SUPPLEMENT DATED JANUARY 10, 2019 TO THE PROSPECTUS
OF VANECK VECTORS ETF TRUST
Dated May 1, 2018
(as supplemented)
This Supplement updates certain information contained in the above-dated Prospectus for VanEck Vectors® ETF Trust (the “Trust”) regarding VanEck Vectors® ChinaAMC CSI 300 ETF and VanEck Vectors® ChinaAMC SME-ChiNext ETF (each, a “Fund” and collectively, the “Funds”), each a series of the Trust. You may obtain copies of the Funds’ Prospectus free of charge, upon request, by calling toll-free 1.800.826.2333 or by visiting the VanEck website at www.vaneck.com.
Effective January 10, 2019, Van Eck Associates Corporation, the investment adviser to the Funds (the “Adviser”), has agreed to lower the expense cap for VanEck Vectors ChinaAMC CSI 300 ETF to prevent Fund operating expenses (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund’s average daily net assets per year until at least May 1, 2020. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Also effective January 10, 2019, the Adviser has agreed to lower the expense cap for VanEck Vectors ChinaAMC SME-ChiNext ETF to prevent Fund operating expenses (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.65% of the Fund’s average daily net assets per year until at least May 1, 2020. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Accordingly, the Prospectus is supplemented as follows:
With respect to VanEck Vectors ChinaAMC CSI 300 ETF, the “VanEck Vectors ChinaAMC CSI 300 ETF—Summary Information—Fund Fees and Expenses—Annual Fund Operating Expenses” section and the accompanying footnote are hereby deleted and replaced with the following:
Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
| Management Fee | 0.50% | |
| Other Expenses | 0.32% | |
| Total Annual Fund Operating Expenses(a) | 0.82% | |
| Fee Waivers and Expense Reimbursement(a) | -0.22% | |
| Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement(a) | 0.60% |
| (a) | Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund’s average daily net assets per year until at least May 1, 2020. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation. |
In addition, the “VanEck Vectors ChinaAMC CSI 300 ETF—Summary Information—Expense Example” section is hereby deleted and replaced with the following:
Expense Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not take into account brokerage commissions that you pay when purchasing or selling Shares of the Fund.
The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund’s operating expenses remain the same (except that the example incorporates the fee waiver and/or expense reimbursement arrangement for only the first year). Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
| YEAR | EXPENSES | ||
| 1 | $ | 61 | |
| 3 | $ | 240 | |
| 5 | $ | 433 | |
| 10 | $ | 993 | |
With respect to VanEck Vectors ChinaAMC SME-ChiNext ETF, the “VanEck Vectors ChinaAMC SME-ChiNext ETF—Summary Information—Fund Fees and Expenses—Annual Fund Operating Expenses” section and the accompanying footnote are hereby deleted and replaced with the following:
Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
| Management Fee | 0.50% | |
| Other Expenses | 0.88% | |
| Total Annual Fund Operating Expenses(a) | 1.38% | |
| Fee Waivers and Expense Reimbursement(a) | -0.73% | |
| Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement(a) | 0.65% |
| (a) | Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.65% of the Fund’s average daily net assets per year until at least May 1, 2020. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation. |
In addition, the “VanEck Vectors ChinaAMC SME-ChiNext ETF—Summary Information—Expense Example” section is hereby deleted and replaced with the following:
Expense Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not take into account brokerage commissions that you pay when purchasing or selling Shares of the Fund.
The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your Shares at the end of those periods. The example also assumes that your investment has a 5% annual return and that the Fund’s operating expenses remain the same (except that the example incorporates the fee waiver and/or expense reimbursement arrangement for only the first year). Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
| YEAR | EXPENSES | ||
| 1 | $ | 66 | |
| 3 | $ | 365 | |
| 5 | $ | 685 | |
| 10 | $ | 1,594 | |
The sixth paragraph of the “Management of the Funds – Investment Adviser and Sub-Adviser” section is hereby deleted and replaced with the following:
Until at least May 1, 2020, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.60% (with respect to VanEck Vectors ChinaAMC CSI 300 ETF) and 0.65% (with respect to VanEck Vectors ChinaAMC SME-ChiNext ETF) of its average daily net assets per year.
Please retain this supplement for future reference
SUPPLEMENT DATED JANUARY 10, 2019 TO THE
STATEMENT OF ADDITIONAL INFORMATION OF
VANECK VECTORS ETF TRUST
Dated May 1, 2018
(as supplemented)
This Supplement updates certain information contained in the above-dated Statement of Additional Information (“SAI”) for VanEck Vectors® ETF Trust (the “Trust”) regarding VanEck Vectors® ChinaAMC CSI 300 ETF and VanEck Vectors® ChinaAMC SME-ChiNext ETF (each, a “Fund” and collectively, the “Funds”), each a series of the Trust. You may obtain copies of the Funds’ Statement of Additional Information free of charge, upon request, by calling toll-free 1.800.826.2333 or by visiting the VanEck website at www.vaneck.com.
Effective January 10, 2019, Van Eck Associates Corporation, the investment adviser to the Funds (the “Adviser”), has agreed to lower the expense cap for VanEck Vectors ChinaAMC CSI 300 ETF to prevent Fund operating expenses (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund’s average daily net assets per year until at least May 1, 2020.
Also effective January 10, 2019, the Adviser has agreed to lower the expense cap for VanEck Vectors ChinaAMC SME-ChiNext ETF to prevent Fund operating expenses (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.65% of the Fund’s average daily net assets per year until at least May 1, 2020.
Accordingly, the SAI is supplemented as follows:
The first paragraph of the “Management—Investment Adviser and Sub-Adviser—Compensation” section is hereby deleted and replaced with the following with the following:
Compensation. As compensation for its services under each Investment Management Agreement, the Adviser is paid a monthly fee based on a percentage of each applicable Fund’s average daily net assets at the annual rate of 0.35% for VanEck Vectors Oil Services ETF and 0.50% for each other Fund. From time to time, the Adviser may waive all or a portion of its fees. Until at least May 1, 2019, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding acquired fund fees and expenses, interest expense, depositary receipt fees up to 0.10% and 0.08% of the average daily net assets for VanEck Vectors Russia ETF and VanEck Vectors Russia Small-Cap ETF, respectively, trading expenses, taxes and extraordinary expenses and, with respect to VanEck Vectors India Small-Cap Index ETF, expenses of the Subsidiary) from exceeding 0.35% (with respect to VanEck Vectors Oil Services ETF), 0.49% (with respect to VanEck Vectors Natural Resources ETF), 0.53% (with respect to VanEck Vectors Gold Miners ETF), 0.54% (with respect to VanEck Vectors Unconventional Oil & Gas ETF), 0.55% (with respect to VanEck Vectors Steel ETF), 0.56% (with respect to VanEck Vectors Agribusiness ETF and VanEck Vectors Junior Gold Miners ETF), 0.57% (with respect to VanEck Vectors Indonesia Index ETF and VanEck Vectors Rare Earth/Strategic Metals ETF), 0.59% (with respect to VanEck Vectors Brazil Small-Cap ETF, VanEck Vectors Coal ETF, VanEck Vectors Israel ETF and VanEck Vectors Oil Refiners ETF), 0.60% (with respect to VanEck Vectors Poland ETF and VanEck Vectors Uranium+Nuclear Energy ETF), 0.62% (with respect to VanEck Vectors Global Alternative Energy ETF and VanEck Vectors Russia ETF), 0.67% (with respect to VanEck Vectors Russia Small-Cap ETF), 0.76% (with respect to VanEck Vectors Vietnam ETF), 0.78% (with respect to VanEck Vectors Africa Index ETF), 0.85% (with respect to VanEck Vectors India Small-Cap Index ETF) and 0.94% (with respect to VanEck Vectors Egypt Index ETF) of its average daily net assets per year. Until at least May 1, 2020, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the
operating expenses of each Fund (excluding acquired fund fees and expenses, trading expenses, taxes and extraordinary expenses) from exceeding 0.60% (with respect to VanEck Vectors ChinaAMC CSI 300 ETF) and 0.65% (with respect to VanEck Vectors ChinaAMC SME-ChiNext ETF) of its average daily net assets per year.
Please retain this supplement for future reference.