Benefits of investing in VanEck ETFs

Each Fund provides investors with:

• Cost effective and easy access to a portfolio of Australian equities via a single trade on ASX

• Transparency of holdings, pricing and performance, and

• Flexibility of intraday ASX trading capability.

Compared to unlisted actively managed funds, investors benefit from:

• trading via live prices on ASX;

• potentially lower costs and lower tax liabilities;

• liquidity;

• transparency; and

• intraday trading.

About the Fund

The VanEck Vectors Small Companies Masters ETF invests in a diversified portfolio of ASX listed securities with the aim of providing investment returns (before management costs) that closely track the performance of the MVIS Australia Small-Cap Dividend Payers Index.

Index description

The MVIS Australia Small-Cap Dividend Payers Index is a pure play index designed to capture the performance of dividend paying Australian small cap equities, with real diversification across both securities and sectors.

The Index includes the most liquid small cap ASX listed companies that did not omit their latest dividend payment and that generate at least 50% of their revenues in Australia.

Individual Index components are determined using a stringent rules based methodology focusing on liquidity, with a minimum of 25 securities, each with a maximum weighting of 8%.

Key points

• Single trade access to the most liquid dividend paying listed small cap companies   

• Small caps are higher risk but offer potentially higher growth opportunities 

• Includes companies from all sectors of the Australian market

How we invest your money

The Fund gives investors exposure to a portfolio that only includes the most liquid small-cap ASX-listed companies that generate revenues in Australia and did not omit their latest dividend payment.

VanEck has developed a smart beta ETF which tracks an index that has consistently outperformed the S&P/ASX Small Ordinaries Index with reduced volatility.

ASX investors can access this performance via the VanEck Vectors Small Companies Masters ETF.

MVS is a low cost investment vehicle on ASX that gives investors simple access to the growth and dividend potential of ASX listed small companies. MVS breaks new ground, being the first ETF with a smart beta approach to this equity class.

MVS tracks the MVIS Australia Small-Cap Dividend Payers Index (MVS Index) that combines strict liquidity and minimum market capitalisation requirements with a filter to exclude the companies less likely to perform.

To be included in the index universe for the MVS Index a security must meet the following assessment:

• Have a full market capitalisation exceeding USD50 million;

• Did not omit their last dividend payment;

• Be a local company incorporated in Australia with an ASX listing or be an offshore company incorporated outside of Australia with an ASX listing but generate at least 50% of their revenues (or, where applicable, have at least 50% of their assets) in Australia.

When MVIS develops and maintains indices, its key focus is on investability. Stringent rules in respect of liquidity are applied when screening potential components for inclusion in the MVS Index. Reviews are carried out every 3 months.