VanEck is lowering the expense ratio for its VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL). As of 20 June, 2016, the expense cap for ANGL will be reduced from 0.40 per cent to 0.35 per cent.
ANGL has returned 13.67 per cent year to date through 31 May based on net asset value (NAV), far outpacing the broad high yield bond market, as represented by the BofA Merrill Lynch US High Yield Index (H0A0), which returned 8.15 per cent over the same period. Furthermore, relative to the actively managed funds in Morningstar’s Open End Funds – US – High Yield Bond category, ANGL’s total returns ranked in the first per centile over the 1-year period (against 772 funds) and since its inception (against 567 funds), as of May 31, 2016.
The Fund, which currently has a 30-day SEC yield of 6.25 per cent, carries a 5-star overall Morningstar rating as of 31 May, 2016 against 650 high yield bond funds, based on risk-adjusted returns.
ANGL had over USD190 million in assets under management, as of 16 June 16, 2016. Asset growth seen so far this year may be attributable to greater investor awareness of the value proposition and distinct performance that fallen angel high yield bonds have offered.
“ANGL’s unique approach and the exposure it provides for those seeking yield in today’s uncertain climate have truly resonated with investors and advisors this year,” says Meredith Larson, the Fund’s product manager. “By lowering the Fund’s expenses, we think we will make ANGL even more attractive and that much more significant a tool in the portfolio construction process.”