 | ||||||
| Jiangsu Cowin Biotech Co. Ltd. | 2,880 | 11,956 | ||||||
| Porton Pharma Solutions Ltd. | 7,900 | 32,222 | ||||||
| SciClone Pharmaceuticals Holdings Ltd. 144A † | 4,500 | 6,076 | ||||||
| Shandong WIT Dyne Health Co. Ltd. | 4,200 | 20,401 | ||||||
| Shanghai Medicilon, Inc. | 2,240 | 26,262 | ||||||
| Shenyang Xingqi Pharmaceutical Co. Ltd. | 2,000 | 58,778 | ||||||
| Tonghua Dongbao Pharmaceutical Co. Ltd. | 33,100 | 47,574 | ||||||
| WuXi AppTec Co. Ltd. | 43,600 | 374,404 | ||||||
| Xiamen Amoytop Biotech Co. Ltd. | 2,200 | 13,279 | ||||||
| Zhejiang Garden Biopharmaceutical Co. Ltd. | 8,900 | 14,225 | ||||||
| Zhejiang Jiuzhou Pharmaceutical Co. Ltd. | 11,800 | 44,449 | ||||||
| Zhejiang NHU Co. Ltd. | 35,692 | 75,642 | ||||||
| Zhejiang Orient Gene Biotech Co. Ltd. | 2,043 | 10,613 | ||||||
| 1,584,641 | ||||||||
| Number of Shares | Value | |||||||
| Real Estate Management & Development: 1.2% | ||||||||
| A-Living Smart City Services Co. Ltd. 144A * | 15,500 | $ | 9,999 | |||||
| CIFI Ever Sunshine Services Group Ltd. † | 20,000 | 4,721 | ||||||
| Country Garden Services Holdings Co. Ltd. † | 47,000 | 60,985 | ||||||
| Evergrande Property Services Group Ltd. 144A *∞ | 44,000 | 0 | ||||||
| Longfor Group Holdings Ltd. 144A † | 37,000 | 90,345 | ||||||
| Powerlong Commercial Management Holdings Ltd. | 4,000 | 1,988 | ||||||
| 168,038 | ||||||||
| Semiconductors & Semiconductor Equipment: 8.5% | ||||||||
| Amlogic Shanghai Co. Ltd. * | 4,500 | 52,258 | ||||||
| Dioo Microcircuits Co. Ltd. Jiangsu | 6,400 | 28,454 | ||||||
| GigaDevice Semiconductor, Inc. | 12,080 | 177,098 | ||||||
| Jiangsu Pacific Quartz Co. Ltd. | 3,700 | 57,935 | ||||||
| SG Micro Corp. | 7,380 | 83,533 | ||||||
| Shanghai Orient-Chip Technology Co. Ltd. | 2,682 | 19,496 | ||||||
| StarPower Semiconductor Ltd. | 3,200 | 94,933 | ||||||
| Thinkon Semiconductor Jinzhou Corp. | 1,600 | 6,963 | ||||||
| Tongwei Co. Ltd. | 56,600 | 267,527 | ||||||
| Unigroup Guoxin Microelectronics Co. Ltd. | 14,200 | 182,498 | ||||||
| Yangling Metron New Material, Inc. | 5,400 | 32,271 | ||||||
| Yangzhou Yangjie Electronic Technology Co. Ltd. | 5,700 | 31,879 | ||||||
| Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. | 14,700 | 143,782 | ||||||
| 1,178,627 | ||||||||
| Software & Services: 0.8% | ||||||||
| Beijing CTJ Information Technology Co. Ltd. | 4,320 | 44,514 | ||||||
| Chinasoft International Ltd. * | 58,000 | 36,575 | ||||||
| Fujian Boss Software Development Co. Ltd. | 13,740 | 29,012 | ||||||
| 110,101 | ||||||||
| Technology Hardware & Equipment: 4.1% | ||||||||
| Anfu CE LINK Ltd. | 2,700 | 7,328 | ||||||
| Avary Holding Shenzhen Co. Ltd. | 11,500 | 38,452 | ||||||
| Beijing JCZ Technology Co. Ltd. | 2,500 | 10,891 | ||||||
| Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd. | 3,200 | 28,768 | ||||||
| China Zhenhua Group Science & Technology Co. Ltd. | 8,000 | 105,613 | ||||||
| Cowell E Holdings, Inc. * † | 5,000 | 9,275 | ||||||
| Donghua Testing Technology Co. Ltd. | 2,200 | 13,545 | ||||||
| Eoptolink Technology, Inc. Ltd. | 16,432 | 153,931 | ||||||
See Notes to Financial Statements
| 14 |
| Number of Shares | Value | |||||||
| Technology Hardware & Equipment (continued) | ||||||||
| Guangxi Oriental Intelligent Manufacturing Technology Co. Ltd. * | 26,300 | $ | 10,718 | |||||
| Shenzhen BSC Technology Co. Ltd. | 1,500 | 11,285 | ||||||
| Sihui Fuji Electronic Technology Co. Ltd. | 2,100 | 11,986 | ||||||
| Xiamen Faratronic Co. Ltd. | 3,200 | 60,500 | ||||||
| Yealink Network Technology Corp. Ltd. | 15,420 | 74,419 | ||||||
| Zhuzhou Hongda Electronics Corp. Ltd. | 5,300 | 32,659 | ||||||
| 569,370 | ||||||||
| Transportation: 2.5% | ||||||||
| Anhui Expressway Co. Ltd. | 6,600 | 9,521 | ||||||
| Number of Shares | Value | |||||||
| Transportation (continued) | ||||||||
| Antong Holdings Co. Ltd. * | 53,300 | $ | 20,478 | |||||
| COSCO Shipping Holdings Co. Ltd. | 139,600 | 180,818 | ||||||
| Eastern Air Logistics Co. Ltd. | 12,300 | 22,016 | ||||||
| Shanghai Zhonggu Logistics Co. Ltd. | 24,920 | 37,045 | ||||||
| YTO Express Group Co. Ltd. | 36,200 | 72,535 | ||||||
| 342,413 | ||||||||
| Utilities: 0.1% | ||||||||
| Xinjiang Xintai Natural Gas Co. Ltd. | 5,300 | 19,580 | ||||||
| Total Common Stocks (Cost: $17,196,310) | 13,810,290 | |||||||
| Total Investments: 99.6% (Cost: $17,196,310) | 13,810,290 | |||||||
| Other assets less liabilities: 0.4% | 55,861 | |||||||
| NET ASSETS: 100.0% | $ | 13,866,151 | ||||||
Footnotes:
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $293,082. |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| 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 $201,641, or 1.5% of net assets. |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Materials | 20.4 | % | $ | 2,814,815 | ||||
| Health Care | 17.1 | 2,354,423 | ||||||
| Information Technology | 13.4 | 1,858,098 | ||||||
| Consumer Staples | 12.9 | 1,783,810 | ||||||
| Energy | 12.4 | 1,716,305 | ||||||
| Industrials | 8.8 | 1,205,803 | ||||||
| Communication Services | 8.1 | 1,115,733 | ||||||
| Consumer Discretionary | 5.1 | 707,137 | ||||||
| Real Estate | 1.2 | 168,038 | ||||||
| Financials | 0.5 | 66,548 | ||||||
| Utilities | 0.1 | 19,580 | ||||||
| 100.0 | % | $ | 13,810,290 | |||||
See Notes to Financial Statements
| 15 |
VANECK CHINA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Automobiles & Components | $ | — | $ | 15,313 | $ | — | $ | 15,313 | ||||||||
| Banks | — | 66,548 | — | 66,548 | ||||||||||||
| Capital Goods | 20,166 | 843,224 | — | 863,390 | ||||||||||||
| Consumer Durables & Apparel | 22,409 | 635,106 | — | 657,515 | ||||||||||||
| Consumer Services | — | 34,309 | — | 34,309 | ||||||||||||
| Energy | — | 1,716,305 | — | 1,716,305 | ||||||||||||
| Food, Beverage & Tobacco | — | 1,773,844 | — | 1,773,844 | ||||||||||||
| Health Care Equipment & Services | 47,208 | 722,574 | — | 769,782 | ||||||||||||
| Household & Personal Products | — | 9,966 | — | 9,966 | ||||||||||||
| Industrials | — | — | 0 | 0 | ||||||||||||
| Materials | — | 2,814,815 | — | 2,814,815 | ||||||||||||
| Media & Entertainment | 85,905 | 1,029,828 | — | 1,115,733 | ||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 105,448 | 1,479,193 | — | 1,584,641 | ||||||||||||
| Real Estate Management & Development | — | 168,038 | 0 | 168,038 | ||||||||||||
| Semiconductors & Semiconductor Equipment | — | 1,178,627 | — | 1,178,627 | ||||||||||||
| Software & Services | 44,514 | 65,587 | — | 110,101 | ||||||||||||
| Technology Hardware & Equipment | — | 569,370 | — | 569,370 | ||||||||||||
| Transportation | — | 342,413 | — | 342,413 | ||||||||||||
| Utilities | — | 19,580 | — | 19,580 | ||||||||||||
| Total Investments | $ | 325,650 | $ | 13,484,640 | $ | 0 | $ | 13,810,290 | ||||||||
See Notes to Financial Statements
| 16 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.8% | ||||||||
| Automobiles & Components: 0.3% | ||||||||
| Fulin Precision Co. Ltd. | 34,000 | $ | 54,476 | |||||
| Capital Goods: 36.3% | ||||||||
| Beijing Easpring Material Technology Co. Ltd. | 19,100 | 132,894 | ||||||
| Contemporary Amperex Technology Co. Ltd. | 118,420 | 3,736,097 | ||||||
| Dongguan Yiheda Automation Co. Ltd. | 5,152 | 31,717 | ||||||
| East Group Co. Ltd. | 48,900 | 45,180 | ||||||
| Eve Energy Co. Ltd. | 59,196 | 493,912 | ||||||
| Gaona Aero Material Co. Ltd. | 13,500 | 73,214 | ||||||
| Ginlong Technologies Co. Ltd. * | 9,550 | 137,106 | ||||||
| Guangzhou Great Power Energy & Technology Co. Ltd. * | 14,800 | 97,976 | ||||||
| Jiangsu Haili Wind Power Equipment Technology Co. Ltd. | 4,100 | 43,527 | ||||||
| JL Mag Rare-Earth Co. Ltd. * | 18,000 | 74,267 | ||||||
| Luoyang Xinqianglian Slewing Bearing Co. Ltd. | 8,500 | 43,757 | ||||||
| Qingdao TGOOD Electric Co. Ltd. * | 31,300 | 89,676 | ||||||
| Shenzhen Inovance Technology Co. Ltd. | 90,385 | 799,956 | ||||||
| Shenzhen Minglida Precision Technology Co. Ltd. | 7,100 | 40,986 | ||||||
| Sungrow Power Supply Co. Ltd. | 47,400 | 762,400 | ||||||
| Sunwoda Electronic Co. Ltd. | 65,300 | 146,990 | ||||||
| Suzhou Maxwell Technologies Co. Ltd. | 6,804 | 158,622 | ||||||
| Wuxi Lead Intelligent Equipment Co. Ltd. | 47,020 | 234,698 | ||||||
| Xi’an Triangle Defense Co. Ltd. | 13,800 | 64,196 | ||||||
| 7,207,171 | ||||||||
| Commercial & Professional Services: 1.2% | ||||||||
| Beijing Originwater Technology Co. Ltd. | 84,300 | 62,208 | ||||||
| Centre Testing International Group Co. Ltd. | 66,400 | 178,080 | ||||||
| 240,288 | ||||||||
| Consumer Durables & Apparel: 0.2% | ||||||||
| Huali Industrial Group Co. Ltd. | 7,200 | 48,368 | ||||||
| Consumer Services: 0.6% | ||||||||
| Songcheng Performance Development Co. Ltd. | 69,021 | 118,048 | ||||||
| Financial Services: 7.3% | ||||||||
| Beijing Compass Technology Development Co. Ltd. * | 11,600 | 77,638 | ||||||
| East Money Information Co. Ltd. | 589,544 | 1,154,854 | ||||||
| Hithink RoyalFlush Information Network Co. Ltd. | 9,300 | 224,632 | ||||||
| 1,457,124 | ||||||||
| Food, Beverage & Tobacco: 4.0% | ||||||||
| Wens Foodstuffs Group Co. Ltd. | 251,980 | 636,421 | ||||||
| Number of Shares | Value | |||||||
| Food, Beverage & Tobacco (continued) | ||||||||
| Yihai Kerry Arawana Holdings Co. Ltd. | 26,700 | $ | 147,082 | |||||
| 783,503 | ||||||||
| Health Care Equipment & Services: 11.9% | ||||||||
| Aier Eye Hospital Group Co. Ltd. | 193,957 | 495,663 | ||||||
| Dian Diagnostics Group Co. Ltd. | 22,200 | 78,318 | ||||||
| Intco Medical Technology Co. Ltd. | 20,620 | 62,474 | ||||||
| Jafron Biomedical Co. Ltd. | 20,600 | 65,761 | ||||||
| Lepu Medical Technology Beijing Co. Ltd. | 58,013 | 180,397 | ||||||
| Ovctek China, Inc. | 23,200 | 96,487 | ||||||
| Shenzhen Mindray Bio-Medical Electronics Co. Ltd. | 23,200 | 958,641 | ||||||
| Shenzhen New Industries Biomedical Engineering Co. Ltd. | 14,100 | 114,346 | ||||||
| Sonoscape Medical Corp. | 11,800 | 88,462 | ||||||
| Tofflon Science & Technology Group Co. Ltd. | 12,100 | 37,893 | ||||||
| Winner Medical Co. Ltd. | 9,240 | 52,992 | ||||||
| Winning Health Technology Group Co. Ltd. | 83,066 | 123,620 | ||||||
| 2,355,054 | ||||||||
| Household & Personal Products: 1.2% | ||||||||
| By-health Co. Ltd. | 46,800 | 154,420 | ||||||
| Yunnan Botanee Bio-Technology Group Co. Ltd. | 6,100 | 74,661 | ||||||
| 229,081 | ||||||||
| Materials: 7.1% | ||||||||
| Canmax Technologies Co. Ltd. | 24,370 | 120,336 | ||||||
| CNGR Advanced Material Co. Ltd. | 14,100 | 117,094 | ||||||
| Hubei Dinglong Co. Ltd. | 32,500 | 110,818 | ||||||
| Hubei Feilihua Quartz Glass Co. Ltd. | 19,600 | 132,858 | ||||||
| Shandong Sinocera Functional Material Co. Ltd. | 36,900 | 139,254 | ||||||
| Shandong Weifang Rainbow Chemical Co. Ltd. | 4,300 | 46,495 | ||||||
| Shenzhen Capchem Technology Co. Ltd. | 22,500 | 161,024 | ||||||
| Shenzhen Dynanonic Co. Ltd. | 9,916 | 150,931 | ||||||
| Shenzhen Senior Technology Material Co. Ltd. | 54,391 | 128,867 | ||||||
| Sinofibers Technology Co. Ltd. | 15,900 | 103,485 | ||||||
| Sunresin New Materials Co. Ltd. | 11,550 | 99,214 | ||||||
| Weihai Guangwei Composites Co. Ltd. | 24,960 | 105,958 | ||||||
| 1,416,334 | ||||||||
| Media & Entertainment: 2.1% | ||||||||
| Beijing Enlight Media Co. Ltd. | 66,742 | 74,340 | ||||||
| Kunlun Tech Co. Ltd. | 35,900 | 198,829 | ||||||
| Mango Excellent Media Co. Ltd. | 29,370 | 138,549 | ||||||
| 411,718 | ||||||||
See Notes to Financial Statements
| 17 |
VANECK CHINEXT ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 8.9% | ||||||||
| Anhui Anke Biotechnology Group Co. Ltd. | 50,200 | $ | 69,051 | |||||
| Betta Pharmaceuticals Co. Ltd. | 12,000 | 79,358 | ||||||
| BGI Genomics Co. Ltd. | 11,000 | 90,801 | ||||||
| China Resources Boya Bio-pharmaceutical Group Co. Ltd. | 13,500 | 67,418 | ||||||
| Chongqing Zhifei Biological Products Co. Ltd. | 52,153 | 317,642 | ||||||
| Hangzhou Tigermed Consulting Co. Ltd. * | 25,406 | 225,777 | ||||||
| Hualan Biological Bacterin, Inc. | 3,500 | 16,032 | ||||||
| Imeik Technology Development Co. Ltd. | 4,200 | 257,257 | ||||||
| Pharmaron Beijing Co. Ltd. * | 26,850 | 141,490 | ||||||
| Porton Pharma Solutions Ltd. | 15,800 | 64,444 | ||||||
| Shenzhen Kangtai Biological Products Co. Ltd. * | 29,120 | 101,832 | ||||||
| Walvax Biotechnology Co. Ltd. | 77,061 | 280,344 | ||||||
| Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd. * | 12,900 | 59,691 | ||||||
| 1,771,137 | ||||||||
| Semiconductors & Semiconductor Equipment: 6.4% | ||||||||
| Hangzhou Chang Chuan Technology Co. Ltd. | 16,500 | 107,959 | ||||||
| Ingenic Semiconductor Co. Ltd. | 13,800 | 168,009 | ||||||
| Konfoong Materials International Co. Ltd. | 9,000 | 84,361 | ||||||
| Risen Energy Co. Ltd. * | 30,800 | 108,763 | ||||||
| SG Micro Corp. | 14,235 | 161,123 | ||||||
| Shenzhen SC New Energy Technology Corp. | 11,800 | 182,639 | ||||||
| Wuhan DR Laser Technology Corp. Ltd. | 6,400 | 57,154 | ||||||
| Yangling Metron New Material, Inc. | 7,340 | 43,865 | ||||||
| Yangzhou Yangjie Electronic Technology Co. Ltd. | 13,800 | 77,182 | ||||||
| Number of Shares | Value | |||||||
| Semiconductors & Semiconductor Equipment (continued) | ||||||||
| Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. | 29,000 | $ | 283,652 | |||||
| 1,274,707 | ||||||||
| Software & Services: 3.7% | ||||||||
| Beijing Sinnet Technology Co.Ltd. * | 64,900 | 96,213 | ||||||
| Empyrean Technology Co. Ltd. | 3,900 | 66,058 | ||||||
| Isoftstone Information Technology Group Co. Ltd. | 17,250 | 64,678 | ||||||
| Longshine Technology Group Co. Ltd. | 25,900 | 83,169 | ||||||
| Sangfor Technologies, Inc. * | 11,100 | 173,279 | ||||||
| Semitronix Corp. | 2,100 | 23,963 | ||||||
| Thunder Software Technology Co. Ltd. | 16,400 | 217,872 | ||||||
| 725,232 | ||||||||
| Technology Hardware & Equipment: 8.6% | ||||||||
| Anker Innovations Technology Co. Ltd. | 7,400 | 89,168 | ||||||
| Chaozhou Three-Circle Group Co. Ltd. * | 58,600 | 236,787 | ||||||
| Lens Technology Co. Ltd. | 91,868 | 148,826 | ||||||
| Leyard Optoelectronic Co. Ltd. | 94,400 | 84,883 | ||||||
| Maxscend Microelectronics Co. Ltd. | 15,921 | 212,052 | ||||||
| Shenzhen Longsys Electronics Co. Ltd. | 1,700 | 23,887 | ||||||
| Shenzhen Sunway Communication Co. Ltd. | 38,201 | 105,764 | ||||||
| Wuhu Token Science Co. Ltd. | 96,700 | 80,359 | ||||||
| Yealink Network Technology Corp. Ltd. | 21,540 | 103,955 | ||||||
| Zhongji Innolight Co. Ltd. | 28,500 | 578,716 | ||||||
| Zhuzhou Hongda Electronics Corp. Ltd. | 6,200 | 38,205 | ||||||
| 1,702,602 | ||||||||
| Total Common Stocks (Cost: $17,219,524) | 19,794,843 | |||||||
| Total Investments: 99.8% (Cost: $17,219,524) | 19,794,843 | |||||||
| Other assets less liabilities: 0.2% | 41,808 | |||||||
| NET ASSETS: 100.0% | $ | 19,836,651 | ||||||
| Footnotes: | |
| * | Non-income producing |
See Notes to Financial Statements
| 18 |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Industrials | 37.6 | % | $ | 7,447,459 | ||||
| Health Care | 20.8 | 4,126,191 | ||||||
| Information Technology | 18.7 | 3,702,541 | ||||||
| Financials | 7.4 | 1,457,124 | ||||||
| Materials | 7.1 | 1,416,334 | ||||||
| Consumer Staples | 5.2 | 1,012,584 | ||||||
| Communication Services | 2.1 | 411,718 | ||||||
| Consumer Discretionary | 1.1 | 220,892 | ||||||
| 100.0 | % | $ | 19,794,843 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks * | $ | — | $ | 19,794,843 | $ | — | $ | 19,794,843 | ||||||||
| * | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
| 19 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.1% | ||||||||
| Capital Goods: 0.6% | ||||||||
| IndiaMart InterMesh Ltd. 144A | 388 | $ | 13,338 | |||||
| Commercial & Professional Services: 4.4% | ||||||||
| L&T Technology Services Ltd. 144A | 723 | 34,845 | ||||||
| WNS Holdings Ltd. (ADR) * | 917 | 67,601 | ||||||
| 102,446 | ||||||||
| Consumer Durables & Apparel: 0.9% | ||||||||
| Dixon Technologies India Ltd. | 377 | 20,216 | ||||||
| Consumer Services: 5.8% | ||||||||
| MakeMyTrip Ltd. * | 1,210 | 32,646 | ||||||
| Zomato Ltd. * | 112,042 | 102,801 | ||||||
| 135,447 | ||||||||
| Energy: 8.0% | ||||||||
| Reliance Industries Ltd. 144A (GDR) | 2,981 | 185,641 | ||||||
| Financial Services: 5.3% | ||||||||
| ICICI Securities Ltd. 144A | 2,126 | 15,798 | ||||||
| IIFL Finance Ltd. | 4,009 | 24,769 | ||||||
| Indian Energy Exchange Ltd. 144A | 5,638 | 8,756 | ||||||
| One 97 Communications Ltd. * | 6,845 | 72,569 | ||||||
| 121,892 | ||||||||
| Insurance: 3.2% | ||||||||
| PB Fintech Ltd. * | 8,656 | 73,709 | ||||||
| Media & Entertainment: 4.0% | ||||||||
| Info Edge India Ltd. | 1,702 | 93,333 | ||||||
| Software & Services: 52.7% | ||||||||
| Coforge Ltd. | 869 | 50,099 | ||||||
| Cyient Ltd. | 1,777 | 32,567 | ||||||
| Number of Shares | Value | |||||||
| Software & Services (continued) | ||||||||
| Happiest Minds Technologies Ltd. | 929 | $ | 11,116 | |||||
| HCL Technologies Ltd. | 9,857 | 143,296 | ||||||
| Infosys Ltd. (ADR) | 11,494 | 184,709 | ||||||
| KPIT Technologies Ltd. | 4,333 | 57,766 | ||||||
| LTIMindtree Ltd. 144A | 1,703 | 108,328 | ||||||
| Mphasis Ltd. | 2,184 | 50,654 | ||||||
| Oracle Financial Services Software Ltd. | 615 | 29,001 | ||||||
| Persistent Systems Ltd. | 993 | 60,890 | ||||||
| Tanla Platforms Ltd. | 1,735 | 21,700 | ||||||
| Tata Consultancy Services Ltd. | 3,965 | 160,214 | ||||||
| Tata Elxsi Ltd. | 919 | 85,337 | ||||||
| Tech Mahindra Ltd. | 9,311 | 128,913 | ||||||
| Wipro Ltd. (ADR) | 23,165 | 109,339 | ||||||
| 1,233,929 | ||||||||
| Technology Hardware & Equipment: 2.0% | ||||||||
| Redington Ltd. | 13,794 | 31,373 | ||||||
| Tejas Networks Ltd. 144A * | 1,961 | 17,365 | ||||||
| 48,738 | ||||||||
| Telecommunication Services: 10.8% | ||||||||
| Bharti Airtel Ltd. | 14,281 | 153,187 | ||||||
| Indus Towers Ltd. * | 22,008 | 44,161 | ||||||
| Tata Communications Ltd. | 1,802 | 35,100 | ||||||
| Vodafone Idea Ltd. * | 218,001 | 19,843 | ||||||
| 252,291 | ||||||||
| Transportation: 2.4% | ||||||||
| Delhivery Ltd. * | 11,902 | 55,367 | ||||||
| Total Common Stocks (Cost: $2,430,522) | 2,336,347 | |||||||
| Total Investments: 100.1% (Cost: $2,430,522) | 2,336,347 | |||||||
| Liabilities in excess of other assets: (0.1)% | (2,914) | |||||||
| NET ASSETS: 100.0% | $ | 2,333,433 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| GDR | Global Depositary Receipt |
| Footnotes: | |
| * | Non-income producing |
| 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 $384,071, or 16.5% of net assets. |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Information Technology | 54.9 | % | $ | 1,282,667 | ||||
| Communication Services | 14.8 | 345,625 | ||||||
| Financials | 8.3 | 195,600 | ||||||
| Energy | 7.9 | 185,641 | ||||||
| Industrials | 7.4 | 171,151 | ||||||
| Consumer Discretionary | 6.7 | 155,663 | ||||||
| 100.0 | % | $ | 2,336,347 | |||||
See Notes to Financial Statements
| 20 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Capital Goods | $ | — | $ | 13,338 | $ | — | $ | 13,338 | ||||||||
| Commercial & Professional Services | 67,601 | 34,845 | — | 102,446 | ||||||||||||
| Consumer Durables & Apparel | — | 20,216 | — | 20,216 | ||||||||||||
| Consumer Services | 32,646 | 102,801 | — | 135,447 | ||||||||||||
| Energy | — | 185,641 | — | 185,641 | ||||||||||||
| Financial Services | — | 121,892 | — | 121,892 | ||||||||||||
| Insurance | — | 73,709 | — | 73,709 | ||||||||||||
| Media & Entertainment | — | 93,333 | — | 93,333 | ||||||||||||
| Software & Services | 294,048 | 939,881 | — | 1,233,929 | ||||||||||||
| Technology Hardware & Equipment | — | 48,738 | — | 48,738 | ||||||||||||
| Telecommunication Services | — | 252,291 | — | 252,291 | ||||||||||||
| Transportation | — | 55,367 | — | 55,367 | ||||||||||||
| Total Investments | $ | 394,295 | $ | 1,942,052 | $ | — | $ | 2,336,347 | ||||||||
See Notes to Financial Statements
| 21 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 94.8% | ||||||||
| Automobiles & Components: 1.4% | ||||||||
| GB Corp. * | 1,038,399 | $ | 218,687 | |||||
| Banks: 7.2% | ||||||||
| Commercial International Bank Egypt SAE (GDR) | 972,343 | 1,108,471 | ||||||
| Capital Goods: 6.5% | ||||||||
| ElSewedy Electric Co. | 1,478,999 | 989,310 | ||||||
| Consumer Discretionary Distribution & Retail: 1.1% | ||||||||
| MM Group for Industry & International Trade SAE * | 856,339 | 175,090 | ||||||
| Consumer Durables & Apparel: 2.6% | ||||||||
| Oriental Weavers | 824,765 | 396,368 | ||||||
| Consumer Services: 1.8% | ||||||||
| Cairo Investment & Real Estate Development Co. SAE | 805,281 | 273,670 | ||||||
| Energy: 3.8% | ||||||||
| Capricorn Energy Plc * | 244,917 | 582,408 | ||||||
| Financial Services: 19.6% | ||||||||
| E-Finance for Digital & Financial Investments | 1,112,017 | 613,949 | ||||||
| Egypt Kuwait Holding Co. SAE | 683,218 | 786,036 | ||||||
| Egyptian Financial Group-Hermes Holding Co. * | 1,161,462 | 711,222 | ||||||
| Egyptian Financial Group-Hermes Holding Co. (GDR) * | 330,842 | 266,328 | ||||||
| Fawry for Banking & Payment Technology Services SAE * | 3,440,121 | 632,648 | ||||||
| 3,010,183 | ||||||||
| Number of Shares | Value | |||||||
| Food, Beverage & Tobacco: 8.6% | ||||||||
| Eastern Co. SAE | 1,893,133 | $ | 1,313,349 | |||||
| Health Care Equipment & Services: 2.3% | ||||||||
| Cleopatra Hospital * | 2,494,268 | 360,630 | ||||||
| Materials: 21.5% | ||||||||
| Abou Kir Fertilizers & Chemical Industries | 666,779 | 967,001 | ||||||
| Alexandria Mineral Oils Co. | 1,693,038 | 446,640 | ||||||
| Centamin Plc | 521,849 | 606,119 | ||||||
| Egyptian Chemical Industries KIMA * | 504,639 | 148,561 | ||||||
| Ezz Steel Co. SAE * | 500,444 | 586,709 | ||||||
| Sidi Kerir Petrochemicals Co. | 749,981 | 538,093 | ||||||
| 3,293,123 | ||||||||
| Real Estate Management & Development: 14.2% | ||||||||
| Emaar Misr for Development SAE * | 2,086,165 | 199,899 | ||||||
| Heliopolis Housing | 1,324,456 | 490,777 | ||||||
| Medinet Nasr Housing | 4,240,965 | 495,839 | ||||||
| Palm Hills Developments SAE * | 4,253,854 | 293,142 | ||||||
| Talaat Moustafa Group | 2,357,023 | 689,994 | ||||||
| 2,169,651 | ||||||||
| Telecommunication Services: 4.2% | ||||||||
| Telecom Egypt Co. | 768,467 | 643,159 | ||||||
| Total Common Stocks (Cost: $13,766,340) | 14,534,099 | |||||||
| Total Investments: 94.8% (Cost: $13,766,340) | 14,534,099 | |||||||
| Other assets less liabilities: 5.2% | 790,788 | |||||||
| NET ASSETS: 100.0% | $ | 15,324,887 | ||||||
| Definitions: | |
| GDR | Global Depositary Receipt |
| Footnotes: | |
| * | Non-income producing |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Financials | 28.3 | % | $ | 4,118,654 | ||||
| Materials | 22.7 | 3,293,123 | ||||||
| Real Estate | 14.9 | 2,169,651 | ||||||
| Consumer Staples | 9.1 | 1,313,349 | ||||||
| Consumer Discretionary | 7.3 | 1,063,815 | ||||||
| Industrials | 6.8 | 989,310 | ||||||
| Communication Services | 4.4 | 643,159 | ||||||
| Energy | 4.0 | 582,408 | ||||||
| Health Care | 2.5 | 360,630 | ||||||
| 100.0 | % | $ | 14,534,099 | |||||
See Notes to Financial Statements
| 22 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Automobiles & Components | $ | — | $ | 218,687 | $ | — | $ | 218,687 | ||||||||
| Banks | 1,108,471 | — | — | 1,108,471 | ||||||||||||
| Capital Goods | — | 989,310 | — | 989,310 | ||||||||||||
| Consumer Discretionary Distribution & Retail | — | 175,090 | — | 175,090 | ||||||||||||
| Consumer Durables & Apparel | 396,368 | — | — | 396,368 | ||||||||||||
| Consumer Services | — | 273,670 | — | 273,670 | ||||||||||||
| Energy | — | 582,408 | — | 582,408 | ||||||||||||
| Financial Services | 880,277 | 2,129,906 | — | 3,010,183 | ||||||||||||
| Food, Beverage & Tobacco | — | 1,313,349 | — | 1,313,349 | ||||||||||||
| Health Care Equipment & Services | — | 360,630 | — | 360,630 | ||||||||||||
| Materials | 538,093 | 2,755,030 | — | 3,293,123 | ||||||||||||
| Real Estate Management & Development | 490,777 | 1,678,874 | — | 2,169,651 | ||||||||||||
| Telecommunication Services | — | 643,159 | — | 643,159 | ||||||||||||
| Total Investments | $ | 3,413,986 | $ | 11,120,113 | $ | — | $ | 14,534,099 | ||||||||
See Notes to Financial Statements
| 23 |
VANECK INDIA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Automobiles & Components: 5.0% | ||||||||
| Eicher Motors Ltd. | 40,829 | $ | 1,785,105 | |||||
| Federal-Mogul Goetze India Ltd. * | 15,557 | 70,672 | ||||||
| Sona Blw Precision Forgings Ltd. 144A | 84,277 | 531,387 | ||||||
| UNO Minda Ltd. | 54,564 | 387,548 | ||||||
| 2,774,712 | ||||||||
| Banks: 16.8% | ||||||||
| Axis Bank Ltd. | 230,938 | 2,786,580 | ||||||
| Bank of Baroda | 541,855 | 1,261,851 | ||||||
| CSB Bank Ltd. * | 25,477 | 88,496 | ||||||
| ICICI Bank Ltd. | 228,742 | 2,618,865 | ||||||
| Karnataka Bank Ltd. | 88,993 | 206,058 | ||||||
| State Bank of India | 353,376 | 2,475,013 | ||||||
| 9,436,863 | ||||||||
| Capital Goods: 12.4% | ||||||||
| Action Construction Equipment Ltd. | 9,460 | 56,714 | ||||||
| AIA Engineering Ltd. | 9,324 | 364,362 | ||||||
| Apar Industries Ltd. | 4,723 | 200,355 | ||||||
| Bharat Electronics Ltd. | 1,108,628 | 1,702,560 | ||||||
| Cummins India Ltd. | 41,327 | 980,966 | ||||||
| Data Patterns India Ltd. | 3,256 | 74,319 | ||||||
| Elgi Equipments Ltd. | 58,161 | 384,907 | ||||||
| Grindwell Norton Ltd. | 14,621 | 407,034 | ||||||
| Hindustan Aeronautics Ltd. | 24,936 | 1,154,911 | ||||||
| Ingersoll Rand India Ltd. | 1,896 | 66,136 | ||||||
| KEI Industries Ltd. | 16,687 | 472,282 | ||||||
| Polycab India Ltd. | 17,113 | 742,191 | ||||||
| Praj Industries Ltd. | 36,015 | 166,106 | ||||||
| Shanthi Gears Ltd. | 6,058 | 34,889 | ||||||
| 6,807,732 | ||||||||
| Commercial & Professional Services: 2.2% | ||||||||
| BLS International Services Ltd. | 29,603 | 75,247 | ||||||
| Indian Railway Catering & Tourism Corp. Ltd. | 94,153 | 730,710 | ||||||
| L&T Technology Services Ltd. 144A | 8,675 | 418,090 | ||||||
| 1,224,047 | ||||||||
| Consumer Durables & Apparel: 0.1% | ||||||||
| Mirza International Ltd. * | 12,550 | 7,507 | ||||||
| Redtape Ltd. | 12,550 | 33,633 | ||||||
| 41,140 | ||||||||
| Consumer Services: 0.1% | ||||||||
| Easy Trip Planners Ltd. * | 129,169 | 63,990 | ||||||
| Energy: 8.4% | ||||||||
| Coal India Ltd. | 631,394 | 1,781,211 | ||||||
| Great Eastern Shipping Co. Ltd. | 24,768 | 224,696 | ||||||
| Oil & Natural Gas Corp. Ltd. | 1,177,823 | 2,305,437 | ||||||
| Oil India Ltd. | 108,044 | 323,344 | ||||||
| 4,634,688 | ||||||||
| Financial Services: 3.4% | ||||||||
| Angel One Ltd. | 10,744 | 225,632 | ||||||
| Shriram Finance Ltd. | 77,534 | 1,643,560 | ||||||
| 1,869,192 | ||||||||
| Number of Shares | Value | |||||||
| Food, Beverage & Tobacco: 7.7% | ||||||||
| Godfrey Phillips India Ltd. | 3,900 | $ | 80,242 | |||||
| ITC Ltd. | 511,378 | 2,819,748 | ||||||
| KRBL Ltd. | 17,418 | 72,425 | ||||||
| Radico Khaitan Ltd. | 100 | 1,475 | ||||||
| Varun Beverages Ltd. | 141,752 | 1,390,010 | ||||||
| 4,363,900 | ||||||||
| Health Care Equipment & Services: 0.3% | ||||||||
| Rainbow Children’s Medicare Ltd. | 15,678 | 184,178 | ||||||
| Materials: 9.0% | ||||||||
| Archean Chemical Industries Ltd. * | 11,717 | 76,706 | ||||||
| Bayer CropScience Ltd. | 3,953 | 211,299 | ||||||
| Deepak Fertilisers & Petrochemicals Corp. Ltd. | 18,588 | 127,849 | ||||||
| Fine Organic Industries Ltd. | 2,539 | 151,671 | ||||||
| Gravita India Ltd. * | 4,787 | 35,502 | ||||||
| Gujarat Fluorochemicals Ltd. | 9,505 | 340,383 | ||||||
| Gujarat Narmada Valley Fertilizers & Chemicals Ltd. | 26,484 | 193,852 | ||||||
| Gujarat State Fertilizers & Chemicals Ltd. | 67,441 | 135,063 | ||||||
| JK Paper Ltd. | 23,240 | 90,985 | ||||||
| National Aluminium Co. Ltd. | 247,902 | 248,972 | ||||||
| NMDC Ltd. | 347,786 | 444,995 | ||||||
| PI Industries Ltd. | 25,892 | 1,239,652 | ||||||
| Rain Industries Ltd. | 54,647 | 108,915 | ||||||
| Ramkrishna Forgings Ltd. | 17,988 | 97,843 | ||||||
| Sharda Cropchem Ltd. | 6,549 | 44,289 | ||||||
| Solar Industries India Ltd. | 7,987 | 364,684 | ||||||
| Sumitomo Chemical India Ltd. | 38,491 | 204,966 | ||||||
| Tata Chemicals Ltd. | 48,218 | 589,713 | ||||||
| Tinplate Co. of India Ltd. * | 7,956 | 32,413 | ||||||
| Usha Martin Ltd. | 65,311 | 215,837 | ||||||
| 4,955,589 | ||||||||
| Media & Entertainment: 4.0% | ||||||||
| Affle India Ltd. * | 15,248 | 204,357 | ||||||
| Brightcom Group Ltd. | 402,589 | 153,321 | ||||||
| Chennai Super Kings Cricket Ltd. *∞ ø | 1,298,085 | 1,655,118 | ||||||
| Sun TV Network Ltd. | 26,104 | 140,023 | ||||||
| 2,152,819 | ||||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 6.3% | ||||||||
| Dr. Reddy’s Laboratories Ltd. | 35,471 | 2,233,964 | ||||||
| Granules India Ltd. | 40,986 | 148,531 | ||||||
| Laurus Labs Ltd. 144A | 109,857 | 491,496 | ||||||
| Marksans Pharma Ltd. | 71,474 | 79,606 | ||||||
| Zydus Lifesciences Ltd. | 77,220 | 549,562 | ||||||
| 3,503,159 | ||||||||
| Real Estate Management & Development: 0.8% | ||||||||
| Oberoi Realty Ltd. | 35,983 | 432,847 | ||||||
| Software & Services: 23.4% | ||||||||
| Coforge Ltd. | 11,481 | 661,893 | ||||||
| Happiest Minds Technologies Ltd. | 21,346 | 255,417 | ||||||
See Notes to Financial Statements
| 24 |
| Number of Shares | Value | |||||||
| Software & Services (continued) | ||||||||
| HCL Technologies Ltd. | 176,170 | $ | 2,561,079 | |||||
| Infosys Ltd. (ADR) | 132,734 | 2,133,035 | ||||||
| KPIT Technologies Ltd. | 48,121 | 641,532 | ||||||
| LTIMindtree Ltd. 144A | 28,598 | 1,819,126 | ||||||
| Persistent Systems Ltd. | 16,002 | 981,236 | ||||||
| Sonata Software Ltd. | 23,977 | 295,726 | ||||||
| Tanla Platforms Ltd. | 21,497 | 268,869 | ||||||
| Tata Consultancy Services Ltd. | 58,867 | 2,378,657 | ||||||
| Tata Elxsi Ltd. | 10,752 | 998,412 | ||||||
| 12,994,982 | ||||||||
| Total Common Stocks (Cost: $43,388,527) | 55,439,838 | |||||||
| Total Investments: 99.9% (Cost: $43,388,527) | 55,439,838 | |||||||
| Other assets less liabilities: 0.1% | 37,398 | |||||||
| NET ASSETS: 100.0% | $ | 55,477,236 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| Footnotes: | |
| * | Non-income producing |
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| ø | Restricted Security – the aggregate value of restricted securities is $1,655,118, or 3.0% 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 $3,260,099, or 5.9% of net assets. |
Restricted securities held by the Fund as of June 30, 2023 are as follows:
| Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | |||||
| Chennai Super Kings Cricket Ltd. | 10/08/2015 | 1,298,085 | $35,108 | $1,655,118 | 3.0% |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Information Technology | 23.4 | % | $ | 12,994,984 | ||||
| Financials | 20.4 | 11,306,052 | ||||||
| Industrials | 14.5 | 8,031,780 | ||||||
| Materials | 8.9 | 4,955,591 | ||||||
| Energy | 8.4 | 4,634,688 | ||||||
| Consumer Staples | 7.9 | 4,363,898 | ||||||
| Health Care | 6.6 | 3,687,337 | ||||||
| Consumer Discretionary | 5.2 | 2,879,841 | ||||||
| Communication Services | 3.9 | 2,152,820 | ||||||
| Real Estate | 0.8 | 432,847 | ||||||
| 100.0 | % | $ | 55,439,838 | |||||
See Notes to Financial Statements
| 25 |
VANECK INDIA GROWTH LEADERS ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Automobiles & Components | $ | — | $ | 2,774,712 | $ | — | $ | 2,774,712 | ||||||||
| Banks | — | 9,436,863 | — | 9,436,863 | ||||||||||||
| Capital Goods | — | 6,807,732 | — | 6,807,732 | ||||||||||||
| Commercial & Professional Services | — | 1,224,047 | — | 1,224,047 | ||||||||||||
| Consumer Durables & Apparel | — | 41,140 | — | 41,140 | ||||||||||||
| Consumer Services | — | 63,990 | — | 63,990 | ||||||||||||
| Energy | — | 4,634,688 | — | 4,634,688 | ||||||||||||
| Financial Services | — | 1,869,192 | — | 1,869,192 | ||||||||||||
| Food, Beverage & Tobacco | — | 4,363,900 | — | 4,363,900 | ||||||||||||
| Health Care Equipment & Services | — | 184,178 | — | 184,178 | ||||||||||||
| Materials | — | 4,955,589 | — | 4,955,589 | ||||||||||||
| Media & Entertainment | — | 497,701 | 1,655,118 | 2,152,819 | ||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 3,503,159 | — | 3,503,159 | ||||||||||||
| Real Estate Management & Development | — | 432,847 | — | 432,847 | ||||||||||||
| Software & Services | 2,133,035 | 10,861,947 | — | 12,994,982 | ||||||||||||
| Total Investments | $ | 2,133,035 | $ | 51,651,685 | $ | 1,655,118 | $ | 55,439,838 | ||||||||
The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2023:
| Common Stock | ||||
| Balance as of December 31, 2022 | $ | 1,526,697 | ||
| Realized gain (loss) | — | |||
| Net change in unrealized appreciation (depreciation) | 128,421 | |||
| Purchases | — | |||
| Sales | — | |||
| Transfers in/out of level 3 | — | |||
| Balance as of June 30, 2023 | $ | 1,655,118 | ||
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2023:
| Value as of June 30, 2023 | Valuation Technique | Unobservable Input Description(1) | Unobservable Input | Impact to Valuation from an Increase in Input(2) | ||||||
| Common Stock | ||||||||||
| Media & Entertainment | $1,655,118 | Market Approach | Revenue Multiple | 17.5x – 19.5x | Increase | |||||
| Illiquidity Discount | 35% | Decrease |
(1) In determining certain of these inputs, management evaluates a variety of factors including economic condition, industry and market developments, market valuations of comparable companies and company specific developments.
(2) This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases or decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.
See Notes to Financial Statements
| 26 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.8% | ||||||||
| Banks: 28.5% | ||||||||
| Bank Aladin Syariah Tbk PT * | 1,670,300 | $ | 136,476 | |||||
| Bank Central Asia Tbk PT | 3,798,500 | 2,329,613 | ||||||
| Bank Jago Tbk PT * | 1,078,400 | 230,702 | ||||||
| Bank Mandiri Persero Tbk PT | 5,589,004 | 1,945,014 | ||||||
| Bank Negara Indonesia Persero Tbk PT | 2,073,532 | 1,272,217 | ||||||
| Bank Rakyat Indonesia Persero Tbk PT | 6,401,133 | 2,336,999 | ||||||
| 8,251,021 | ||||||||
| Capital Goods: 8.3% | ||||||||
| Astra International Tbk PT | 3,812,400 | 1,729,222 | ||||||
| Jardine Cycle & Carriage Ltd. | 26,388 | 679,963 | ||||||
| 2,409,185 | ||||||||
| Consumer Discretionary Distribution & Retail: 6.8% | ||||||||
| Bukalapak.com PT Tbk * | 15,186,200 | 216,981 | ||||||
| GoTo Gojek Tokopedia Tbk PT * | 204,863,800 | 1,511,842 | ||||||
| Mitra Adiperkasa Tbk PT * | 2,261,000 | 255,177 | ||||||
| 1,984,000 | ||||||||
| Consumer Staples Distribution & Retail: 2.6% | ||||||||
| Sumber Alfaria Trijaya Tbk PT | 4,386,200 | 755,794 | ||||||
| Energy: 8.9% | ||||||||
| Adaro Energy Indonesia Tbk PT | 4,445,600 | 661,627 | ||||||
| Banpu PCL (NVDR) | 2,232,529 | 558,368 | ||||||
| Bukit Asam Tbk PT | 1,120,800 | 200,044 | ||||||
| Bumi Resources Tbk PT * | 45,414,900 | 348,355 | ||||||
| Indo Tambangraya Megah Tbk PT | 109,900 | 176,935 | ||||||
| United Tractors Tbk PT | 414,769 | 643,264 | ||||||
| 2,588,593 | ||||||||
| Financial Services: 0.7% | ||||||||
| BFI Finance Indonesia Tbk PT | 2,041,600 | 194,953 | ||||||
| Food, Beverage & Tobacco: 8.9% | ||||||||
| Charoen Pokphand Indonesia Tbk PT * | 2,005,600 | 704,977 | ||||||
| First Pacific Co. Ltd. | 565,250 | 195,954 | ||||||
| Golden Agri-Resources Ltd. | 1,374,800 | 249,268 | ||||||
| Gudang Garam Tbk PT | 128,400 | 236,459 | ||||||
| Indofood CBP Sukses Makmur Tbk PT | 615,900 | 466,225 | ||||||
| Indofood Sukses Makmur Tbk PT | 1,220,300 | 598,372 | ||||||
| Japfa Comfeed Indonesia Tbk PT | 1,466,800 | 131,042 | ||||||
| 2,582,297 | ||||||||
| Health Care Equipment & Services: 0.8% | ||||||||
| Mitra Keluarga Karyasehat Tbk PT | 1,267,197 | 227,252 | ||||||
| Household & Personal Products: 1.6% | ||||||||
| Unilever Indonesia Tbk PT | 1,590,700 | 452,873 | ||||||
| Materials: 15.0% | ||||||||
| Aneka Tambang Tbk | 2,337,900 | 305,034 | ||||||
| Avia Avian Tbk PT | 4,305,300 | 190,964 | ||||||
| Barito Pacific Tbk PT | 7,588,843 | 378,186 | ||||||
| Number of Shares | Value | |||||||
| Materials (continued) | ||||||||
| Bumi Resources Minerals Tbk PT * | 22,464,600 | $ | 203,781 | |||||
| Chandra Asri Petrochemical Tbk PT | 2,885,736 | 405,613 | ||||||
| Indah Kiat Pulp & Paper Tbk PT | 714,800 | 406,308 | ||||||
| Indocement Tunggal Prakarsa Tbk PT | 429,800 | 285,282 | ||||||
| Merdeka Battery Materials Tbk PT * | 7,805,000 | 421,681 | ||||||
| Merdeka Copper Gold Tbk PT * | 3,485,095 | 713,436 | ||||||
| Nickel Industries Ltd. | 462,357 | 274,964 | ||||||
| Pabrik Kertas Tjiwi Kimia Tbk PT | 346,200 | 143,004 | ||||||
| Semen Indonesia Persero Tbk PT | 919,562 | 374,489 | ||||||
| Vale Indonesia Tbk PT | 580,000 | 244,777 | ||||||
| 4,347,519 | ||||||||
| Media & Entertainment: 0.7% | ||||||||
| Elang Mahkota Teknologi Tbk PT | 4,426,100 | 210,976 | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 2.6% | ||||||||
| Kalbe Farma Tbk PT | 5,472,500 | 748,921 | ||||||
| Real Estate Management & Development: 2.1% | ||||||||
| Bumi Serpong Damai Tbk PT * | 2,236,300 | 163,530 | ||||||
| Ciputra Development Tbk PT | 2,421,595 | 170,783 | ||||||
| Pakuwon Jati Tbk PT | 3,882,200 | 126,286 | ||||||
| Summarecon Agung Tbk PT | 3,028,700 | 133,490 | ||||||
| 594,089 | ||||||||
| Telecommunication Services: 10.4% | ||||||||
| Indosat Tbk PT | 358,600 | 206,845 | ||||||
| Sarana Menara Nusantara Tbk PT | 5,814,000 | 412,054 | ||||||
| Smartfren Telecom Tbk PT * | 35,426,400 | 142,574 | ||||||
| Telkom Indonesia Persero Tbk PT (ADR) † | 72,814 | 1,941,950 | ||||||
| Tower Bersama Infrastructure Tbk PT | 1,007,700 | 135,317 | ||||||
| XL Axiata Tbk PT | 1,240,775 | 162,357 | ||||||
| 3,001,097 | ||||||||
| Transportation: 1.0% | ||||||||
| Jasa Marga Persero Tbk PT | 605,250 | 153,928 | ||||||
| Transcoal Pacific Tbk PT | 278,000 | 129,798 | ||||||
| 283,726 | ||||||||
| Utilities: 0.9% | ||||||||
| Perusahaan Gas Negara Tbk PT | 2,897,500 | 253,656 | ||||||
| Total Common Stocks (Cost: $37,142,009) | 28,885,952 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.0% | ||||||||
| Money Market Fund: 0.0% | ||||||||
See Notes to Financial Statements
| 27 |
VANECK INDONESIA INDEX ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| (Cost: $548) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 548 | $ | 548 | |||||
| Number of Shares | Value | |||||||
| Total Investments: 99.8% (Cost: $37,142,557) | $ | 28,886,500 | ||||||
| Other assets less liabilities: 0.2% | 70,198 | |||||||
| NET ASSETS: 100.0% | $ | 28,956,698 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| NVDR | Non-Voting Depositary Receipt |
| Footnotes: | |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $1,391,747. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Financials | 29.3 | % | $ | 8,445,974 | ||||
| Materials | 15.0 | 4,347,519 | ||||||
| Consumer Staples | 13.1 | 3,790,964 | ||||||
| Communication Services | 11.1 | 3,212,073 | ||||||
| Industrials | 9.3 | 2,692,911 | ||||||
| Energy | 9.0 | 2,588,593 | ||||||
| Consumer Discretionary | 6.9 | 1,984,000 | ||||||
| Health Care | 3.4 | 976,173 | ||||||
| Real Estate | 2.0 | 594,089 | ||||||
| Utilities | 0.9 | 253,656 | ||||||
| 100.0 | % | $ | 28,885,952 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Banks | $ | 136,476 | $ | 8,114,545 | $ | — | $ | 8,251,021 | ||||||||
| Capital Goods | — | 2,409,185 | — | 2,409,185 | ||||||||||||
| Consumer Discretionary Distribution & Retail | — | 1,984,000 | — | 1,984,000 | ||||||||||||
| Consumer Staples Distribution & Retail | — | 755,794 | — | 755,794 | ||||||||||||
| Energy | 348,355 | 2,240,238 | — | 2,588,593 | ||||||||||||
| Financial Services | — | 194,953 | — | 194,953 | ||||||||||||
| Food, Beverage & Tobacco | — | 2,582,297 | — | 2,582,297 | ||||||||||||
| Health Care Equipment & Services | — | 227,252 | — | 227,252 | ||||||||||||
| Household & Personal Products | — | 452,873 | — | 452,873 | ||||||||||||
| Materials | 816,426 | 3,531,093 | — | 4,347,519 | ||||||||||||
| Media & Entertainment | — | 210,976 | — | 210,976 | ||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 748,921 | — | 748,921 | ||||||||||||
| Real Estate Management & Development | — | 594,089 | — | 594,089 | ||||||||||||
| Telecommunication Services | 1,941,950 | 1,059,147 | — | 3,001,097 | ||||||||||||
| Transportation | 129,798 | 153,928 | — | 283,726 | ||||||||||||
| Utilities | — | 253,656 | — | 253,656 | ||||||||||||
| Money Market Fund | 548 | — | — | 548 | ||||||||||||
| Total Investments | $ | 3,373,553 | $ | 25,512,947 | $ | — | $ | 28,886,500 | ||||||||
See Notes to Financial Statements
| 28 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.8% | ||||||||
| Automobiles & Components: 1.1% | ||||||||
| Mobileye Global, Inc. * † | 16,566 | $ | 636,466 | |||||
| Banks: 16.5% | ||||||||
| Bank Hapoalim BM | 310,989 | 2,561,523 | ||||||
| Bank Leumi Le-Israel BM | 368,875 | 2,760,886 | ||||||
| FIBI Holdings Ltd. | 5,654 | 228,309 | ||||||
| First International Bank Of Israel Ltd. | 14,999 | 585,799 | ||||||
| Israel Discount Bank Ltd. | 304,112 | 1,517,470 | ||||||
| Mizrahi Tefahot Bank Ltd. | 44,461 | 1,484,981 | ||||||
| 9,138,968 | ||||||||
| Capital Goods: 4.5% | ||||||||
| Ashtrom Group Ltd. | 8,071 | 111,866 | ||||||
| Elbit Systems Ltd. † | 7,514 | 1,570,125 | ||||||
| Elco Ltd. | 2,164 | 74,313 | ||||||
| Electra Ltd. | 331 | 136,709 | ||||||
| Kornit Digital Ltd. * | 10,916 | 320,603 | ||||||
| Shapir Engineering and Industry Ltd. | 23,737 | 163,690 | ||||||
| Shikun & Binui Ltd. * | 47,866 | 102,455 | ||||||
| 2,479,761 | ||||||||
| Commercial & Professional Services: 0.9% | ||||||||
| Danel Adir Yeoshua Ltd. | 1,294 | 91,712 | ||||||
| Fiverr International Ltd. * † | 9,784 | 254,482 | ||||||
| Hilan Ltd. | 3,047 | 150,987 | ||||||
| 497,181 | ||||||||
| Consumer Discretionary Distribution & Retail: 2.1% | ||||||||
| Delek Automotive Systems Ltd. | 11,276 | 86,430 | ||||||
| Fox Wizel Ltd. | 1,602 | 131,612 | ||||||
| Global-e Online Ltd. * | 23,465 | 960,657 | ||||||
| 1,178,699 | ||||||||
| Consumer Durables & Apparel: 0.6% | ||||||||
| Delta Galil Ltd. | 3,672 | 144,000 | ||||||
| Maytronics Ltd. | 12,741 | 174,390 | ||||||
| 318,390 | ||||||||
| Consumer Services: 0.5% | ||||||||
| 888 Holdings Plc * † | 120,702 | 150,816 | ||||||
| Fattal Holdings 1998 Ltd. * | 1,310 | 127,375 | ||||||
| 278,191 | ||||||||
| Consumer Staples Distribution & Retail: 0.6% | ||||||||
| Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | 2,380 | 141,000 | ||||||
| Shufersal Ltd. * | 33,539 | 175,654 | ||||||
| 316,654 | ||||||||
| Energy: 2.2% | ||||||||
| Delek Group Ltd. | 3,041 | 348,518 | ||||||
| Energean Plc | 36,882 | 480,153 | ||||||
| Oil Refineries Ltd. | 808,116 | 231,380 | ||||||
| Paz Oil Co. Ltd. * | 1,625 | 174,615 | ||||||
| 1,234,666 | ||||||||
| Financial Services: 1.9% | ||||||||
| Isracard Ltd. | 55,216 | 230,553 | ||||||
| Payoneer Global, Inc. * | 53,777 | 258,667 | ||||||
| Plus500 Ltd. | 23,618 | 439,892 | ||||||
| Tel Aviv Stock Exchange Ltd. * | 25,575 | 132,012 | ||||||
| 1,061,124 | ||||||||
| Number of Shares | Value | |||||||
| Food, Beverage & Tobacco: 0.5% | ||||||||
| Strauss Group Ltd. * | 13,157 | $ | 296,523 | |||||
| Health Care Equipment & Services: 3.8% | ||||||||
| Inmode Ltd. * | 24,841 | 927,811 | ||||||
| Nano-X Imaging Ltd. * † | 17,238 | 267,017 | ||||||
| Novocure Ltd. * | 14,114 | 585,731 | ||||||
| OPKO Health, Inc. * † | 141,180 | 306,361 | ||||||
| 2,086,920 | ||||||||
| Insurance: 3.1% | ||||||||
| Clal Insurance Enterprises Holdings Ltd. * | 19,429 | 302,617 | ||||||
| Harel Insurance Investments & Financial Services Ltd. | 37,050 | 289,377 | ||||||
| Lemonade, Inc. * † | 19,854 | 334,540 | ||||||
| Menora Mivtachim Holdings Ltd. | 6,990 | 148,254 | ||||||
| Migdal Insurance & Financial Holdings Ltd. | 126,047 | 153,066 | ||||||
| Phoenix Holdings Ltd. | 51,157 | 514,541 | ||||||
| 1,742,395 | ||||||||
| Materials: 2.3% | ||||||||
| ICL Group Ltd. | 171,341 | 938,948 | ||||||
| Israel Corp. Ltd. | 1,254 | 331,143 | ||||||
| 1,270,091 | ||||||||
| Media & Entertainment: 1.8% | ||||||||
| Perion Network Ltd. * † | 14,839 | 455,112 | ||||||
| Playtika Holding Corp. * | 21,871 | 253,704 | ||||||
| Taboola.com Ltd. * | 65,331 | 203,180 | ||||||
| Tremor International Ltd. (ADR) * | 11,627 | 83,714 | ||||||
| 995,710 | ||||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 4.7% | ||||||||
| Taro Pharmaceutical Industries Ltd. * | 2,747 | 104,194 | ||||||
| Teva Pharmaceutical Industries Ltd. (ADR) * | 335,001 | 2,522,557 | ||||||
| 2,626,751 | ||||||||
| Real Estate Management & Development: 4.2% | ||||||||
| Airport City Ltd. * | 14,858 | 195,828 | ||||||
| Alony Hetz Properties & Investments Ltd. | 32,839 | 257,420 | ||||||
| Amot Investments Ltd. | 54,654 | 286,875 | ||||||
| Azrieli Group Ltd. | 12,087 | 682,045 | ||||||
| Big Shopping Centers Ltd. * | 2,399 | 216,499 | ||||||
| Melisron Ltd. | 6,470 | 420,333 | ||||||
| Mivne Real Estate KD Ltd. | 80,253 | 195,898 | ||||||
| Summit Real Estate Holdings Ltd. | 7,364 | 94,969 | ||||||
| 2,349,867 | ||||||||
| Semiconductors & Semiconductor Equipment: 12.5% | ||||||||
| Camtek Ltd. * † | 7,848 | 279,624 | ||||||
| CEVA, Inc. * | 5,212 | 133,167 | ||||||
| Nova Ltd. * | 5,726 | 671,660 | ||||||
| SolarEdge Technologies, Inc. * | 16,847 | 4,532,685 | ||||||
| Tower Semiconductor Ltd. * | 34,735 | 1,303,257 | ||||||
| 6,920,393 | ||||||||
See Notes to Financial Statements
| 29 |
VANECK ISRAEL ETF
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
| Number of Shares | Value | |||||||
| Software & Services: 28.6% | ||||||||
| Amdocs Ltd. | 31,159 | $ | 3,080,067 | |||||
| Check Point Software Technologies Ltd. * | 29,287 | 3,679,033 | ||||||
| CyberArk Software Ltd. * | 13,043 | 2,039,012 | ||||||
| Formula Systems 1985 Ltd. | 1,781 | 130,997 | ||||||
| JFrog Ltd. * | 23,694 | 656,324 | ||||||
| Matrix IT Ltd. | 7,597 | 154,918 | ||||||
| Monday.com Ltd. * | 7,930 | 1,357,775 | ||||||
| Nice Ltd. (ADR) * † | 16,490 | 3,405,185 | ||||||
| One Software Technologies Ltd. | 7,365 | 99,176 | ||||||
| Sapiens International Corp. NV | 9,164 | 243,762 | ||||||
| Wix.com Ltd. * | 13,581 | 1,062,577 | ||||||
| 15,908,826 | ||||||||
| Technology Hardware & Equipment: 1.5% | ||||||||
| Gilat Satellite Networks Ltd. * † | 15,047 | 93,743 | ||||||
| Nano Dimension Ltd. (ADR) * † | 75,708 | 218,796 | ||||||
| Radware Ltd. * | 9,463 | 183,487 | ||||||
| Stratasys Ltd. * | 18,276 | 324,582 | ||||||
| 820,608 | ||||||||
| Telecommunication Services: 1.7% | ||||||||
| Bezeq The Israeli Telecommunication Corp. Ltd. | 670,937 | 818,723 | ||||||
| Cellcom Israel Ltd. * | 18,659 | 64,674 | ||||||
| Partner Communications Co. Ltd. * | 19,182 | 75,475 | ||||||
| 958,872 | ||||||||
| Number of Shares | Value | |||||||
| Transportation: 0.7% | ||||||||
| ZIM Integrated Shipping Services Ltd. † | 31,543 | $ | 390,818 | |||||
| Utilities: 3.5% | ||||||||
| Energix-Renewable Energies Ltd. | 67,341 | 218,643 | ||||||
| Enlight Renewable Energy Ltd. * | 27,359 | 481,958 | ||||||
| Kenon Holdings Ltd. | 5,909 | 138,064 | ||||||
| OPC Energy Ltd. * | 21,622 | 142,758 | ||||||
| Ormat Technologies, Inc. † | 12,100 | 973,566 | ||||||
| 1,954,989 | ||||||||
| Total Common Stocks (Cost: $49,194,075) | 55,462,863 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.7% | ||||||||
| Money Market Fund: 3.7% (Cost: $2,040,559) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 2,040,559 | 2,040,559 | ||||||
| Total Investments: 103.5% (Cost: $51,234,634) | 57,503,422 | |||||||
| Liabilities in excess of other assets: (3.5)% | (1,964,976) | |||||||
| NET ASSETS: 100.0% | $ | 55,538,446 | ||||||
| Definitions: | |
| ADR | American Depositary Receipt |
| Footnotes: | |
| † | Security fully or partially on loan. Total market value of securities on loan is $7,091,643. |
| * | Non-income producing |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Information Technology | 43.0 | % | $ | 23,800,814 | ||||
| Financials | 21.5 | 11,942,487 | ||||||
| Health Care | 8.5 | 4,713,671 | ||||||
| Industrials | 5.8 | 3,216,773 | ||||||
| Consumer Discretionary | 4.4 | 2,411,746 | ||||||
| Real Estate | 4.2 | 2,349,867 | ||||||
| Utilities | 3.5 | 1,954,989 | ||||||
| Communication Services | 3.5 | 1,954,582 | ||||||
| Materials | 2.3 | 1,270,091 | ||||||
| Energy | 2.2 | 1,234,666 | ||||||
| Consumer Staples | 1.1 | 613,177 | ||||||
| 100.0 | % | $ | 55,462,863 | |||||
See Notes to Financial Statements
| 30 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Automobiles & Components | $ | 636,466 | $ | — | $ | — | $ | 636,466 | ||||||||
| Banks | — | 9,138,968 | — | 9,138,968 | ||||||||||||
| Capital Goods | 1,890,728 | 589,033 | — | 2,479,761 | ||||||||||||
| Commercial & Professional Services | 254,482 | 242,699 | — | 497,181 | ||||||||||||
| Consumer Discretionary Distribution & Retail | 960,657 | 218,042 | — | 1,178,699 | ||||||||||||
| Consumer Durables & Apparel | — | 318,390 | — | 318,390 | ||||||||||||
| Consumer Services | — | 278,191 | — | 278,191 | ||||||||||||
| Consumer Staples Distribution & Retail | — | 316,654 | — | 316,654 | ||||||||||||
| Energy | 480,153 | 754,513 | — | 1,234,666 | ||||||||||||
| Financial Services | 698,559 | 362,565 | — | 1,061,124 | ||||||||||||
| Food, Beverage & Tobacco | — | 296,523 | — | 296,523 | ||||||||||||
| Health Care Equipment & Services | 2,086,920 | — | — | 2,086,920 | ||||||||||||
| Insurance | 334,540 | 1,407,855 | — | 1,742,395 | ||||||||||||
| Materials | 938,948 | 331,143 | — | 1,270,091 | ||||||||||||
| Media & Entertainment | 995,710 | — | — | 995,710 | ||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2,626,751 | — | — | 2,626,751 | ||||||||||||
| Real Estate Management & Development | — | 2,349,867 | — | 2,349,867 | ||||||||||||
| Semiconductors & Semiconductor Equipment | 6,920,393 | — | — | 6,920,393 | ||||||||||||
| Software & Services | 15,523,735 | 385,091 | — | 15,908,826 | ||||||||||||
| Technology Hardware & Equipment | 820,608 | — | — | 820,608 | ||||||||||||
| Telecommunication Services | — | 958,872 | — | 958,872 | ||||||||||||
| Transportation | 390,818 | — | — | 390,818 | ||||||||||||
| Utilities | 973,566 | 981,423 | — | 1,954,989 | ||||||||||||
| Money Market Fund | 2,040,559 | — | — | 2,040,559 | ||||||||||||
| Total Investments | $ | 38,573,593 | $ | 18,929,829 | $ | — | $ | 57,503,422 | ||||||||
See Notes to Financial Statements
| 31 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.9% | ||||||||
| Banks: 10.5% | ||||||||
| Bank for Foreign Trade of Vietnam JSC * | 7,825,345 | $ | 33,234,242 | |||||
| Saigon - Hanoi Commercial Joint Stock Bank * | 27,787,400 | 14,798,661 | ||||||
| Vietnam Export Import Commercial JSB * | 10,396,400 | 9,367,119 | ||||||
| 57,400,022 | ||||||||
| Capital Goods: 8.0% | ||||||||
| Development Investment Construction JSC * | 9,004,286 | 8,073,184 | ||||||
| Gelex Group JSC | 10,858,064 | 8,953,190 | ||||||
| Ha Do Group JSC * | 2,298,320 | 3,785,172 | ||||||
| Hoang Huy Investment Financial Services JSC | 10,763,320 | 4,078,451 | ||||||
| IDICO Corp. JSC | 4,208,010 | 7,578,503 | ||||||
| Tasco JSC * | 5,615,400 | 4,595,176 | ||||||
| Vietnam Construction and Import-Export JSC * | 7,353,219 | 6,536,306 | ||||||
| 43,599,982 | ||||||||
| Energy: 2.1% | ||||||||
| PetroVietnam Drilling & Well Services JSC * | 5,036,388 | 5,252,382 | ||||||
| PetroVietnam Technical Services Corp. | 4,491,200 | 6,169,806 | ||||||
| 11,422,188 | ||||||||
| Financial Services: 15.2% | ||||||||
| Sai Gon-Ha Noi Securities JSC * | 11,733,650 | 6,572,527 | ||||||
| SSI Securities Corp. | 27,721,608 | 30,473,299 | ||||||
| Vietcap Securities JSC | 9,353,150 | 14,580,735 | ||||||
| VIX Securities JSC | 18,421,517 | 8,487,552 | ||||||
| VNDirect Securities Corp. * | 29,015,880 | 23,389,330 | ||||||
| 83,503,443 | ||||||||
| Food, Beverage & Tobacco: 20.1% | ||||||||
| HAGL JSC * | 14,315,600 | 4,965,311 | ||||||
| Hoang Anh Gia Lai International Agriculture JSC * | 17,855,900 | 3,092,542 | ||||||
| KIDO Group Corp. | 2,502,930 | 6,653,349 | ||||||
| Masan Group Corp. | 8,378,276 | 26,779,388 | ||||||
| Saigon Beer Alcohol Beverage Corp. | 2,151,900 | 14,043,013 | ||||||
| Thanh Thanh Cong - Bien Hoa JSC * | 9,442,899 | 6,083,495 | ||||||
| Vietnam Dairy Products JSC | 13,377,541 | 40,318,465 | ||||||
| Number of Shares | Value | |||||||
| Food, Beverage & Tobacco (continued) | ||||||||
| Vinh Hoan Corp. | 3,076,600 | $ | 8,504,114 | |||||
| 110,439,677 | ||||||||
| Insurance: 1.1% | ||||||||
| Bao Viet Holdings | 3,238,196 | 6,071,220 | ||||||
| Materials: 12.5% | ||||||||
| Duc Giang Chemicals JSC | 4,333,232 | 11,779,103 | ||||||
| Hoa Phat Group JSC * | 36,385,797 | 40,482,259 | ||||||
| Hoa Sen Group * | 7,027,601 | 4,920,923 | ||||||
| PetroVietNam Ca Mau Fertilizer JSC | 4,263,700 | 4,794,226 | ||||||
| Petrovietnam Fertilizer & Chemicals JSC | 4,333,700 | 6,404,966 | ||||||
| 68,381,477 | ||||||||
| Real Estate Management & Development: 27.2% | ||||||||
| Dat Xanh Group JSC * | 6,345,900 | 4,015,666 | ||||||
| Khang Dien House Trading and Investment JSC * | 3,127,140 | 4,089,508 | ||||||
| Kinh Bac City Development Holding Corp. * | 7,727,600 | 9,662,136 | ||||||
| Novaland Investment Group Corp. * | 28,793,558 | 18,169,008 | ||||||
| Phat Dat Real Estate Development Corp. * | 10,367,700 | 7,390,400 | ||||||
| Van Phu - Invest Investment JSC | 3,572,960 | 7,838,895 | ||||||
| Vincom Retail JSC * | 12,200,222 | 13,910,297 | ||||||
| Vingroup JSC * | 19,168,349 | 41,486,777 | ||||||
| Vinhomes JSC 144A * | 18,301,567 | 42,779,337 | ||||||
| 149,342,024 | ||||||||
| Transportation: 1.6% | ||||||||
| Vietjet Aviation JSC * | 2,180,740 | 8,719,261 | ||||||
| Utilities: 1.6% | ||||||||
| PetroVietnam Power Corp. * | 15,717,310 | 8,972,417 | ||||||
| Total Common Stocks (Cost: $476,115,650) | 547,851,711 | |||||||
| EXCHANGE TRADED FUND: 0.0% (Cost: $42,158) | ||||||||
| DCVFMVN Diamond ETF | 62,610 | 64,152 | ||||||
| Total Investments: 99.9% (Cost: $476,157,808) | 547,915,863 | |||||||
| Other assets less liabilities: 0.1% | 448,782 | |||||||
| NET ASSETS: 100.0% | $ | 548,364,645 | ||||||
| Footnotes: | |
| * | Non-income producing |
| 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 $42,779,337, or 7.8% of net assets. |
See Notes to Financial Statements
| 32 |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Real Estate | 27.3 | % | $ | 149,342,024 | ||||
| Financials | 26.8 | 146,974,685 | ||||||
| Consumer Staples | 20.1 | 110,439,677 | ||||||
| Materials | 12.5 | 68,381,477 | ||||||
| Industrials | 9.6 | 52,319,243 | ||||||
| Energy | 2.1 | 11,422,188 | ||||||
| Utilities | 1.6 | 8,972,417 | ||||||
| Exchange Traded Fund | 0.0 | 64,152 | ||||||
| 100.0 | % | $ | 547,915,863 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Banks | $ | 9,367,119 | $ | 48,032,903 | $ | — | $ | 57,400,022 | ||||||||
| Capital Goods | 4,595,176 | 39,004,806 | — | 43,599,982 | ||||||||||||
| Energy | 6,169,806 | 5,252,382 | — | 11,422,188 | ||||||||||||
| Financial Services | — | 83,503,443 | — | 83,503,443 | ||||||||||||
| Food, Beverage & Tobacco | — | 110,439,677 | — | 110,439,677 | ||||||||||||
| Insurance | — | 6,071,220 | — | 6,071,220 | ||||||||||||
| Materials | — | 68,381,477 | — | 68,381,477 | ||||||||||||
| Real Estate Management & Development | — | 149,342,024 | — | 149,342,024 | ||||||||||||
| Transportation | 8,719,261 | — | — | 8,719,261 | ||||||||||||
| Utilities | — | 8,972,417 | — | 8,972,417 | ||||||||||||
| Exchange Traded Fund | — | 64,152 | — | 64,152 | ||||||||||||
| Total Investments | $ | 28,851,362 | $ | 519,064,501 | $ | — | $ | 547,915,863 | ||||||||
See Notes to Financial Statements
| 33 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Africa Index ETF | Brazil Small-Cap ETF | China Growth Leaders ETF | ChiNext ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Investments, at value (1) | ||||||||||||||||
| Unaffiliated issuers (2) | $ | 45,791,995 | $ | 34,591,944 | $ | 13,810,290 | $ | 19,794,843 | ||||||||
| Short-term investments held as collateral for securities loaned (3) | 1,116,905 | 2,301,920 | — | — | ||||||||||||
| Cash | — | 169,216 | 191,613 | 41,833 | ||||||||||||
| Cash denominated in foreign currency, at value (4) | 4,427,686 | — | — | 43,471 | (a) | |||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold | — | 99,381 | 4,682 | — | ||||||||||||
| Shares of beneficial interest sold | 76,930 | — | — | — | ||||||||||||
| Due from Adviser | — | 7,299 | 33,800 | 21,688 | ||||||||||||
| Dividends and interest | 194,952 | 124,389 | 44,144 | 2,478 | ||||||||||||
| Prepaid expenses | 95 | 54 | 28 | 51 | ||||||||||||
| Total assets | 51,608,563 | 37,294,203 | 14,084,557 | 19,904,364 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased | — | 154,229 | 49,185 | — | ||||||||||||
| Collateral for securities loaned | 1,116,905 | 2,301,920 | — | — | ||||||||||||
| Line of credit | 2,000,000 | — | — | — | ||||||||||||
| Due to Adviser | 2,179 | — | — | — | ||||||||||||
| Due to custodian | 2,694,820 | 183,796 | 111,658 | — | ||||||||||||
| Deferred Trustee fees | 14,867 | 39,294 | 6,456 | 1,432 | ||||||||||||
| Accrued expenses | 86,072 | 72,696 | 51,107 | 66,281 | ||||||||||||
| Total liabilities | 5,914,843 | 2,751,935 | 218,406 | 67,713 | ||||||||||||
| NET ASSETS | $ | 45,693,720 | $ | 34,542,268 | $ | 13,866,151 | $ | 19,836,651 | ||||||||
| Shares outstanding | 3,100,000 | 1,900,000 | 600,000 | 700,000 | ||||||||||||
| Net asset value, redemption and offering price per share | $ | 14.74 | $ | 18.18 | $ | 23.11 | $ | 28.34 | ||||||||
| Net Assets consist of: | ||||||||||||||||
| Aggregate paid in capital | $ | 119,395,951 | $ | 195,772,499 | $ | 20,774,307 | $ | 23,563,749 | ||||||||
| Total distributable earnings (loss) | (73,702,231 | ) | (161,230,231 | ) | (6,908,156 | ) | (3,727,098 | ) | ||||||||
| NET ASSETS | $ | 45,693,720 | $ | 34,542,268 | $ | 13,866,151 | $ | 19,836,651 | ||||||||
| (1) Value of securities on loan . | $ | 5,708,154 | $ | 3,947,034 | $ | 293,082 | $ | — | ||||||||
| (2) Cost of investments - Unaffiliated issuers | $ | 44,322,413 | $ | 31,960,948 | $ | 17,196,310 | $ | 17,219,524 | ||||||||
| (3) Cost of short-term investments held as collateral for securities loaned | $ | 1,116,905 | $ | 2,301,920 | $ | — | $ | — | ||||||||
| (4) Cost of cash denominated in foreign currency | $ | 6,006,613 | $ | — | $ | — | $ | 46,066 | ||||||||
(a) Includes $22,168 on foreign investor minimum settlement reserve funds (see Note 2H).
See Notes to Financial Statements
| 34 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Digital India ETF | Egypt Index ETF | India Growth Leaders ETF (a) | Indonesia Index ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Investments, at value (1) | ||||||||||||||||
| Unaffiliated issuers (2) | $ | 2,336,347 | $ | 14,534,099 | $ | 55,439,838 | $ | 28,885,952 | ||||||||
| Short-term investments held as collateral for securities loaned (3) | — | — | — | 548 | ||||||||||||
| Cash | — | — | 15,562 | — | ||||||||||||
| Cash denominated in foreign currency, at value (4) | 2,846 | 2,799,059 | 446,490 | 4,234 | ||||||||||||
| Receivables: | ||||||||||||||||
| Shares of beneficial interest sold | — | 74,572 | 1,209 | — | ||||||||||||
| Due from Adviser | — | 74,083 | — | 10,920 | ||||||||||||
| Dividends and interest | 3,399 | 43,687 | 156,384 | 181,421 | ||||||||||||
| Prepaid expenses | — | 30 | 108 | 88 | ||||||||||||
| Total assets | 2,342,592 | 17,525,530 | 56,059,591 | 29,083,163 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payables: | ||||||||||||||||
| Collateral for securities loaned | — | — | — | 548 | ||||||||||||
| Line of credit | — | 2,140,347 | 485,253 | — | ||||||||||||
| Due to Adviser | 1,239 | — | 8,240 | — | ||||||||||||
| Due to custodian | 7,920 | 159 | — | 11,093 | ||||||||||||
| Deferred Trustee fees | — | 6,558 | 16,804 | 33,204 | ||||||||||||
| Accrued expenses | — | 53,579 | 72,058 | 81,620 | ||||||||||||
| Total liabilities | 9,159 | 2,200,643 | 582,355 | 126,465 | ||||||||||||
| NET ASSETS | $ | 2,333,433 | $ | 15,324,887 | $ | 55,477,236 | $ | 28,956,698 | ||||||||
| Shares outstanding | 75,000 | 799,974 | 1,524,967 | 1,600,000 | ||||||||||||
| Net asset value, redemption and offering price per share | $ | 31.11 | $ | 19.16 | $ | 36.38 | $ | 18.10 | ||||||||
| Net Assets consist of: | ||||||||||||||||
| Aggregate paid in capital | $ | 2,560,163 | $ | 58,361,002 | $ | 127,910,855 | $ | 156,965,653 | ||||||||
| Total distributable earnings (loss) | (226,730 | ) | (43,036,115 | ) | (72,433,619 | ) | (128,008,955 | ) | ||||||||
| NET ASSETS | $ | 2,333,433 | $ | 15,324,887 | $ | 55,477,236 | $ | 28,956,698 | ||||||||
| (1) Value of securities on loan | $ | — | $ | — | $ | — | $ | 1,391,747 | ||||||||
| (2) Cost of investments - Unaffiliated issuers | $ | 2,430,522 | $ | 13,766,340 | $ | 43,388,527 | $ | 37,142,009 | ||||||||
| (3) Cost of short-term investments held as collateral for securities loaned | $ | — | $ | — | $ | — | $ | 548 | ||||||||
| (4) Cost of cash denominated in foreign currency | $ | 2,849 | $ | 2,798,935 | $ | 444,442 | $ | 4,234 | ||||||||
(a) Consolidated Statement of Assets and Liabilities
See Notes to Financial Statements
| 35 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Israel ETF | Vietnam ETF | |||||||
| Assets: | ||||||||
| Investments, at value (1) | ||||||||
| Unaffiliated issuers (2) | $ | 55,462,863 | $ | 547,915,863 | ||||
| Short-term investments held as collateral for securities loaned (3) | 2,040,559 | — | ||||||
| Cash | 91,451 | — | ||||||
| Cash denominated in foreign currency, at value (4) | — | 79,349 | ||||||
| Receivables: | ||||||||
| Shares of beneficial interest sold | — | 117,111 | ||||||
| Dividends and interest | 39,592 | 1,424,945 | ||||||
| Prepaid expenses | 119 | 818 | ||||||
| Total assets | 57,634,584 | 549,538,086 | ||||||
| Liabilities: | ||||||||
| Payables: | ||||||||
| Collateral for securities loaned | 2,040,559 | — | ||||||
| Line of credit | — | 594,538 | ||||||
| Due to Adviser | 4,438 | 220,260 | ||||||
| Due to custodian | 489 | 97,952 | ||||||
| Deferred Trustee fees | 5,240 | 59,794 | ||||||
| Accrued expenses | 45,412 | 200,897 | ||||||
| Total liabilities | 2,096,138 | 1,173,441 | ||||||
| NET ASSETS | $ | 55,538,446 | $ | 548,364,645 | ||||
| Shares outstanding | 1,575,000 | 41,200,000 | ||||||
| Net asset value, redemption and offering price per share | $ | 35.26 | $ | 13.31 | ||||
| Net Assets consist of: | ||||||||
| Aggregate paid in capital | $ | 58,277,182 | $ | 847,775,849 | ||||
| Total distributable earnings (loss) | (2,738,736 | ) | (299,411,204 | ) | ||||
| NET ASSETS | $ | 55,538,446 | $ | 548,364,645 | ||||
| (1) Value of securities on loan | $ | 7,091,643 | $ | — | ||||
| (2) Cost of investments - Unaffiliated issuers | $ | 49,194,075 | $ | 476,157,808 | ||||
| (3) Cost of short-term investments held as collateral for securities loaned | $ | 2,040,559 | $ | — | ||||
| (4) Cost of cash denominated in foreign currency | $ | — | $ | 79,549 | ||||
See Notes to Financial Statements
| 36 |
VANECK ETF TRUST
For the Period Ended June 30, 2023 (unaudited)
| Africa Index ETF | Brazil Small-Cap ETF | China Growth Leaders ETF | ChiNext ETF | |||||||||||||
| Income: | ||||||||||||||||
| Dividends | $ | 1,079,675 | $ | 612,248 | $ | 347,562 | $ | 145,393 | ||||||||
| Interest | 134 | 1,998 | 5,208 | 47,350 | ||||||||||||
| Securities lending income | 11,420 | 32,375 | 1,349 | — | ||||||||||||
| Foreign taxes withheld | (124,631 | ) | (31,968 | ) | (28,412 | ) | (14,775 | ) | ||||||||
| Total income | 966,598 | 614,653 | 325,707 | 177,968 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 114,944 | 67,624 | 38,729 | 57,382 | ||||||||||||
| Professional fees | 24,736 | 23,940 | 31,439 | 29,237 | ||||||||||||
| Custody and accounting fees | 68,621 | 55,011 | 117,368 | 74,783 | ||||||||||||
| Reports to shareholders | 9,168 | 5,308 | 4,315 | 5,771 | ||||||||||||
| Trustees’ fees and expenses | 617 | 554 | 1,573 | 250 | ||||||||||||
| Registration fees | 2,950 | 2,950 | 2,951 | 4,228 | ||||||||||||
| Insurance | 1,139 | 1,051 | 1,018 | 1,060 | ||||||||||||
| Interest | 102,329 | 10,670 | 13,998 | 76,708 | ||||||||||||
| Other | 1,012 | 91 | 79 | 627 | ||||||||||||
| Total expenses | 325,516 | 167,199 | 211,470 | 250,046 | ||||||||||||
| Waiver of management fees | (43,875 | ) | (67,624 | ) | (38,729 | ) | (57,382 | ) | ||||||||
| Expenses assumed by the Adviser | — | (9,109 | ) | (125,970 | ) | (118,067 | ) | |||||||||
| Net expenses | 281,641 | 90,466 | 46,771 | 74,597 | ||||||||||||
| Net investment income | 684,957 | 524,187 | 278,936 | 103,371 | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Investments | (2,975,761 | ) | (2,518,245 | ) | 36,333 | (2,433,027 | ) | |||||||||
| In-kind redemptions | 189,517 | — | — | — | ||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | (402,066 | ) | 444 | (3,954 | ) | (15,677 | ) | |||||||||
| Net realized gain (loss) | (3,188,310 | ) | (2,517,801 | ) | 32,379 | (2,448,704 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments | 25,185 | 10,649,404 | (1,654,775 | ) | (164,835 | ) | ||||||||||
| Foreign currency translations and foreign denominated assets and liabilities | (802,665 | ) | 685 | (2,892 | ) | (1,548 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) | (777,480 | ) | 10,650,089 | (1,657,667 | ) | (166,383 | ) | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (3,280,833 | ) | $ | 8,656,475 | $ | (1,346,352 | ) | $ | (2,511,716 | ) | |||||
See Notes to Financial Statements
| 37 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2023 (unaudited)
| Digital India ETF | Egypt Index ETF | India Growth Leaders ETF (a) | Indonesia Index ETF | |||||||||||||
| Income: | ||||||||||||||||
| Dividends | $ | 10,981 | $ | 597,898 | $ | 671,709 | $ | 1,308,815 | ||||||||
| Interest | 57 | 1,420 | 4,544 | 1,447 | ||||||||||||
| Securities lending income | — | — | — | 4,055 | ||||||||||||
| Foreign taxes withheld | (2,098 | ) | (12,882 | ) | (142,199 | ) | (210,596 | ) | ||||||||
| Total income | 8,940 | 586,436 | 534,054 | 1,103,721 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 5,593 | 45,203 | 125,461 | 77,407 | ||||||||||||
| Professional fees | — | 20,716 | 37,208 | 21,592 | ||||||||||||
| Custody and accounting fees | — | 33,042 | 66,295 | 61,201 | ||||||||||||
| Reports to shareholders | — | 4,371 | 7,523 | 8,213 | ||||||||||||
| Trustees’ fees and expenses | — | 254 | 11,216 | 932 | ||||||||||||
| Registration fees | — | 2,950 | 2,950 | 2,950 | ||||||||||||
| Insurance | — | 1,002 | 1,166 | 2,054 | ||||||||||||
| Interest | 73 | 79,096 | 50,042 | 2,546 | ||||||||||||
| Other | — | 121 | 10,908 | 117 | ||||||||||||
| Total expenses | 5,666 | 186,755 | 312,769 | 177,012 | ||||||||||||
| Waiver of management fees | — | (22,678 | ) | (75,355 | ) | (77,407 | ) | |||||||||
| Expenses assumed by the Adviser | — | — | — | (8,815 | ) | |||||||||||
| Net expenses | 5,666 | 164,077 | 237,414 | 90,790 | ||||||||||||
| Net investment income | 3,274 | 422,359 | 296,640 | 1,012,931 | ||||||||||||
| Contribution from Adviser | ||||||||||||||||
| Increase from payment from Adviser (See Note 3) | — | 71,119 | — | — | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Investments | (66,295 | ) | (3,457,162 | ) | (2,673,181 | ) | (1,911,174 | ) | ||||||||
| In-kind redemptions | — | 225,286 | 39,246 | 277,463 | ||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | (1,292 | ) | (528,387 | ) | (120,597 | ) | 1,221 | |||||||||
| Net realized loss | (67,587 | ) | (3,760,263 | ) | (2,754,532 | ) | (1,632,490 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments | 263,432 | 886,063 | 8,192,434 | 1,982,672 | ||||||||||||
| Foreign currency translations and foreign denominated assets and liabilities | — | 7,194 | 2,133 | 223 | ||||||||||||
| Net change in unrealized appreciation (depreciation) | 263,432 | 893,257 | 8,194,567 | 1,982,895 | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 199,119 | $ | (2,373,528 | ) | $ | 5,736,675 | $ | 1,363,336 | |||||||
(a) Consolidated Statement of Operations
See Notes to Financial Statements
| 38 |
VANECK ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2023 (unaudited)
| Israel ETF | Vietnam ETF | |||||||
| Income: | ||||||||
| Dividends | $ | 765,671 | $ | 3,002,892 | ||||
| Interest | 459 | 19,235 | ||||||
| Securities lending income | 72,860 | 13,279 | ||||||
| Foreign taxes withheld | (172,519 | ) | (22,117 | ) | ||||
| Total income | 666,471 | 3,013,289 | ||||||
| Expenses: | ||||||||
| Management fees | 144,621 | 1,258,425 | ||||||
| Professional fees | 26,031 | 32,508 | ||||||
| Custody and accounting fees | 58,501 | 277,831 | ||||||
| Reports to shareholders | 5,625 | 19,672 | ||||||
| Trustees’ fees and expenses | 827 | 5,616 | ||||||
| Registration fees | 2,950 | 1,989 | ||||||
| Insurance | 2,121 | 6,304 | ||||||
| Interest | 1,904 | 352,089 | ||||||
| Other | 143 | 1,685 | ||||||
| Total expenses | 242,723 | 1,956,119 | ||||||
| Waiver of management fees | (70,166 | ) | — | |||||
| Net expenses | 172,557 | 1,956,119 | ||||||
| Net investment income | 493,914 | 1,057,170 | ||||||
| Net realized gain (loss) on: | ||||||||
| Investments | (45,750 | ) | (23,356,982 | ) | ||||
| In-kind redemptions | 1,124,488 | — | ||||||
| Foreign currency transactions and foreign denominated assets and liabilities | 2,648 | (197,521 | ) | |||||
| Net realized gain (loss) | 1,081,386 | (23,554,503 | ) | |||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||
| Investments | (2,259,016 | ) | 80,900,635 | |||||
| Foreign currency translations and foreign denominated assets and liabilities | 13 | (15,931 | ) | |||||
| Net change in unrealized appreciation (depreciation) | (2,259,003 | ) | 80,884,704 | |||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (683,703 | ) | $ | 58,387,371 | |||
See Notes to Financial Statements
| 39 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Africa Index ETF | Brazil Small-Cap ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 684,957 | $ | 1,748,437 | $ | 524,187 | $ | 799,907 | ||||||||
| Net realized loss | (3,188,310 | ) | (4,065,150 | ) | (2,517,801 | ) | (1,502,110 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) | (777,480 | ) | (8,524,292 | ) | 10,650,089 | (2,563,731 | ) | |||||||||
| Net increase (decrease) in net assets resulting from operations | (3,280,833 | ) | (10,841,005 | ) | 8,656,475 | (3,265,934 | ) | |||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (1,670,110 | ) | — | (971,850 | ) | ||||||||||
| Return of capital | — | — | — | (3,075 | ) | |||||||||||
| Total distributions | — | (1,670,110 | ) | — | (974,925 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 3,822,667 | — | 661,038 | 1,379,038 | ||||||||||||
| Cost of shares redeemed | (708,164 | ) | (817,849 | ) | — | (3,800,241 | ) | |||||||||
| Increase (decrease) in net assets resulting from share transactions | 3,114,503 | (817,849 | ) | 661,038 | (2,421,203 | ) | ||||||||||
| Total increase (decrease) in net assets | (166,330 | ) | (13,328,964 | ) | 9,317,513 | (6,662,062 | ) | |||||||||
| Net Assets, beginning of period | 45,860,050 | 59,189,014 | 25,224,755 | 31,886,817 | ||||||||||||
| Net Assets, end of period | $ | 45,693,720 | $ | 45,860,050 | $ | 34,542,268 | $ | 25,224,755 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 250,000 | — | 50,000 | 100,000 | ||||||||||||
| Shares redeemed | (50,000 | ) | (50,000 | ) | — | (200,000 | ) | |||||||||
| Net increase (decrease) | 200,000 | (50,000 | ) | 50,000 | (100,000 | ) | ||||||||||
See Notes to Financial Statements
| 40 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| China Growth Leaders ETF | ChiNext ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income (loss) | $ | 278,936 | $ | 325,327 | $ | 103,371 | $ | (56,012 | ) | |||||||
| Net realized gain (loss) | 32,379 | (3,901,398 | ) | (2,448,704 | ) | (3,640,884 | ) | |||||||||
| Increase from payment from Advisor (See Note 3) | — | 22,940 | — | — | ||||||||||||
| Net change in unrealized appreciation (depreciation) | (1,657,667 | ) | (4,272,366 | ) | (166,383 | ) | (9,389,260 | ) | ||||||||
| Net decrease in net assets resulting from operations | (1,346,352 | ) | (7,825,497 | ) | (2,511,716 | ) | (13,086,156 | ) | ||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (345,000 | ) | — | — | |||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | — | — | 7,977,987 | — | ||||||||||||
| Cost of shares redeemed | — | (3,181,758 | ) | (5,954,336 | ) | (7,788,438 | ) | |||||||||
| Increase (decrease) in net assets resulting from share transactions | — | (3,181,758 | ) | 2,023,651 | (7,788,438 | ) | ||||||||||
| Total decrease in net assets | (1,346,352 | ) | (11,352,255 | ) | (488,065 | ) | (20,874,594 | ) | ||||||||
| Net Assets, beginning of period | 15,212,503 | 26,564,758 | 20,324,716 | 41,199,310 | ||||||||||||
| Net Assets, end of period | $ | 13,866,151 | $ | 15,212,503 | $ | 19,836,651 | $ | 20,324,716 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | — | — | 250,000 | — | ||||||||||||
| Shares redeemed | — | (100,000 | ) | (200,000 | ) | (200,000 | ) | |||||||||
| Net increase (decrease) | — | (100,000 | ) | 50,000 | (200,000 | ) | ||||||||||
See Notes to Financial Statements
| 41 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Digital India ETF | Egypt Index ETF | |||||||||||||||
| Period Ended June 30, 2023 | Period Ended December 31, 2022 (a) | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 3,274 | $ | 7,222 | $ | 422,359 | $ | 492,176 | ||||||||
| Increase from payment from Adviser (See Note 3) | — | — | 71,119 | — | ||||||||||||
| Net realized loss | (67,587 | ) | (61,964 | ) | (3,760,263 | ) | (1,746,927 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) | 263,432 | (357,607 | ) | 893,257 | (4,003,163 | ) | ||||||||||
| Net increase (decrease) in net assets resulting from operations | 199,119 | (412,349 | ) | (2,373,528 | ) | (5,257,914 | ) | |||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (13,500 | ) | — | (300,031 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | 744,697 | 1,815,466 | 15,226,121 | 9,835,882 | ||||||||||||
| Cost of shares redeemed | — | — | (20,484,524 | ) | (2,992,178 | ) | ||||||||||
| Increase (decrease) in net assets resulting from share transactions | 744,697 | 1,815,466 | (5,258,403 | ) | 6,843,704 | |||||||||||
| Total increase (decrease) in net assets | 943,816 | 1,389,617 | (7,631,931 | ) | 1,285,759 | |||||||||||
| Net Assets, beginning of period | 1,389,617 | — | 22,956,818 | 21,671,059 | ||||||||||||
| Net Assets, end of period | $ | 2,333,433 | $ | 1,389,617 | $ | 15,324,887 | $ | 22,956,818 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 25,000 | 50,000 | 800,000 | 475,000 | ||||||||||||
| Shares redeemed | — | — | (1,125,000 | ) | (150,000 | ) | ||||||||||
| Net increase (decrease) | 25,000 | 50,000 | (325,000 | ) | 325,000 | |||||||||||
(a) For the period February 16, 2022 (commencement of operations) through December 31, 2022.
See Notes to Financial Statements
| 42 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| India Growth Leaders ETF (a) | Indonesia Index ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 296,640 | $ | 925,759 | $ | 1,012,931 | $ | 1,257,707 | ||||||||
| Net realized gain (loss) | (2,754,532 | ) | 1,561,588 | (1,632,490 | ) | (1,042,453 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) | 8,194,567 | (19,324,974 | ) | 1,982,895 | (4,318,333 | ) | ||||||||||
| Net increase (decrease) in net assets resulting from operations | 5,736,675 | (16,837,627 | ) | 1,363,336 | (4,103,079 | ) | ||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (875,052 | ) | — | (1,200,040 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | — | 8,391,562 | — | 37,473,208 | ||||||||||||
| Cost of shares redeemed | (1,630,348 | ) | (17,649,066 | ) | (5,344,204 | ) | (53,056,741 | ) | ||||||||
| Decrease in net assets resulting from share transactions | (1,630,348 | ) | (9,257,504 | ) | (5,344,204 | ) | (15,583,533 | ) | ||||||||
| Total increase (decrease) in net assets | 4,106,327 | (26,970,183 | ) | (3,980,868 | ) | (20,886,652 | ) | |||||||||
| Net Assets, beginning of period | 51,370,909 | 78,341,092 | 32,937,566 | 53,824,218 | ||||||||||||
| Net Assets, end of period | $ | 55,477,236 | $ | 51,370,909 | $ | 28,956,698 | $ | 32,937,566 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | — | 250,000 | — | 1,800,000 | ||||||||||||
| Shares redeemed | (50,000 | ) | (500,000 | ) | (300,000 | ) | (2,600,000 | ) | ||||||||
| Net decrease | (50,000 | ) | (250,000 | ) | (300,000 | ) | (800,000 | ) | ||||||||
(a) Consolidated Statement of Changes in Net Assets
See Notes to Financial Statements
| 43 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Israel ETF | Vietnam ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 493,914 | $ | 1,004,850 | $ | 1,057,170 | $ | 4,773,570 | ||||||||
| Net realized gain (loss) | 1,081,386 | (2,180,753 | ) | (23,554,503 | ) | (56,186,826 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) | (2,259,003 | ) | (19,705,800 | ) | 80,884,704 | (200,784,552 | ) | |||||||||
| Net increase (decrease) in net assets resulting from operations | (683,703 | ) | (20,881,703 | ) | 58,387,371 | (252,197,808 | ) | |||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | — | (799,920 | ) | — | (3,867,660 | ) | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | — | 1,155,251 | 108,043,964 | 130,365,153 | ||||||||||||
| Cost of shares redeemed | (2,698,980 | ) | (1,016,637 | ) | (31,136,227 | ) | (51,914,363 | ) | ||||||||
| Increase (decrease) in net assets resulting from share transactions | (2,698,980 | ) | 138,614 | 76,907,737 | 78,450,790 | |||||||||||
| Total increase (decrease) in net assets | (3,382,683 | ) | (21,543,009 | ) | 135,295,108 | (177,614,678 | ) | |||||||||
| Net Assets, beginning of period | 58,921,129 | 80,464,138 | 413,069,537 | 590,684,215 | ||||||||||||
| Net Assets, end of period | $ | 55,538,446 | $ | 58,921,129 | $ | 548,364,645 | $ | 413,069,537 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | — | 25,000 | 8,650,000 | 10,700,000 | ||||||||||||
| Shares redeemed | (75,000 | ) | (25,000 | ) | (2,600,000 | ) | (3,200,000 | ) | ||||||||
| Net increase (decrease) | (75,000 | ) | — | 6,050,000 | 7,500,000 | |||||||||||
See Notes to Financial Statements
| 44 |
VANECK ETF TRUST
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 45 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | For the year ended December 31, 2019, 0.55% of total return, representing $0.11 per share, consisted of a payment from the Adviser (See Note 3). |
| (c) | Amount represents less than $0.005 per share. |
| (d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (e) | Not Annualized |
| (f) | Annualized |
| (g) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
| (h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 46 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | For the year ended December 31, 2022, 0.11% of total return, representing $0.04 per share, consisted of a payment from the Adviser (See Note 3). |
| (c) | For the year ended December 31, 2020, 0.12% of total return, representing $0.05 per share, consisted of a payment from the Adviser (See Note 3). |
| (d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (e) | Not Annualized |
| (f) | Annualized |
| (g) | 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. |
| (h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 47 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | For the year ended December 31, 2021, 0.04% of total return, representing $0.02 per share, consisted of a payment from the Adviser (See Note 3). |
| (c) | For the year ended December 31, 2020, 0.07% of total return, representing $0.02 per share, consisted of a payment from the Adviser (See Note 3). |
| (d) | Amount represents less than $0.005 per share. |
| (e) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (f) | Not Annualized |
| (g) | Annualized |
| (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. |
| (i) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 48 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | For the period February 16, 2022 (commencement of operations) through December 31, 2022. |
| (b) | Calculated based upon average shares outstanding |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 49 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
| (c) | For the period ended June 30, 2023, 0.44% of total return, representing $0.09 per share, consisted of a payment from the Adviser (See Note 3). |
| (d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (e) | Not Annualized |
| (f) | Annualized |
| (g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 50 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Consolidated Financial Highlights |
| (b) | Calculated based upon average shares outstanding |
| (c) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
| (d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (e) | Not Annualized |
| (f) | Annualized |
| (g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 51 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 52 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 53 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
| (f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 54 |
VANECK ETF TRUST
June 30, 2023 (unaudited)
Note 1—Fund Organization—VanEck 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 investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
| Fund | Diversification Classification |
| Africa Index ETF | Diversified |
| Brazil Small-Cap ETF | Diversified |
| China Growth Leaders ETF | Diversified |
| ChiNext ETF | Diversified |
| Digital India ETF | Non-Diversified |
| Egypt Index ETF | Non-Diversified |
| India Growth Leaders ETF | Diversified |
| Indonesia Index ETF | Non-Diversified |
| Israel ETF | Non-Diversified |
| Vietnam ETF | Non-Diversified |
Each Fund’s investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of its index which are listed in the table below.
| Fund | Index |
| Africa Index ETF | MVIS® GDP Africa Index |
| Brazil Small-Cap ETF | MVIS® Brazil Small-Cap Index |
| China Growth Leaders ETF | MarketGrader China All-Cap Growth Leaders Index |
| ChiNext ETF | ChiNext Index |
| Digital India ETF | MVIS® Digital India Index |
| Egypt Index ETF | MVIS® Egypt Index |
| India Growth Leaders ETF | MarketGrader India All-Cap Growth Leaders Index |
| Indonesia Index ETF | MVIS® Indonesia Index |
| Israel ETF | Bluestar Israel Global Index® |
| Vietnam ETF | MVIS® Vietnam Index |
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 approximately the same weighting as their index. China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) is the sub-adviser to China Growth Leaders ETF and ChiNext ETF. China Growth Leaders ETF and 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 Growth Leaders ETF makes its investments through MV SCIF Mauritius (the “Subsidiary”), a wholly owned subsidiary organized in the Republic of Mauritius.
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 follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
| 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. 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 |
| 55 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
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).
Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. 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. Money market fund investments are valued at net asset value and are considered as Level 1 in the fair value hierarchy. Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern 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 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. The Funds’ Board of Trustees (“Trustees”) has designated the Adviser as valuation designee to perform the Funds’ fair value determinations, subject to board oversight and certain reporting and other requirements. The Adviser has adopted policies and procedures reasonably designed to comply with the requirements. The Pricing Committee of the Adviser provides oversight of the Funds’ valuation policies and procedures, which are approved by the 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 they do 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 categorized 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.
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 and acts as an investment vehicle for the India Growth Leaders ETF (the “Fund”) in order to effect |
| 56 |
| certain investments on behalf of the Fund. The Fund is the sole shareholder of the Subsidiary, and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary. The consolidated financial statements of the Fund include the financial results of its wholly owned subsidiary. All material interfund account balances and transactions 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 net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
| D. | 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 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) and net change in unrealized appreciation (depreciation) 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. | 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 offset in those agreements allows the Funds to offset 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 receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at June 30, 2023 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in 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. |
| The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. |
| 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. |
| 57 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
At June 30, 2023, ChiNext ETF included $22,168 in cash, 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 each Fund’s average daily net assets. The Adviser has agreed, until at least May 1, 2024, 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 the expense limitations for the Funds listed in the table below. Effective January 10, 2019, China Growth Leaders ETF and ChiNext ETF no longer exclude interest expense from their expense limitations. Refer to the Statements of Operations for the amounts waived/assumed by the Adviser for the period ended June 30, 2023.
The management fee rates and expense limitations for the period ended June 30, 2023, are as follows:
| Fund | Management Fees | Expense Limitations | ||||||
| Africa Index ETF | 0.50 | % | 0.78 | % | ||||
| Brazil Small-Cap ETF | 0.50 | 0.59 | ||||||
| China Growth Leaders ETF | 0.50 | 0.60 | ||||||
| ChiNext ETF | 0.50 | 0.65 | ||||||
| Egypt Index ETF | 0.50 | 0.94 | ||||||
| India Growth Leaders ETF* | 0.50 | 0.70 | ||||||
| Indonesia Index ETF | 0.50 | 0.57 | ||||||
| Israel ETF | 0.50 | 0.59 | ||||||
| Vietnam ETF | 0.50 | 0.76 | ||||||
*Prior to June 20, 2023, the expense limitation was 0.75%.
Digital India ETF utilizes a unitary management fee structure where the Adviser will pay all Fund expenses, except for the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.
| Fund | Unitary Management Fee Rate | |||
| Digital India ETF* | 0.70 | % | ||
*Prior to June 20, 2023, the unitary management fee rate was 0.75%.
During the year ended December 31, 2019, the Adviser reimbursed the Brazil Small-Cap ETF $372,975 for an investment loss. The per share and total return impact to the Fund is reflected in the Financial Highlights.
During the year ended December 31, 2020, the Adviser reimbursed the China Growth Leaders ETF and ChiNext ETF $57,732 and $17,518, respectively, for transactional losses. The per share and total return impacts to the Funds are reflected in the Financial Highlights.
During the year ended December 31, 2021, the Adviser reimbursed the ChiNext ETF $19,569 for an investment loss. The per share and total return impact to the Fund is reflected in the Financial Highlights.
During the year ended December 31, 2022, the Adviser reimbursed the China Growth Leaders ETF $22,940 for an operational error. This reimbursement is reflected in the Statements of Changes in Net Assets as a net increase from payment from Adviser. The per share and total return impact to the Fund is reflected in the Financial Highlights.
During the period ended June 30, 2023, the Adviser reimbursed the Egypt Index ETF $71,119 for an operational error. This reimbursement is reflected in the Statements of Operations and Statements of Changes in Net Assets as a net increase from payment from Adviser. The per share and total return impact to the Fund is reflected in the Financial Highlights.
| 58 |
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.
As of June 30, 2023, the Adviser owned approximately 28% of Egypt Index ETF.
Note 4—Capital Share Transactions—As of June 30, 2023, 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”).
The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of a designated portfolio of securities (“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, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 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 transfer agent. In addition, the Funds may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
Note 5—Investments—For the period ended June 30, 2023, purchases and sales of investments (excluding short-term investments and in-kind capital share transactions) and the purchases and sales of investments resulting from in-kind capital share transactions (excluding short-term investments) were as follows:
| In-Kind Capital Share Transactions | ||||||||||||||||
| Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
| Africa Index ETF | $ | 10,672,206 | $ | 9,929,064 | $ | 2,563,205 | $ | 497,438 | ||||||||
| Brazil Small-Cap ETF | 5,946,089 | 4,741,751 | 131,462 | — | ||||||||||||
| China Growth Leaders ETF | 4,055,047 | 3,872,658 | — | — | ||||||||||||
| ChiNext ETF | 9,001,506 | 6,955,440 | — | — | ||||||||||||
| Digital India ETF | 870,211 | 307,679 | 186,448 | — | ||||||||||||
| Egypt Index ETF | 13,185,293 | 17,897,348 | 2,973,726 | 4,352,852 | ||||||||||||
| India Growth Leaders ETF | 25,967,293 | 27,323,083 | — | 82,141 | ||||||||||||
| Indonesia Index ETF | 3,412,071 | 2,420,662 | — | 5,340,795 | ||||||||||||
| Israel ETF | 4,380,578 | 3,947,444 | — | 2,697,921 | ||||||||||||
| Vietnam ETF | 271,789,650 | 195,958,261 | 3,562,323 | — | ||||||||||||
Note 6—Income Taxes—As of June 30, 2023, for Federal income tax purposes, the identified cost, gross unrealized appreciation, 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 | $46,290,430 | $5,469,823 | $(4,851,353 | ) | $618,470 | |||||||||||
| Brazil Small-Cap ETF | 39,058,469 | 7,210,767 | (9,375,372 | ) | (2,164,605) | |||||||||||
| China Growth Leaders ETF | 17,257,839 | 1,295,239 | (4,742,788 | ) | (3,447,549) | |||||||||||
| ChiNext ETF | 17,580,172 | 5,789,283 | (3,574,612 | ) | 2,214,671 | |||||||||||
| Digital India ETF | 2,431,049 | 96,202 | (190,904 | ) | (94,702) | |||||||||||
| Egypt Index ETF | 16,740,311 | 2,260,511 | (4,466,723 | ) | (2,206,212) | |||||||||||
| India Growth Leaders ETF | 44,095,413 | 12,876,315 | (1,531,890 | ) | 11,344,425 | |||||||||||
| Indonesia Index ETF | 37,807,779 | 1,886,165 | (10,807,444 | ) | (8,921,279) | |||||||||||
| Israel ETF | 52,589,109 | 14,878,186 | (9,963,873 | ) | 4,914,313 | |||||||||||
| Vietnam ETF | 502,006,072 | 88,499,090 | (42,589,299 | ) | 45,909,791 | |||||||||||
| 59 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The tax character of dividends paid to shareholders will be determined at the end of the current fiscal year.
At December 31, 2022, 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 | $ | (12,547,079 | ) | $ | (57,668,544 | ) | $ | (70,215,623 | ) | |||
| Brazil Small-Cap ETF | (21,976,616 | ) | (135,054,154 | ) | (157,030,770 | ) | ||||||
| China Growth Leaders ETF | (2,569,318 | ) | (1,194,565 | ) | (3,763,883 | ) | ||||||
| ChiNext ETF | (3,379,373 | ) | (189,486 | ) | (3,568,859 | ) | ||||||
| Digital India ETF | (67,649 | ) | – | (67,649 | ) | |||||||
| Egypt Index ETF | (14,077,698 | ) | (23,696,949 | ) | (37,774,647 | ) | ||||||
| India Growth Leaders ETF | (15,686,824 | ) | (65,609,227 | ) | (81,296,051 | ) | ||||||
| Indonesia Index ETF | (39,262,199 | ) | (79,254,217 | ) | (118,516,416 | ) | ||||||
| Israel ETF | (2,029,019 | ) | (7,676,569 | ) | (9,705,588 | ) | ||||||
| Vietnam ETF | (108,199,071 | ) | (220,169,330 | ) | (328,368,401 | ) | ||||||
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, 2023, 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 China Growth Leaders ETF and ChiNext ETF (the “Funds”). China generally imposes withholding income tax (“WHT”) at a rate of 10% on dividends derived by non-PRC resident enterprises (including a Qualified Foreign Institutional Investor (“QFII”) and a Renminbi Qualified Foreign Institutional Investor (“RQFII”)) from issuers resident in China. China 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 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 PRC State Administration of Taxation and/or PRC 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: As a result of renegotiation of the India Mauritius Tax treaty, India commenced taxation on capital gains 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 subject to treaty relief. India currently assesses a capital gains tax on shares sold on the exchange of 15% on short term capital gains and 10% on long term capital gains (plus applicable surcharge and cess). Further, long-term capital gains on certain shares that were held as of January 31, 2018, may be eligible for a step up in cost basis which may reduce realized taxable gains. Existing Indian capital loss carryforwards may be utilized to offset capital gains realized on securities sold.
| 60 |
Note 7—Principal Risks—Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) 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 economic developments and political conflicts, or natural or other disasters, such as the coronavirus outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets. Certain securities of Chinese issuers are, or may in the future become restricted, and the Funds may be forced to sell such restricted securities and incur a loss. 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 a Fund’s investments denominated in such African currencies. This may impair a Fund’s ability to achieve its investment objective and/or may impede a Fund’s ability to satisfy redemption requests in timely manner.
Should the Chinese government impose restrictions on the ability of China Growth Leaders ETF and 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 a Trustee can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds of the Trust 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. Digital India ETF commenced operations with a unitary management fee and therefore bears no costs or liabilities relative to the Plan.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of 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. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. 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 Fund securities identical to the securities
| 61 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
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 cash collateral, if any, at June 30, 2023 is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of June 30, 2023:
| Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
| Africa Index ETF | $ | 5,708,154 | $ | 1,116,905 | $ | 4,876,053 | $ | 5,992,958 | ||||||||
| Brazil Small-Cap ETF | 3,947,034 | 2,301,920 | 1,676,321 | 3,978,241 | ||||||||||||
| China Growth Leaders ETF | 293,082 | – | 312,579 | 312,579 | ||||||||||||
| Indonesia Index ETF | 1,391,747 | 548 | 1,441,154 | 1,441,702 | ||||||||||||
| Israel ETF | 7,091,643 | 2,040,559 | 5,184,787 | 7,225,346 | ||||||||||||
The following table presents money market fund investments held as collateral by type of security on loan as of June 30, 2023:
| Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||
| Fund | Equity Securities | |||
| Africa Index ETF | $ | 1,116,905 | ||
| Brazil Small-Cap ETF | 2,301,920 | |||
| Indonesia Index ETF | 548 | |||
| Israel ETF | 2,040,559 | |||
* Remaining contractual maturity: 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 based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2023, the following Funds borrowed under this Facility:
| Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate | |||
| Africa Index ETF | 177 | $2,226,850 | 6.09% | |||
| China Growth Leaders ETF | 1 | 461,059 | 5.93 | |||
| Digital India ETF | 6 | 262,333 | 6.42 | |||
| Egypt Index ETF | 172 | 1,929,449 | 6.09 | |||
| India Growth Leaders ETF | 141 | 1,079,717 | 6.20 | |||
| Indonesia Index ETF | 17 | 141,023 | 6.33 | |||
| Israel ETF | 23 | 252,481 | 6.01 | |||
| Vietnam ETF | 153 | 5,946,601 | 6.14 |
Outstanding loan balances as of June 30, 2023, if any, are reflected in the Statements of Assets and Liabilities.
| 62 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited)
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 Africa Index ETF, Agribusiness ETF, Brazil Small-Cap ETF, China Growth Leaders ETF, ChiNext ETF, Digital India ETF, Egypt Index ETF, Gold Miners ETF, Green Metals ETF, India Growth Leaders ETF, Indonesia Index ETF, Israel ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Steel 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 the VanEck China Growth Leaders ETF and 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 5, 2023. 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 of the Funds and the Funds’ peer funds (certain other registered funds), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability (or the absence of profitability) of the Adviser and the Sub-Adviser (with respect to the China Funds) 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 has a different investment objective 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 5, 2023 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, where applicable, (i) (with respect to the VanEck Digital India ETF, Green Metals ETF, Natural Resources ETF and Oil Services ETF) (the “Unitary Funds”) the Adviser’s agreement to pay all of the direct expenses of the Funds (excluding the fee payment under the Investment Management Agreements, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) and (ii) (with respect to all other Funds) (the “Non-Unitary Funds”) 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 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.
| 63 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited) (continued)
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 Fund, the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each 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 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 Funds’ expenses and performance to that of certain other registered funds. The Trustees noted that the information provided showed that each Fund (except as noted) had management fees (after the effect of any applicable fee waiver) below the average and median of its respective peer group of funds, each of the VanEck Agribusiness ETF, Gold Miners ETF, Junior Gold Miners ETF, Low Carbon Energy ETF, Rare Earth/Strategic Metals ETF and Uranium + Nuclear Energy ETF had management fees (after the effect of any applicable fee waiver) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF and Vietnam ETF had management fees above the average and below the median of its respective peer group of funds, each of the VanEck Green Metals ETF and Natural Resources ETF had management fees above the average and median of its respective peer group of funds, the VanEck Digital India ETF had management fees above the average and equal to the median of its peer group of funds, and the VanEck Oil Services ETF had management fees equal to the average and median of its peer group of funds. The Trustees also noted that the information provided showed that each Fund (except as noted) had a total expense ratio (after the effect of any applicable expense limitation) below the average and median of its respective peer group of funds, each of the VanEck Brazil Small-Cap ETF, Gold Miners ETF, and Oil Services ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and equal to the median of its respective peer group of funds, each of the VanEck Africa Index ETF, Israel ETF, Junior Gold Miners ETF and Vietnam ETF had a total expense ratio (after the effect of any applicable expense limitation) below the average and above the median of its respective peer group of funds, each of the VanEck ChiNext ETF, Digital India ETF, Green Metals ETF and Oil Refiners ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and equal to the median of its respective peer group of funds, each of the VanEck Egypt Index ETF, Low Carbon Energy ETF and Uranium + Nuclear Energy ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and median of its respective peer group of funds, and the VanEck India Growth Leaders ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and below the median of its peer group of funds. The Trustees reviewed the amount by which certain Funds’ management fees and/or total expense ratios (after the effect of any applicable fee waivers and/or expense limitations) 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 management fees paid by the Funds were reasonable in light of the performance of the 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 and the fact that the Sub-Adviser had not identified any such monetary benefits.
The Trustees also considered information provided by the Adviser and Sub-Adviser (with respect to the China Funds) about their overall profitability and profitability or loss in respect of each Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap, as applicable, 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 potential variability in the net assets of the Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The
| 64 |
Trustees also evaluated the extent to which management fees for the Funds effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders of the Unitary Funds and noted that the Adviser has capped expenses on each of the Non-Unitary Funds 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 Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an 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 and the profits earned by the Sub-Adviser with respect to the China Funds, if any, were reasonable in light of the nature and quality of the services received by such Funds.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 5, 2023 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, at the time of their considerations, each Agreement is in the best interest of each Fund and such Fund’s shareholders.
| 65 |
VANECK ETF TRUST
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for many Funds, redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2022 to December 31, 2022 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
| 66 |
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 ETF Trust (the “Trust”) 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 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 http://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-PORT filings are available on the Commission’s website at http://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: | VanEck Associates Corporation | ||
| Distributor: | VanEck Securities Corporation | ||
| 666 Third Avenue, New York, NY 10017 | |||
| vaneck.com | |||
| Account Assistance: | 800.826.2333 | INTLSAR |
 |
SEMI-ANNUAL REPORT June 30, 2023 (unaudited) |
| Russia ETF | RSX |
| Russia Small-Cap ETF | RSXJ |
| 800.826.2333 | vaneck.com |
Certain information contained in this President’s 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, 2023.
VANECK ETF TRUST
June 30, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways.” The three major forces—monetary policy, government spending and economic growth—are negative or muted. This remains my view despite events in the last few months, discussed at the end of this letter.
Discussion
To recap this cycle: stocks and bonds historically do not perform well when the Fed tightens monetary conditions, and that’s just what the Fed announced it would be doing at the end of 2021. This would include raising rates and changing its balance sheet actions, which doesn’t create a great environment for financial assets.
There are three things investors continue to face, none of which is particularly positive for financial assets.
1. Monetary Policy: Tightening
Money supply exploded during the COVID–19 pandemic, but it started shrinking in late 2022. This withdrawal of money supply is bad for stock and bond returns.
A second, modern component to monetary policy is the Fed balance sheet. After buying bonds during the pandemic, the Fed has now started shrinking the balance sheet—from a high of almost $9 trillion in early 2022, assets dropped to just short of $8.4 trillion by the end of June.1 The Fed has only shrunk its balance sheet once before, so we are facing an unknown.
As we’ve been saying since the summer of 2022, when wage inflation was confirmed, what the Fed is fighting is wage inflation. That is the kind of inflation that is endemic and hard to manage once it takes hold, not least because it creates a spiraling effect. And this is the battle that is at full pitch—the labor market has remained strong.
While headline inflation is falling, we are still in the “higher for longer” camp. The Fed seems likely to continue holding, or even raising, interest rates and will probably continue to shrink its balance sheet. This is not supportive of stock or bond markets.
2. Fiscal Tightening
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, who won control of the House of Representatives, are looking to slow government spending. And even Democrats like Larry Summers believe that stimulus spending during the pandemic led to inflation. The debt ceiling compromise and the Supreme Court rejection of student debt relief continue this trend.
3. Global Growth is at Low Levels
Both Chinese and European growth, for different reasons, were slow in 2022. Over the last 20 years, the U.S. and China have been the two main pillars of global growth. In China, the post-COVID-19 growth has been more domestic and consumer-led, not enough to overcome the property sector malaise.
China growth estimates range from low (1% to 3%) to “high” (4% to 5%). Many “bulls” point to China as a potential catalyst for a better-than-expected economic outlook. I don’t see it. In coming years, we will likely have to look to India, Indonesia and Africa to take up the baton as pillars of higher percentage global growth.
I don’t believe that we will escape these three dampeners on stock and bond returns in 2023—higher interest rates, no government spending growth and tepid global growth. We will need upside corporate profitability surprises or high Chinese growth to substantially boost markets this year, in our view.
However, after the 2022 losses, bond investments are now offering attractive yields, so this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) Because of higher interest rates, bonds can offer adequate returns, as they did in the 1970s even though that decade was the worst for interest rates in the last 100 years.
| 1 |
VANECK ETF TRUST
PRESIDENT’S LETTER
(unaudited) (continued)
Outlook
My basic outlook favoring bonds hasn’t changed. But I should address two events of the first half of this year—monetary stimuli and AI (artificial intelligence).
There were two unexpected monetary stimuli in early 2023, but I think both are temporary. The first was the wave of money from Asia at year-end: Japanese bond buying of approximately $600 billion and Chinese money supply growth post-COVID-19. The second monetary stimulus was the credit the Fed provided to banks during the mini-bank crisis of March. While I believe this crisis will prove to be idiosyncratic in nature, I’m worried that it could lead to a contraction of credit, but this may be offset by China reopening. Also, I think it is important to note that substantially less credit flows to the real economy from banks (through loans they continue to hold) and much more through alternative credit funds. These funds typically don’t offer daily liquidity, so any credit crunch is likely to be extenuated over several quarters. So, I don’t see these two events as significantly changing the “sideways” trajectory of 2023.
AI and the instant success of ChatGPT have driven another wave of enthusiasm for tech stocks, but the valuations seem stretched to me. And large-cap earnings are still on a downward or flat trajectory, so I’m not chasing this rally.
My final thought is that, while I think the Fed won’t stimulate for a while, this is a good time to get positioned in assets that would benefit from that stimulus, namely gold and BTC (bitcoin).
We thank you for investing with VanEck. On the following pages, you will find financial statements for each of the funds for the six month period ended June 30, 2023. For detailed information about VanEck Russia ETF and Russia Small-Cap ETF, please see the Liquidation FAQ3. 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
CEO and President
VanEck ETF Trust
July 7, 2023
PS The investing outlook can change suddenly. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”4 Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
| 1 | U.S. Federal Reserve: FEDERAL RESERVE Statistical Release, June 22, 2023, https://www.federalreserve.gov/releases/h41/20230629/ |
| 2 | What to Buy? Bonds. When? Now, https://www.vaneck.com/us/en/blogs/investment-outlook/jan-van-eck-what-to-buy-bonds-when-now/. |
| 3 | https://www.vaneck.com/us/en/blogs/investment-outlook/rsx-rsxj-liquidation-faq/ |
| 4 | https://www.vaneck.com/us/en/subscribe/ |
| 2 |
VANECK ETF TRUST
(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, 2023 to June 30, 2023.
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.
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) | |||||
| Russia ETF | ||||||||
| Actual | $1,000.00 | $2,038.30 | 0.67% | $5.05 | ||||
| Hypothetical (b) | $1,000.00 | $1,021.47 | 0.67% | $3.36 | ||||
| Russia Small-Cap ETF | ||||||||
| Actual | $1,000.00 | $1,001.20 | 6.68% | $33.15 | ||||
| Hypothetical (b) | $1,000.00 | $991.67 | 6.68% | $32.99 |
| (a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2023), 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 the days in the fiscal year (to reflect the one-half year period). |
| (b) | Assumes annual return of 5% before expenses |
| 3 |
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 0.0% | ||||||||
| Banks: 0.0% | ||||||||
| Sberbank of Russia PJSC ∞ | 46,050,016 | $ | 0 | |||||
| TCS Group Holding Plc (GDR) *∞ | 1,390,470 | 0 | ||||||
| VTB Bank PJSC *∞ | 66,877,350,000 | 0 | ||||||
| 0 | ||||||||
| Consumer Discretionary Distribution & Retail: 0.0% | ||||||||
| Ozon Holdings Plc (ADR) * †∞ | 479,481 | 0 | ||||||
| Consumer Staples Distribution & Retail: 0.0% | ||||||||
| Magnit PJSC *∞ | 1,226,365 | 0 | ||||||
| Magnit PJSC (GDR) *∞ | 1 | 0 | ||||||
| X5 Retail Group NV (GDR) *∞ | 1,970,269 | 0 | ||||||
| 0 | ||||||||
| Energy: 0.0% | ||||||||
| Gazprom PJSC ∞ | 45,772,138 | 0 | ||||||
| LUKOIL PJSC ∞ | 2,063,982 | 0 | ||||||
| Novatek PJSC ∞ | 7,452,940 | 0 | ||||||
| Rosneft Oil Co. PJSC ∞ | 16,922,345 | 0 | ||||||
| Surgutneftegas PJSC ∞ | 125,211,510 | 0 | ||||||
| Surgutneftegas PJSC (ADR) *∞ | 1,364,815 | 0 | ||||||
| Tatneft PJSC (ADR) *∞ | 3,393,156 | 0 | ||||||
| 0 | ||||||||
| Financial Services: 0.0% | ||||||||
| Moscow Exchange MICEX-RTS PJSC ∞ | 17,946,312 | 0 | ||||||
| Materials: 0.0% | ||||||||
| Alrosa PJSC *∞ | 33,188,190 | 0 | ||||||
| Evraz Plc *∞ | 266,000 | 0 | ||||||
| MMC Norilsk Nickel PJSC *∞ | 529,178 | 0 | ||||||
| MMC Norilsk Nickel PJSC (ADR) *∞ | 4 | 0 | ||||||
| Novolipetsk Steel PJSC *∞ | 22,272,460 | 0 | ||||||
| PhosAgro PJSC ∞ | 705,974 | 0 | ||||||
| PhosAgro PJSC (GDR) ∞ | 13,644 | 0 | ||||||
| Polyus PJSC (GDR) *∞ | 1,155,875 | 0 | ||||||
| Raspadskaya OJSC *∞ | 730,890 | 0 | ||||||
| Severstal PAO (GDR) *∞ | 3,405,164 | 0 | ||||||
| 0 | ||||||||
| Number of Shares | Value | |||||||
| Media & Entertainment: 0.0% | ||||||||
| VK Co. Ltd. (GDR) *∞ | 2,338,938 | $ | 0 | |||||
| Telecommunication Services: 0.0% | ||||||||
| Mobile TeleSystems PJSC ∞ | 14,853,038 | 0 | ||||||
| Rostelecom PJSC ∞ | 13,944,591 | 0 | ||||||
| 0 | ||||||||
| Utilities: 0.0% | ||||||||
| Inter RAO UES PJSC ∞ | 482,502,010 | 0 | ||||||
| Irkutsk Electronetwork Co. JSC *∞ | 7,410,870 | 0 | ||||||
| 0 | ||||||||
| Total Common Stocks (Cost: $1,688,551,997) | 0 | |||||||
| PREFERRED SECURITIES: 0.0% (Cost: $46,034,628) | ||||||||
| Energy: 0.0% | ||||||||
| Transneft PJSC ∞ | 20,972 | 0 | ||||||
| MONEY MARKET FUND: 76.9% (Cost: $50,624,107) | ||||||||
| State Street Institutional Treasury Plus - Institutional Class | 50,624,107 | 50,624,108 | ||||||
| Total Investments Before Collateral for Securities Loaned: 76.9% (Cost: $1,785,210,732) |
50,624,108 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.2% | ||||||||
| Money Market Fund: 3.2% (Cost: $2,122,379) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 2,122,379 | 2,122,379 | ||||||
| Total Investments: 80.1% (Cost: $1,787,333,111) | 52,746,487 | |||||||
| Other assets less liabilities: 19.9% | 13,064,376 | |||||||
| NET ASSETS: 100.0% | $ | 65,810,863 | ||||||
Definitions:
| ADR | American Depositary Receipt |
| GDR | Global Depositary Receipt |
Footnotes:
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is 0. |
See Notes to Financial Statements
| 4 |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Financials | 0.0 | % | $ | 0 | ||||
| Energy | 0.0 | 0 | ||||||
| Materials | 0.0 | 0 | ||||||
| Consumer Staples | 0.0 | 0 | ||||||
| Utilities | 0.0 | 0 | ||||||
| Communication Services | 0.0 | 0 | ||||||
| Consumer Discretionary | 0.0 | 0 | ||||||
| Money Market Fund | 100.0 | 50,624,108 | ||||||
| 100.0 | % | $ | 50,624,108 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks * | $ | — | $ | — | $ | 0 | $ | 0 | ||||||||
| Preferred Securities * | — | — | 0 | 0 | ||||||||||||
| Money Market Funds | 52,746,487 | — | — | 52,746,487 | ||||||||||||
| Total Investments | $ | 52,746,487 | $ | — | $ | 0 | $ | 52,746,487 | ||||||||
| * | See Schedule of Investments for industry sector breakouts. |
The Adviser has elected to apply a 100% discount for lack of marketability to all Level 3 investments due to the political conditions surrounding Russia. The following tables reconcile the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2023. Transfers in/out of levels are assessed at the beginning of the year (See Note 2):
| Common Stock | ||||
| Balance as of December 31, 2022 | $ | 0 | ||
| Realized gain (loss) | (105,496,092 | ) | ||
| Net change in unrealized appreciation (depreciation) | 138,132,824 | |||
| Purchases | — | |||
| Sales | (32,636,732 | ) | ||
| Transfers in/out of level 3 | — | |||
| Balance as of June 30, 2023 | $ | 0 | ||
| Preferred Securities | ||||
| Balance as of December 31, 2022 | $ | 0 | ||
| Realized gain (loss) | — | |||
| Net change in unrealized appreciation (depreciation) | — | |||
| Purchases | — | |||
| Sales | — | |||
| Transfers in/out of level 3 | — | |||
| Balance as of June 30, 2023 | $ | 0 | ||
See Notes to Financial Statements
| 5 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 0.0% | ||||||||
| Banks: 0.0% | ||||||||
| Credit Bank of Moscow PJSC *∞ | 21,005,200 | $ | 0 | |||||
| Commercial & Professional Services: 0.0% | ||||||||
| HeadHunter Group Plc (ADR) *∞ | 31,919 | 0 | ||||||
| Consumer Discretionary Distribution & Retail: 0.0% | ||||||||
| Detsky Mir PJSC 144A *∞ | 1,155,798 | 0 | ||||||
| M.Video PJSC *∞ | 110,194 | 0 | ||||||
| 0 | ||||||||
| Consumer Staples Distribution & Retail: 0.0% | ||||||||
| Lenta International Co. PJSC (GDR) *∞ | 263,199 | 0 | ||||||
| Energy: 0.0% | ||||||||
| Sovcomflot PJSC *∞ | 989,960 | 0 | ||||||
| Financial Services: 0.0% | ||||||||
| SFI PJSC *∞ | 2,663 | 0 | ||||||
| Food, Beverage & Tobacco: 0.0% | ||||||||
| Beluga Group PJSC ∞ | 11,235 | 0 | ||||||
| Ros Agro Plc (GDR) *∞ | 77,690 | 0 | ||||||
| 0 | ||||||||
| Materials: 0.0% | ||||||||
| Mechel PJSC *∞ | 438,883 | 0 | ||||||
| Raspadskaya OJSC *∞ | 703,205 | 0 | ||||||
| Segezha Group PJSC 144A *∞ | 8,945,900 | 0 | ||||||
| 0 | ||||||||
| Real Estate Management & Development: 0.0% | ||||||||
| Etalon Group Plc (GDR) *∞ | 394,873 | 0 | ||||||
| LSR Group PJSC *∞ | 103,574 | 0 | ||||||
| Samolet Group ∞ | 16,988 | 0 | ||||||
| 0 | ||||||||
| Number of Shares | Value | |||||||
| Telecommunication Services: 0.0% | ||||||||
| Sistema PJSFC *∞ | 6,612,640 | $ | 0 | |||||
| Transportation: 0.0% | ||||||||
| Aeroflot PJSC *∞ | 1,885,382 | 0 | ||||||
| Globaltrans Investment Plc (GDR) *∞ | 182,773 | 0 | ||||||
| Novorossiysk Commercial Sea Port PJSC ∞ | 8,972,400 | 0 | ||||||
| 0 | ||||||||
| Utilities: 0.0% | ||||||||
| Mosenergo PJSC ∞ | 19,492,800 | 0 | ||||||
| OGK-2 PJSC ∞ | 51,450,600 | 0 | ||||||
| TGC-1 PJSC *∞ | 1,701,100,000 | 0 | ||||||
| Unipro PJSC *∞ | 24,734,000 | 0 | ||||||
| 0 | ||||||||
| Total Common Stocks (Cost: $24,435,670) | 0 | |||||||
| PREFERRED SECURITIES: 0.0% (Cost: $341,612) | ||||||||
| Utilities: 0.0% | ||||||||
| Rosseti Lenenergo PJSC ∞ | 171,506 | 0 | ||||||
| MONEY MARKET FUND: 120.4% (Cost: $409,647) | ||||||||
| State Street Institutional Treasury Plus - Institutional Class | 409,647 | 409,647 | ||||||
| Total Investments: 120.4% (Cost: $25,186,929) | 409,647 | |||||||
| Liabilities in excess of other assets: (20.4)% | (69,528 | ) | ||||||
| NET ASSETS: 100.0% | $ | 340,119 | ||||||
Definitions:
| ADR | American Depositary Receipt |
| GDR | Global Depositary Receipt |
Footnotes:
| ∞ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
| * | Non-income producing |
| 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 $0, or 0.0% of net assets. |
See Notes to Financial Statements
| 6 |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Industrials | 0.0 | % | $ | 0 | ||||
| Communication Services | 0.0 | 0 | ||||||
| Utilities | 0.0 | 0 | ||||||
| Financials | 0.0 | 0 | ||||||
| Materials | 0.0 | 0 | ||||||
| Consumer Staples | 0.0 | 0 | ||||||
| Consumer Discretionary | 0.0 | 0 | ||||||
| Energy | 0.0 | 0 | ||||||
| Real Estate | 0.0 | 0 | ||||||
| Money Market Fund | 100.0 | 409,647 | ||||||
| 100.0 | % | $ | 409,647 | |||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks * | $ | — | $ | — | 0 | $ | 0 | |||||||||
| Preferred Securities * | — | — | 0 | 0 | ||||||||||||
| Money Market Fund | 409,647 | — | — | 409,647 | ||||||||||||
| Total Investments | $ | 409,647 | $ | — | $ | 0 | $ | 409,647 | ||||||||
| * | See Schedule of Investments for industry sector breakouts. |
The Adviser has elected to apply a 100% discount for lack of marketability to all Level 3 investments due to the political conditions surrounding Russia. The following tables reconcile the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2023. Transfers in/out of levels are assessed at the beginning of the year (See Note 2):
| Common Stock | ||||
| Balance as of December 31, 2022 | $ | 0 | ||
| Realized gain (loss) | — | |||
| Net change in unrealized appreciation (depreciation) | — | |||
| Purchases | — | |||
| Sales | — | |||
| Transfers in/out of level 3 | — | |||
| Balance as of June 30, 2023 | $ | 0 | ||
| Preferred Securities | ||||
| Balance as of December 31, 2022 | $ | 0 | ||
| Realized gain (loss) | — | |||
| Net change in unrealized appreciation (depreciation) | — | |||
| Purchases | — | |||
| Sales | — | |||
| Transfers in/out of level 3 | — | |||
| Balance as of June 30, 2023 | $ | 0 | ||
See Notes to Financial Statements
| 7 |
VANECK ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
| Russia ETF | Russia Small-Cap ETF | |||||||
| Assets: | ||||||||
| Investments, at value (1) | ||||||||
| Unaffiliated issuers (2) | $ | 50,624,108 | $ | 409,647 | ||||
| Short-term investments held as collateral for securities loaned (3) | 2,122,379 | — | ||||||
| Cash denominated in foreign currency, at value (4) | 17,840 | 595 | ||||||
| Receivables: | ||||||||
| Investment securities sold | 15,265,341 | — | ||||||
| Due from Adviser | — | 6,964 | ||||||
| Dividends and interest | 209,542 | 1,705 | ||||||
| Prepaid expenses | 1,199 | 23 | ||||||
| Total assets | 68,240,409 | 418,934 | ||||||
| Liabilities: | ||||||||
| Payables: | ||||||||
| Collateral for securities loaned | 2,122,379 | — | ||||||
| Deferred Trustee fees | 209,421 | 3,952 | ||||||
| Accrued expenses | 97,746 | 74,863 | ||||||
| Total liabilities | 2,429,546 | 78,815 | ||||||
| NET ASSETS | $ | 65,810,863 | $ | 340,119 | ||||
| Shares outstanding | 95,900,000 | 883,318 | ||||||
| Net asset value, redemption and offering price per share | $ | 0.69 | $ | 0.39 | ||||
| Net Assets consist of: | ||||||||
| Aggregate paid in capital | $ | 3,613,069,711 | $ | 43,562,652 | ||||
| Total distributable earnings (loss) | (3,547,258,848 | ) | (43,222,533 | ) | ||||
| NET ASSETS | $ | 65,810,863 | $ | 340,119 | ||||
| (1) Value of securities on loan | $ | — | $ | — | ||||
| (2) Cost of investments - Unaffiliated issuers | $ | 1,785,210,731 | $ | 25,186,929 | ||||
| (3) Cost of short-term investments held as collateral for securities loaned | $ | 2,122,379 | $ | — | ||||
| (4) Cost of cash denominated in foreign currency | $ | 17,346 | $ | 613 | ||||
See Notes to Financial Statements
| 8 |
VANECK ETF TRUST
For the Period Ended June 30, 2023 (unaudited)
| Russia ETF | Russia Small-Cap ETF | |||||||
| Income: | ||||||||
| Dividends | $ | 63,595 | (a) | $ | — | |||
| Interest | 843,988 | 9,672 | ||||||
| Securities lending income | 13,862 | — | ||||||
| Total income | 921,445 | 9,672 | ||||||
| Expenses: | ||||||||
| Professional fees | 44,626 | 34,675 | ||||||
| Custody and accounting fees | 11,801 | 11,801 | ||||||
| Reports to shareholders | 35,420 | 4,425 | ||||||
| Trustees’ fees and expenses | 9,313 | 163 | ||||||
| Insurance | 3,311 | 978 | ||||||
| Interest | 16,761 | — | ||||||
| Other | 490 | 490 | ||||||
| Total expenses | 121,722 | 52,532 | ||||||
| Expenses assumed by the Adviser | — | (41,207 | ) | |||||
| Net expenses | 121,722 | 11,325 | ||||||
| Net investment income (loss) | 799,723 | (1,653 | ) | |||||
| Net realized gain (loss) on: | ||||||||
| Investments | (109,571,530 | ) | — | |||||
| Foreign currency transactions and foreign denominated assets and liabilities | (3 | ) | — | |||||
| Net realized loss | (109,571,533 | ) | — | |||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||
| Investments | 142,210,443 | — | ||||||
| Foreign currency translations and foreign denominated assets and liabilities | 407 | 32 | ||||||
| Net change in unrealized appreciation (depreciation) | 142,210,850 | 32 | ||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 33,439,040 | $ | (1,621 | ) | |||
| (a) | Includes $63,595 of tax reclaims received from a prior year dividend. |
See Notes to Financial Statements
| 9 |
VANECK ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Russia ETF | Russia Small-Cap ETF | |||||||||||||||
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income (loss) | $ | 799,723 | $ | 4,092,150 | $ | (1,653 | ) | $ | (77,781 | ) | ||||||
| Net realized loss | (109,571,533 | ) | (115,514,580 | ) | — | (2,278,349 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) | 142,210,850 | (1,868,384,607 | ) | 32 | (25,639,542 | ) | ||||||||||
| Net increase (decrease) in net assets resulting from operations | 33,439,040 | (1,979,807,037 | ) | (1,621 | ) | (27,995,672 | ) | |||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Return of capital | (3,001,670 | ) | — | (50,084 | ) | — | ||||||||||
| Share transactions*: | ||||||||||||||||
| Proceeds from sale of shares | — | 761,823,584 | — | 4,207,920 | ||||||||||||
| Cost of shares redeemed | — | (122,926,443 | ) | — | — | |||||||||||
| Increase in net assets resulting from share transactions | — | 638,897,141 | — | 4,207,920 | ||||||||||||
| Total increase (decrease) in net assets | 30,437,370 | (1,340,909,896 | ) | (51,705 | ) | (23,787,752 | ) | |||||||||
| Net Assets, beginning of period | 35,373,493 | 1,376,283,389 | 391,824 | 24,179,576 | ||||||||||||
| Net Assets, end of period | $ | 65,810,863 | $ | 35,373,493 | $ | 340,119 | $ | 391,824 | ||||||||
| *Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | — | 49,250,000 | — | 150,000 | ||||||||||||
| Shares redeemed | — | (4,800,000 | ) | — | — | |||||||||||
| Net increase | — | 44,450,000 | — | 150,000 | ||||||||||||
See Notes to Financial Statements
| 10 |
VANECK ETF TRUST
For the Period Ended June 30, 2023 (unaudited)
| Russia ETF | Russia Small-Cap ETF | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 33,439,040 | $ | (1,621 | ) | |||
| Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | ||||||||
| Investment securities sold | 36,243,624 | — | ||||||
| Net purchases of short term investments | (50,624,108 | ) | (409,647 | ) | ||||
| Net realized loss on investments in securities | 109,575,506 | — | ||||||
| Net change in unrealized (appreciation) depreciation on investments | (142,210,443 | ) | — | |||||
| (Increase) decrease in assets: | ||||||||
| Dividends and interest receivable | (207,244 | ) | (1,705 | ) | ||||
| Due from Adviser | — | (6,964 | ) | |||||
| Prepaid expenses | 3,311 | 978 | ||||||
| Investment securities sold | (12,837,018 | ) | — | |||||
| Increase (decrease) in liabilities: | ||||||||
| Due to Adviser | — | (1,158 | ) | |||||
| Accrued expenses | (44,126 | ) | (7,080 | ) | ||||
| Deferred trustee fees | 33,725 | 677 | ||||||
| Net cash used for operating activities | (26,627,733 | ) | (426,520 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Cash dividends paid to shareholders | (3,001,670 | ) | (50,084 | ) | ||||
| Net cash used for financing activities | (3,001,670 | ) | (50,084 | ) | ||||
| Net change in cash | (29,629,403 | ) | (476,604 | ) | ||||
| Cash/(bank overdraft) at beginning of period | 29,647,243 | 477,199 | ||||||
| Cash at end of period | $ | 17,840 | $ | 595 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest expense paid during the period | $ | 16,761 | $ | — | ||||
See Notes to Financial Statements
| 11 |
VANECK ETF TRUST
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (c) | Not Annualized |
| (d) | Annualized |
| (e) | During the period the fund incurred significant expenses outside of its expense cap. Effective March 11, 2022, the Adviser implemented a voluntary waiver of its management fee for the Fund (See Note 4). |
| (f) | Prior to May 1, 2023, the ratio excludes depositary receipt fees in excess of 0.10% of average daily net assets. |
| (g) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 12 |
VANECK ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Calculated based upon average shares outstanding |
| (b) | Amount represents less than $0.005 per share. |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | During the period the fund incurred significant expenses outside of its expense cap. Effective March 11, 2022, the Adviser implemented a voluntary waiver of its management fee for the Fund (See Note 4). |
| (g) | Prior to May 1, 2023, the ratio excludes depositary receipt fees in excess of 0.08% of average daily net assets. |
| (h) | Amount is less than $500,000. |
| (i) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 13 |
VANECK ETF TRUST
June 30, 2023 (unaudited)
Note 1—Fund Organization—VanEck 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 investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
| Fund | Diversification Classification | ||
| Russia ETF | Non-Diversified | ||
| Russia Small-Cap ETF | Non-Diversified |
Each Fund’s stated investment objective is to seek to replicate as closely as possible, before fees and expenses, the price and yield performance of its index which are listed in the table below. However, due to the suspension of the rebalancing of the Russia Index and the ongoing restrictions relating to Russian securities, the Fund will be unable to meet its investment objective. The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation.
| Fund | Index | ||
| Russia ETF | MVIS Russia Index | ||
| Russia Small-Cap ETF | MVIS Russia Small-Cap Index |
Note 2—Plan of Liquidation— Russia’s large-scale invasion of Ukraine and the geo-political events that followed have significantly adversely impacted the Funds’ operations since. The governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but significant trading limitations have remained. There is no assurance that these disruptions will not continue.
As a result, the fair value of Russian securities held by the Funds were valued near or at zero since shortly after the invasion and have rendered virtually all of the Funds’ investments in equity securities, including depositary receipts, illiquid.
The Chicago Board Options Exchange delisted the Funds on January 12, 2023. As a result of the delisting, the Funds are no longer considered exchange traded funds.
Subsequent to February 24, 2022, certain Russian securities held by the Fund had declared dividends, however there is no assurance these dividends can be collected by the Fund. As a result, all such dividend receivables related to these Russian securities are valued at $0 as of June 30, 2023.
On September 29, 2022, the Board of Trustees of the Trust (the Trustees”) unanimously voted to approve a Plan of Liquidation and Termination of the Funds, contingent on receiving any necessary relief from the SEC. On December 28, 2022, the SEC granted exemptive relief to each Fund permitting them to suspend the right of redemption with respect to shares of each Fund and, if necessary, postpone the date of payment of redemption proceeds with respect to redemption orders received but not yet paid until the Funds complete the liquidation of their portfolios and distribute all of their assets to remaining shareholders.
On January 12, 2023, the Funds made an initial liquidating distribution to shareholders, consisting of current liquid assets less a reserve to meet the Funds’ expected transaction costs for an extended period.
The Funds will not engage in any business or investment activities except for the purposes of winding up their affairs. It is expected that the liquidation of the Funds will take an extended period of time, if circumstances involving Russian securities markets do not improve.
| 14 |
The Funds shall bear the expenses incurred in connection with carrying out liquidation, including, but not limited to, printing and legal expenses, audit and tax services fees, and the expenses of reports to shareholders. All such expenses will be considered extraordinary expenses for purposes of any expense limitation in effect with respect to the Fund.
It is expected that the Funds will remain in existence until at least December 31, 2023, to allow the Funds to sell the securities and depositary receipts, if conditions permit. The Funds may be terminated sooner if all of the Russian securities and depositary receipts have been sold before that date (or they cease to represent valid interests in their issuers). After December 31, 2023, the Funds may be terminated at any time on a date determined by the Board, even if the Russian securities and depositary receipts have not been sold. Due to the uncertainty involved, there can be no assurance that shareholders would receive any liquidating distribution relating to the Russian securities and depositary receipts after the initial distribution, described above. The distribution to shareholders of sale proceeds of Russian securities and depositary receipts, if any, will be reduced by expenses related to the sale and the distribution; other Fund operating and liquidation expenses will be paid out of the reserve.
The Funds incurred additional legal expenses as a result of the plan of liquidation. These legal fees are not included in the Funds’ expense limitations (See Note 4).
Note 3—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 follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
| 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. 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). | |
| Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. 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. Money market fund investments are valued at net asset value and are categorized as Level 1 in the fair value hierarchy. The Trustees have designated the Adviser as valuation designee to perform the Funds’ fair value determinations, subject to board oversight and certain reporting and other requirements. The Adviser has adopted policies and procedures reasonably designed to comply with the requirements. The Pricing Committee of the Adviser provides oversight of the Funds’ valuation policies and procedures, which are approved by the Trustees. |
| 15 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
| 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 they do 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 categorized 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. | |
| 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. | 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 net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
| C. | Distributions to Shareholders—In accordance with the Plan of Liquidation and Termination, the Funds may make a series of liquidating distributions at various times. Additionally, until termination, each of the Funds may declare taxable distributions of income (if any) and/or net capital gains, (if any after reduction for capital loss carryforwards) to continue to satisfy the Federal income and excise tax distribution requirements for regulated investment companies. |
| 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 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. |
| Any currency denominated in Rubles cannot be repatriated and such currency was valued at $0 as of June 30, 2023. | |
| 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 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. |
| 16 |
| F. | 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 offset in those agreements allows the Funds to offset 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 receive cash and or securities as collateral for securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral received for securities lending in the form of money market fund investments, if any, at June 30, 2023 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
| G. | 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. |
| The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
| 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 4—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. Prior to March 11, 2022, the Adviser received a management fee, calculated daily and payable monthly based on an annual rate of each Fund’s average daily net assets. Effective March 11, 2022, the Adviser has implemented a waiver of the Funds’ management fee, which will continue to be in effect while the Funds liquidate. The Adviser may eliminate such management fee waiver in its sole discretion at any time. In addition, the Adviser has temporarily agreed to waive and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, depositary receipt fees, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding the expense limitations listed in the table below. Refer to the Statements of Operations for the amounts waived/assumed by the Adviser for the year ended June 30, 2023.
The management fee rates and expense limitations for the year ended June 30, 2023, are as follows:
| Fund | Management Fees* | Expense Limitations | ||||||
| Russia ETF | 0.50 | % | 0.62 | % | ||||
| Russia Small-Cap ETF | 0.50 | 0.67 | ||||||
| * | Fee rates reflected are those in effect before voluntary waivers. |
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 5—Capital Share Transactions—As of June 30, 2023, 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”).
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
| 17 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
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, for the benefit of the Funds, a requirement to maintain cash collateral on deposit at the custodian equal to at least 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 transfer agent. In addition, the Funds may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.
On March 2, 2022, VanEck Russia Small-Cap ETF temporarily suspended new creations of its shares and on March 3, 2022, VanEck Russia ETF temporarily suspended new creations of its shares. Such suspensions became permanent on December 28, 2022, when the Plan of Liquidation and Termination of the Funds became effective.
Note 6—Investments—For the year ended June 30, 2023, purchases and sales of investments (excluding short-term investments) were as follows:
| Fund | Purchases | Sales | ||||||
| Russia ETF | $ | – | $ | 36,243,624 | ||||
Note 7—Income Taxes—As of June 30, 2023, for Federal income tax purposes, the identified cost, gross unrealized appreciation, 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) | ||||||||||||
| Russia ETF | $1,788,970,750 | $– | $(1,736,224,263 | ) | $(1,736,224,263 | ) | ||||||||||
| Russia Small-Cap ETF | 25,738,405 | – | (25,328,758 | ) | (25,328,758 | ) | ||||||||||
The tax character of dividends paid to shareholders will be determined at the end of the current fiscal year.
At December 31, 2022, 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 | |||||||||||
| Russia ETF | $ | (300,452,708 | ) | $ | (1,398,633,196 | ) | $ | (1,699,085,904 | ) | |||||
| Russia Small-Cap ETF | (5,643,438 | ) | (12,195,309 | ) | (17,838,747 | ) | ||||||||
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, 2023, the Funds did not incur any interest or penalties.
Note 8—Principal Risks—Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) and may be more susceptible to the risks associated with these particular issuers, or
| 18 |
to a single economic, political or regulatory occurrence affecting these issuers. The Funds own 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 economic developments and political conflicts, or natural or other disasters, such as the coronavirus outbreak. Additionally, certain Funds own securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.
Russia’s large-scale invasion of Ukraine and the geo-political events that followed have significantly adversely impacted the Funds’ operations since. The governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but significant trading limitations have remained. There is no assurance that these disruptions will not continue.
As a result of the current conditions related to Russian securities and Russian markets, the Fund is unable to dispose of the Russian securities in its portfolio and the Fund’s portfolio has become illiquid. It is unknown when current restrictions will be lifted. In the event that it becomes possible to dispose of Russian securities, other market participants may attempt to liquidate holdings at the same time as the Fund, and the Fund may be unable to transact at advantageous times or prices.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
Note 9—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which a Trustee can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds of the Trust 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 10— Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of 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. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements
| 19 |
VANECK ETF TRUST
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. 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 Fund 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 cash collateral, if any, at June 30, 2023, is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of June 30, 2023:
| Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
| Russia ETF | $ | – | $ | 2,122,379 | $ | 6,197,266 | $ | 8,319,645 | ||||||||
The following table presents money market fund investments held as collateral by type of security on loan as of June 30, 2023:
| Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||
| Fund | Equity Securities | |||
| Russia ETF | $ | 2,122,379 | ||
| * | Remaining contractual maturity: overnight and continuous |
Note 11—Subsequent Event Review— The Adviser has evaluated event and transactions for potential recognition or disclosure through the date of the financial statements were issued.
The Russia ETF had a liquidating distribution on July 27, 2023 as follows:
| Fund | Record Date | Ex-Date | Payable Date | Liquidating Distribution | ||||
| Russia ETF | 7/27/2023 | 7/27/2023 | 7/27/2023 | $0.3403 |
Effective July 31, 2023, the MVIS Russia Index and the MVIS Russia Small-Cap Index have been terminated.
| 20 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited)
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Russia ETF and Russia Small-Cap ETF (each, a “Fund” and together, the “Funds”).
The Board’s approval of the Investment Management 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 5, 2023. At that meeting, the Trustees discussed the information the Adviser 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 of the Funds and the Funds’ peer funds (certain other registered funds), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability (or the absence of 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, the Trustees considered that each Fund is in the process of being liquidated and no longer seeks to track an index. 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 Trustees also considered the Adviser’s efforts to navigate regulatory and operational challenges in managing the Funds during the Funds’ process of liquidating their assets and winding up their business.
The Independent Trustees’ consideration of the Investment Management 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 5, 2023 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, including the background and experience of the portfolio manager and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser provides under the Investment Management Agreements, including (i) the Adviser’s commitment to pay expenses of each of the 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 and (ii) the Adviser’s undertaking to waive all of the Funds’ management fees while the Funds liquidate.
The Trustees also considered information relating to the financial condition of the Adviser and the current status, as they understood it, of the Adviser’s compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Funds’ expenses and performance to that of certain other ETFs. The Trustees noted that the information provided showed that each Fund had management fees (after the effect of the Adviser’s waiver of all management fee payable by each Fund since March 22, 2022) below the average and median of its respective peer group of funds. The Trustees also noted that the information provided showed that VanEck Russia ETF had a total expense ratio below the average and above the median of its peer group of funds, while the VanEck Russia Small-Cap ETF had a total expense ratio (after the effect of any applicable expense limitation) above the average and median of its peer group of funds. The Trustees reviewed the amount by which the Funds’ total expense ratios (after the effect of any applicable expense limitations) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons, including that the Funds are bearing legal expenses in connection with their liquidations, which are considered extraordinary expenses for purposes of the Funds’ expense limitations. The Trustees
| 21 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited) (continued)
concluded, in light of this information and the other information available to them, that the fees paid by the Funds were reasonable in light of the performance of the 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 the fact that the Adviser did not earn any profits from managing the Funds. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Fund is reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 5, 2023 meeting as part of their consideration of the Investment Management Agreements.
In voting to approve the continuation of the Investment Management Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each 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, at the time of their considerations, each Investment Management Agreement is in the best interest of each Fund and such Fund’s shareholders.
| 22 |
VANECK ETF TRUST
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for many Funds, redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2022 to December 31, 2022 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
| 23 |
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 ETF Trust (the “Trust”) 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 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 http://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-PORT filings are available on the Commission’s website at http://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: | VanEck Associates Corporation | ||
| Distributor: | VanEck Securities Corporation | ||
| 666 Third Avenue, New York, NY 10017 | |||
| vaneck.com | |||
| Account Assistance: | 800.826.2333 | RUSSIASAR | |
 |
SEMI-ANNUAL REPORT June 30, 2023 (unaudited) |
| CLO ETF | CLOI |
| 800.826.2333 | vaneck.com |
Certain information contained in this President’s 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 Fund’s holdings, the Fund’s performance, and the views of the investment adviser are as of June 30, 2023.
VANECK CLO ETF
June 30, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways.” The three major forces—monetary policy, government spending and economic growth—are negative or muted. This remains my view despite events in the last few months, discussed at the end of this letter.
Discussion
To recap this cycle: stocks and bonds historically do not perform well when the Fed tightens monetary conditions, and that’s just what the Fed announced it would be doing at the end of 2021. This would include raising rates and changing its balance sheet actions, which doesn’t create a great environment for financial assets.
There are three things investors continue to face, none of which is particularly positive for financial assets.
| 1. | Monetary Policy: Tightening |
Money supply exploded during the COVID–19 pandemic, but it started shrinking in late 2022. This withdrawal of money supply is bad for stock and bond returns.
A second, modern component to monetary policy is the Fed balance sheet. After buying bonds during the pandemic, the Fed has now started shrinking the balance sheet—from a high of almost $9 trillion in early 2022, assets dropped to just short of $8.4 trillion by the end of June.1 The Fed has only shrunk its balance sheet once before, so we are facing an unknown.
As we’ve been saying since the summer of 2022, when wage inflation was confirmed, what the Fed is fighting is wage inflation. That is the kind of inflation that is endemic and hard to manage once it takes hold, not least because it creates a spiraling effect. And this is the battle that is at full pitch—the labor market has remained strong.
While headline inflation is falling, we are still in the “higher for longer” camp. The Fed seems likely to continue holding, or even raising, interest rates and will probably continue to shrink its balance sheet. This is not supportive of stock or bond markets.
| 2. | Fiscal Tightening |
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, who won control of the House of Representatives, are looking to slow government spending. And even Democrats like Larry Summers believe that stimulus spending during the pandemic led to inflation. The debt ceiling compromise and the Supreme Court rejection of student debt relief continue this trend.
| 3. | Global Growth is at Low Levels |
Both Chinese and European growth, for different reasons, were slow in 2022. Over the last 20 years, the U.S. and China have been the two main pillars of global growth. In China, the post-COVID-19 growth has been more domestic and consumer-led, not enough to overcome the property sector malaise.
China growth estimates range from low (1% to 3%) to “high” (4% to 5%). Many “bulls” point to China as a potential catalyst for a better-than-expected economic outlook. I don’t see it. In coming years, we will likely have to look to India, Indonesia and Africa to take up the baton as pillars of higher percentage global growth.
I don’t believe that we will escape these three dampeners on stock and bond returns in 2023—higher interest rates, no government spending growth and tepid global growth. We will need upside corporate profitability surprises or high Chinese growth to substantially boost markets this year, in our view.
However, after the 2022 losses, bond investments are now offering attractive yields, so this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) Because of higher interest rates, bonds can offer adequate returns, as they did in the 1970s even though that decade was the worst for interest rates in the last 100 years.
| 1 |
VANECK CLO ETF
PRESIDENT’S LETTER
(unaudited) (continued)
Outlook
My basic outlook favoring bonds hasn’t changed. But I should address two events of the first half of this year—monetary stimuli and AI (artificial intelligence).
There were two unexpected monetary stimuli in early 2023, but I think both are temporary. The first was the wave of money from Asia at year-end: Japanese bond buying of approximately $600 billion and Chinese money supply growth post-COVID-19. The second monetary stimulus was the credit the Fed provided to banks during the mini-bank crisis of March. While I believe this crisis will prove to be idiosyncratic in nature, I’m worried that it could lead to a contraction of credit, but this may be offset by China reopening. Also, I think it is important to note that substantially less credit flows to the real economy from banks (through loans they continue to hold) and much more through alternative credit funds. These funds typically don’t offer daily liquidity, so any credit crunch is likely to be extenuated over several quarters. So, I don’t see these two events as significantly changing the “sideways” trajectory of 2023.
AI and the instant success of ChatGPT have driven another wave of enthusiasm for tech stocks, but the valuations seem stretched to me. And large-cap earnings are still on a downward or flat trajectory, so I’m not chasing this rally.
My final thought is that, while I think the Fed won’t stimulate for a while, this is a good time to get positioned in assets that would benefit from that stimulus, namely gold and BTC (bitcoin).
We thank you for investing with VanEck. On the following pages, you will find financial statements for the fund for the six month period ended June 30, 2023. 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
CEO and President
VanEck ETF Trust
July 7, 2023
PS The investing outlook can change suddenly. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”.3 Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
1 U.S. Federal Reserve: FEDERAL RESERVE Statistical Release, June 22, 2023, https://www.federalreserve.gov/releases/h41/20230629/
2 What to Buy? Bonds. When? Now, https://www.vaneck.com/us/en/blogs/investment-outlook/jan-van-eck-what-to-buy-bonds-when-now/.
3 https://www.vaneck.com/us/en/subscribe/
| 2 |
VANECK CLO ETF
(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, 2023 to June 30, 2023.
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.
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) |
||||||
| Actual | $1,000.00 | $1,045.80 | 0.40% | $2.03 | |||||
| Hypothetical(b) | $1,000.00 | $1,022.81 | 0.40% | $2.01 |
| (a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2023), 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 the days in the fiscal year (to reflect the one-half year period). |
| (b) | Assumes annual return of 5% before expenses |
| 3 |
VANECK CLO ETF
June 30, 2023 (unaudited)
| Par (000’s | ) | Value | ||||||
| COLLATERALIZED LOAN OBLIGATIONS: 98.2% | ||||||||
AIMCO CLO Series 2018-B 144A 6.36% (ICE LIBOR USD 3 Month+1.10%), 01/15/32 | $ | 1,250 | $ | 1,238,904 | ||||
AMMC CLO 21 LTD 144A 6.55% (ICE LIBOR USD 3 Month+1.25%), 11/02/30 | 1,214 | 1,206,085 | ||||||
Ares LXI CLO Ltd. 144A 6.90% (ICE LIBOR USD 3 Month+1.65%), 10/20/34 | 2,500 | 2,439,168 | ||||||
Bain Capital Credit CLO 2021-4 Ltd. 144A 6.90% (ICE LIBOR USD 3 Month+1.65%), 10/20/34 | 1,750 | 1,702,605 | ||||||
Barings CLO Ltd. 2016-II 144A 6.32% (ICE LIBOR USD 3 Month+1.07%), 01/20/32 | 1,550 | 1,533,072 | ||||||
Barings Clo Ltd. 2022-II 144A 6.79% (Term SOFR USD 3 Month+1.80%), 07/15/35 | 1,250 | 1,250,569 | ||||||
Betony CLO 2 Ltd. 144A 6.38% (ICE LIBOR USD 3 Month+1.08%), 04/30/31 | 4,000 | 3,969,040 | ||||||
Canyon Capital CLO 2016-1 Ltd. 144A 6.33% (ICE LIBOR USD 3 Month+1.07%), 07/15/31 | 4,000 | 3,963,296 | ||||||
Cedar Funding VIII Clo Ltd. 144A 6.91% (ICE LIBOR USD 3 Month+1.65%), 10/17/34 | 1,750 | 1,687,858 | ||||||
CIFC Funding 2014-III Ltd. 144A 6.72% (ICE LIBOR USD 3 Month+1.45%), 10/22/31 | 1,250 | 1,226,799 | ||||||
Crestline Denali CLO XIV Ltd. 144A 6.41% (ICE LIBOR USD 3 Month+1.14%), 10/23/31 | 3,986 | 3,929,960 | ||||||
Dryden 109 CLO Ltd. 144A 7.05% (Term SOFR USD 3 Month+2.00%), 04/20/35 | 1,250 | 1,223,685 | ||||||
Dryden 45 Senior Loan Fund 144A 6.66% (ICE LIBOR USD 3 Month+1.40%), 10/15/30 | 1,250 | 1,229,326 | ||||||
Dryden 64 CLO Ltd. 144A 6.23% (ICE LIBOR USD 3 Month+0.97%), 04/18/31 | 1,000 | 990,000 | ||||||
Dryden 80 CLO Ltd. 144A 6.74% (Term SOFR USD 3 Month+1.75%), 01/17/33 | 1,250 | 1,217,861 | ||||||
7.14% (Term SOFR USD 3 Month+2.15%), 01/17/33 | 1,250 | 1,198,830 | ||||||
Dryden 83 CLO Ltd. 144A 6.48% (ICE LIBOR USD 3 Month+1.22%), 01/18/32 | 4,000 | 3,955,676 | ||||||
| Par (000’s | ) | Value | ||||||
| COLLATERALIZED LOAN OBLIGATIONS: 98.2% (continued) | ||||||||
Dryden 93 CLO Ltd. 144A 6.86% (ICE LIBOR USD 3 Month+1.60%), 01/15/34 | $ | 1,750 | $ | 1,710,623 | ||||
Elmwood CLO 15 Ltd. 144A 6.41% (Term SOFR USD 3 Month+1.34%), 04/22/35 | 1,250 | 1,226,580 | ||||||
Generate CLO 2 Ltd. 144A 6.42% (ICE LIBOR USD 3 Month+1.15%), 01/22/31 | 1,862 | 1,848,529 | ||||||
GoldenTree Loan Opportunities IX Ltd. 144A 6.60% (ICE LIBOR USD 3 Month+1.30%), 10/29/29 | 1,250 | 1,243,165 | ||||||
Gulf Stream Meridian 1 Ltd. 144A 6.63% (ICE LIBOR USD 3 Month+1.37%), 04/15/33 | 1,250 | 1,238,310 | ||||||
Gulf Stream Meridian 4 Ltd. 144A 6.46% (ICE LIBOR USD 3 Month+1.20%), 07/15/34 | 1,750 | 1,720,894 | ||||||
HPS Loan Management 11- 2017 Ltd. 144A 6.34% (ICE LIBOR USD 3 Month+1.02%), 05/06/30 | 1,863 | 1,852,312 | ||||||
KKR CLO 20 Ltd. 144A 6.39% (ICE LIBOR USD 3 Month+1.13%), 10/16/30 | 1,078 | 1,070,489 | ||||||
LCM 26 Ltd. 144A 6.32% (ICE LIBOR USD 3 Month+1.07%), 01/20/31 | 4,859 | 4,821,511 | ||||||
LCM 29 Ltd. 144A 6.33% (ICE LIBOR USD 3 Month+1.07%), 04/15/31 | 2,000 | 1,969,008 | ||||||
LCM XIII LP 144A 6.13% (ICE LIBOR USD 3 Month+0.87%), 07/19/27 | 571 | 567,036 | ||||||
LCM XIV LP 144A 6.29% (ICE LIBOR USD 3 Month+1.04%), 07/20/31 | 2,675 | 2,643,935 | ||||||
LCM XV LP 144A 6.25% (ICE LIBOR USD 3 Month+1.00%), 07/20/30 | 1,670 | 1,656,686 | ||||||
Myers Park CLO Ltd. 144A 6.65% (ICE LIBOR USD 3 Month+1.40%), 10/20/30 | 1,250 | 1,228,756 | ||||||
OCP CLO 2020-19 Ltd. 144A 6.95% (ICE LIBOR USD 3 Month+1.70%), 10/20/34 | 1,750 | 1,700,599 | ||||||
OCP CLO 2021-22 Ltd. 144A 6.43% (ICE LIBOR USD 3 Month+1.18%), 12/02/34 | 1,250 | 1,230,045 | ||||||
OZLM IX Ltd. 144A 6.80% (ICE LIBOR USD 3 Month+1.55%), 10/20/31 | 2,000 | 1,952,836 | ||||||
OZLM XXI Ltd. 144A 6.40% (ICE LIBOR USD 3 Month+1.15%), 01/20/31 | 2,861 | 2,832,635 | ||||||
See Notes to Financial Statements
| 4 |
| Par (000’s | ) | Value | ||||||
| COLLATERALIZED LOAN OBLIGATIONS: 98.2% (continued) | ||||||||
OZLM XXII Ltd. 144A 6.33% (ICE LIBOR USD 3 Month+1.07%), 01/17/31 | $ | 1,091 | $ | 1,078,801 | ||||
Signal Peak CLO 10 Ltd. 144A 7.31% (ICE LIBOR USD 3 Month+2.05%), 07/21/34 | 1,250 | 1,206,710 | ||||||
Sound Point Clo XIV Ltd. 144A 6.26% (ICE LIBOR USD 3 Month+0.99%), 01/23/29 | 976 | 975,234 | ||||||
Southwick Park CLO LLC 144A 6.31% (ICE LIBOR USD 3 Month+1.06%), 07/20/32 | 2,000 | 1,974,984 | ||||||
TCI-Symphony CLO 2016-1 Ltd. 144A 6.26% (ICE LIBOR USD 3 Month+1.02%), 10/13/32 | 5,000 | 4,930,585 | ||||||
TCW CLO 2018-1 Ltd. 144A 6.23% (ICE LIBOR USD 3 Month+0.97%), 04/25/31 | 3,000 | 2,973,117 | ||||||
| Par (000’s | ) | Value | ||||||
| COLLATERALIZED LOAN OBLIGATIONS: 98.2% (continued) | ||||||||
THL Credit Wind River 2014- 2 CLO Ltd. 144A 6.40% (ICE LIBOR USD 3 Month+1.14%), 01/15/31 | $ | 1,828 | $ | 1,811,856 | ||||
THL Credit Wind River 2019- 3 Clo Ltd. 144A 6.34% (ICE LIBOR USD 3 Month+1.08%), 04/15/31 | 4,000 | 3,937,512 | ||||||
TIAA CLO I Ltd. 144A 6.45% (ICE LIBOR USD 3 Month+1.20%), 07/20/31 | 4,000 | 3,962,644 | ||||||
Voya CLO 2013-3 Ltd. 144A 6.39% (Term SOFR USD 3 Month+1.41%), 10/18/31 | 4,983 | 4,939,184 | ||||||
Wind River 2014-1 CLO Ltd. 144A 6.31% (ICE LIBOR USD 3 Month+1.05%), 07/18/31 | 1,992 | 1,968,348 | ||||||
| 96,235,658 | ||||||||
| Total Collateralized Loan Obligations (Cost: $95,605,465) | 96,235,658 | |||||||
| Total Investments: 98.2% (Cost: $95,605,465) | 96,235,658 | |||||||
| Other assets less liabilities: 1.8% | 1,766,767 | |||||||
| NET ASSETS: 100.0% | $ | 98,002,425 | ||||||
Definitions:
| LIBOR | London Interbank Offered Rate |
| SOFR | Secured Overnight Financing Rate |
| USD | United States Dollar |
Footnotes:
| 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 $96,235,658, or 98.2% of net assets. |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Financials | 100.0 | % | $ | 96,235,658 | ||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Collateralized Loan Obligations | $ | — | $ | 96,235,658 | $ | — | $ | 96,235,658 | ||||||||
See Notes to Financial Statements
| 5 |
VANECK CLO ETF
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Assets: | ||||
| Investments, at value | ||||
| Unaffiliated issuers (1) | $ | 96,235,658 | ||
| Cash | 509,063 | |||
| Receivables: | ||||
| Interest | 1,286,857 | |||
| Total assets | 98,031,578 | |||
| Liabilities: | ||||
| Payables: | ||||
| Due to Adviser | 29,153 | |||
| Total liabilities | 29,153 | |||
| NET ASSETS | $ | 98,002,425 | ||
| Shares outstanding | 1,900,000 | |||
| Net asset value, redemption and offering price per share | $ | 51.58 | ||
| Net Assets consist of: | ||||
| Aggregate paid in capital | $ | 96,926,881 | ||
| Total distributable earnings (loss) | 1,075,544 | |||
| NET ASSETS | $ | 98,002,425 | ||
| (1) Cost of investments - Unaffiliated issuers | $ | 95,605,465 | ||
See Notes to Financial Statements
| 6 |
VANECK CLO ETF
For the Period Ended June 30, 2023 (unaudited)
| Income: | ||||
| Interest | $ | 1,864,692 | ||
| Total income | 1,864,692 | |||
| Expenses: | ||||
| Management fees | 114,941 | |||
| Interest and taxes | 1,391 | |||
| Total expenses | 116,332 | |||
| Net investment income | 1,748,360 | |||
| Net change in unrealized appreciation (depreciation) on: | ||||
| Investments | 368,103 | |||
| Net change in unrealized appreciation (depreciation) | 368,103 | |||
| Net Increase in Net Assets Resulting from Operations | $ | 2,116,463 | ||
See Notes to Financial Statements
| 7 |
VANECK CLO ETF
STATEMENT OF CHANGES IN NET ASSETS
| Period Ended June 30, 2023 | Period Ended December 31, 2022 (a) | |||||||
| (unaudited) | ||||||||
| Operations: | ||||||||
| Net investment income | $ | 1,748,360 | $ | 586,929 | ||||
| Net realized loss | — | (42,600 | ) | |||||
| Net change in unrealized appreciation (depreciation) | 368,103 | 262,090 | ||||||
| Net increase in net assets resulting from operations | 2,116,463 | 806,419 | ||||||
| Distributions to shareholders from: | ||||||||
| Distributable earnings | (1,292,650 | ) | (564,150 | ) | ||||
| Total distributions | (1,292,650 | ) | (564,150 | ) | ||||
| Share transactions*: | ||||||||
| Proceeds from sale of shares | 71,936,343 | 25,000,000 | ||||||
| Increase in net assets resulting from share transactions | 71,936,343 | 25,000,000 | ||||||
| Total increase in net assets | 72,760,156 | 25,242,269 | ||||||
| Net Assets, beginning of period | 25,242,269 | — | ||||||
| Net Assets, end of period | $ | 98,002,425 | $ | 25,242,269 | ||||
| * Shares of Common Stock Issued (no par value): | ||||||||
| Shares sold | 1,400,000 | 500,000 | ||||||
| Net increase | 1,400,000 | 500,000 | ||||||
| (a) | For the period June 22, 2022 (commencement of operations) through December 31, 2022. |
See Notes to Financial Statements
| 8 |
VANECK CLO ETF
For a share outstanding throughout each period:
| Period Ended June 30, 2023 | Period Ended December 31, 2022(a) | ||||||||||
| (unaudited) | |||||||||||
| Net asset value, beginning of period | $50.48 | $50.00 | |||||||||
| Net investment income (b) | 1.55 | 1.18 | |||||||||
| Net realized and unrealized gain on investments | 0.75 | 0.43 | |||||||||
| Total from investment operations | 2.30 | 1.61 | |||||||||
| Distributions from: | |||||||||||
| Net investment income | (1.20 | ) | (1.13 | ) | |||||||
| Total distributions | (1.20 | ) | (1.13 | ) | |||||||
| Net asset value, end of period | $51.58 | $50.48 | |||||||||
| Total return (c) | 4.58 | %(d) | 3.26 | %(d) | |||||||
| Ratios to average net assets | |||||||||||
| Expenses | 0.40 | %(e) | 0.40 | %(e) | |||||||
| Net investment income | 6.08 | %(e) | 4.43 | %(e) | |||||||
| Supplemental data | |||||||||||
| Net assets, end of period (in millions) | $98 | $25 | |||||||||
| Portfolio turnover rate(f) | 4 | %(d) | 15 | %(d) | |||||||
| (a) | For the period June 22, 2022 (commencement of operations) through December 31, 2022. |
| (b) | Calculated based upon average shares outstanding |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 9 |
VANECK CLO ETF
June 30, 2023 (unaudited)
Note 1—Fund Organization—VanEck 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 to the CLO ETF (the “Fund”). The Fund is actively managed and seeks to achieve its investment objective by primarily investing in investment-grade debt tranches of collateralized loan obligations (“CLOs”). The Fund is classified as non-diversified, as defined in the 1940 Act. Van Eck Associates Corporation (the “Adviser”) serves as the investment adviser for the Fund.
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 Fund is an investment company and follows accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Fund’s significant accounting policies.
| A. | Security Valuation— The Fund values its 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. The Fund utilizes 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). | |
| Debt securities are valued on the basis of evaluated prices furnished by an independent pricing service or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date and or (ii) quotations from bond dealers to determine current value, and are categorized as Level 2 in the fair value hierarchy. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. The Board of Trustees (“Trustees”) has designated the Adviser as valuation designee to perform the Fund’s fair value determinations, subject to board oversight and certain reporting and other requirements. The Adviser has adopted policies and procedures reasonably designed to comply with the requirements. Among other things, these procedures allow the Fund 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 they do 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 Fund’s 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. |
| 10 |
| 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 categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Fund may realize upon sale of an investment may differ materially from the value presented in the Schedule of Investments. | |
| A summary of the inputs and the levels used to value the Fund’s investments are located in the Schedule of Investments. Additionally, tables that reconcile the valuation of the Fund’s Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedule of Investments. | |
| B. | Federal Income Taxes—It is the Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
| C. | Distributions to Shareholders— Dividends to shareholders from net investment income, if any, are declared and paid monthly by the Fund. Distributions of net realized capital gains, if any, are generally declared and paid annually. 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. Dividends and distributions that exceed earnings and profit for tax purposes are reported as a return of capital. |
| D. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Interest income, including amortization of premiums and discounts, is accrued using the effective interest method. |
| The Fund earns interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statement of Operations. | |
| In the normal course of business, the Fund enters into contracts that contain a variety of general indemnifications. The Fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Fund 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—The Adviser is the investment adviser to the Fund. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.40% of the Fund’s average daily net assets. The Adviser has agreed to pay all expenses of the Fund except for the fee payment under the investment management agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes, and extraordinary expenses, until at least May 1, 2024.
In addition, Van Eck Securities Corporation (the “Distributor”), an affiliate of the Adviser, acts as the Fund’s distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor. At June 30, 2023, the Adviser owned approximately 4% of the Fund.
Note 4—Capital Share Transactions—As of June 30, 2023, 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”).
The consideration for the purchase or redemption of Creation Units of the Fund generally consists of the in-kind contribution or distribution of a designated portfolio of securities (“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 Fund may issue Creation Units in
| 11 |
VANECK CLO ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
advance of receipt of Deposit Securities subject to various conditions, including, for the benefit of the Fund, a requirement to maintain cash collateral on deposit at the custodian equal to at least 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 transfer agent. In addition, the Fund may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statement of Changes in Net Assets.
Note 5—Investments—For the period ended June 30, 2023, the cost of purchases and proceeds from sales of investments, excluding U.S. government securities and short-term investments, aggregated to $73,300,320 and $2,310,852, respectively.
Note 6—Income Taxes—As of June 30, 2023, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments owned were as follows:
| Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||
| $ | 95,605,465 | $ | 668,363 | $ | (38,170 | ) | $ | 630,193 | ||||||
The tax character of current year distributions will be determined at the end of the current fiscal year.
At December 31, 2022, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
| Short-Term Capital Losses with No Expiration | Long-Term Capital Losses with No Expiration | Total | ||||||||||||
| $ | (42,600) | $ | – | $ | (42,600 | ) | ||||||||
The Fund recognizes 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 Fund’s 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 Fund may be subject to foreign taxes on the appreciation in value of certain investments. The Fund provides for such taxes, if any, on both realized and unrealized appreciation.
The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended June 30, 2023, the Fund did not incur any interest or penalties.
Note 7—Principal Risks— 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. Investments in debt instruments involve risks, including market fluctuations caused by factors such as economic and political developments, changes in interest rates and perceived trends in security prices.
The Fund’s assets are concentrated in CLO securities, organized as trusts or other special purpose vehicles that are typically collateralized by a pool of loans which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans, and including “covenant lite” loans, which have few or no financial maintenance covenants. CLOs include both the economic risks of the underlying loans
| 12 |
combined with the risks associated with the CLO structure governing the priority of payments. The degree of such risk will generally correspond to the specific tranche in which the Fund is invested. The Fund invests primarily in investment grade-rated tranches of CLOs; however, the rating does not constitute a guarantee of credit quality and may be downgraded, and in stressed market environments it is possible that even senior CLO debt tranches could experience losses due to actual defaults, increased sensitivity to defaults due to collateral default and the disappearance of the subordinated/ equity tranches, market anticipation of defaults, as well as negative market sentiment with respect to CLO securities as an asset class. The Fund’s portfolio managers may not be able to accurately predict how specific CLOs or the portfolio of underlying loans for such CLO securities will react to changes or stresses in the market, including changes in interest rates. The most common risks associated with investing in CLO securities are liquidity risk, interest rate risk, credit risk, call risk, and the risk of default of the underlying asset.
CLOs are generally privately-issued securities, and are normally purchased pursuant to Rule144A or Regulation S under the Securities Act of 1933, as amended. Privately-issued securities typically may be resold only to qualified institutional buyers, in a privately negotiated transaction, to a limited number of purchasers, or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. A decline in interest rates may result in a reduction of income received from floating rate securities held by the Fund and may adversely affect the value of the Fund’s shares. Generally, floating rate securities carry lower yields than fixed notes of the same maturity.
The Fund invests in certain financial instruments that may pay interest based on, or otherwise have payments tied to, the London Inter-bank Offered Rate (“LIBOR”). At the end of 2021, certain LIBORs were discontinued, but the most widely used LIBORs will continue to be provided on a representative basis until June 30, 2023, or in the case of variable rate investments, the next reset date.
A more complete description of risks is included in the 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 a Trustee can elect to defer receipt of 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 of the Trust as directed by the Trustees. The Adviser is responsible for paying the expenses associated with the Plan.
Note 9—Bank Line of Credit— The Fund 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 Fund at the request of the shareholders and other temporary or emergency purposes. The Fund have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Fund based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2023, the Fund borrowed under the Facility as follows:
| Days Outstanding | Average Daily Loan Balance | Average Interest Rate | ||
| 24 | $232,867 | 6.10% |
| 13 |
VANECK ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited)
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 agreement between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck CLO ETF (the “Fund”) and (ii) a sub-advisory agreement between the Adviser and PineBridge Investments LLC (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to the Fund. The Investment Management Agreement 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 5, 2023. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser 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 of the Fund and the Fund’s peer funds (certain other registered funds), information about the advisory services provided to the Fund and the personnel providing those services, and the profitability (or the absence of profitability), and the benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. In addition, as noted below, the Trustees reviewed certain performance information for the Fund which was not provided by Broadridge and which did not compare the Fund’s performance to the performance of its peer group. The Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Fund.
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 5, 2023 meeting regarding the 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 the Sub-Adviser, including the background and experience of the portfolio managers and others involved in the management and administration of the Fund. The Trustees also considered the terms and scope of services that the Adviser and the Sub-Adviser provide under each Agreement, including the Adviser’s agreement to pay all of the direct expenses of the Fund (excluding the fee payment under the Investment Management Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses). The Trustees noted the Sub-Adviser’s experience and investment management process with respect to investments in collateralized loan obligation (“CLO”) securities and the Sub-Adviser’s experience serving as a sub-adviser for other registered investment companies. The Trustees also considered the sub-advisory fees to be paid to the Sub-Adviser by the Adviser, and the advisory fees to be retained by the Adviser under the Sub-Advisory Agreement.
In evaluating the performance of the Fund, the Trustees reviewed various performance metrics, including various data from Broadridge comparing the Fund’s performance to that of certain other ETFs. The Trustees also considered information from the Adviser regarding the performance of the Fund against its benchmark. The Trustees noted that the Fund had outperformed its benchmark for the period since its inception on June 21, 2022 through December 31, 2022. Based on the foregoing, the Trustees concluded that the Adviser and the Sub-Adviser and their personnel have the requisite expertise and skill to manage the Fund’s portfolio.
The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser and the current status, as they understood it, of the Adviser’s and the Sub-Adviser’s compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Fund’s expenses and performance to that of certain other registered funds. The Trustees noted that the information provided showed that the Fund had management fees above the average and median of its peer
| 14 |
group of funds. The Trustees also noted that the information provided showed that the Fund had a total expense ratio above the average and median of its peer group of funds. The Trustees reviewed the amounts by which the Fund’s management and total expense ratio exceeded the average and median of its peer group 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 management fees paid by the Fund were reasonable in light of the performance of the Fund and the quality of services received.
The Trustees also considered the benefits, other than the fees under the Agreements, received by the Adviser and the Sub-Adviser from serving as adviser and sub-adviser, respectively, to the Fund.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and the fact that the Adviser did not earn any profits from managing the Fund. The Trustees reviewed the Fund’s asset size and expense ratio and noted that the Investment Management Agreement does not include breakpoints in the advisory fee rates as asset levels in the Fund increase. The Trustees considered the potential variability in the net assets of the Fund 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 Fund effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for the Fund is reasonable and appropriate in relation to the current asset size of the Fund and the other factors discussed above and that the advisory fee rate for the Fund currently reflect an appropriate sharing with shareholders of any economies of scale which may exist.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 5, 2023 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 the Agreements 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 at the time of their considerations, the Agreements are in the best interest of the Fund and its shareholders.
| 15 |
VANECK ETF TRUST
FUND’S LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for many Funds, redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2022 to December 31, 2022 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
| 16 |
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 ETF Trust (the “Trust”) 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 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 http://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-PORT filings are available on the Commission’s website at http://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: | VanEck Associates Corporation | ||
| Distributor: | VanEck Securities Corporation | ||
| 666 Third Avenue, New York, NY 10017 | |||
| vaneck.com | |||
| Account Assistance: | 800.826.2333 | CLOISAR |
 |
SEMI-ANNUAL REPORT June 30, 2023 (unaudited) |
| Bitcoin Strategy ETF | XBTF |
| 800.826.2333 | vaneck.com |
Certain information contained in this President’s 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 Fund’s holdings, the Fund’s performance, and the views of the investment adviser are as of June 30, 2023.
VANECK BITCOIN STRATEGY ETF
June 30, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways.” The three major forces—monetary policy, government spending and economic growth—are negative or muted. This remains my view despite events in the last few months, discussed at the end of this letter.
Discussion
To recap this cycle: stocks and bonds historically do not perform well when the Fed tightens monetary conditions, and that’s just what the Fed announced it would be doing at the end of 2021. This would include raising rates and changing its balance sheet actions, which doesn’t create a great environment for financial assets.
There are three things investors continue to face, none of which is particularly positive for financial assets.
| 1. | Monetary Policy: Tightening |
Money supply exploded during the COVID–19 pandemic, but it started shrinking in late 2022. This withdrawal of money supply is bad for stock and bond returns.
A second, modern component to monetary policy is the Fed balance sheet. After buying bonds during the pandemic, the Fed has now started shrinking the balance sheet—from a high of almost $9 trillion in early 2022, assets dropped to just short of $8.4 trillion by the end of June.1 The Fed has only shrunk its balance sheet once before, so we are facing an unknown.
As we’ve been saying since the summer of 2022, when wage inflation was confirmed, what the Fed is fighting is wage inflation. That is the kind of inflation that is endemic and hard to manage once it takes hold, not least because it creates a spiraling effect. And this is the battle that is at full pitch—the labor market has remained strong.
While headline inflation is falling, we are still in the “higher for longer” camp. The Fed seems likely to continue holding, or even raising, interest rates and will probably continue to shrink its balance sheet. This is not supportive of stock or bond markets.
| 2. | Fiscal Tightening |
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, who won control of the House of Representatives, are looking to slow government spending. And even Democrats like Larry Summers believe that stimulus spending during the pandemic led to inflation. The debt ceiling compromise and the Supreme Court rejection of student debt relief continue this trend.
| 3. | Global Growth is at Low Levels |
Both Chinese and European growth, for different reasons, were slow in 2022. Over the last 20 years, the U.S. and China have been the two main pillars of global growth. In China, the post-COVID-19 growth has been more domestic and consumer-led, not enough to overcome the property sector malaise.
China growth estimates range from low (1% to 3%) to “high” (4% to 5%). Many “bulls” point to China as a potential catalyst for a better-than-expected economic outlook. I don’t see it. In coming years, we will likely have to look to India, Indonesia and Africa to take up the baton as pillars of higher percentage global growth.
I don’t believe that we will escape these three dampeners on stock and bond returns in 2023—higher interest rates, no government spending growth and tepid global growth. We will need upside corporate profitability surprises or high Chinese growth to substantially boost markets this year, in our view.
However, after the 2022 losses, bond investments are now offering attractive yields, so this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) Because of higher interest rates, bonds can offer adequate returns, as they did in the 1970s even though that decade was the worst for interest rates in the last 100 years.
| 1 |
VANECK BITCOIN STRATEGY ETF
PRESIDENT’S LETTER
(unaudited) (continued)
Outlook
My basic outlook favoring bonds hasn’t changed. But I should address two events of the first half of this year—monetary stimuli and AI (artificial intelligence).
There were two unexpected monetary stimuli in early 2023, but I think both are temporary. The first was the wave of money from Asia at year-end: Japanese bond buying of approximately $600 billion and Chinese money supply growth post-COVID-19. The second monetary stimulus was the credit the Fed provided to banks during the mini-bank crisis of March. While I believe this crisis will prove to be idiosyncratic in nature, I’m worried that it could lead to a contraction of credit, but this may be offset by China reopening. Also, I think it is important to note that substantially less credit flows to the real economy from banks (through loans they continue to hold) and much more through alternative credit funds. These funds typically don’t offer daily liquidity, so any credit crunch is likely to be extenuated over several quarters. So, I don’t see these two events as significantly changing the “sideways” trajectory of 2023.
AI and the instant success of ChatGPT have driven another wave of enthusiasm for tech stocks, but the valuations seem stretched to me. And large-cap earnings are still on a downward or flat trajectory, so I’m not chasing this rally.
My final thought is that, while I think the Fed won’t stimulate for a while, this is a good time to get positioned in assets that would benefit from that stimulus, namely gold and BTC (bitcoin).
We thank you for investing with VanEck. On the following pages, you will find financial statements for the fund for the six month period ended June 30, 2023. 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
CEO and President
VanEck ETF Trust
July 7, 2023
PS The investing outlook can change suddenly. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”.3 Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
1 U.S. Federal Reserve: FEDERAL RESERVE Statistical Release, June 22, 2023, https://www.federalreserve.gov/releases/h41/20230629/
2 What to Buy? Bonds. When? Now, https://www.vaneck.com/us/en/blogs/investment-outlook/jan-van-eck-what-to-buy-bonds-when-now/.
3 https://www.vaneck.com/us/en/subscribe/
| 2 |
VANECK BITCOIN STRATEGY ETF
(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, 2023 to June 30, 2023.
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.
| Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period(a) | Expenses Paid During the Period January 1, 2023 - June 30, 2023(b) | |||||
| Actual | $1,000.00 | $1,788.50 | 0.67% | $4.63 | ||||
| Hypothetical(c) | $1,000.00 | $1,021.47 | 0.67% | $3.36 |
| (a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2023), 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 the days in the fiscal year (to reflect the one-half year period). |
| (b) | Assumes annual return of 5% before expenses |
| 3 |
VANECK BITCOIN STRATEGY ETF
June 30, 2023 (unaudited)
| Par (000’s | ) | Value | ||||||
| Short-Term Investments: 81.1% | ||||||||
| United States Treasury Obligations: 81.1% | ||||||||
| United States Treasury Bills | ||||||||
| 4.68%, 08/17/23 (a) | $ | 4,000 | $ | 3,974,214 | ||||
| 4.73%, 07/11/23 (a) | 5,000 | 4,994,480 | ||||||
| 4.96%, 10/26/23 (a) | 3,000 | 2,950,215 | ||||||
| 5.12%, 10/12/23 (a) | 4,000 | 3,941,855 | ||||||
| 5.18%, 11/02/23 (a) | 3,000 | 2,947,152 | ||||||
| 5.19%, 12/07/23 | 4,000 | 3,909,231 | ||||||
| 5.20%, 10/03/23 | 3,000 | 2,960,421 | ||||||
| 5.22%, 11/24/23 (a) | 2,000 | 1,958,585 | ||||||
| 5.27%, 10/19/23 | 3,000 | 2,953,234 | ||||||
| 5.32%, 11/09/23 (a) | 2,000 | 1,962,865 | ||||||
| 5.45%, 10/17/23 (a) | 4,000 | 3,938,697 | ||||||
| 36,490,949 | ||||||||
| Total Short-Term Investments: 81.1% (Cost: $36,491,092) | 36,490,949 | |||||||
| Other assets less liabilities: 18.9% | 8,516,738 | |||||||
| NET ASSETS: 100.0% | $ | 45,007,687 | ||||||
Futures Contracts
| Reference Entity | Type | Number of Contracts | Expiration Date | Notional Amount | Value and Unrealized Appreciation/ (Depreciation) | |||||||||
| CME BITCOIN | Long | 294 | 07/28/23 | $ | 45,099,600 | $ | (102,652) | |||||||
| (a) | All or a portion of these securities are held at the broker for futures collateral. Total value of securities held at the broker is $22,108,104. |
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Government | 100.0 | % | $ | 36,490,949 | ||||
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| United States Treasury Obligations | $ | — | $ | 36,490,949 | $ | — | $ | 36,490,949 | ||||||||
| Other Financial Instruments: | ||||||||||||||||
| Futures Contracts | $ | (102,652) | $ | — | $ | — | $ | (102,652) | ||||||||
See Notes to Financial Statements
| 4 |
VANECK BITCOIN STRATEGY ETF
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
| Assets: | ||||
| Investments, at value | ||||
| Unaffiliated issuers (1) | $ | 36,490,949 | ||
| Cash | 2,572,583 | |||
| Cash on deposit with broker for futures contracts | 5,963,128 | |||
| Receivables: | ||||
| Shares of beneficial interest sold | 1,340 | |||
| Interest | 90,792 | |||
| Due from custodian | 17,000 | |||
| Net deferred tax | — | |||
| Total assets | 45,135,792 | |||
| Liabilities: | ||||
| Payables: | ||||
| Due to Adviser | 22,027 | |||
| Federal and State Income Taxes | 8,268 | |||
| Net variation margin on futures contracts | 97,810 | |||
| Total liabilities | 128,105 | |||
| NET ASSETS | $ | 45,007,687 | ||
| Shares outstanding | 1,500,000 | |||
| Net asset value, redemption and offering price per share | $ | 30.01 | ||
| Net Assets consist of: | ||||
| Aggregate paid in capital | $ | 54,212,021 | ||
| Total distributable earnings (loss) | (9,204,334 | ) | ||
| NET ASSETS | $ | 45,007,687 | ||
| (1) Cost of investments - Unaffiliated issuers | $ | 36,491,092 |
See Notes to Financial Statements
| 5 |
VANECK BITCOIN STRATEGY ETF
For the Period Ended June 30, 2023 (unaudited)
| Income: | ||||
| Interest | $ | 774,135 | ||
| Total income | 774,135 | |||
| Expenses: | ||||
| Management fees | 114,232 | |||
| FCM fees | 5,282 | |||
| State franchise taxes | 4,109 | |||
| Total expenses | 123,623 | |||
| Reimbursement by the Adviser | (5,282 | ) | ||
| Net expenses | 118,341 | |||
| Net investment income, before income taxes | 655,794 | |||
| Net current and deferred tax benefit/(expense) (See Note 6) | (145,298 | ) | ||
| Net investment income, net of income taxes | 510,496 | |||
| Net realized gain on: | ||||
| Futures contracts | 17,164,878 | |||
| Current and deferred tax benefit/(expense) (See Note 6) | — | |||
| Net realized gain, net of income taxes | 17,164,878 | |||
| Net change in unrealized appreciation (depreciation) on: | ||||
| Investments | (3,942 | ) | ||
| Futures contracts | (218,833 | ) | ||
| Current and deferred tax benefit/(expense) (See Note 6) | — | |||
| Net change in unrealized appreciation (depreciation), net of income taxes | (222,775 | ) | ||
| Net Increase in Net Assets Resulting from Operations | $ | 17,452,599 |
See Notes to Financial Statements
| 6 |
VANECK BITCOIN STRATEGY ETF
STATEMENT OF CHANGES IN NET ASSETS
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||
| (unaudited) | ||||||||
| Operations: | ||||||||
| Net investment income | $ | 510,496 | $ | 85,663 | ||||
| Net realized gain (loss) | 17,164,878 | (23,056,218 | ) | |||||
| Net change in unrealized appreciation (depreciation) | (222,775 | ) | 1,160,667 | |||||
| Net increase (decrease) in net assets resulting from operations | 17,452,599 | (21,809,888 | ) | |||||
| Distributions to shareholders from: | ||||||||
| Distributable earnings | (85,625 | ) | — | |||||
| Total distributions | (85,625 | ) | — | |||||
| Share transactions*: | ||||||||
| Proceeds from sale of shares | 6,605,242 | 27,850,090 | ||||||
| Cost of shares redeemed | — | (816,592 | ) | |||||
| Increase in net assets resulting from share transactions | 6,605,242 | 27,033,498 | ||||||
| Total increase in net assets | 23,972,216 | 5,223,610 | ||||||
| Net Assets, beginning of period | 21,035,471 | 15,811,861 | ||||||
| Net Assets, end of period | $ | 45,007,687 | $ | 21,035,471 | ||||
| * Shares of Common Stock Issued (no par value): | ||||||||
| Shares sold | 250,000 | 950,000 | ||||||
| Shares redeemed | — | (50,000 | ) | |||||
| Net increase | 250,000 | 900,000 | ||||||
See Notes to Financial Statements
| 7 |
VANECK BITCOIN STRATEGY ETF
For a share outstanding throughout each period:
| Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended December 31, 2021(a) | ||||||||||
| (unaudited) | ||||||||||||
| Net asset value, beginning of period | $16.83 | $45.18 | $63.91 | |||||||||
| Net investment income (loss) (b) | 0.47 | 0.12 | (0.04 | ) | ||||||||
| Net realized and unrealized gain (loss) on investments | 12.78 | (28.47 | ) | (18.69 | ) | |||||||
| Total from investment operations | 13.25 | (28.35 | ) | (18.73 | ) | |||||||
| Distributions from: | ||||||||||||
| Net investment income | (0.07 | ) | — | — | ||||||||
| Total distributions | (0.07 | ) | — | — | ||||||||
| Net asset value, end of period | $30.01 | $16.83 | $45.18 | |||||||||
| Total return (c) | 78.85% | (d) | (62.75)% | (29.31)% | (d) | |||||||
| Ratios to average net assets | ||||||||||||
| Gross expenses | 0.70% | (e)(f) | 0.73% | (g) | 0.65% | (e) | ||||||
| Net expenses | 0.67% | (e)(f) | 0.66% | (g) | 0.65% | (e) | ||||||
| Net expenses excluding interest and taxes | 0.65% | (e) | 0.65% | 0.65% | (e) | |||||||
| Net investment income (loss) | 3.73% | (e)(f) | 0.49% | (g) | (0.62)% | (e) | ||||||
| Supplemental data | ||||||||||||
| Net assets, end of period (in millions) | $45 | $21 | $16 | |||||||||
| Portfolio turnover rate(h) | —% | (d) | —% | —% | (d) | |||||||
| (a) | For the period November 16, 2021 (commencement of operations) through December 31, 2021. |
| (b) | Calculated based upon average shares outstanding |
| (c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
| (d) | Not Annualized |
| (e) | Annualized |
| (f) | Excludes the net current and deferred tax benefit/(expense). If the net current and deferred tax benefit/(expense) was included the gross expense, net expense, and net investment income ratios would be 1.53%, 1.50% and 2.90%, respectively. |
| (g) | Excludes the net current and deferred tax benefit/(expense). If the net current and deferred tax benefit/(expense) was included the gross expense, net expense, and net investment income ratios would be 0.83%, 0.76% and 0.39%, respectively. |
| (h) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 8 |
VANECK BITCOIN STRATEGY ETF
June 30, 2023 (unaudited)
Note 1—Fund Organization—VanEck 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 to the Bitcoin Strategy ETF (the “Fund”). The Fund is actively managed and seeks to achieve its investment objective by investing in standardized, cash-settled bitcoin futures contracts (“Bitcoin Futures”) traded on the Chicago Mercantile Exchange. The Fund is classified as “non-diversified”. This means that the Fund may invest more of its assets in securities of a single issuer than that of a diversified fund. Van Eck Absolute Return Advisers Corporation (the “Adviser”) serves as the investment adviser for the Fund and is subject to the supervision of the Board of Trustees (the “Trustees”).
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 Fund is an investment company and follows accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies.
The following summarizes the Fund’s significant accounting policies.
| A. | Security Valuation— The Fund values its 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. The Fund utilizes 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 the Fund’s own assumptions in determining the fair value of investments). | |
| Futures contracts are generally valued at the official settlement price on the primary exchange on which they trade and are categorized as Level 1 in the fair value hierarchy (described below). Debt securities are valued on the basis of evaluated prices furnished by an independent pricing service approved by the Trustees or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date and or (ii) quotations from bond dealers to determine current value, and are categorized as Level 2 in the fair value hierarchy. 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 (“NAV”) and are categorized as Level 1 in the fair value hierarchy. The Trustees have designated the Adviser as valuation designee under Rule 2a-5 to perform the Fund’s fair value determinations, subject to board oversight and certain reporting and other requirements. The Adviser has adopted policies and procedures reasonably designed to comply with the requirements of Rule 2a-5. Among other things, these procedures allow the Fund 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, |
| 9 |
VANECK BITCOIN STRATEGY ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
| or if the Adviser believes they do 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 Fund’s 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 categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Fund may realize upon sale of an investment may differ materially from the value presented in the Schedule of Investments. | |
| A summary of the inputs and the levels used to value the Fund’s investments are located in the Schedule of Investments. Additionally, tables that reconcile the valuation of the Fund’s Level 3 investments and that present additional information about the valuation methodologies and unobservable inputs, if applicable, are located in the Schedule of Investments. | |
| B. | Federal and Other Income Taxes— The Fund intends to invest primarily in Bitcoin Futures, which generally are treated as futures contracts on property for federal income tax purposes. As such, they do not generate qualifying income for the purpose of qualifying as a Regulated Investment Company (“RIC”) for tax purposes. Accordingly, the Fund does not intend to qualify, and will not qualify as a RIC pursuant to Subchapter M of the Internal Revenue Code and will be taxed as a C-corporation. As a C-corporation, the Fund is obligated to pay federal, state and local income tax on its taxable income. The amount of taxes currently payable by the Fund will vary depending on the amount of income and gains derived from investments and such taxes will reduce the return on an investment in the Fund. Since the Fund will be subject to taxation on its taxable income, the NAV of the Fund’s shares will be reduced by the accrual of any current or deferred tax liabilities. |
| The tax expense or benefit attributable to certain components of income will be included in the Statement of Operations. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for federal income tax purposes. Deferred tax assets and liabilities are calculated utilizing effective tax rates expected to be applied to taxable income in the years the temporary differences are realized or settled. A valuation allowance will be recognized if, based on the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realizable. In the assessment for a valuation allowance, consideration is given to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods and the associated risk that operating and capital loss carryforwards may expire unused. It is the Fund’s policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on the Statement of Operations. | |
| C. | Distributions to Shareholders— Distributions to shareholders from net investment income and net realized capital gains, if any, are declared and paid annually. Because the Fund is taxed as a C corporation, all of the distributions paid by the Fund will be treated as dividend income for U.S. federal income tax purposes. Unlike a RIC, the Fund will not pay capital gain dividends. |
| D. | Use of Derivative Instruments— The Fund invests in futures contracts, which are derivative instruments. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments or commodities at specified terms on a specified date, or to exchange interest payment streams or currencies based on a |
| 10 |
| notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the investment adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument. GAAP requires enhanced disclosures about the Fund’s derivative instruments and hedging activities. Details of this disclosure are found below as well as in the Schedule of Investments. | |
| Futures Contracts— Futures contracts are financial contracts, the value of which depends on, or is derived from, the underlying reference asset. In the case of cash-settled Bitcoin Futures, the underlying reference asset is bitcoin. “Cash-settled” means that when the relevant futures contract expires, if the value of the underlying asset exceeds the futures contract price, the seller pays to the purchaser cash in the amount of that excess, and if the futures contract price exceeds the value of the underlying asset, the purchaser pays to the seller cash in the amount of that excess. In a cash-settled futures contract on bitcoin, the amount of cash to be paid is equal to the difference between the value of the bitcoin underlying the futures contract at the close of the last trading day of the contract and the futures contract price specified in the agreement. | |
| Upon entering into a futures contract, the Fund is required to deliver to a broker an amount of cash and/ or government securities equal to a certain percentage of the contract amount. This amount is known as the “initial margin”. Subsequent payments, known as “variation margin”, are generally made or received by the Fund each day depending on the fluctuations in the value of the Bitcoin Futures. Such variation margin is recorded for financial statement purposes on a daily basis as an unrealized gain or loss on futures, until the futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures. Bitcoin Strategy ETF held futures contracts for six months during the period ended June 30, 2023, of which the average notional amount for the period was $37,970,679. Futures contracts held by Bitcoin Strategy ETF at June 30, 2023 are reflected in the Schedule of Investments. | |
| At June 30, 2023, the Fund held the following derivatives (not designated as hedging instruments under GAAP): |
| Liabilities Derivatives |
||||
| Digital Assets Risk |
||||
| Futures contracts1 | $ | 97,810 | ||
| 1 | Statements of Assets and Liabilities location: Variation margin for futures contracts |
| The impact of transactions in derivative instruments during the period ended June 30, 2023, was as follows: |
| Digital Assets Risk | ||||
| Realized gain (loss): | ||||
| Futures contracts1 | $ | 17,164,878 | ||
| Net change in unrealized appreciation (depreciation): | ||||
| Futures contracts2 | $ | (218,833 | ) | |
| 1 | Statements of Operations location: Net realized gain (loss) on futures contracts |
| 2 | Statements of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts |
| 11 |
VANECK BITCOIN STRATEGY ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
| E. | Offsetting Assets and Liabilities— In the ordinary course of business, the Fund enters into transactions subject to enforceable master netting agreements or other similar agreements. Generally, the right of offset in those agreements allows the Fund to offset any exposure to a specific counterparty with any collateral received from or delivered to that counterparty based on the terms of the agreements. The Fund may pledge or receive cash and/or securities as collateral for derivative instruments. Collateral held for derivative instruments at June 30, 2023 is presented in the Statement of Assets and Liabilities. For financial reporting purposes, the Fund presents derivative instruments on a gross basis in the Statement of Assets and Liabilities. |
| Futures contracts held by the Fund are not subject to a master netting agreements or other similar arrangements. In general, collateral received or pledged exceeds the net amount of the unrealized gain/ loss or market value of financial instruments. Refer to the Schedules of Investments and Statements of Assets and Liabilities for collateral received or pledged as of June 30, 2023. | |
| F. | Other— Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Interest income, including amortization of premiums and discounts, is accrued as earned. Dividend income is recorded on the ex-dividend date. |
| The Fund earns interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statement of Operations. | |
| In the normal course of business, the Fund enters into contracts that contain a variety of general indemnifications. The Fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Fund 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— The Adviser is the investment adviser to the Fund. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.65% of the Fund’s average daily net assets. The Adviser has agreed to pay all expenses incurred by the Fund except for the advisory fee, acquired fund fees and expenses, interest expense, offering costs, trading expenses (except that the Adviser will pay any net account or similar fees charged by futures commission merchants), taxes, extraordinary expenses. Notwithstanding the foregoing, the Adviser has agreed to pay the offering costs and trading expenses that are net account or similar fees charged by futures commission merchants (“FCMs”) until at least May 1, 2024.
Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Fund’s distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and distributor.
At June 30, 2023, the Adviser owned approximately 23% of the Fund.
Note 4— Capital Share Transactions — As of June 30, 2023, 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”). Due to various legal and operational constraints, Creation Units of the Fund are issued principally for cash.
Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to the transfer agent. In addition, the Fund may impose variable fees on the purchase or redemption of Creation Units for cash, or on transactions effected outside the clearing process, to defray certain transaction costs. These variable fees, if any, are reflected in share transactions in the Statement of Changes in Net Assets.
Note 5—Investments—During the year ended June 30, 2023, the Fund had no purchases and sales of investments, other than U.S. government securities and short-term obligations.
Note 6—Income Taxes— The income tax expense/(benefit) for the respective categories on the Statement of Operations for the period ended June 30, 2023 are as follows:
| 12 |
| Net Investment Income |
Net Realized Loss |
Change in Net Unrealized Depreciation |
Total | |||||
| Current tax expense (benefit) | $145,298 | $— | $— | $145,298 | ||||
| Deferred tax expense (benefit) | — | 3,802,020 | (49,345) | 3,752,675 | ||||
| Change in Valuation Allowance | — | (3,802,020) | 49,345 | (3,752,675) | ||||
| Total | $145,298 | $— | $— | $145,298 |
The Fund is currently using an estimated 22.15% tax rate for federal, state and local tax which is composed of a 21% federal tax rate and an assumed 1.15% rate attributable to state taxes (net of federal benefit). The Fund’s federal and state income tax expense / (benefit) consists of the following:
| Federal | State | Total | ||||
| Current tax expense (benefit) | $135,701 | $9,597 | $145,298 | |||
| Deferred tax expense (benefit) | 3,557,842 | 194,833 | 3,752,675 | |||
| Change in Valuation Allowance | (3,557,842) | (194,833) | (3,752,675) | |||
| Total | $135,701 | $9,597 | $145,298 |
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes.
Total income tax expense/(benefit) (current and deferred) differs from the amount computed by applying the federal statutory income tax rate to net investment income/(loss) and realized and unrealized gain/(loss) on investments before taxes as follows:
| For the Period Ended June 30, 2023 | ||||||
| Amount | Rate | |||||
| Income tax expense/(benefit) at statutory rates | $ | 3,695,558 | 21.00 | % | ||
| State income tax, net of federal benefit | 202,415 | 1.15 | ||||
| Change in Valuation Allowance | (3,752,675) | (21.32 | ) | |||
| Net income tax expense/(benefit) | $ | 145,298 | 0.83 | % | ||
Components of the Fund’s deferred tax assets and liabilities are as follows:
| For the Period Ended June 30, 2023 | ||
| Deferred Tax Assets: | ||
| Capital loss carryforward | $ | 2,149,303 |
| Net operating loss carryforward | — | |
| Unrealized gain on investments | 31 | |
| Net Deferred Tax Asset/(Liability) before valuation allowance | 2,149,334 | |
| Less Valuation Allowance | (2,149,334) | |
| Net Deferred Tax Asset/(Liability) | $ | — |
The Fund reviews the recoverability of its deferred tax asset based upon the weight of the available evidence. When assessing the recoverability of its deferred tax assets, management considers available carrybacks, reversing temporary taxable differences, projections of future taxable income and tax planning (if any). The Fund has recorded a valuation allowance of $2,149,334 against its net deferred tax asset at June 30, 2023 as the Fund believes it is more-likely-than-not the asset will not be realized within the relevant carryforward
| 13 |
VANECK BITCOIN STRATEGY ETF
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
periods. The Fund may be required to modify the estimates or assumptions it uses regarding the deferred tax asset or liability as new information becomes available. Since the Fund will be subject to taxation on its taxable income, the NAV of the Fund’s shares will also be reduced by the accrual of any deferred tax liabilities.
The Fund recognizes the tax benefits of uncertain positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on U.S. and State tax returns filed or expected to be filed since inception of the Fund. The Fund’s tax years are open for examination by U.S. and state tax authorities for all applicable periods. The Fund is not aware of any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will change materially in the next 12 months.
As of June 30, 2023, the Fund had the following estimated capital loss carryforwards:
| Period Generated | Amount | Expiration | |||
| 12/31/2022 | $ | (9,703,400) | 12/31/2027 | ||
For corporations, capital losses can only be used to offset capital gains and cannot be used to offset ordinary income. Therefore, the use of this capital loss carryforward is dependent upon the Fund generating sufficient net capital gains prior to the expiration of the loss carryforward.
During the period ended June 30, 2023, the Fund utilized $16,946,045 of its capital loss carryforward available from the prior year.
There are no differences between the book and tax unrealized appreciation / depreciation on the Fund’s investments.
Note 7—Principal Risks—The Fund’s assets are concentrated in Bitcoin Futures. By concentrating the Fund’s assets, the Fund is subject to the risk that economic, political or other conditions that have a negative effect on bitcoin or the digital asset industry will negatively impact the Fund to a greater extent than if the Fund’s net assets were invested in a wider variety of sectors or industries.
Bitcoin and Bitcoin Futures are relatively new asset classes and therefore the Fund’s investments in Bitcoin Futures are subject to unique and substantial risks, including the risk that the value of the Fund’s investments could decline rapidly, including to zero. Bitcoin and Bitcoin Futures have historically been more volatile than traditional asset classes.
The rules dealing with U.S. federal income taxation and the rates themselves are constantly under review in the legislative process and by the Internal Revenue Service (“IRS”) and the U.S. Treasury Department. Changes in tax laws or regulations or future interpretations of such laws or regulations could adversely affect the Fund and/or the Fund’s shareholders. Changes in the laws or regulations of the United States, including any changes to applicable tax laws and regulations, could impair the ability of the Fund to achieve its investment objective and could increase the operating expenses of the Fund.
A more complete description of risks is included in the 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 a Trustee can elect to defer receipt of trustee fees until retirement, disability or termination from the Board. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Fund as directed by the Trustees. The Adviser is responsible for paying the expenses associated with the Plan.
| 14 |
VANECK BITCOIN STRATEGY ETF
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited)
At a meeting held on June 8, 2023 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck® 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 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 5, 2023. At that meeting, the
Trustees discussed the information the Adviser 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 of the Fund and the Fund’s peer funds (certain other registered funds), information about the advisory services provided to the Fund and the personnel providing those services, and the profitability (or the absence of profitability) and the benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. In addition, as noted below, the Trustees reviewed certain performance information for the Fund which was not provided by Broadridge and which did not compare the Fund’s performance to the performance of its peer group. The Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Fund.
The Independent Trustees’ consideration of the Investment Management Agreement 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 5, 2023 meeting regarding the 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, including the background and experience of the portfolio manager and others involved in the management and administration of the Fund. The Trustees also considered the terms of, and scope of services that the Adviser provides under, the Investment Management Agreement, including the Adviser’s agreement to pay all of the expenses of the Fund (excluding the fee payment under the Investment Management Agreement, acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses).
In evaluating the performance of the Fund, the Trustees reviewed various performance metrics, including various data from Broadridge comparing the Fund’s performance to that of certain other registered funds. The Trustees also considered information from the Adviser regarding the performance of the Fund against its benchmark and against other peer funds that invest in bitcoin futures. The Trustees noted that the Fund had outperformed its benchmark for the one-year period ended December 31, 2022 and for the period since its inception on November 16, 2021 through December 31, 2022. Based on the foregoing, the Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.
The Trustees also considered information relating to the financial condition of the Adviser and the current status, as they understood it, of the Adviser’s compliance environment.
As noted above, the Trustees were also provided various data from Broadridge comparing the Fund’s expenses and performance to that of certain other registered funds. The Trustees noted that the information provided showed that the Fund had management fees below the average and median of its peer group of funds. The Trustees also noted that the information provided showed that the Fund had a total expense ratio below the average and median of its peer group of funds. The Trustees concluded, in light of this information and the other information available to them, that the management fees paid by the Fund were reasonable in light of the performance of the Fund and the quality of services received.
| 15 |
VANECK BITCOIN STRATEGY ETF
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
June 30, 2023 (unaudited) (continued)
The Trustees also considered the benefits, other than the fees under the Investment Management Agreement, received by the Adviser from serving as adviser to the Fund.
The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and the fact that the Adviser did not earn any profits from managing the Fund. The Trustees reviewed the Fund’s asset size and expense ratio and noted that the Investment Management Agreement does not include breakpoints in the advisory fee rates as asset levels in the Fund increase. The Trustees considered the potential variability in the net assets of the Fund 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 Fund effectively incorporate the benefits of economies of scale. The Trustees also considered the risks being assumed by the Adviser under the unitary fee structure arrangement and the potential expense stability that may inure to the benefit of shareholders. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for the Fund is reasonable and appropriate in relation to the current asset size of the Fund and the other factors discussed above and that the advisory fee rate for the Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 5, 2023 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, at the time of their considerations, the Investment Management Agreement is in the best interest of the Fund and the Fund’s shareholders.
| 16 |
VANECK BITCOIN STRATEGY ETF
FUND’S LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act, the Funds have implemented a Liquidity Risk Management Program (the “Program”). The Program outlines certain techniques, tools and arrangements employed for the assessment and management of Fund liquidity risk, and the terms, contents and frequency of reporting of certain issues to the Board. Liquidity is managed taking account of the Funds’ investment strategy, liquidity profile, and, importantly, the fact that for many Funds, redemptions are settled primarily as in-kind redemptions. In this regard, certain of the Funds qualify as “In-Kind ETFs” under the Liquidity Rule because they meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and publish their portfolio holdings daily. In-Kind ETFs are exempt from the Liquidity Rule’s classification and highly liquid investment minimum (“HLIM”) provisions, discussed below.
Under the Program and in accordance with the Liquidity Rule, each Fund’s liquidity risk is assessed at least annually taking into consideration certain factors enumerated in the Liquidity Rule, as applicable. The Liquidity Rule calls for considering certain such factors under both normal and reasonably foreseeable stressed market conditions.
With respect to each Fund that does not qualify under the Liquidity Rule as an “In-Kind ETF,” the Liquidity Rule and the Program require that each portfolio holding be classified into one of four liquidity classification categories. The Liquidity Rule requires that such classification determinations be made taking into account relevant market, trading and investment-specific considerations as well as market depth. The relevant Funds utilize data from a third-party vendor to assist with these determinations.
Funds that do not qualify as “In-Kind ETFs” are also required to determine and periodically review an HLIM – a minimum percentage of Fund net assets that are to be invested in Highly Liquid Investments that are assets – and adopt certain related procedures. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
The Liquidity Rule provides an exemption from the HLIM requirements for Funds that “primarily” hold Highly Liquid Investments, as defined in the Program. For the period January 1, 2022 to December 31, 2022 (the “Review Period”), the Funds that were not In-Kind ETFs qualified for an exemption and therefore have not determined an HLIM or adopted the related procedures.
The Board reviewed a report (“Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the Review Period. The Report noted that, during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report also noted the effectiveness of the Funds’ liquidity risk management during such time. Further information on liquidity risks applicable to the Fund can be found in the Fund’s prospectus.
| 17 |
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck ETF Trust (the “Trust”) 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 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 http://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-PORT filings are available on the Commission’s website at http://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 schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
| Investment Adviser: | VanEck Associates Corporation | ||
| Distributor: | VanEck Securities Corporation | ||
| 666 Third Avenue, New York, NY 10017 | |||
| vaneck.com | |||
| Account Assistance: | 800.826.2333 | XBTFSAR |
| 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. |
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 ETF TRUST
| By (Signature and Title) | /s/ John J. Crimmins, Treasurer & Chief Financial Officer |
Date September 6, 2023
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, 2023
| By (Signature and Title) | /s/ John J. Crimmins, Treasurer & Chief Financial Officer |
Date September 6, 2023