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

PLUS invests in a diversified portfolio of Australian dollar denominated bonds consisting predominantly of the highest yielding investment grade corporate bonds issued in Australia with the aim of providing investment returns (before fees and other costs) that track the performance of the iBoxx AUD Corporates Yield Plus Mid Price Index.

Index description

The iBoxx AUD Corporates Yield Plus Mid Price Index (IBXXAYM2) is designed to reflect the performance of the higher-yielding AUD denominated corporate bond market with credit ratings from AAA to BB-.

Bonds are included in the index based on issue size, amount outstanding, time to maturity and type. IHS Markit selects the top 50% highest yielding bonds from its universe of AUD corporate bonds using a methodology which focuses on each bond's yield relative to an Australian Commonwealth Government bond with a similar maturity.

To enter the index a bond must have at least a credit rating of investment grade and have a time to maturity of between 2 and 10 years. To remain in the index the bond must have at least a Markit iBoxx rating of BB- and have a time to maturity of at least 1.25 years. Bonds with a credit rating of investment grade must make up at least 80% of the index.

How we invest your money

The Markit iBoxx AUD Corporates Yield Plus Index (Bloomberg index ticker: IXBBAUY1) is designed to reflect the performance of the higher-yielding AUD denominated Fixed Rate Bond market with Credit Ratings from AAA to BB-.

Investment Grade bonds must make up at least 80% of the PLUS Index at the quarterly review. The PLUS Index typically includes Australian dollar denominated Fixed Rate Bonds issued in Australia by corporate entities such as the four largest banks in Australia, foreign banks, other lending institutions and property trusts. AUD Fixed Rate Bonds issued by foreign governments and foreign semi-government instrumentalities may also be included. Australian government and semi-government bonds are excluded from the PLUS Index.

Fixed Rate Bonds are included in the PLUS Index based on issue size, amount outstanding, time to maturity and type. Markit iBoxx selects the top 50% highest yielding fixed rate bonds from their universe of AUD corporate Fixed Rate Bonds using a methodology which focuses on each bond's yield relative to an Australian Commonwealth Government bond with a similar maturity.

To enter the PLUS Index a Fixed Rate Bond must have at least $200m outstanding face value, a Credit Rating of Investment Grade from a Recognised Rating Agency and have a time to maturity of between 2 and 10 years. If a bond is rated by more than one of the Recognised Rating Agencies, then the Markit iBoxx rating is the average of the provided ratings. To remain in the PLUS Index the bond must have at least a Markit iBoxx rating of BB- and have a time to maturity of at least 1.25 years. The portion of bonds with a rating below Investment Grade may not exceed 20% of the PLUS Index at the quarterly review.

The PLUS Index is reviewed every month and adjusted to comply with the minimum BB- rating and term to maturity criteria. The 80% investment grade and 50% highest yield criteria are reviewed on a quarterly basis. The weighting of each bond in the PLUS Index is based on the market value of the specific bond issue, with an issuer cap of 5% and a sector cap of 50%.

Further information about the PLUS Index and Markit is available at www.markit.com.