DAPP provides exposure to companies participating in the digital transformation of the global economy
The management fee will be reduced to 0.50% as of August 4, 2021
VanEck today announced that effective August 4, 2021, the management fee for the VanEck Vectors® Digital Transformation ETF (DAPP) will be lowered from 0.65% to 0.50%.
“VanEck is a very strong believer in the long-term structural growth story of the digital assets ecosystem. Companies developing and utilizing blockchain technologies represent a disruptive force that is poised to reshape industries and finance in particular. By lowering DAPP’s fee, we are providing a more accessible option for investors looking for exposure to the digital transformation,” said Ed Lopez, Managing Director and Head of ETF Product for VanEck.
DAPP will continue to provide exposure to companies at the forefront of the digital transformation. DAPP seeks to track, as closely as possible, the price and yield performance of the MVIS Global Digital Assets Equity Index, a rules-based modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of companies involved in digital assets.
“The digital transformation of the global economy through the use of blockchain technology is still in very early innings. Companies operating within this space should be considered early movers with the potential for a long runway of dynamic innovation and growth,” added Mr. Lopez.
More information on DAPP can be found here.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of June 30, 2021, VanEck managed approximately $81.3 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
The Fund will not invest in digital assets (including cryptocurrencies) (i) directly or (ii) indirectly through the use of digital asset derivatives. The Fund also will not invest in initial coin offerings. Therefore the Fund is not expected to track the price movement of any digital asset.
Investors in the Fund should be willing to accept a high degree of volatility in the price of the Fund’s Shares and the possibility of significant losses. An investment in the Fund involves a substantial degree of risk. An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Therefore, you should consider carefully the following risks before investing in the Fund, each of which could significantly and adversely affect the value of an investment in the Fund.
An investment in the VanEck Vectors Digital Transformation ETF may be subject to risks which include, among others, risks related to investing in digital transformation companies, investing in equity securities, Canadian issuers, small- and medium-capitalization companies, information technology and financials sectors, foreign securities, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks which may make these investments volatile in price or difficult to trade. Small- and medium-capitalization companies may be subject to elevated risks.
The technology relating to digital assets, including blockchain, is new and developing and the risks associated with digital assets may not fully emerge until the technology is widely used. Digital asset technologies are used by companies to optimize their business practices, whether by using the technology within their business or operating business lines involved in the operation of the technology. The cryptographic keys necessary to transact a digital asset may be subject to theft, loss, or destruction, which could adversely affect a company’s business or operations if it were dependent on the digital asset. There may be risks posed by the lack of regulation for digital assets and any future regulatory developments could affect the viability and expansion of the use of digital assets.
MVIS is the index business of VanEck, a U.S. based investment management firm and provider of VanEck Vectors® ETFs. An index's performance is not illustrative of a fund's performance. Indices are not securities in which investments can be made.
Investing involves risk, including possible loss of principal. Please call 800.826.2333 or visit vaneck.com for a free prospectus and summary prospectus. An investor should consider the investment objective, risks, and charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information about the investment company. Please read the prospectus and summary prospectus carefully before investing.
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Chris Sullivan/Julia Stoll