VanEck J.P. Morgan EM Local Currency Bond ETF

The fund seeks to replicate the price and yield performance of the benchmark index, before fees and expenses, by investing in companies outside the United States.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

As part of its strategy, the fund employs a passive or indexing investment approach to approximate the investment performance of the Index.

Next, the research team invests significantly in securities that comprise the Index.

The Index is comprised of bonds issued by emerging market governments and denominated in the local currency of the issuer.

In addition, the research team employs a sampling methodology, which means that the fund will hold a portfolio of bonds with generally the same risk and return characteristics of the Index.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may concentrate its investments in a particular industry or group of industries to the extent that the Index concentrates in an industry or group of industries.

Also, the fund is classified as a non-diversified fund, and, therefore, may invest a greater percentage of its assets in a particular issuer.