DVDY invests in a diversified portfolio of dividend paying quality ASX-listed companies selected by Morningstar® with the aim of providing investment returns, before fees and other costs, which track the performance of the Index

Reference Index strategy: In a single trade on the ASX, each Fund gives investors a diversified portfolio of Australian listed companies, selected according to the Fund’s Reference Index

Exchange Traged Fund: ETFs can be traded on the ASX like listed shares, with live pricing throughout the ASX Trading Day

Liquidity: You can buy and sell ETF Units on the ASX. Liquidity in each Fund is facilitated by a Market Maker.

Trading on ASX: As the ETF Units are quoted on the ASX, you have the ability to trade the ETF Units in each Fund throughout the day, like trading shares, with immediate access to the prices at which you have traded. 

Transparency of holdings: Each Fund’s portfolio holdings will be published daily at www.vaneck.com.au.

This product is likely to be appropriate for a consumer seeking capital growth and income distribution, to be used as a core or satellite component within a portfolio where the consumer has a medium or long investment timeframe, high or very high risk/return profile and needs daily access to capital.

Type of investment: Exchange Traded Fund (ETF)  An ETF is an open-ended fund that aims to track the performance, before fees and other costs, of a financial market index by investing in a portfolio of securities that constitute the index. Units in an ETF are traded on ASX. As such, a single trade in an ETF on ASX gives investors easy and cost effective access to a diversified portfolio of securities held by the ETF.

Investment purpose  The Fund gives investors a diversified portfolio of international developed markets (ex-Australia) ‘wide moat’ companies selected by Morningstar on the basis of their assessment that they are the most attractively priced with competitive advantages that will deliver excess returns more likely than not for 20 years or more.

Investment objective  Each Fund aims to provide investment returns before fees and other costs which track the performance of its Reference Index in Australian dollars.

Investment strategy  Each Fund employs a passive management strategy of investing directly in the securities that comprise the Reference Index.

The constituents of the Index are a subset of the Morningstar® Australia IndexSM, a broad market index representing majority of Australian equity market capitalisation. To be eligible for the Index, securities should have paid a dividend in the last 12 months at the rebalance date. 

After screening companies for quality, based on their Morningstar Economic Moat™ rating and Morningstar Distance to Default measure, Morningstar selects appropriate number of top securities by trailing 12-month dividend yield for inclusion in the Index. The securities in the Index are equally weighted to provide diversification.

According to Morningstar an ‘Economic Moat’ is a structural feature that allows a firm to earn above-average returns on capital over a long period of time. Morningstar assigns companies one of three ‘Moat Ratings’: none, narrow, or wide. Companies with a narrow moat are those Morningstar believe are more likely than not to achieve excess returns for at least the next 10 years. Wide moat companies are those in which Morningstar has very high confidence that excess returns will remain for at least 10 years, and more likely than not for 20 years. Companies that have a Moat Rating of ’none’ cannot be included in the index.