VanEck Vectors Morningstar Wide Moat ETF Starts 2016 with Strong Performance

The VanEck Vectors Morningstar Wide Moat ETF (NYSE Arca: MOAT), a flagship fund of VanEck’s suite of strategic equity ETFs, continued its strong 2016 performance in April, and by April 30th had outperformed the S&P 500 Index by more than 10 percent year-to-date, based on net asset value (NAV) returns.

MOAT seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Wide Moat Focus IndexSM (ticker: MWMFTR), which consists of the 20 most attractively priced companies (i.e., lowest ratios of stock price to fair value) with sustainable competitive advantages (“wide moats”) as determined by Morningstar.

VanEck notes that much of the outperformance delivered by MOAT this year has stemmed from stocks in the industrials, consumer discretionary, and information technology sectors. “In late March, the index rotated out of many of its top performing names to reallocate to stocks with more attractive valuations according to Morningstar,” said Brandon Rakszawski, ETF Product Manager at VanEck.

As a result of the March index review, healthcare stocks became the largest sector in MOAT, comprising 39% as of April 30, 2016 and indicating attractive relative valuations in the sector at the time. Since increasing its healthcare exposure in the March index review, MOAT has been able to capture a rebound in healthcare stocks as they have become one of the better performing sectors in the S&P 500 Index so far in April.

“While the short-term performance of MOAT is strong, just as notable is the long-term track record of its underlying wide moat index strategy,” continued Rakszawski. “MOAT’s underlying index has, in fact, outperformed the S&P 500 Index by more than 400 basis points on an annualized basis from the launch of MOAT’s index on February 14, 2007 through April 30, 2016.

MOAT, which has been trading for four years, was joined last year by a sister fund that takes the moat investing concept overseas: VanEck Vectors Morningstar International Moat ETF (NYSE Arca: MOTI).

MOTI seeks to track the Morningstar® Global ex-US Moat Focus IndexSM (ticker: MGEUMFUN), an index that provides exposure to 50 attractively priced companies with sustainable competitive advantages according to Morningstar. MOTI also has posted strong performance this year, with 3.95 percent year-to-date through April 30, 2016 based on NAV returns, compared to a return of 2.25 percent by the MSCI ACWI ex USA Index.

VanEck has a blog dedicated to discussing moat investing and highlighting specific companies that meet the criteria of having an economic moat around their respective businesses. To view recent posts and to subscribe to future pieces, please visit www.vaneck.com/blogs/moat-investing/.

Performance History (%) as of March 31, 2016

Inception DateYTD1 Yr3 YrLifeExpense Ratio
GrossNet
MOAT NAV 4/24/12 6.36 3.62 11.02 12.72 0.50 0.49
Share Price 6.36 3.61 11.06 12.73
MWMFTR - 6.51 4.27 11.66 13.29 - -
S&P 500 Index - 1.35 1.78 11.82 13.30 - -
MOTI NAV 7/13/15 2.68 - - -7.86 1.71 0.56
Share Price 2.64 - - -7.93
MGEUMFUN - 2.62 -8.53 - -6.94 - -
MSCI ACWI ex USA - -0.38 -9.19 - -9.70 - -

Returns greater than one year are annualized. Expenses for MOAT and MOTI are capped contractually at 0.49% and 0.56%, respectively, until at least February 1, 2017. Cap excludes certain expenses, such as interest.

The performance data quoted represent past performance. Past performance is not a guarantee of future results. Performance information for the Funds reflects temporary waivers of expenses and/or fees. Had the Funds incurred all expenses, investment returns would have been reduced. Investment return and value of the shares of the Funds will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Net asset value (NAV) per share is calculated by subtracting total liabilities from the total assets, then dividing by the number of shares outstanding. Share price is the last price at which shares were traded on the Funds’ primary listing exchange. Fund shares may trade at, above or below NAV. Performance current to the most recent month end available by calling 888.826.2333 or by visiting vaneck.com/etfs.

About VanEck

VanEck’s mission is to offer intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, the firm is a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, VanEck continues this tradition by offering innovative active and passive investment portfolios in hard assets, emerging markets equity and debt, precious metals, fixed income, and other alternative asset classes. VanEck Vectors exchange-traded products are one of the largest ETP families in the world, managing more than 70 funds that span a range of sectors, asset classes and geographies. As of March 31, 2016, VanEck managed approximately $28.9 billion in assets, including mutual funds, ETFs, and institutional accounts.

Important Disclosures

The indices listed are unmanaged and do not reflect the payment of transaction costs, advisory fees, or expenses that are associated with an investment in any underlying exchange-traded funds. Index performance is not illustrative of fund performance. Fund performance current to the most recent month end is available by visiting vaneck.com. Historical performance is not indicative of future results; current data may differ from data quoted. Indexes are unmanaged and are not securities in which an investment can be made.

S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.

MSCI All Country World Index (ACWI) ex USA captures large- and mid-cap representation across 22 Developed Markets countries (excluding the U.S.) and 23 Emerging Markets countries.

Fair value estimate: the Morningstar analyst's estimate of what a stock is worth.

Price/Fair Value: ratio of a stock's trading price to its fair value estimate.

The Morningstar® Wide Moat Focus IndexSM and Morningstar® Global ex-US Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Wide Moat ETF or VanEck Vectors Morningstar International Moat ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Wide Moat Focus Index and Morningstar Global ex-US Moat Focus Index are service marks of Morningstar, Inc.

Fund shares are not individually redeemable and will be issued and redeemed at their Net Asset Value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

An investment in the VanEck Vectors Morningstar Wide Moat ETF may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.

Risk Considerations: An investment in the VanEck Vectors Morningstar International Moat ETF may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.826.2333 or visit vaneck.com/etfs. Please read the prospectus and summary prospectus carefully before investing.

Van Eck Securities Corporation, Distributor

666 Third Avenue, New York, NY 10017

Contacts:

MacMillan Communications
Mike MacMillan/Chris Sullivan
212.473.4442
chris@macmillancom.com

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