VanEck has rolled out British pound-denominated share classes for its range of four VanEck Vectors UCITS ETFs. Now tradable on the London Stock Exchange, the GBP-denominated ETFs build upon the US-dollar denominated UCITS ETFs already registered on the LSE, providing greater flexibility in currency exposure for local and international investors.
VanEck has rolled out British pound-denominated share classes for its range of four VanEck Vectors UCITS ETFs.
Philipp Schlegel, director of international business development at VanEck, commented: “The reason for expanding our offering on the LSE with GBP-denominated variants of our established UCITS ETFs is due to demand from UK-based investors to trade our specialized ETF solutions in their local currency. In addition to this, foreign investors may now invest into our ETFs while increasing their exposure to the GBP.”
The VanEck Vectors JP Morgan EM Local Currency Bond UCITS ETF (EMGB) tracks the JP Morgan GBI-EMG Core Index, a reference for the performance of bonds issued in local currencies by 16 emerging market governments: Argentina, Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland, Romania, Russia, Thailand, Turkey, and South Africa. Launched in April 2017, the ETF is struggling to gain traction, and currently has assets under management (AUM) of $18 million and a total expense ratio (TER) of 0.44%.
The VanEck Vectors Gold Miners UCITS ETF (GDGB) and the VanEck Vectors Junior Gold Miners UCITS ETF (GJGB) provide access to the global gold mining sector. GDGB covers a comprehensive portfolio of large, mid-sized, and small global gold mining companies and is currently the third largest gold mining UCITS ETF in Europe with AUM of $116m and a TER of 0.53%. A US-listed version of the fund has been well accepted by investors and currently holds $9bn in AUM.
GJGB invests in micro-, small-, and medium-capitalized mining companies, called “juniors” because they are in an exploratory or early mining phase. It has AUM of $59m and a TER of 0.55%. The fund also has a US-listed equivalent with $3.8bn in AUM.
The VanEck Vectors Morningstar US Wide Moat UCITS ETF (MOGB) tracks the Morningstar Wide Moat Focus Index, which also underlies its US counterpart, an ETF that has attracted over $1.2bn in AUM since its launch in April 2012. The engine behind the fund is a proprietary model designed by Morningstar that selects firms considered to possess ‘wide moats’ – a significant structural competitive advantage that has the potential to provide long-term above-average returns.
Launched In October 2015, the ETF has only accumulated $18m in AUM despite delivering market-beating returns (See: VanEck MOAT ETF outperforms S&P 500 by 11% over one year). It has a TER of 0.49%.