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 S&P/ASX MidCap ETF invests in a diversified portfolio of ASX-listed securities with the aim of providing investment returns (before management costs) that closely track the returns of the S&P/ASX MidCap 50 Index.

Index description

The S&P/ASX MidCap 50 represents the MidCap universe for Australia. The index is comprised of all the members of the S&P/ASX 100 excluding those in the S&P/ASX 50. Index constituents are drawn from eligible companies listed on the Australian Securities Exchange.

Key points

• Low cost exposure to the S&P/ASX MidCap 50  

• Invests in 50 of ASX-listed companies within the sweet spot' of the Australian equity universe  

• Only ETF of its kind in Australia

How we invest your money

The Fund is designed to capture the performance of the 50 midcap companies listed on ASX having Market Capitalisation ranking from 51 to 100.

Mid-caps offer the best of both small and large-caps. They represent a mix of established and still developing companies and a balance between the spirit and youth of small-caps and the stability of large companies.

Some of the best known large-caps in the world started out as small companies and have grown to become titans. Finding a hidden gem is one of the greatest potential benefits of investing in small companies but it also comes with a lot more risk because they can fail spectacularly.

At the other end of the spectrum, large-caps have more stability than mid or small-caps because of their size. But because of this, they are often less agile than their mid and small-cap peers. The S&P/ASX 200 is dominated by a handful of large-cap stocks including the big four banks and two big miners.

Australian mid-caps have led the pack when it comes to investment returns. Over the past 15 years to 31 May 2019, the S&P/ASX MidCap 50 index outperformed both Australian large and small-caps and the broad S&P/ASX 200 Accumulation benchmark.

Mid-caps tend to have experienced management teams, established brands and client bases, infrastructure and access to capital markets — advantages that small-caps often lack. At the same time, they can grow more quickly than their large-cap counterparts, benefiting from flatter management structures, entrepreneurial drive and quicker decision-making. This agility helps them to respond more quickly to market forces and opportunities.

The VanEck Vectors S&P/ASX MidCap ETF (ASX: MVE) is the only ETF listed on ASX which tracks the S&P/ASX MidCap 50 Index. Through one trade, investors can access a portfolio of 50 stocks and gain instant access to the sweet spot' of the Australian equity universe. As an ETF, MVE is cost effective, liquid and transparent with holdings published daily.