UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM N-CSR

              CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

                              INVESTMENT COMPANIES

Investment Company Act file number  811-10325

                            VANECK VECTORS ETF TRUST
               (Exact name of registrant as specified in charter)

                      666 Third Avenue, New York, NY 10017
               (Address of principal executive offices) (Zip code)

                         Van Eck Associates Corporation
                      666 Third Avenue, New York, NY 10017
                     (Name and address of agent for service)

Registrant's telephone number, including area code: (212) 293-2000

Date of fiscal year end:  DECEMBER 31

Date of reporting period: JUNE 30, 2017

Item 1. Report to Shareholders

 

SEMI-ANNUAL REPORT June 30, 2017 (unaudited)

 

VANECK VECTORS®
Africa Index  ETF	AFK®
Brazil Small-Cap ETF	BRF®
ChinaAMC CSI 300 ETF	PEK®
ChinaAMC SME-ChiNext ETF	CNXT®
Egypt Index ETF	EGPT®
India Small-Cap Index ETF	SCIF®
Indonesia Index ETF	IDX®
Israel ETF	ISRA®
Poland ETF	PLND®
Russia ETF	RSX®
Russia Small-Cap ETF	RSXJ®
Vietnam ETF	VNM®

 

800.826.2333	vaneck.com

 

President’s Letter	1
Management Discussion	3
Performance Comparison	8
Africa Index ETF	8
Brazil Small-Cap ETF	8
ChinaAMC CSI 300 ETF	8
ChinaAMC SME-ChiNext ETF	9
Egypt Index ETF	9
India Small-Cap Index ETF	9
Indonesia Index ETF	10
Israel ETF	10
Poland ETF	10
Russia ETF	11
Russia Small-Cap ETF	11
Vietnam ETF	11
Explanation of Expenses	13
Schedule of Investments	15
Africa Index ETF	15
Brazil Small-Cap ETF	18
ChinaAMC CSI 300 ETF	21
ChinaAMC SME-ChiNext ETF	26
Egypt Index ETF	29
India Small-Cap Index ETF	31
Indonesia Index ETF	35
Israel ETF	37
Poland ETF	40
Russia ETF	42
Russia Small-Cap ETF	44
Vietnam ETF	46
Statements of Assets and Liabilities	50
Statements of Operations	52
Statements of Changes in Net Assets	54
Financial Highlights	59
Africa Index ETF	59
Brazil Small-Cap ETF	59
ChinaAMC CSI 300 ETF	60
ChinaAMC SME-ChiNext ETF	60
Egypt Index ETF	61
India Small-Cap Index ETF	61
Indonesia Index ETF	62
Israel ETF	62
Poland ETF	63
Russia ETF	63
Russia Small-Cap ETF	64
Vietnam ETF	64
Notes to Financial Statements	65
Approval of Investment Management Agreements	74

 

The information contained in this report represents the opinions of VanEck and may differ from other persons. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. The information contained herein regarding each index has been provided by the relevant index provider. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings and the Funds’ performance, and the views of VanEck are as of June 30, 2017.

VANECK VECTORS ETFs

June 30, 2017 (unaudited)

 

Dear Shareholder:

 

The first six months of 2017 were outstanding for the suite of VanEck Vectors Country/Regional ETFs. Only one fund, VanEck Vectors Russia ETF (NYSE Arca: RSX) failed to provide a positive return for the period. Particularly satisfying was to see both our China ETFs back in the black. VanEck Vectors ChinaAMC CSI 300 ETF (NYSE Arca: PEK) and VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSE Arca: CNXT) posted returns of 14.83%* and 7.36%,* respectively.

 

China is an important part of the world economy and we believe the country continues to offer interesting investment opportunities. The good news at the end of the first half was the decision by MSCI starting in June 2018 to include 222 China A-share stocks in its MSCI Emerging Markets Index¹ and other indices.

 

The weights may initially be low, but they are a beginning. At the end of June 2017, based on MSCI’s estimates (5% Inclusion Factor²), the pro forma weights of China A-shares will be 0.73% of MSCI Emerging Markets Index, 0.83% of MSCI AC Asia ex Japan Index,³ and 0.1% of MSCI ACWI Index.⁴ In an indication of what this may mean, even at these low levels, Goldman Sachs estimated that the inclusion is expected to trigger about US$12 billion of net buying from emerging markets mandates.

 

We believe that VanEck Vectors ChinaAMC CSI 300 ETF may be an excellent way not only to capture this thematic opportunity, but also access the stocks eventually to be included by MSCI.

 

A High Correlation between the CSI 300 Index and the Proposed MSCI Constituents

 

Of the proposed 222 MSCI constituents, 199 are CSI 300 Index⁵ constituents. Those overlapping constituents weight approximately 80% in the CSI 300 Index and approximately 95% in MSCI.

 

Based on a static simulated list of June 19, 2017 released by MSCI, the one year performance correlation between the simulated list and the CSI 300 Index is as high as 0.99.

 

Proposed MSCI Constituents are Highly Similar to the CSI 300 Index in Terms of Sector Allocation

 

		GICS Sector Name	Proposed MSCI Constituents	CSI 300 Index
1		Consumer Discretionary	10.23%	11.76%
2		Consumer Staples	9.18%	6.52%
3		Energy	2.38%	2.41%
4		Financials	36.52%	34.53%
5		Health Care	4.28%	5.16%
6		Industrials	15.54%	15.18%
7		Information Technology	5.73%	8.80%
8		Materials	7.10%	6.57%
9		Real Estate	4.68%	5.49%
10		Telecommunication Services	0.15%	0.82%
11		Utilities	4.21%	2.75%

 

Source: MSCI, ChinaAMC. Data as of June 19, 2017.

 

VanEck continues to be an industry leader in offering single-country and region-specific equity ETFs. When performance varies so widely between countries and regions, it is all the more important to be able to select your focus; the suite of VanEck Vectors country and regional ETFs gives you the flexibility to do just that. We at VanEck continue to look for ways to enhance your access to the markets you choose and to seek out and evaluate the most attractive opportunities for you as a shareholder in the international space.

 

Access investment and market insights from VanEck’s investment professionals by subscribing to our commentaries. To subscribe to these updates, please contact us at 800.826.2333 or visit vaneck.com/subscription/to register.

VANECK VECTORS ETFs

(unaudited) (continued)

 

On the following pages, you will find the performance record of each of the funds for the six month period ending June 30, 2017. You will also find their financial statements. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.

 

 

Jan F. van Eck
Trustee and President
VanEck Vectors ETF Trust

 

July 19, 2017

 

Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.

 

All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the fund. An index’s performance is not illustrative of the fund’s performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results.

 

* Returns based on each fund’s net asset value (NAV).

 

1	Morgan Stanley Capital International (MSCI) Emerging Markets Index captures large- and mid-cap representation across 24 Emerging Markets (EM) countries. With 845 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
2	Inclusion Factor. MSCI defines the free float of a security as the proportion of shares outstanding that are deemed to be available for purchase in the public equity markets by international investors.
3	MSCI AC Asia ex Japan Index captures large- and mid-cap representation across 2 of 3 Developed Markets (DM) countries (excluding Japan) and 9 Emerging Markets (EM) countries in Asia. With 639 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
4	MSCI ACWI Index captures large- and mid-cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,501 constituents, the index covers approximately 85% of the global investable equity opportunity set.
5	CSI 300 Index (CSIR0300) is a modified free-float market capitalization-weighted index compiled and managed by China Securities Index Co., Ltd. Considered to be the leading index for the Chinese equity market, the CSI 300 is a diversified index consisting of 300 constituent stocks listed on the Shenzhen Stock Exchange and/or the Shanghai Stock Exchange.

 

 

Management Discussion (unaudited)

 

All except one fund in the suite of VanEck Vectors Country/Regional ETFs posted positive returns during the six month period ending June 30, 2017. The top two performing funds produced solid performance: VanEck Vectors India Small-Cap ETF (NYSE Arca: SCIF) (+36.83%) and VanEck Vectors Poland ETF (NYSE Arca: PLND) (+36.81%).

 

The two bottom performing funds were both Russia-focused: VanEck Vectors Russia ETF (NYSE Arca: RSX) (-9.60%) and VanEck Vectors Russia Small-Cap ETF (NYSE Arca: RSXJ) (+3.17%).

 

January 1 through June 30, 2017
VanEck Vectors Country/Regional ETFs Total Return

 

 

Source: VanEck. Returns based on each fund’s net asset value (NAV). The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for certain funds reflect temporary waivers of expenses and/or fees. Had these 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. Current performance may be lower or higher than performance data quoted.

 

Country/Regional Overviews

 

Africa

 

The financial sector, followed by the materials sector, were the two greatest contributors to the performance of the Fund (+7.07%) for the six month period. As a consequence of the fall in crude oil prices in the period under review, the energy sector was the largest detractor from performance. Midcap companies contributed the most to performance. Geographically, Canadian and U.K. gold mining companies operating in Africa, a South African media company, and Egyptian financial companies were among the most significant contributors to positive performance. Some companies outside Africa, including companies domiciled in Indonesia, the Netherlands, Switzerland, and the U.K., were detractors from performance. Additionally, the depreciation of the Nigerian naira against the U.S. dollar, coupled with Nigerian capital controls experienced earlier in the period that delayed the Fund’s ability to repatriate its Nigerian naira, had a negative impact on performance.

 

Brazil

 

Despite both the economic and political challenges Brazil continues to face, the first six months of 2017 were an excellent period, bringing with it a Fund return of 21.24%. On the economic front, the first three months of the year were notable for the fact that, after eight consecutive quarters of contraction, the economy expanded by 1%.¹ This was the first expansion after one of the worst recessions the country has ever experienced. The boost to the economy came from a smaller drag from consumer spending and a jump in exports. However investment continued to contract and public spending fell.² On the political front, serious challenges remain and the position of President Temer could hardly be described as secure. In the last week of June, Brazil’s top prosecutor indicted the president, accusing him of taking bribes from JBS, the largest meatpacker in the world.³ Consequently, increasing doubt surrounds the prospect of success for the various reform measures, in particular those involving social security, he and his administration have planned.

VANECK VECTORS ETFs

(unaudited) (continued)

 

Perhaps continuing to anticipate a brighter future for the country, both Brazilian mid-cap and small-cap companies performed well over the period under review. The consumer discretionary sector, followed by the healthcare and materials sectors, all delivered healthy performance. Not one sector detracted from performance, but the energy sector contributed the least.

 

China

 

After the uncertainties faced by the two VanEck Vectors China-focused ETFs in 2016, the first six months of 2017 reversed the double digit declines seen by both, with VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT) and VanEck Vectors ChinaAMC CSI 300 ETF (PEK) returning 7.36% and 14.83%, respectively. China began the year at a furious pace. At the end of June, this led the International Monetary Fund to raise its 2017 growth outlook for the country from its 6.6% forecast in April to 6.7%. However it did recommend that the country accelerate reforms and rein in credit.⁴

 

CNXT seeks to provide not only exposure primarily to China’s market for innovative, non-government owned companies, but also to the sectors that are increasingly underpinning the growth of China’s “New Economy”. It is, therefore, not surprising that the vast majority of the Fund’s gains during the six month period came from companies in the information technology sector. Companies in the consumer discretionary sector detracted the most from performance.

 

All sectors contributed positively to the performance of PEK. While financial and consumer discretionary companies contributed the most to returns, telecommunications companies and energy contributed the least.

 

Egypt

 

Following a difficult year in 2016, things started to look up for Egypt in the first six months of 2017 and, in contrast with the prior 12 months, the Fund returned a respectable 6.96%. In the first quarter of 2017, the country’s economy appeared to have stabilized. According to the Ministry of Planning, GDP increased 3.9% year-on-year. This is up from the 3.8% expansion in the fourth quarter of 2016 and above the 3.7% increase the first quarter in 2016.⁵ A further sign of potential improvement was the 1.67% increase in urban consumer prices in May. This was down slightly from April’s 1.69% increase. Perhaps demonstrating that the impact of the significant depreciation experienced by the Egyptian pound at the end of 2016 is beginning to diminish, May’s figure was the lowest in eight months.⁶ However, on June 27, in a move to help comply with the terms of the country’s $12 billion loan from the International Monetary Fund, but which could also stoke inflation and test the popularity of the country’s president, Abdel Fattah al-Sisi, fuel prices were hiked by up to 50%. While expected, the rise was more than expected.⁷

 

The top two performing sectors were materials and financials. The two greatest detractors were energy and telecommunications services. Small-cap companies, with the largest average weighting during the period under review, contributed by far the most to performance. Only large-cap companies, with the smallest average weighting over the period under review, detracted from performance.

 

India

 

Despite the fact that economic growth in India slowed down sharply in the first quarter of 2017, VanEck Vectors India Small-Cap Index ETF still returned a noteworthy 36.83% for the six month period under review. At 6.1%, growth in the March quarter fell to its lowest in two years. (In the fourth quarter of 2014 growth dropped to 6.0%.)⁸ Although many expected to see at least some residual effects of November’s demonetization (when 1,000 rupee and 500 rupee notes, reportedly some 86% of all currency in circulation⁹ at the time, were banned) in early 2017 economic activity, the sharpness of the slowdown came as a surprise. Capital investments fell an annual 2.1% during the quarter and the drivers of growth remain government and consumer spending.¹⁰ Finally after 10 years, on Saturday, July 1, India will have a new system of taxes—the Goods and Services Tax (GST). Instead of a collection of duties, fees, and central and state tariffs, all goods and services will be placed in one of five different tax brackets, with each product now subject to a single tax rate across the country.¹¹ Going forward, the move is generally seen as being positive for the country’s economy.

 

The consumer discretionary, industrial, and financial sectors all provided excellent returns. While still both making positive contributions, the telecommunications services and energy sectors contributed the least to performance.

 

 

Indonesia

 

The Fund enjoyed a rewarding six month period, returning 12.48%. As if to confirm the good news at the end of December last year that Fitch Ratings had revised the country’s credit rating outlook to positive and praised Indonesian policy makers for “strong structural reform,”¹² the World Bank’s “June 2017 Indonesia Economic Quarterly”¹³ described the country’s economy as beginning 2017 on a “strong footing.” In May, S&P Global Ratings raised Indonesia’s credit rating to investment grade.¹⁴ First quarter GDP growth in 2017 rose to 5.0% from 4.9% in the last quarter of 2016. It was lifted by a rebound in government consumption and surging exports. Private consumption growth in the country has been robust, supported muted inflation and a stable rupiah. “Investment growth continues to be strong on the back of the ongoing recovery in commodity prices, continued reforms to improve the business environment, lower financing rates, and better business sentiment.”¹⁵ In an encouraging sign, while Indonesia’s consumer price index rose year-on-year in June, the annual core inflation rate (i.e., excluding government-controlled and volatile food prices) fell to 3.13% from 3.20% in May.¹⁶

 

All sectors, except industrials and utilities, contributed positively to performance, with financials, followed by consumer staples and telecommunication services, contributing the most. The utilities sector detracted the most from performance.

 

Israel

 

Despite economic growth in the first quarter of 2017 being slower than expected, at the end of May the Bank of Israel stated that the country’s economy was continuing to grow at a solid pace.¹⁷ The Fund returned a healthy 14.64% for the first six months of the year. On an annualized basis, Israel’s economy grew at 1.4% in the first three months of the year with the improvement in the growth of exports continuing.¹⁸ However, this contrasted with an annualized growth rate of 4.7% during the last quarter of 2016. In May, exports rose 13.0% compared to May 2016. The highest for eight months, this figure contrasted with the 5.1% drop seen in April.¹⁹

 

Over the period under review, the performances of all sectors, except healthcare and telecommunication services, contributed positively to performance. Healthcare companies detracted the most from performance. By far the greatest contribution came from companies in the information technology sector with the largest average weighting over the period under review. Mid-cap companies made the greatest contribution to the Fund’s performance.

 

Poland

 

The Fund had an excellent six months, returning 36.81% in the first half of 2017. While the fourth quarter of 2016 was good for Poland’s economy, with growth of 4%, the first quarter of 2017 was even better.²⁰ Drivers of this growth were private consumption (because of a tight labor market) and a recovery in EU-funded investment.²¹ While exports grew during the quarter, so did imports—on the back of a stronger zloty. Fiscal results during the first quarter were also commendable. The country’s estimated fiscal deficit for January-May was only 0.3% of the annual plan. It was reassuring, too, that such strong performance was driven by better-than-expected tax collection, signaling that domestic activity was robust.²²

 

All sectors except one contributed positively to performance. The financial sector was by far the greatest contributor to total returns. The real estate sector was the only sector to detract from performance and, then, only minimally.

 

Russia

 

After recording excellent positive returns for calendar year 2016, the first six months of 2017 were difficult not only for VanEck Vectors Russia Small-Cap ETF (RSXJ) and its peer investing in larger cap Russian stocks, VanEck Vectors Russia ETF (RSX), but also Russia’s economy. While the former fund returned a positive 3.17% for the first six months of the year, the latter lost 9.60% over the same period.

 

Two major factors contributing to the economy’s poor performance have, not least, been the fall in oil prices and the apparent evaporation of any hope that the election of Donald Trump as U.S. president would lead to an improvement in U.S.-Russia relations. As if to confirm this last, toward the end of June, the U.S. Senate passed a bill that would, according to the Financial Times, “tighten existing sanctions and threatens to broaden the restrictions from energy and banking to metals, mining, railways and shipping.”²³ By the end of June, however,

VANECK VECTORS ETFs

(unaudited) (continued)

 

the bill remained stuck in Congress, needing technical changes passed by the Senate to be passed by the House. It looked unlikely, therefore, that the legislation would be passed before President Trump had his face-to-face meeting with Russia’s President Putin in early July.²⁴

 

Energy companies were by far the most significant detractors from performance in RSX, the large-cap fund. Only the information technology sector contributed positively to performance. For the small-cap fund, RSXJ, companies in the information technology and industrial sectors performed particularly well. However, similarly sized companies in the materials were the largest detractors from performance.

 

Vietnam

 

In welcome contrast to its performance in 2016, the Fund returned +14.49% for the six month period under review. Despite a slow start to the year²⁵ (growth declined to 5.1%²⁶ in the first quarter partially as a result of reduced smartphone production by Samsung and the condition of the oil market), in April and May the figures for both retail sales and industrial production were strong.²⁷ According to figures from the country’s statistics office, quoted by Bloomberg, inflation eased to a nine-month low of 3.19% in May. In the first five months of the year exports rose 17.4% from a year earlier, and pledged foreign direct investment increased 10.4%.²⁸ Figures published at the end of June for the second quarter of the year showed that, on the back of a surge in exports, Vietnam had rejoined the group of those countries with a GDP growth of 6% or more.²⁹

 

Small-cap companies, with the greatest average weighting, performed far better than either mid- or large-cap companies over the reporting period. The financial sector was the largest positive contributor to total returns. The energy sector was the only sector to detract from performance.

 

1	Trading Economics: Brazil GDP Growth Rate, https://tradingeconomics.com/brazil/gdp-growth
2	Ibid.
3	Financial Times: Brazil’s corruption probe reaches the presidency, https://www.ft.com/content/986d1376-5c08-11e7-b553-e2df1b0c3220?mhq5j=e3
4	Reuters: China’s economy holds up in May but slowing investment points to cooling, https://www.reuters.com/article/us-china-economy-idUSKBN1950J4
5	FocusEconomics: Egypt: The economy is back on its feet, growth increases in January-March period, http://www.focus-economics.com/countries/egypt/news/gdp/the-economy-is-back-on-its-feet-growth-increases-in-january-march-period
6	FocusEconomics: Egypt: In May inflation mercifully peaks at last, albeit at an excruciatingly high rate, http://www.focus-economics.com/countries/egypt/news/inflation/in-may-inflation-mercifully-peaks-at-last-albeit-at-an-excruciatingly
7	Reuters: UPDATE 3-Egypt raises fuel prices by up to 50 percent under IMF deal, https://www.reuters.com/article/egypt-economy-idUSL8N1JQ1G5
8	Reuters: India loses fastest growing economy tag after sharp growth slowdown, http://in.reuters.com/article/india-economy-gdp-idINKBN18S3V4
9	The Wall Street Journal: Why India’s Attack on Cash is Good for Bonds, http://blogs.wsj.com/indiarealtime/2016/11/15/why-indias-attack-on-cash-is-good-for-bonds/
10	Reuters: India loses fastest growing economy tag after sharp growth slowdown, http://in.reuters.com/article/india-economy-gdp-idINKBN18S3V4
11	CNN Money: India finally gets its ‘big bang’ tax reform, http://money.cnn.com/2017/06/30/news/economy/india-gst-tax-reform-rollout/index.html
12	The Business Times: Fitch revises Indonesia credit outlook to ‘positive’, http://www.businesstimes.com.sg/government-economy/fitch-revises-indonesia-credit-outlook-to-positive
13	The World Bank: June 2017 Indonesia Economic Quarterly, http://www.worldbank.org/en/country/indonesia/publication/indonesia-economic-quarterly-june-2017

 

 

14	Bloomberg: Indonesia Raised to Investment Grade by S&P on Budget Curbs, https://www.bloomberg.com/news/articles/2017-05-19/s-p-upgrades-indonesia-to-investment-grade-amid-stronger-growth
15	The World Bank: June 2017 Indonesia Economic Quarterly, http://www.worldbank.org/en/country/indonesia/publication/indonesia-economic-quarterly-june-2017
16	The Business News: Indonesia’s inflation rate picks up slightly in June, http://www.businesstimes.com.sg/government-economy/indonesias-inflation-rate-picks-up-slightly-in-june
17	Reuters: Israel central bank holds rates as economy growing at ’solid pace’, http://www.reuters.com/article/us-israel-cenbank-rates-idUSKBN18P0VR
18	Ibid.
19	FocusEconomics: Israel Trade May 2017, http://www.focus-economics.com/countries/israel/news/trade/exports-rebound-in-may
20	FocusEconomics: Poland Economic Outlook, http://www.focus-economics.com/countries/poland
21	Ibid.
22	VanEck Research/Bloomberg
23	Financial Times: US sanctions bill dashes investor hopes for Russian recovery, https://www.ft.com/content/2ded55d6-55cf-11e7-9fed-c19e2700005f?mhq5j=e3
24	CNN politics: Russia sanctions bill still stuck in Congress before Trump-Putin meeting, http://www.cnn.com/2017/06/29/politics/russia-sanctions-bill-senate/index.html
25	Central and Eastern European Chamber of Commerce in Vietnam: Vietnam’s economy to stay strong in 2017, http://ceecvn.org/vietnams-economy-stay-strong-2017/
26	Bloomberg: Vietnam’s Prime Minister Says He’s Confident of 6.7% Growth Goal, https://www.bloomberg.com/news/articles/2017-05-28/vietnam-s-prime-minister-says-he-s-confident-of-6-7-growth-goal
27	FocusEconomics: Vietnam Economic Outlook, http://www.focus-economics.com/countries/vietnam
28	Bloomberg: Vietnam’s Prime Minister Says He’s Confident of 6.7% Growth Goal, https://www.bloomberg.com/news/articles/2017-05-28/vietnam-s-prime-minister-says-he-s-confident-of-6-7-growth-goal
29	Bloomberg: Vietnam Rejoins Club of 6%-GDP-Growth Nations as Exports Surge, https://www.bloomberg.com/news/articles/2017-06-29/vietnam-s-economy-expands-at-faster-pace-in-second-quarter

VANECK VECTORS ETF TRUST

PERFORMANCE COMPARISON

June 30, 2017 (unaudited) (continued)

 

VANECK VECTORS AFRICA INDEX ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVAFKTR1				Share Price				NAV				MVAFKTR1
Six Months			9.15	%			8.41	%			11.53	%			9.15	%			8.41	%			11.53	%
One Year			10.65	%			10.63	%			16.03	%			10.65	%			10.63	%			16.03	%
Five Year			(2.29	)%			(2.05	)%			(0.18	)%			(10.93	)%			(9.86	)%			(0.88	)%
Life*			(4.59	)%			(4.50	)%			(2.91	)%			(34.38	)%			(33.87	)%			(23.29	)%

 

*	Commencement of Fund: 7/10/08; First Day of Secondary Market Trading: 7/14/08
1	MVISTM GDP Africa Index (MVAFKTR) tracks the performance of the largest and most liquid companies in Africa. The weighting of a country in the index is determined by the size of its gross domestic product.

 

Index data prior to June 21, 2013 reflects that of the Dow Jones Africa Titans 50 Index^SM. From June 21, 2013, forward, the index data reflects that of the MVIS^TM GDP Africa Index (MVAFKTR). All Index history reflects a blend of the performance of the aforementioned Indexes.

 

VANECK VECTORS BRAZIL SMALL-CAP ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVBRFTR1				Share Price				NAV				MVBRFTR1
Six Months			22.09	%			21.24	%			21.65	%			22.09	%			21.24	%			21.65	%
One Year			34.95	%			34.62	%			35.44	%			34.95	%			34.62	%			35.44	%
Five Year			(9.15	)%			(9.01	)%			(8.31	)%			(38.11	)%			(37.65	)%			(35.21	)%
Life*			1.40	%			1.48	%			2.16	%			11.98	%			12.74	%			18.98	%

 

*	Commencement of Fund: 5/12/09; First Day of Secondary Market Trading: 5/14/09
1	MVISTM Brazil Small-Cap Index (MVBRFTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded small-capitalization companies that are domiciled and primarily listed on an exchange in Brazil, or that generate at least 50% of their revenues in Brazil.

 

VANECK VECTORS CHINAAMC CSI 300 ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				CSIR03001				Share Price				NAV				CSIR03001
Six Months			15.03	%			14.83	%			14.62	%			15.03	%			14.83	%			14.62	%
One Year			16.01	%			15.75	%			16.87	%			16.01	%			15.75	%			16.87	%
Five Year			7.48	%			7.44	%			9.24	%			43.44	%			43.19	%			55.57	%
Life*			1.97	%			2.08	%			3.76	%			14.01	%			14.80	%			28.15	%

 

*	Commencement of Fund: 10/13/10; First Day of Secondary Market Trading: 10/14/10
1	CSI 300 Index (CSIR0300) is a modified free-float market capitalization weighted index comprised of the largest and most liquid stocks in the Chinese A-share market. Constituent stocks for the Index must have been listed for more than three months (unless the stock’s average daily A-share market capitalization since its initial listing ranks among the top 30 of all A-shares) and must not be experiencing what the Index Provider believes to be obvious abnormal fluctuations or market manipulation.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

 

 

VANECK VECTORS CHINAAMC SME-CHINEXT ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				SZ3996111				Share Price				NAV				SZ3996111
Six Months			8.84	%			7.36	%			7.60	%			8.84	%			7.36	%			7.60	%
One Year			(6.72	)%			(7.44	)%			(5.23	)%			(6.72	)%			(7.44	)%			(5.23	)%
Life*			8.53	%			8.49	%			11.54	%			27.19	%			27.03	%			37.82	%

 

*	Commencement of Fund: 7/23/14; First Day of Secondary Market Trading: 7/24/14
1	The SME-ChiNext 100 Index (SZ399611) is a modified, free-float adjusted index intended to track the performance of the 100 largest and most liquid stocks listed and trading on the Small and Medium Enterprise (“SME”) Board and the ChiNext Board of the Shenzhen Stock Exchange. The Index is comprised of A-shares.

 

VANECK VECTORS EGYPT INDEX ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVEGPTTR1				Share Price				NAV				MVEGPTTR1
Six Months			5.34	%			6.96	%			6.90	%			5.34	%			6.96	%			6.90	%
One Year			(21.35	)%			(21.85	)%			(7.18	)%			(21.35	)%			(21.85	)%			(7.18	)%
Five Year			(8.45	)%			(8.41	)%			(4.36	)%			(35.69	)%			(35.56	)%			(20.00	)%
Life*			(11.45	)%			(11.46	)%			(9.29	)%			(59.18	)%			(59.21	)%			(51.23	)%

 

*	Commencement of Fund: 2/16/10; First Day of Secondary Market Trading: 2/18/10
1	MVISTM Egypt Index (MVEGPTTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded companies that are domiciled and primarily listed on an exchange in Egypt, or that generate at least 50% of their revenues in Egypt.

 

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVSCIFTR1				Share Price				NAV				MVSCIFTR1
Six Months			36.69	%			36.83	%			34.92	%			36.69	%			36.83	%			34.92	%
One Year			33.36	%			34.08	%			33.48	%			33.36	%			34.08	%			33.48	%
Five Year			7.51	%			7.71	%			8.08	%			43.65	%			44.96	%			47.50	%
Life*			(3.83	)%			(3.73	)%			(3.53	)%			(23.47	)%			(22.94	)%			(21.80	)%

 

*	Commencement of Fund: 8/24/10; First Day of Secondary Market Trading: 8/25/10
1	MVISTM India Small-Cap Index (MVSCIFTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded small-capitalization companies that are headquartered in India or that generate the majority of their revenues in India.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

VANECK VECTORS ETF TRUST

PERFORMANCE COMPARISON

June 30, 2017 (unaudited) (continued)

 

VANECK VECTORS INDONESIA INDEX ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVIDXTR1				Share Price				NAV				MVIDXTR1
Six Months			13.33	%			12.48	%			12.51	%			13.33	%			12.48	%			12.51	%
One Year			11.56	%			11.55	%			13.19	%			11.56	%			11.55	%			13.19	%
Five Year			(0.48	)%			(0.44	)%			0.42	%			(2.37	)%			(2.18	)%			2.11	%
Life*			15.25	%			15.21	%			16.07	%			232.10	%			230.94	%			252.47	%

 

*	Commencement of Fund: 1/15/09; First Day of Secondary Market Trading: 1/20/09
1	MVISTM Indonesia Index (MVIDXTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded companies that are domiciled and primarily listed on an exchange in Indonesia, or that generate at least 50% of their revenues in Indonesia.

 

VANECK VECTORS ISRAEL ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				BLSNTR1				Share Price				NAV				BLSNTR1
Six Months			15.14	%			14.64	%			14.96	%			15.14	%			14.64	%			14.96	%
One Year			18.40	%			17.27	%			18.18	%			18.40	%			17.27	%			18.18	%
Life*			6.65	%			6.56	%			7.04	%			29.50	%			29.03	%			31.37	%

 

*	Commencement of Fund: 6/25/13; First Day of Secondary Market Trading: 6/26/13
1	BlueStar Israel Global IndexTM (BLSNTR) is a rules-based index intended to track the overall performance of publicly traded companies that are generally considered by the Indexer to be Israeli and Israeli linked companies. It primarily includes the largest and the most liquid companies, as well as mid-cap and small-cap companies that display sufficient liquidity.

 

VANECK VECTORS POLAND ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVPLNDTR1				Share Price				NAV				MVPLNDTR1
Six Months			38.15	%			36.81	%			33.16	%			38.15	%			36.81	%			33.16	%
One Year			46.05	%			45.80	%			41.89	%			46.05	%			45.80	%			41.89	%
Five Year			2.83	%			2.85	%			2.53	%			14.99	%			15.11	%			13.32	%
Life*			(0.97	)%			(1.02	)%			(1.09	)%			(7.17	)%			(7.52	)%			(8.02	)%

 

*	Commencement of Fund: 11/24/09; First Day of Secondary Market Trading: 11/25/09
1	MVISTM Poland Index (MVPLNDTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded companies that are domiciled and primarily listed in Poland, or that generate at least 50% of their revenues in Poland.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

 

 

VANECK VECTORS RUSSIA ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVRSXTR1				Share Price				NAV				MVRSXTR1
Six Months			(9.64	)%			(9.60	)%			(9.63	)%			(9.64	)%			(9.60	)%			(9.63	)%
One Year			11.86	%			10.66	%			11.65	%			11.86	%			10.66	%			11.65	%
Five Year			(3.25	)%			(3.38	)%			(3.36	)%			(15.23	)%			(15.79	)%			(15.72	)%
Ten Year			(5.16	)%			(5.14	)%			(5.37	)%			(41.11	)%			(41.01	)%			(42.39	)%

 

*	Commencement of Fund: 4/24/07; First Day of Secondary Market Trading: 4/30/07
1	MVISTM Russia Index (MVRSXTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded small-capitalization companies that are domiciled and primarily listed in Russia, or that generate at least 50% of their revenues in Russia.

 

VANECK VECTORS RUSSIA SMALL-CAP ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVRSXJTR1				Share Price				NAV				MVRSXJTR1
Six Months			2.71	%			3.17	%			3.32	%			2.71	%			3.17	%			3.32	%
One Year			48.79	%			49.74	%			51.08	%			48.79	%			49.74	%			51.08	%
Five Year			0.55	%			0.60	%			0.94	%			2.78	%			3.05	%			4.81	%
Life*			(8.26	)%			(8.22	)%			(8.02	)%			(41.48	)%			(41.32	)%			(40.52	)%

 

*	Commencement of Fund: 4/13/11; First Day of Secondary Market Trading: 4/14/11
1	MVISTM Russia Small-Cap Index (MVRSXJTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded small-capitalization companies that are domiciled and primarily listed in Russia, or that generate at least 50% of their revenues in Russia.

 

VANECK VECTORS VIETNAM ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVVNMTR1				Share Price				NAV				MVVNMTR1
Six Months			14.49	%			14.49	%			15.09	%			14.49	%			14.49	%			15.09	%
One Year			4.67	%			3.73	%			5.09	%			4.67	%			3.73	%			5.09	%
Five Year			(1.33	)%			(1.11	)%			0.29	%			(6.47	)%			(5.43	)%			1.45	%
Life*			(4.35	)%			(4.40	)%			(3.56	)%			(29.60	)%			(29.85	)%			(24.88	)%

 

*	Commencement of Fund: 8/11/09; First Day of Secondary Market Trading: 8/14/09
1	MVISTM Vietnam Index (MVVNMTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded companies that are domiciled and primarily listed in Vietnam, or that generate at least 50% of their revenues in Vietnam.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

VANECK VECTORS ETF TRUST

ABOUT FUND PERFORMANCE

(unaudited)

 

The price used to calculate market return (Share Price) is determined by using the closing price listed on its primary listing exchange. Since the shares of each Fund did not trade in the secondary market until after each Fund’s commencement, for the period from commencement to the first day of secondary market trading in shares of each Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns.

 

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for certain Funds reflect temporary waivers of expenses and/or fees. Had these Funds incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

 

Investment return and value of the shares of each Fund 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 reinvestment of dividends and capital gains distributions. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

 

Fund shares are not individually redeemable and will be issued and redeemed at their 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. Shares may trade at a premium or discount to their NAV in the secondary market.

 

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell fund shares at NAV.

 

All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results.

 

The Africa Index, Brazil Small-Cap Index, Egypt Index, India Small-Cap Index, Indonesia Index, Poland Index, Russia Index, Russia Small-Cap Index, and Vietnam Index are published by MV Index Solutions GmbH (MVIS), which is a wholly owned subsidiary of the Adviser, Van Eck Associates Corporation. The CSI 300 Index is published by China Securities Index Co., Ltd. and the SME-ChiNext Index is published by the Shenzhen Securities Information Co., Ltd, which is a subsidiary of the Shenzhen Stock Exchange. The Israel Index is published by BlueStar Global Investors, LLC (BlueStar).

 

BlueStar, CSI 300 Index, MVIS, and SME-ChiNext Index are “Index Providers.” The Index Providers do not sponsor, endorse, or promote the Funds and bear no liability with respect to the Funds or any security.

 

Premium/discount information regarding how often the closing trading price of the Shares of each Fund were above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund for each of the four previous calendar quarters and the immediately preceding five years (if applicable) can be found at www.vaneck.com.

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited)

 

Hypothetical $1,000 investment at beginning of period

As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2017 to June 30, 2017.

 

Actual Expenses

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited) (continued)

 

		Beginning				Ending				Annualized				Expenses Paid
		Account				Account				Expense				During the Period*
		Value				Value				Ratio				January 1, 2017 —
		January 1, 2017				June 30, 2017				During Period				June 30, 2017
Africa Index ETF
Actual		$	1,000.00			$	1,084.10				0.89	%			$4.60
Hypothetical**		$	1,000.00			$	1,020.38				0.89	%			$4.46
Brazil Small-Cap ETF
Actual		$	1,000.00			$	1,212.40				0.60	%			$3.29
Hypothetical**		$	1,000.00			$	1,021.82				0.60	%			$3.01
ChinaAMC CSI 300 ETF
Actual		$	1,000.00			$	1,148.30				0.74	%			$3.94
Hypothetical**		$	1,000.00			$	1,021.12				0.74	%			$3.71
ChinaAMC SME-ChiNext ETF
Actual		$	1,000.00			$	1,073.60				0.80	%			$4.11
Hypothetical**		$	1,000.00			$	1,020.83				0.80	%			$4.01
Egypt Index ETF
Actual		$	1,000.00			$	1,069.60				0.94	%			$4.82
Hypothetical**		$	1,000.00			$	1,020.13				0.94	%			$4.71
India Small-Cap Index ETF
Actual		$	1,000.00			$	1,368.30				0.71	%			$4.17
Hypothetical**		$	1,000.00			$	1,021.27				0.71	%			$3.56
Indonesia Index ETF
Actual		$	1,000.00			$	1,124.80				0.57	%			$3.00
Hypothetical**		$	1,000.00			$	1,021.97				0.57	%			$2.86
Israel ETF
Actual		$	1,000.00			$	1,146.40				0.59	%			$3.14
Hypothetical**		$	1,000.00			$	1,021.87				0.59	%			$2.96
Poland ETF
Actual		$	1,000.00			$	1,368.10				0.64	%			$3.76
Hypothetical**		$	1,000.00			$	1,021.62				0.64	%			$3.21
Russia ETF
Actual		$	1,000.00			$	904.00				0.65	%			$3.07
Hypothetical**		$	1,000.00			$	1,021.57				0.65	%			$3.26
Russia Small-Cap ETF
Actual		$	1,000.00			$	1,031.70				0.76	%			$3.83
Hypothetical**		$	1,000.00			$	1,021.03				0.76	%			$3.81
Vietnam ETF
Actual		$	1,000.00			$	1,144.90				0.68	%			$3.62
Hypothetical**		$	1,000.00			$	1,021.42				0.68	%			$3.41

 

*		Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2017) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
**		Assumes annual return of 5% before expenses

VANECK VECTORS AFRICA INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS AFRICA INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

ADR	American Depositary Receipt
GBP	British Pound
GDR	Global Depositary Receipt
SEK	Swedish Krona
USD	United States Dollar
ZAR	South African Rand
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $1,088,279.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $32,241,376 which represents 45.6% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			12.9	%		$	9,088,995
Consumer Staples			7.4				5,257,754
Energy			6.0				4,213,303
Financials			32.6				23,006,251
Health Care			1.7				1,174,995
Industrials			0.5				368,768
Information Technology			0.1				105,604
Materials			22.7				16,017,478
Real Estate			4.2				2,951,775
Telecommunication Services			11.9				8,404,911
			100.0	%		$	70,589,834

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Canada		$	7,189,289			$	741,769				$	—			$	7,931,058
Egypt			9,483,901				—					—				9,483,901
India			872,937				—					—				872,937
Kenya			2,944,052				—					—				2,944,052
Mauritius			961,262				—					—				961,262
Morocco			4,437,470				3,053,580					—				7,491,050
Nigeria*			6,231,869				—					—				6,231,869
Singapore			—				991,271					—				991,271
South Africa			2,422,802				18,935,258					—				21,358,060
United Kingdom			2,312,964				7,502,889					—				9,815,853
United States			1,321,766				—					—				1,321,766
Real Estate Investment Trusts
South Africa			170,146				1,016,609					—				1,186,755
Repurchase Agreements			—				1,155,415					—				1,155,415
Total		$	38,348,458			$	33,396,791				$	—			$	71,745,249

 

*	The Nigerian securities were valued using Level 1 quoted prices, and used the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) to translate the Nigerian naira into U.S. dollars.

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $3,258,042 and transfers from Level 2 to Level 1 were $14,151,649. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		South Africa
Balance as of December 31, 2016			$	0
Realized gain (loss)				(90,343	)
Net change in unrealized appreciation (depreciation)				93,562
Purchases				—
Sales				(3,219	)
Transfers in and/or out of level 3				—
Balance as of June 30, 2017			$	—

 

See Notes to Financial Statements

VANECK VECTORS BRAZIL SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

ADR	American Depositary Receipt
BRL	Brazilian Real
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $2,204.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,421,874 which represents 1.5% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $899,273, or 1.0% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			29.6	%		$	27,458,353
Consumer Staples			5.0				4,597,022
Energy			5.3				4,930,644
Financials			4.2				3,872,633
Health Care			4.5				4,191,531
Industrials			8.8				8,194,232
Information Technology			7.7				7,164,454
Materials			10.8				9,976,433
Real Estate			4.5				4,173,835
Telecommunication Services			0.9				844,365
Utilities			18.7				17,313,301
			100.0	%		$	92,716,803

 

See Notes to Financial Statements

VANECK VECTORS BRAZIL SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	1,494,740			$	—				$	—			$	1,494,740
Capital Goods			1,487,876				—					—				1,487,876
Commercial & Professional Services			1,204,756				—					—				1,204,756
Consumer Durables & Apparel			10,025,083				—					—				10,025,083
Consumer Services			4,503,037				—					—				4,503,037
Energy			3,508,770				1,421,874					—				4,930,644
Food, Beverage & Tobacco			4,597,022				—					—				4,597,022
Health Care Equipment & Services			4,191,531				—					—				4,191,531
Insurance			1,236,886				—					—				1,236,886
Materials			3,423,352				—					—				3,423,352
Media			2,996,309				—					—				2,996,309
Real Estate			4,173,835				—					—				4,173,835
Retailing			6,782,368				—					—				6,782,368
Software & Services			7,164,454				—					—				7,164,454
Telecommunication Services			844,365				—					—				844,365
Transportation			3,436,667				—					—				3,436,667
Utilities			10,743,834				—					—				10,743,834
Preferred Stock*			17,833,220				—					—				17,833,220
Real Estate Investment Trust*			1,630,987				—					—				1,630,987
Warrants*			15,837				—					—				15,837
Repurchase Agreements			—				2,320					—				2,320
Total		$	91,294,929			$	1,424,194				$	—			$	92,719,123

 

*	See Schedule of Investments for security type and industry sector breakouts.

 

During the period ended June 30, 2017, transfers of securities from Level 2 to Level 1 were $6,454,420. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

VANECK VECTORS CHINAAMC CSI 300 ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS CHINAAMC CSI 300 ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

 

See Notes to Financial Statements

VANECK VECTORS CHINAAMC CSI 300 ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

 

*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $83,458,407 which represents 95.6% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $5,036,877 which represents 5.8% of net assets.

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			11.8	%		$	10,308,819
Consumer Staples			6.5				5,666,651
Energy			2.4				2,104,157
Financials			34.0				29,764,179
Health Care			5.1				4,487,830
Industrials			15.1				13,211,529
Information Technology			9.2				8,025,158
Materials			6.6				5,749,456
Real Estate			5.6				4,885,767
Telecommunication Services			1.0				881,016
Utilities			2.7				2,401,069
			100.0	%		$	87,485,631

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Automobiles & Components		$	191,326			$	2,430,087				$	—			$	2,621,413
Banks			377,839				14,509,367					—				14,887,206
Capital Goods			287,892				9,615,217					—				9,903,109
Commercial & Professional Services			85,808				792,885					—				878,693
Consumer Durables & Apparel			54,606				4,310,343					—				4,364,949
Consumer Services			93,388				645,863					—				739,251
Diversified Financials			510,938				6,828,185					—				7,339,123
Energy			—				2,104,157					—				2,104,157
Financials			—				1,459,983					—				1,459,983
Food, Beverage & Tobacco			194,986				5,471,665					—				5,666,651
Health Care Equipment & Services			—				818,269					—				818,269
Insurance			—				6,077,867					—				6,077,867
Materials			202,352				5,547,104					—				5,749,456
Media			146,431				1,531,245					—				1,677,676
Pharmaceuticals, Biotechnology			755,924				2,913,637					—				3,669,561
Real Estate			142,654				4,743,113					—				4,885,767
Retailing			—				905,530					—				905,530
Semiconductor			38,461				490,435					—				528,896
Software & Services			323,180				2,231,348					—				2,554,528
Technology Hardware & Equipment			164,999				4,760,405					—				4,925,404
Telecommunication Services			—				881,016					—				881,016
Transportation			238,782				2,190,945					—				2,429,727
Utilities			217,658				2,183,411					—				2,401,069
Foreign Debt Obligation			—				16,330					—				16,330
Total		$	4,027,224			$	83,458,407				$	—			$	87,485,631

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $267,695 and transfers from Level 2 to Level 1 were $2,295,443. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

 

See Notes to Financial Statements

VANECK VECTORS CHINAAMC SME-CHINEXT ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $22,184,759 which represents 94.4% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $2,066,899 which represents 8.8% of net assets.

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			10.3	%		$	2,442,427
Consumer Staples			8.9				2,089,314
Energy			1.0				236,859
Financials			5.7				1,354,532
Health Care			9.0				2,128,479
Industrials			15.2				3,583,509
Information Technology			36.5				8,605,322
Materials			12.1				2,849,870
Real Estate			0.7				158,666
Utilities			0.6				148,247
			100.0	%		$	23,597,225

 

See Notes to Financial Statements

VANECK VECTORS CHINAAMC SME-CHINEXT ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	367,063				$	—			$	367,063
Banks			—				453,461					—				453,461
Capital Goods			—				2,628,640					—				2,628,640
Commercial & Professional Services			—				954,869					—				954,869
Consumer Durables & Apparel			88,260				336,066					—				424,326
Consumer Services			—				173,426					—				173,426
Diversified Financials			—				901,071					—				901,071
Energy			—				236,859					—				236,859
Food, Beverage & Tobacco			—				1,952,294					—				1,952,294
Health Care Equipment & Services			84,558				650,845					—				735,403
Household & Personal Products			—				137,020					—				137,020
Materials			—				2,849,870					—				2,849,870
Media			104,132				800,433					—				904,565
Pharmaceuticals, Biotechnology			—				1,393,076					—				1,393,076
Real Estate			158,666				—					—				158,666
Retailing			—				573,047					—				573,047
Semiconductor			—				469,503					—				469,503
Software & Services			506,073				3,274,181					—				3,780,254
Technology Hardware & Equipment			470,777				3,884,788					—				4,355,565
Utilities			—				148,247					—				148,247
Total		$	1,412,466			$	22,184,759				$	—			$	23,597,225

 

During the period ended June 30, 2017, transfers of securities from Level 2 to Level 1 were $1,264,360. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

 

See Notes to Financial Statements

VANECK VECTORS EGYPT INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS EGYPT INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

CAD	Canadian Dollar
GBP	British Pound
GDR	Global Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $51,670.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $16,582,164 which represents 28.7% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $2,541,645, or 4.4% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			3.3	%		$	1,892,422
Consumer Staples			6.5				3,790,143
Energy			1.7				977,562
Financials			25.7				14,977,369
Health Care			4.4				2,541,645
Industrials			4.5				2,596,962
Materials			12.2				7,123,384
Real Estate			22.1				12,877,525
Telecommunication Services			12.6				7,342,089
Money Market Fund			7.0				4,056,085
			100.0	%		$	58,175,186

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stock
Banks		$	5,174,370			$	—				$	—			$	5,174,370
Capital Goods			2,596,962				—					—				2,596,962
Consumer Durables & Apparel			—				1,892,422					—				1,892,422
Diversified Financials			4,034,154				5,768,845					—				9,802,999
Energy			977,562				—					—				977,562
Food, Beverage & Tobacco			3,790,143				—					—				3,790,143
Health Care Equipment & Services			2,541,645				—					—				2,541,645
Materials			1,016,986				6,106,398					—				7,123,384
Real Estate			12,877,525				—					—				12,877,525
Telecommunication Services			4,527,590				2,814,499					—				7,342,089
Money Market Fund			4,056,085				—					—				4,056,085
Repurchase Agreements			—				54,688					—				54,688
Total		$	41,593,022			$	16,636,852				$	—			$	58,229,874

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $4,644,637 and transfers from Level 2 to Level 1 were $10,688,975. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

 

USD	United States Dollar
(a)	Represents Consolidated Schedule of Investments.
*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $311,392,096 which represents 99.5% of net assets.
ø	Restricted Security — the aggregate value of restricted securities is $11,296, or 0.0% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $7,621,346 which represents 2.4% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $5,337,757, or 1.7% of net assets.

 

Restricted securities held by the Fund as of June 30, 2017 are as follows:

 

Acquisition

Number of

Acquisition

% of

Security

Date

Shares

Cost

Value

Net Assets

Chennai Super Kings Cricket Ltd.

10/08/15

1,298,085

$35,108

$11,296

0.0%

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			16.8	%		$	53,454,760
Consumer Staples			6.9				22,001,512
Energy			1.7				5,336,278
Financials			16.4				52,210,284
Health Care			3.8				12,178,630
Industrials			22.8				72,542,991
Information Technology			8.2				25,874,310
Materials			16.0				50,735,980
Real Estate			3.6				11,442,668
Telecommunication Services			1.5				4,610,284
Utilities			2.3				7,364,380
Money Market Fund			0.0				116,349
			100.0	%		$	317,868,426

 

See Notes to Financial Statements

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

(unaudited) (continued)

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	7,611,637				$	—			$	7,611,637
Banks			—				28,821,418					—				28,821,418
Capital Goods			1,940,333				51,290,864					—				53,231,197
Consumer Durables & Apparel			—				20,025,104					—				20,025,104
Consumer Services			892,877				6,887,140					11,296				7,791,313
Consumer, Cyclical			—				773,701					—				773,701
Diversified Financials			—				23,388,866					—				23,388,866
Energy			—				5,336,278					—				5,336,278
Food, Beverage & Tobacco			—				19,972,656					—				19,972,656
Health Care Equipment & Services			—				3,593,031					—				3,593,031
Household & Personal Products			—				2,028,856					—				2,028,856
Materials			—				50,735,980					—				50,735,980
Media			1,344,276				12,401,837					—				13,746,113
Pharmaceuticals, Biotechnology			—				8,585,599					—				8,585,599
Real Estate			—				11,442,668					—				11,442,668
Retailing			1,448,303				2,678,661					—				4,126,964
Software & Services			—				19,390,838					—				19,390,838
Technology Hardware & Equipment			—				6,483,472					—				6,483,472
Telecommunication Services			—				4,610,284					—				4,610,284
Transportation			—				18,040,979					—				18,040,979
Utilities			734,192				7,280,931					—				8,015,123
Money Market Fund			116,349				—					—				116,349
Total		$	6,476,330			$	311,380,800				$	11,296			$	317,868,426

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $1,670,008 and transfers from Level 2 to Level 1 were $237,637. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		Consumer
		Services					Materials
Balance as of December 31, 2016			$	21,517				$	43,410
Realized gain (loss)				—					1,188
Net change in unrealized appreciation (depreciation)				(10,221	)				550
Purchases				—					—
Sales				—					(45,148	)
Transfers in and/or out of level 3				—					—
Balance as of June 30, 2017			$	11,296				$	—

 

See Notes to Financial Statements

VANECK VECTORS INDONESIA INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

ADR	American Depositary Receipt
NVDR	Non-Voting Depositary Receipt
*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $70,689,584 which represents 90.7% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

 

See Notes to Financial Statements

VANECK VECTORS INDONESIA INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			14.6	%		$	11,358,595
Consumer Staples			18.3				14,251,484
Energy			8.3				6,493,133
Financials			27.3				21,289,796
Health Care			3.9				3,056,300
Industrials			3.4				2,626,475
Materials			5.1				3,990,050
Real Estate			6.8				5,289,619
Telecommunication Services			10.2				7,953,424
Utilities			2.1				1,587,770
			100.0	%		$	77,896,646

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	5,384,568				$	—			$	5,384,568
Banks			—				20,139,759					—				20,139,759
Capital Goods			—				1,836,943					—				1,836,943
Diversified Financials			—				1,150,037					—				1,150,037
Energy			—				6,493,133					—				6,493,133
Food, Beverage & Tobacco			383,433				10,086,388					—				10,469,821
Health Care Equipment & Services			—				788,795					—				788,795
Household & Personal Products			—				3,781,663					—				3,781,663
Materials			—				3,990,050					—				3,990,050
Media			—				1,000,838					—				1,000,838
Pharmaceuticals, Biotechnology			—				2,267,505					—				2,267,505
Real Estate			—				4,811,539					—				4,811,539
Retailing			—				4,973,189					—				4,973,189
Telecommunication Services			6,345,549				1,607,875					—				7,953,424
Transportation			—				789,532					—				789,532
Utilities			—				1,587,770					—				1,587,770
Real Estate Investment Trust
Real Estate			478,080				—					—				478,080
Total		$	7,207,062			$	70,689,584				$	—			$	77,896,646

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $783,417 and transfers from Level 2 to Level 1 were $520,133. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

VANECK VECTORS ISRAEL ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS ISRAEL ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

ADR	American Depositary Receipt
AUD	Australian Dollar
GBP	British Pound
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $1,607,168.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $23,464,729 which represents 54.5% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			2.1	%		$	920,845
Consumer Staples			1.2				527,447
Energy			4.1				1,751,609
Financials			15.3				6,584,374
Health Care			26.8				11,555,834
Industrials			4.2				1,823,382
Information Technology			31.7				13,672,905
Materials			3.5				1,504,285
Real Estate			6.0				2,571,333
Telecommunication Services			3.0				1,282,973
Utilities			1.8				784,579
Money Market Fund			0.3				112,182
			100.0	%		$	43,091,748

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	—			$	5,633,812				$	—			$	5,633,812
Capital Goods			406,435				1,298,151					—				1,704,586
Commercial & Professional Services			—				41,955					—				41,955
Consumer Durables & Apparel			404,175				194,838					—				599,013
Consumer Services			169,362				—					—				169,362
Diversified Financials			—				194,990					—				194,990
Energy			850,103				901,506					—				1,751,609
Food & Staples Retailing			108,792				142,756					—				251,548
Food, Beverage & Tobacco			—				275,899					—				275,899
Health Care Equipment & Services			421,012				206,597					—				627,609
Insurance			132,721				622,851					—				755,572
Materials			—				1,504,285					—				1,504,285
Media			58,668				—					—				58,668
Pharmaceuticals, Biotechnology			4,311,988				6,616,237					—				10,928,225
Real Estate			79,360				2,491,973					—				2,571,333
Retailing			—				93,802					—				93,802
Semiconductor			1,618,587				157,426					—				1,776,013
Software & Services			8,954,978				1,496,129					—				10,451,107
Technology Hardware & Equipment			1,282,812				162,973					—				1,445,785
Telecommunication Services			—				1,282,973					—				1,282,973
Transportation			—				76,841					—				76,841
Utilities			715,844				68,735					—				784,579
Money Market Fund			112,182				—					—				112,182
Repurchase Agreements			—				1,688,381					—				1,688,381
Total		$	19,627,019			$	25,153,110				$	—			$	44,780,129

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $484,935 and transfers from Level 2 to Level 1 were $1,075,891. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

VANECK VECTORS POLAND ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

EUR	Euro
ZAR	South African Rand
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $1,536,072.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $15,628,830 which represents 89.3% of net assets.

 

See Notes to Financial Statements

 

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			10.0	%		$	1,746,036
Consumer Staples			5.9				1,022,210
Energy			15.9				2,787,025
Financials			40.5				7,071,501
Information Technology			5.2				912,153
Materials			10.0				1,749,031
Real Estate			3.1				543,649
Telecommunication Services			2.1				368,454
Utilities			7.3				1,278,848
			100.0	%		$	17,478,907

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	—			$	5,409,721				$	—			$	5,409,721
Consumer Durables & Apparel			—				1,314,818					—				1,314,818
Diversified Financials			—				431,786					—				431,786
Energy			—				2,787,025					—				2,787,025
Food & Staples Retailing			269,765				752,445					—				1,022,210
Insurance			—				1,229,994					—				1,229,994
Materials			436,404				1,312,627					—				1,749,031
Media			—				431,218					—				431,218
Real Estate			543,649				—					—				543,649
Software & Services			600,259				311,894					—				912,153
Telecommunication Services			—				368,454					—				368,454
Utilities			—				1,278,848					—				1,278,848
Repurchase Agreements			—				1,610,941					—				1,610,941
Total		$	1,850,077			$	17,239,771				$	—			$	19,089,848

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $309,202 and transfers from Level 2 to Level 1 were $1,109,066. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

VANECK VECTORS RUSSIA ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

ADR	American Depositary Receipt
GBP	British Pound
GDR	Global Depositary Receipt
USD	United States Dollar
*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,640,199,700 which represents 84.7% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $257,935 which represents 0.0% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

 

See Notes to Financial Statements

 

 

Summary of Investments by Sector		% of Investments				Value
Consumer Staples			11.3	%		$	218,681,958
Energy			39.4				766,281,358
Financials			14.6				284,668,004
Information Technology			7.1				138,844,879
Materials			15.8				306,949,774
Telecommunication Services			8.1				157,779,173
Utilities			3.6				68,937,779
Money Market Fund			0.1				2,770,098
			100.0	%		$	1,944,913,023

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	—			$	237,886,877				$	—			$	237,886,877
Diversified Financials			—				46,781,127					—				46,781,127
Energy			—				690,130,950					—				690,130,950
Food & Staples Retailing			95,345,519				123,336,439					—				218,681,958
Materials			—				306,949,774					—				306,949,774
Software & Services			88,799,335				50,045,544					—				138,844,879
Telecommunication Services			117,798,371				39,980,802					—				157,779,173
Utilities			—				68,679,844					257,935				68,937,779
Preferred Stock Energy			—				76,150,408					—				76,150,408
Money Market Fund			2,770,098				—					—				2,770,098
Total		$	304,713,323			$	1,639,941,765				$	257,935			$	1,944,913,023

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $152,689,042. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		Utilities
Balance as of December 31, 2016			$	257,935
Realized gain (loss)				—
Net change in unrealized appreciation (depreciation)				0
Purchases				—
Sales				—
Transfers in and/or out of level 3				—
Balance as of June 30, 2017			$	257,935

 

See Notes to Financial Statements

VANECK VECTORS RUSSIA SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
SDR	Swedish Depository Receipt
SEK	Swedish Krona
*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $24,994,177 which represents 47.8% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

 

See Notes to Financial Statements

 

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			10.8	%		$	5,618,035
Consumer Staples			12.7				6,613,261
Energy			6.4				3,348,062
Financials			14.4				7,503,531
Industrials			7.0				3,658,168
Information Technology			5.0				2,598,434
Materials			18.8				9,831,078
Real Estate			12.7				6,654,411
Utilities			12.2				6,400,017
Money Market Fund			0.0				10,505
			100.0	%		$	52,235,502

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stock
Banks		$	2,292,582			$	—				$	—			$	2,292,582
Capital Goods			—				1,414,937					—				1,414,937
Diversified Financials			1,563,452				3,647,497					—				5,210,949
Energy			—				3,348,062					—				3,348,062
Food & Staples Retailing			790,770				1,095,231					—				1,886,001
Food, Beverage & Tobacco			—				2,484,919					—				2,484,919
Household & Personal Products			—				2,242,341					—				2,242,341
Materials			4,079,651				5,751,427					—				9,831,078
Media			2,074,198				—					—				2,074,198
Real Estate			5,918,435				735,976					—				6,654,411
Retailing			3,543,837				—					—				3,543,837
Software & Services			2,598,434				—					—				2,598,434
Transportation			2,243,231				—					—				2,243,231
Utilities			2,126,230				4,273,787					—				6,400,017
Money Market Fund			10,505				—					—				10,505
Total		$	27,241,325			$	24,994,177				$	—			$	52,235,502

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $10,993,537 and transfers from Level 2 to Level 1 were $22,051,573. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

VANECK VECTORS VIETNAM ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

 

THB	Thai Baht
VND	Vietnamese Dong
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $981,514.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $156,553,680 which represents 51.3% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $13,085,910, or 4.3% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			16.0	%		$	48,797,878
Consumer Staples			18.9				57,531,911
Energy			4.0				12,324,190
Financials			20.4				61,939,656
Health Care			4.2				12,831,231
Industrials			7.8				23,629,174
Information Technology			2.0				6,103,770
Materials			8.0				24,452,409
Real Estate			16.5				50,080,991
Utilities			1.7				5,282,494
Money Market Fund			0.5				1,373,696
			100.0	%		$	304,347,400

 

See Notes to Financial Statements

VANECK VECTORS VIETNAM ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	4				$	—			$	4
Banks			29,903,229				—					—				29,903,229
Capital Goods			14,047,170				9,581,987					—				23,629,157
Consumer Durables & Apparel			13,085,910				28,232,143					—				41,318,053
Consumer Services			7,479,817				—					—				7,479,817
Diversified Financials			1				21,395,463					—				21,395,464
Energy			—				12,324,190					—				12,324,190
Food, Beverage & Tobacco			25,230,872				32,301,039					—				57,531,911
Health Care Equipment & Services			—				12,831,231					—				12,831,231
Insurance			—				10,640,963					—				10,640,963
Materials			6,592,034				16,746,320					—				23,338,354
Real Estate			50,080,991				—					—				50,080,991
Technology Hardware & Equipment			—				6,103,770					—				6,103,770
Transportation			—				17					—				17
Utilities			—				5,282,494					—				5,282,494
Rights*			—				1,114,055					—				1,114,055
Warrants*			—				4					—				4
Money Market Fund			1,373,696				—					—				1,373,696
Repurchase Agreements			—				1,093,729					—				1,093,729
Total		$	147,793,720			$	157,647,409				$	—			$	305,441,129

 

* See Schedule of Investments for security type and industry sector breakouts.

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $19,992,991 and transfers from Level 2 to Level 1 were $62,037,873. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedules of Investments.

 

See Notes to Financial Statements

[This Page Intentionally Left Blank.]

VANECK VECTORS ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2017 (unaudited)

 

																		ChinaAMC
			Africa					Brazil					ChinaAMC					SME-ChiNext					Egypt
			Index ETF					Small-Cap ETF					CSI 300 ETF					ETF					Index ETF
Assets:
Investments, at value (1) (2)				$	70,589,834				$	92,716,803				$	87,485,631				$	23,597,225				$	58,175,186
Short-term investments held as collateral for securities loaned (3)					1,155,415					2,320					—					—					54,688
Cash					132					—					4,221,124					3,034,012					—
Cash denominated in foreign currency, at value (4)					1,289,225					397,408					2,805,279	(b)				414,493	(c)				193,628
Receivables:
Investment securities sold					10,756					—					—					—					—
Shares sold					—					10,172					214					—					—
Due from Adviser					—					—					—					—					—
Dividends and interest					140,347					197,613					7					401					163,222
Prepaid expenses					283					2,838					2,865					2,701					2,654
Total assets					73,185,992					93,327,154					94,515,120					27,048,832					58,589,378
Liabilities:
Payables:
Investment securities purchased					11,054					—					—					40					708,087
Collateral for securities loaned					1,155,415					2,320					—					—					54,688
Line of credit					1,117,811					457,112					2,772,052					409,149					—
Shares redeemed					—					—					4,221,999					3,033,934					—
Due to Adviser					29,697					30,212					36,041					1,351					22,250
Due to custodian					—					—					—					—					—
Deferred Trustee fees					8,894					32,284					3,220					300					3,870
Accrued expenses					93,095					76,336					201,734					94,644					47,604
Total liabilities					2,415,966					598,264					7,235,046					3,539,418					836,499
NET ASSETS				$	70,770,026				$	92,728,890				$	87,280,074				$	23,509,414				$	57,752,879
Shares outstanding					3,250,000					4,750,000					2,050,000					750,000					2,074,974
Net asset value, redemption and offering price per share				$	21.78				$	19.52				$	42.58				$	31.35				$	27.83
Net assets consist of:
Aggregate paid in capital				$	120,208,372				$	254,403,230				$	79,384,028				$	28,550,497				$	92,449,615
Net unrealized appreciation (depreciation)					8,539,985					18,413,416					12,056,245					3,463,233					1,172,671
Undistributed (accumulated) net investment income (loss)					391,177					844,397					249,059					61,232					(1,039,147	)
Accumulated net realized gain (loss)					(58,369,508	)				(180,932,153	)				(4,409,258	)				(8,565,548	)				(34,830,260	)
				$	70,770,026				$	92,728,890				$	87,280,074				$	23,509,414				$	57,752,879
(1)	Value of securities on loan			$	1,088,279				$	2,204				$	—				$	—				$	51,670
(2)	Cost of investments			$	61,874,581				$	74,295,266				$	75,440,385				$	20,136,474				$	57,003,722
(3)	Cost of short-term investments held as collateral for securities loaned			$	1,155,415				$	2,320				$	—				$	—				$	54,688
(4)	Cost of cash denominated in foreign currency			$	1,465,308				$	397,366				$	2,794,280				$	412,010				$	193,165

(a)	Represents consolidated Statement of Assets and Liabilities.
(b)	Includes $10,890 on foreign investor minimum settlement reserve funds.
(c)	Includes $7,249 on foreign investor minimum settlement reserve funds.

 

See Notes to Financial Statements

 

 

India
Small-Cap					Indonesia																				Russia
Index ETF (a)					Index ETF					Israel ETF					Poland ETF					Russia ETF					Small-Cap ETF					Vietnam ETF
	$	317,868,426				$	77,896,646				$	43,091,747				$	17,478,907				$	1,944,913,023				$	52,235,502				$	304,347,400
		—					—					1,688,381					1,610,941					—					—					1,093,729
		—					—					—					—					7,588,686					—					—
		20,922					9,387					129,635					601,530					84,479					83,881					3,914,878
		16,422,642					—					178,631					—					2,300,715					1,978,721					45,837
		56,987					—					—					—					—					—					630,091
		—					—					—					2,097					—					—					—
		95,041					216,322					37,607					100,087					19,068,260					465,739					5,073
		12,009					2,922					2,714					2,594					14,918					2,695					2,803
		334,476,027					78,125,277					45,128,715					19,796,156					1,973,970,081					54,766,538					310,039,811
		—					13,423					292,815					—					10,377,712					82,983					1,515,473
		—					—					1,688,381					1,610,941					—					—					1,093,729
		4,237,424					—					—					650,488					23,714,226					261,840					1,298,794
		16,638,715					—					—					—					2,634,193					2,003,082					—
		136,620					22,395					8,906					—					652,554					19,749					121,402
		239,815					40,257					—					4,258					—					10,505					579,063
		8,876					26,320					1,885					2,634					133,649					1,891					31,832
		232,935					115,788					57,017					27,380					822,593					110,484					221,951
		21,494,385					218,183					2,049,004					2,295,701					38,334,927					2,490,534					4,862,244
	$	312,981,642				$	77,907,094				$	43,079,711				$	17,500,455				$	1,935,635,154				$	52,276,004				$	305,177,567
		5,574,967					3,250,000					1,400,000					950,000					101,550,000					1,333,318					20,550,000
	$	56.14				$	23.97				$	30.77				$	18.42				$	19.06				$	39.21				$	14.85
	$	283,990,336				$	188,964,091				$	46,611,701				$	35,532,904				$	3,852,869,596				$	49,494,434				$	547,917,232
		60,481,133					(10,775,894	)				(112,807	)				(1,200,490	)				(281,997,148	)				(2,643,730	)				28,632,779
		(1,538,003	)				1,232,887					206,746					657,655					22,570,815					868,575					381,427
		(29,951,824	)				(101,513,990	)				(3,625,929	)				(17,489,614	)				(1,657,808,109	)				4,556,725					(271,753,871	)
	$	312,981,642				$	77,907,094				$	43,079,711				$	17,500,455				$	1,935,635,154				$	52,276,004				$	305,177,567
	$	—				$	—				$	1,607,168				$	1,536,072				$	—				$	—				$	981,514
	$	257,387,079				$	88,672,370				$	43,204,711				$	18,698,375				$	2,226,881,040				$	54,879,210				$	275,718,858
	$	—				$	—				$	1,688,381				$	1,610,941				$	—				$	—				$	1,093,729
	$	20,942				$	9,280				$	127,360				$	583,156				$	88,353				$	83,868				$	3,910,572

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Six Months Ended June 30, 2017

 

																	ChinaAMC
		Africa					Brazil					ChinaAMC					SME-ChiNext					Egypt
		Index ETF					Small-Cap ETF					CSI 300 ETF					ETF					Index ETF
Income:
Dividends			$	1,361,898				$	1,640,749				$	778,938				$	176,690				$	1,711,029
Interest				—					—					131					60					—
Securities lending income				13,191					13,142					—					—					915
Foreign taxes withheld				(137,541	)				(13,693	)				(80,158	)				(19,058	)				(141,547	)
Total income				1,237,548					1,640,198					698,911					157,692					1,570,397
Expenses:
Management fees				171,082					241,298					222,381					58,756					129,979
Professional fees				27,108					28,409					46,131					45,144					32,989
Insurance				449					592					462					248					176
Trustees’ fees and expenses				586					953					558					222					396
Reports to shareholders				14,949					13,656					10,296					6,455					6,516
Indicative optimized portfolio value fee				2,953					1,524					2,980					2,016					2,481
Custodian fees				45,276					39,501					75,852					28,657					65,302
Registration fees				965					2,483					2,483					2,483					2,484
Transfer agent fees				1,140					1,140					1,140					1,140					1,140
Fund accounting fees				4,055					2,606					12,301					7,769					1,948
Interest				36,587					5,610					10,219					2,641					1,442
Other				4,972					4,414					15,583					8,740					4,373
Total expenses				310,122					342,186					400,386					164,271					249,226
Waiver of management fees				(6,647	)				(51,845	)				(69,938	)				(58,756	)				(3,423	)
Expenses assumed by the Adviser				—					—					—					(11,216	)				—
Net expenses				303,475					290,341					330,448					94,299					245,803
Net investment income (loss)				934,073					1,349,857					368,463					63,393					1,324,594
Net realized gain (loss) on:
Investments				441,224					8,552,465					(795,071	)				103,297					(2,332,362	)
In-kind redemptions				194,136					309,313					—					—					192,362
Foreign currency transactions and foreign denominated assets and liabilities				(526,328	)				(37,550	)				7,078					6,129					(155,971	)
Net realized gain (loss)				109,032					8,824,228					(787,993	)				109,426					(2,295,971	)
Net change in unrealized appreciation (depreciation) on:
Investments				4,600,284					7,268,581					12,666,500					1,455,744					4,027,971
Foreign currency transactions and foreign denominated assets and liabilities				(176,782	)				(12,497	)				16,480					3,036					(7,472	)
Net change in unrealized appreciation (depreciation)				4,423,502					7,256,084					12,682,980					1,458,780					4,020,499
Net Increase (Decrease) in Net Assets Resulting from Operations			$	5,466,607				$	17,430,169				$	12,263,450				$	1,631,599				$	3,049,122

(a)	Represents consolidated Statement of Operations.

 

See Notes to Financial Statements

 

 

India
Small-Cap					Indonesia																				Russia
Index ETF (a)					Index ETF					Israel ETF					Poland ETF					Russia ETF					Small-Cap ETF					Vietnam ETF
	$	425,011				$	1,597,614				$	417,550				$	192,068				$	34,654,083				$	1,453,489				$	2,334,875
		—					—					—					—					—					—					—
		—					680					29,658					12,149					—					—					15,574
		(2,592	)				(286,388	)				(79,685	)				385,072					(4,761,114	)				(112,825	)				(4,184	)
		422,419					1,311,906					367,523					589,289					29,892,969					1,340,664					2,346,265
		631,196					215,163					98,200					39,891					6,125,999					195,067					708,864
		71,551					27,385					25,089					24,882					54,732					29,961					34,138
		1,220					657					246					81					10,833					346					2,167
		16,210					586					333					149					22,905					567					1,679
		14,993					12,233					7,543					7,091					60,385					7,560					22,514
		2,827					2,842					2,481					2,481					1,193					2,151					2,560
		50,783					31,731					33,169					9,097					1,989,212					61,010					121,762
		6,396					2,483					2,484					2,483					13,963					2,483					3,725
		2,280					1,140					1,140					1,140					739					1,140					1,140
		21,292					4,155					5,128					2,067					52,017					2,087					11,114
		25,942					466					446					3,484					42,084					3,973					40,642
		52,968					6,098					4,967					4,506					32,482					3,810					15,146
		897,658					304,939					181,226					97,352					8,406,544					310,155					965,451
		—					(59,186	)				(64,905	)				(39,891	)				(456,109	)				(15,135	)				—
		—					—					—					(6,107	)				—					—					—
		897,658					245,753					116,321					51,354					7,950,435					295,020					965,451
		(475,239	)				1,066,153					251,202					537,935					21,942,534					1,045,644					1,380,814
		17,904,242					(155,684	)				(304,454	)				(244,167	)				(22,603,251	)				5,486,848					(8,894,236	)
		32,875					(673,687	)				—					242,265					86,038,545					8,313,307					7,636
		(247,129	)				(11,920	)				(3,163	)				14,383					42,901					(2,567	)				(169,435	)
		17,689,988					(841,291	)				(307,617	)				12,481					63,478,195					13,797,588					(9,056,035	)
		48,204,569					10,096,920					5,372,532					4,321,930					(340,636,452	)				(12,382,801	)				45,590,233
		(855	)				(146	)				129					21,915					(34,355	)				829					4,971
		48,203,714					10,096,774					5,372,661					4,343,845					(340,670,807	)				(12,381,972	)				45,595,204
	$	65,418,463				$	10,321,636				$	5,316,246				$	4,894,261				$	(255,250,078	)			$	2,461,260				$	37,919,983

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

		Africa Index ETF										Brazil Small-Cap ETF
		For the										For the
		Six Months					For the Year					Six Months					For the Year
		Ended					Ended					Ended					Ended
		June 30,					December 31,					June 30,					December 31,
		2017					2016					2017					2016
		(unaudited)										(unaudited)
Operations:
Net investment income (loss)			$	934,073				$	1,904,329				$	1,349,857				$	2,770,217
Net realized gain (loss)				109,032					(11,730,335	)				8,824,228					(16,715,121	)
Net change in unrealized appreciation (depreciation)				4,423,502					17,571,205					7,256,084					52,654,194
Net increase (decrease) in net assets resulting from operations				5,466,607					7,745,199					17,430,169					38,709,290
Dividends and Distributions to shareholders:
Dividends from net investment income				—					(1,742,400	)				—					(3,582,800	)
Distributions from net realized capital gains				—					—					—					—
Return of capital				—					—					—					—
Total Dividends and Distributions				—					(1,742,400	)				—					(3,582,800	)
Share transactions:**
Proceeds from sale of shares				—					11,722,379					3,830,100					973,090
Cost of shares redeemed				(992,642	)				(11,195,275	)				(11,429,079	)				(18,466,076	)
Increase (Decrease) in net assets resulting from share transactions				(992,642	)				527,104					(7,598,979	)				(17,492,986	)
Total increase (decrease) in net assets				4,473,965					6,529,903					9,831,190					17,633,504
Net Assets, beginning of period				66,296,061					59,766,158					82,897,700					65,264,196
Net Assets, end of period†			$	70,770,026				$	66,296,061				$	92,728,890				$	82,897,700
† Including undistributed (accumulated) net investment income (loss)			$	391,177				$	(542,896	)			$	844,397				$	(505,460	)
** Shares of Common Stock Issued (no par value)
Shares sold				—					600,000					200,000					100,000
Shares redeemed				(50,000	)				(600,000	)				(600,000	)				(1,200,000	)
Net increase (decrease)				(50,000	)				—					(400,000	)				(1,100,000	)

 

See Notes to Financial Statements

 

 

ChinaAMC CSI 300 ETF										ChinaAMC SME-ChiNext ETF										Egypt Index ETF
For the										For the Six										For the Six
Six Months					For the Year					Months					For the Year					Months					For the Year
Ended					Ended					Ended					Ended					Ended					Ended
June 30,					December 31,					June 30,					December 31,					June 30,					December 31,
2017					2016					2017					2016					2017					2016
(unaudited)										(unaudited)										(unaudited)
	$	368,463				$	944,923				$	63,393				$	(23,289	)			$	1,324,594				$	313,905
		(787,993	)				(2,231,687	)				109,426					(3,094,995	)				(2,295,971	)				(5,507,907	)
		12,682,980					(16,519,216	)				1,458,780					(11,543,898	)				4,020,499					(1,904,135	)
		12,263,450					(17,805,980	)				1,631,599					(14,662,182	)				3,049,122					(7,098,137	)
		—					(341,148	)				—					—					—					—
		—					(644,000	)				—					—					—					—
		—					(45,252	)				—					—					—					—
		—					(1,030,400	)				—					—					—					—
		—					25,837,188					4,588,649					6,388,916					16,503,420					37,372,142
		(10,273,454	)				(26,903,545	)				(6,067,869	)				(24,712,952	)				(2,784,934	)				(15,617,447	)
		(10,273,454	)				(1,066,357	)				(1,479,220	)				(18,324,036	)				13,718,486					21,754,695
		1,989,996					(19,902,737	)				152,379					(32,986,218	)				16,767,608					14,656,558
		85,290,078					105,192,815					23,357,035					56,343,253					40,985,271					26,328,713
	$	87,280,074				$	85,290,078				$	23,509,414				$	23,357,035				$	57,752,879				$	40,985,271
	$	249,059				$	(119,404	)			$	61,232				$	(2,161	)			$	(1,039,147	)			$	(2,363,741	)
		—					650,000					50,000					200,000					600,000					1,350,000
		(250,000	)				(700,000	)				(100,000	)				(750,000	)				(100,000	)				(450,000	)
		(250,000	)				(50,000	)				(50,000	)				(550,000	)				500,000					900,000

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		India Small-Cap Index ETF (a)										Indonesia Index ETF
		For the										For the
		Six Months					For the Year					Six Months					For the Year
		Ended					Ended					Ended					Ended
		June 30,					December 31,					June 30,					December 31,
		2017					2016					2017					2016
		(unaudited)										(unaudited)
Operations:
Net investment income (loss)			$	(475,239	)			$	1,730,214				$	1,066,153				$	1,073,461
Net realized gain (loss)				17,689,988					10,008,820					(841,291	)				(10,218,854	)
Net change in unrealized appreciation (depreciation)				48,203,714					(18,722,920	)				10,096,774					24,506,485
Net increase (decrease) in net assets resulting from operations				65,418,463					(6,983,886	)				10,321,636					15,361,092
Dividends and Distributions to shareholders:
Dividends from net investment income				—					(2,532,831	)				—					(988,000	)
Return of capital				—					—					—					—
Total Dividends and Distributions				—					(2,532,831	)				—					(988,000	)
Share transactions:**
Proceeds from sale of shares				82,797,866					23,985,217					—					25,570,032
Cost of shares redeemed				(18,861,725	)				(2,211,689	)				(17,654,935	)				(40,995,490	)
Increase (Decrease) in net assets resulting from share transactions				63,936,141					21,773,528					(17,654,935	)				(15,425,458	)
Total increase (decrease) in net assets				129,354,604					12,256,811					(7,333,299	)				(1,052,366	)
Net Assets, beginning of period				183,627,038					171,370,227					85,240,393					86,292,759
Net Assets, end of period†			$	312,981,642				$	183,627,038				$	77,907,094				$	85,240,393
† Including undistributed (accumulated) net investment income (loss)			$	(1,538,003	)			$	(1,062,764	)			$	1,232,887				$	166,734
** Shares of Common Stock Issued (no par value)
Shares sold				1,450,000					600,000					—					1,250,000
Shares redeemed				(350,000	)				(50,000	)				(750,000	)				(1,950,000	)
Net increase (decrease)				1,100,000					550,000					(750,000	)				(700,000	)

(a)	Represents consolidated Statement of Changes in Net Assets.

 

See Notes to Financial Statements

 

 

Israel ETF										Poland ETF										Russia ETF
For the										For the Six										For the Six
Six Months					For the Year					Months					For the Year					Months					For the Year
Ended					Ended					Ended					Ended					Ended					Ended
June 30,					December 31,					June 30,					December 31,					June 30,					December 31,
2017					2016					2017					2016					2017					2016
(unaudited)										(unaudited)										(unaudited)
	$	251,202				$	386,671				$	537,935				$	416,387				$	21,942,534				$	45,131,889
		(307,617	)				(1,964,493	)				12,481					(2,767,250	)				63,478,195					(86,162,967	)
		5,372,661					(991,223	)				4,343,845					3,001,150					(340,670,807	)				750,649,448
		5,316,246					(2,569,045	)				4,894,261					650,287					(255,250,078	)				709,618,370
		—					(361,023	)				—					(291,000	)				—					(40,330,100	)
		—					(247,977	)				—					—					—					—
		—					(609,000	)				—					(291,000	)				—					(40,330,100	)
		1,527,410					—					—					606,101					326,282,312					921,711,668
		—					(6,676,532	)				(887,116	)				(2,741,042	)				(740,561,882	)				(721,684,210	)
		1,527,410					(6,676,532	)				(887,116	)				(2,134,941	)				(414,279,570	)				200,027,458
		6,843,656					(9,854,577	)				4,007,145					(1,775,654	)				(669,529,648	)				869,315,728
		36,236,055					46,090,632					13,493,310					15,268,964					2,605,164,802					1,735,849,074
	$	43,079,711				$	36,236,055				$	17,500,455				$	13,493,310				$	1,935,635,154				$	2,605,164,802
	$	206,746				$	(44,456	)			$	657,655				$	119,720				$	22,570,815				$	628,281
		50,000					—					—					50,000					15,350,000					49,250,000
		—					(250,000	)				(50,000	)				(200,000	)				(37,300,000	)				(43,950,000	)
		50,000					(250,000	)				(50,000	)				(150,000	)				(21,950,000	)				5,300,000

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Russia Small-Cap ETF										Vietnam ETF
		For the										For the
		Six Months					For the Year					Six Months					For the Year
		Ended					Ended					Ended					Ended
		June 30,					December 31,					June 30,					December 31,
		2017					2016					2017					2016
		(unaudited)										(unaudited)
Operations:
Net investment income			$	1,045,644				$	1,742,222				$	1,380,814				$	7,064,031
Net realized gain (loss)				13,797,588					10,690,087					(9,056,035	)				(65,082,978	)
Net change in unrealized appreciation (depreciation)				(12,381,972	)				26,575,416					45,595,204					22,722,324
Net increase (decrease) in net assets resulting from operations				2,461,260					39,007,725					37,919,983					(35,296,623	)
Dividends to shareholders:
Dividends from net investment income				—					(1,860,321	)				—					(6,375,900	)
Share transactions:**
Proceeds from sale of shares				10,127,578					19,109,895					25,009,414					11,511,083
Cost of shares redeemed				(49,068,070	)				(2,894,377	)				(15,300,685	)				(91,520,777	)
Increase (Decrease) in net assets resulting from share transactions				(38,940,492	)				16,215,518					9,708,729					(80,009,694	)
Total increase (decrease) in net assets				(36,479,232	)				53,362,922					47,628,712					(121,682,217	)
Net Assets, beginning of period				88,755,236					35,392,314					257,548,855					379,231,072
Net Assets, end of period†			$	52,276,004				$	88,755,236				$	305,177,567				$	257,548,855
† Including undistributed (accumulated) net investment income (loss)			$	868,575				$	(177,069	)			$	381,427				$	(999,387	)
** Shares of Common Stock Issued (no par value)
Shares sold				250,000					650,000					1,800,000					800,000
Shares redeemed				(1,250,000	)				(150,000	)				(1,100,000	)				(6,600,000	)
Net increase (decrease)				(1,000,000	)				500,000					700,000					(5,800,000	)

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Africa Index ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$20.09				$18.11				$26.20				$30.93				$30.77				$26.06
Income from investment operations:
Net investment income			0.28				0.58				0.50				0.64				0.67				1.05
Net realized and unrealized gain (loss) on investments			1.41				1.93				(8.20	)			(4.61	)			0.32				4.72
Total from investment operations			1.69				2.51				(7.70	)			(3.97	)			0.99				5.77
Less:
Dividends from net investment income			—				(0.53	)			(0.39	)			(0.76	)			(0.83	)			(1.06	)
Net asset value, end of period			$21.78				$20.09				$18.11				$26.20				$30.93				$30.77
Total return (a)			8.41	%(b)			13.94	%			(29.41	)%			(12.86	)%			3.24	%			22.15	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$70,770				$66,296					$59,766				$95,645				$108,245				$84,627
Ratio of gross expenses to average net assets			0.91	%(c)			0.83	%			0.82	%			0.80	%			0.93	%			0.91	%
Ratio of net expenses to average net assets			0.89	%(c)			0.79	%			0.79	%			0.80	%			0.81	%			0.80	%
Ratio of net expenses, excluding interest expense, to average net assets			0.78	%(c)			0.78	%(e)			0.78	%			0.78	%			0.78	%			0.78	%
Ratio of net investment income to average net assets			2.73	%(c)			2.85	%			2.05	%			2.00	%			2.35	%			3.63	%
Portfolio turnover rate (d)			12	%(b)			45	%			33	%			30	%			86	%			24	%
		Brazil Small-Cap ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$16.10				$10.44				$21.23				$29.61				$42.20				$36.35
Income from investment operations:
Net investment income			0.28				0.51				0.44				0.88				0.54				0.62
Net realized and unrealized gain (loss) on investments			3.14				5.83				(10.83	)			(8.37	)			(12.58	)			5.88
Total from investment operations			3.42				6.34				(10.39	)			(7.49	)			(12.04	)			6.50
Less:
Dividends from net investment income			—				(0.68	)			(0.40	)			(0.89	)			(0.55	)			(0.62	)
Distributions from net realized capital gains			—				—				—				—				—				(0.03	)
Total dividends and distributions			—				(0.68	)			(0.40	)			(0.89	)			(0.55	)			(0.65	)
Net asset value, end of period			$19.52				$16.10				$10.44				$21.23				$29.61				$42.20
Total return (a)			21.24	%(b)			60.92	%			(48.97	)%			(25.19	)%			(28.58	)%			17.86	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$92,729					$82,898				$65,264				$104,011				$196,891				$552,816
Ratio of gross expenses to average net assets			0.71	%(c)			0.69	%			0.72	%			0.66	%			0.64	%			0.64	%
Ratio of net expenses to average net assets			0.60	%(c)			0.60	%			0.60	%			0.60	%			0.60	%			0.60	%
Ratio of net expenses, excluding interest expense, to average net assets			0.59	%(c)			0.59	%			0.59	%			0.59	%			0.59	%			0.59	%
Ratio of net investment income to average net assets			2.79	%(c)			3.14	%			3.29	%			2.99	%			1.11	%			1.42	%
Portfolio turnover rate (d)			25	%(b)			44	%			57	%			64	%			33	%			76	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(e)	Excludes reimbursement from prior year custodial charge of 0.01%.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		ChinaAMC CSI 300 ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$37.08				$44.76				$46.06				$30.89				$33.17				$30.28
Income from investment operations:
Net investment income (loss)			0.17				0.41				0.45				0.32	(f)			(0.40	)			—	(e)
Net realized and unrealized gain (loss) on investments			5.61				(7.64	)			(0.34	)			14.85				(1.18	)			2.89
Total from investment operations			5.78				(7.23	)			0.11				15.17				(1.58	)			2.89
Less:
Dividends from net investment income			—				(0.15	)			(0.52	)			—				(0.70	)			—
Distributions from net realized capital gains			(0.28	)			(0.28	)			(0.89	)			—				—				—
Return of capital			—				(0.02	)			—				—				—				—
Total dividends and distributions			(0.28	)			(0.45	)			(1.41	)			—				(0.70	)			—
Net asset value, end of period			$42.58				$37.08				$44.76				$46.06				$30.89				$33.17
Total return (b)			14.83	%(d)			(16.16	)%			0.22	%			49.11	%			(4.74	)%			9.54	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$87,280				$85,290				$105,193				$94,414				$29,344				$33,169
Ratio of gross expenses to average net assets			0.90	%(c)			1.06	%			1.20	%			1.69	%			1.14	%			2.21	%
Ratio of net expenses to average net assets			0.74	%(c)			0.71	%			0.75	%			0.72	%			0.72	%			0.72	%
Ratio of net expenses, excluding interest expense, to average net assets			0.72	%(c)			0.72	%(h)			0.72	%			0.72	%			0.72	%			0.72	%
Ratio of net investment income (loss) to average net assets			0.83	%(c)			1.26	%			0.91	%			1.00	%			(0.70	)%			(0.69	)%
Portfolio turnover rate (g)			5	%(d)			50	%			70	%			59	%			0	%			0	%

		ChinaAMC SME-ChiNext ETF
		For the												For the Period
		Six Months												July 23, 2014(a)
		Ended					For the Year Ended							through
		June 30,					December 31,							December 31,
		2017					2016				2015			2014
		(unaudited)
Net asset value, beginning of period			$29.20				$41.74				$28.60				$24.68
Income from investment operations:
Net investment income (loss)			0.08				(0.06	)			(0.10	)			(0.05	)
Net realized and unrealized gain (loss) on investments			2.07				(12.48	)			13.24				3.97
Total from investment operations			2.15				(12.54	)			13.14				3.92
Net asset value, end of period			$31.35				$29.20				$41.74				$28.60
Total return (b)			7.36	%(d)			(30.04	)%			45.94	%			15.88	%(d)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$23,509				$23,357				$56,343				$21,451
Ratio of gross expenses to average net assets			1.40	%(c)			1.16	%			1.11	%			1.48	%(c)
Ratio of net expenses to average net assets			0.80	%(c)			0.81	%			0.79	%			0.78	%(c)
Ratio of net expenses, excluding interest expense, to average net assets			0.78	%(c)			0.78	%			0.78	%			0.78	%(c)
Ratio of net investment income (loss) to average net assets			0.54	%(c)			(0.07	)%			(0.29	)%			(0.73	)%(c)
Portfolio turnover rate (g)			6	%(d)			39	%			160	%			7	%(d)

 

 

(a)	Commencement of operations
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Annualized
(d)	Not Annualized
(e)	Amount represents less than $0.005 per share
(f)	Calculated based upon average shares outstanding
(g)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(h)	Excludes reimbursement from prior year custodial charge of 0.02%.

 

See Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Egypt Index ETF #
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$26.02				$39.01				$59.95				$55.51				$51.00				$38.56
Income from investment operations:
Net investment income			1.00				1.17				0.04				0.53				1.13				3.48
Net realized and unrealized gain (loss) on investments			0.81				(14.16	)			(20.37	)			6.67				4.42				12.68
Total from investment operations			1.81				(12.99	)			(20.33	)			7.20				5.55				16.16
Less:
Dividends from net investment income			—				—				(0.61	)			(2.76	)			(1.04	)			(3.72	)
Net asset value, end of period			$27.83				$26.02				$39.01				$59.95				$55.51				$51.00
Total return (a)			6.96	%(b)			(33.30	)%			(33.89	)%			12.92	%			10.90	%			41.94	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$57,753				$40,985				$26,329				$49,461				$48,571				$36,325
Ratio of gross expenses to average net assets			0.96	%(c)			1.14	%			1.07	%			0.97	%			1.18	%			1.08	%
Ratio of net expenses to average net assets			0.94	%(c)			1.01	%			0.98	%			0.97	%			0.98	%			0.96	%
Ratio of net expenses, excluding interest expense, to average net assets			0.94	%(c)			0.94	%			0.94	%			0.92	%			0.94	%			0.94	%
Ratio of net investment income to average net assets			5.09	%(c)			1.17	%			0.60	%			0.63	%			2.31	%			5.29	%
Portfolio turnover rate (d)			28	%(b)			56	%			57	%			69	%			78	%			50	%
		India Small-Cap Index ETF #
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$41.03				$43.66				$44.53				$31.31				$44.24				$35.28
Income from investment operations:
Net investment income (loss)			(0.04	)			0.39				0.06	(e)			0.37				0.25				0.36
Net realized and unrealized gain (loss) on investments			15.15				(2.45	)			0.42				13.29				(13.04	)			8.64
Total from investment operations			15.11				(2.06	)			0.48				13.66				(12.79	)			9.00
Less:
Dividends from net investment income			—				(0.57	)			(1.35	)			(0.44	)			(0.14	)			(0.04	)
Net asset value, end of period			$56.14				$41.03				$43.66				$44.53				$31.31				$44.24
Total return (a)			36.83	%(b)			(4.70	)%			1.07	%			43.65	%			(28.91	)%			25.54	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$312,982				$183,627				$171,370				$272,745				$110,352				$93,999
Ratio of gross expenses to average net assets			0.71	%(c)			0.78	%			0.78	%			0.92	%			1.39	%			1.68	%
Ratio of net expenses to average net assets			0.71	%(c)			0.78	%			0.78	%			0.89	%			0.93	%			0.91	%
Ratio of net expenses, excluding interest expense, to average net assets			0.69	%(c)			0.78	%(f)			0.75	%			0.85	%			0.85	%			0.85	%
Ratio of net investment income (loss) to average net assets			(0.38	)%(c)			0.96	%			0.13	%			0.82	%			0.73	%			0.28	%
Portfolio turnover rate (d)			28	%(b)			29	%			40	%			120	%			77	%			65	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(e)	Calculated based upon average shares outstanding
(f)	Excludes reimbursement from prior year custodial charge of 0.01%.
(#)	On July 1, 2013, the Fund effected a 1 for 4 reverse share split as described in the Notes to Financial Statements (See Note 10). Per share data has been adjusted to give effect to the share split.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Indonesia Index ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$21.31				$18.36				$24.32				$20.98				$28.63				$28.48
Income from investment operations:
Net investment income			0.34				0.28				0.47				0.53				0.75				0.54
Net realized and unrealized gain (loss) on investments			2.32				2.92				(5.98	)			3.31				(7.68	)			0.12
Total from investment operations			2.66				3.20				(5.51	)			3.84				(6.93	)			0.66
Less:
Dividends from net investment income			—				(0.25	)			(0.45	)			(0.50	)			(0.72	)			(0.51	)
Net asset value, end of period			$23.97				$21.31				$18.36				$24.32				$20.98				$28.63
Total return (a)			12.48	%(c)			17.49	%			(22.69	)%			18.34	%			(24.20	)%			2.31	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$77,907				$85,240				$86,293				$184,831				$183,618				$405,095
Ratio of gross expenses to average net assets			0.71	%(d)			0.68	%			0.72	%			0.66	%			0.67	%			0.65	%
Ratio of net expenses to average net assets			0.57	%(d)			0.58	%			0.58	%			0.58	%			0.57	%			0.59	%
Ratio of net expenses, excluding interest expense, to average net assets			0.57	%(d)			0.57	%			0.57	%			0.57	%			0.57	%			0.58	%
Ratio of net investment income to average net assets			2.48	%(d)			1.05	%			1.65	%			1.80	%			1.95	%			1.70	%
Portfolio turnover rate (b)			5	%(c)			12	%			11	%			12	%			20	%			19	%

		Israel ETF
		For the																For the Period
		Six Months																June 25,
		Ended																2013(e) through
		June 30,					For the Year Ended December 31,											December 31,
		2016					2016				2015				2014			2013
		(unaudited)
Net asset value, beginning of period			$26.84				$28.81				$29.56				$30.04				$25.30
Income from investment operations:
Net investment income			0.18				0.27				0.32				0.31				0.10
Net realized and unrealized gain (loss) on investments			3.75				(1.80	)			(0.69	)			(0.05	)			4.80
Total from investment operations			3.93				(1.53	)			(0.37	)			0.26				4.90
Less:
Dividends from net investment income			—				(0.26	)			(0.38	)			(0.28	)			(0.16	)
Distributions from net realized capital gains			—				—				—				(0.46	)			—
Return of capital			—				(0.18	)			—				—				—
Total dividends and distributions			—				(0.44	)			(0.38	)			(0.74	)			(0.16	)
Net asset value, end of period			$30.77				$26.84				$28.81				$29.56				$30.04
Total return (a)			14.64	%(c)			(5.34	)%			(1.27	)%			0.88	%			19.39	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$43,080				$36,236				$46,091				$44,335				$30,036
Ratio of gross expenses to average net assets			0.92	%(d)			0.92	%			0.85	%			0.76	%			0.94	%(d)
Ratio of net expenses to average net assets			0.59	%(d)			0.60	%			0.59	%			0.60	%			0.59	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			0.59	%(d)			0.59	%			0.59	%			0.59	%			0.59	%(d)
Ratio of net investment income to average net assets			1.28	%(d)			0.94	%			1.04	%			1.03	%			0.83	%(d)
Portfolio turnover rate (b)			15	%(c)			19	%			18	%			17	%			24	%(d)

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(c)	Annualized
(d)	Not Annualized
(e)	Commencement of operations

 

See Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Poland ETF
		For the Six Months Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$13.49				$13.28				$17.99				$22.60				$22.25				$17.24
Income from investment operations:
Net investment income			0.60				0.42				0.45				0.80				0.74				0.84
Net realized and unrealized gain (loss) on investments			4.36				0.08				(4.72	)			(4.61	)			0.36				4.99
Total from investment operations			4.96				0.50				(4.27	)			(3.81	)			1.10				5.83
Less:
Dividends from net investment income			(0.03	)			(0.29	)			(0.44	)			(0.80	)			(0.75	)			(0.82	)
Net asset value, end of period			$18.42				$13.49				$13.28				$17.99				$22.60				$22.25
Total return (a)			36.81	%(b)			3.60	%			(23.85	)%			(16.90	)%			4.92	%			33.82	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$17,500				$13,493				$15,269				$18,886				$30,514				$32,266
Ratio of gross expenses to average net assets			1.22	%(c)			1.30	%			1.11	%			0.99	%			1.07	%			1.03	%
Ratio of net expenses to average net assets			0.64	%(c)			0.60	%			0.60	%			0.60	%			0.61	%			0.61	%
Ratio of net expenses, excluding interest expense, to average net assets			0.60	%(c)			0.60	%			0.60	%			0.60	%			0.61	%			0.60	%
Ratio of net investment income to average net assets			6.73	%(c)			2.98	%			2.69	%			2.91	%			3.31	%			3.79	%
Portfolio turnover rate (d)			9	%(b)			18	%			30	%			19	%			21	%			20	%
		Russia ETF
		For the Six Months Ended
		June 30,						For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$21.09				$14.69				$15.17				$28.69				$29.63				$26.32
Income from investment operations:
Net investment income			0.22				0.38				0.50				0.59				0.80				0.73
Net realized and unrealized gain (loss) on investments			(2.24	)			6.36				(0.46	)			(13.45	)			(1.00	)			3.31
Total from investment operations			(2.02	)			6.74				0.04				(12.86	)			(0.20	)			4.04
Less:
Dividends from net investment income			(0.01	)			(0.34	)			(0.52	)			(0.66	)			(0.74	)			(0.73	)
Net asset value, end of period			$19.06				$21.09				$14.69				$15.17				$28.69				$29.63
Total return (a)			(9.60	)%(b)			45.91	%			0.39	%			(44.95	)%			(0.65	)%			15.35	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$1,935,635				$2,605,165				$1,735,849				$1,541,945				$1,187,720				$1,634,230
Ratio of gross expenses to average net assets			0.69	%(c)			0.79	%			0.72	%			0.61	%			0.71	%			0.63	%
Ratio of net expenses to average net assets			0.65	%(c)			0.65	%			0.63	%			0.61	%			0.63	%			0.62	%
Ratio of net expenses, excluding interest expense and, depository receipt fees (e), to average net assets			0.65	%(c)			0.65	%			0.62	%			0.61	%			0.62	%			0.62	%
Ratio of net investment income to average net assets			1.79	%(c)			2.48	%			2.98	%			3.92	%			2.52	%			2.28	%
Portfolio turnover rate (d)			7	%(b)			22	%			33	%			23	%			27	%			41	%

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(e)	Effective May 1, 2016, the Fund excludes depository receipt fees in excess of 0.10% of average daily net assets (See Note 3).

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Russia Small-Cap ETF #
		For the Six Months Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$38.04				$19.31				$19.60				$42.24				$45.15				$47.58
Income from investment operations:
Net investment income			0.76				0.77				0.38				0.91				0.30				0.72
Net realized and unrealized gain (loss) on investments			0.44				18.77				(0.29	)			(23.14	)			(2.01	)			(2.22	)
Total from investment operations			1.20				19.54				0.09				(22.23	)			(1.71	)			(1.50	)
Less:
Dividends from net investment income			(0.03	)			(0.81	)			(0.38	)			(0.41	)			(1.20	)			(0.93	)
Net asset value, end of period			$39.21				$38.04				$19.31				$19.60				$42.24				$45.15
Total return (a)			3.17	%(b)			101.07	%			0.48	%			(52.67	)%			(3.77	)%			(3.17	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$52,276				$88,755				$35,392				$53,573				$16,191				$8,276
Ratio of gross expenses to average net assets			0.80	%(c)			0.86	%			1.19	%			0.95	%			1.87	%			2.21	%
Ratio of net expenses to average net assets			0.76	%(c)			0.75	%			0.69	%			0.68	%			0.67	%			0.71	%
Ratio of net expenses, excluding interest expense and, Depository receipt fees (e), to average net assets			0.75	%(c)			0.73	%			0.67	%			0.67	%			0.67	%			0.67	%
Ratio of net investment income to average net assets			2.69	%(c)			3.28	%			1.58	%			2.42	%			0.59	%			1.63	%
Portfolio turnover rate (d)			21	%(b)			72	%			30	%			32	%			74	%			67	%
		Vietnam ETF
		For the Six Months Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$12.97				$14.78				$18.84				$18.63				$17.06				$14.76
Income from investment operations:
Net investment income			0.07				0.37				0.55				0.51				0.59				0.35
Net realized and unrealized gain (loss) on investments			1.81				(1.81	)			(4.11	)			0.21				1.58				2.32
Total from investment operations			1.88				(1.44	)			(3.56	)			0.72				2.17				2.67
Less:
Dividends from net investment income			—				(0.37	)			(0.50	)			(0.49	)			(0.60	)			(0.37	)
Return of capital			—				—				—				(0.02	)			—				—
Total dividends			—				(0.37	)			(0.50	)			(0.51	)			(0.60	)			(0.37	)
Net asset value, end of period			$14.85				$12.97				$14.78				$18.84				$18.63				$17.06
Total return (a)			14.49	%(b)			(9.78	)%			(18.87	)%			3.95	%			12.75	%			18.07	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$305,178				$257,549				$379,231				$468,233				$372,634				$286,672
Ratio of gross expenses to average net assets			0.68	%(c)			0.66	%			0.67	%			0.66	%			0.72	%			0.76	%
Ratio of net expenses to average net assets			0.68	%(c)			0.66	%			0.67	%			0.66	%			0.72	%			0.76	%
Ratio of net expenses, excluding interest expense, to average net assets			0.65	%(c)			0.63	%			0.65	%			0.65	%			0.70	%			0.74	%
Ratio of net investment income to average net assets			0.97	%(c)			2.14	%			3.29	%			2.32	%			2.98	%			2.08	%
Portfolio turnover rate (d)			26	%(b)			47	%			67	%			67	%			48	%			54	%

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(e)	Effective May 1, 2016 the Fund excludes depository receipt fees in excess of 0.08% of average daily net assets (See Note 3).
(#)	On July 1, 2013, the Fund effected a 1 for 3 reverse share split as described in the Notes to Financial Statements (See Note 10). Per share data has been adjusted to give effect to the share split.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

June 30, 2017 (unaudited)

 

Note 1—Fund Organization—VanEck Vectors ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and as of June 30, 2017, offers fifty-nine investment portfolios, each of which represents a separate series of the Trust.

 

These financial statements relate only to the following investment portfolios: Africa Index ETF, Brazil Small-Cap ETF, ChinaAMC CSI 300 ETF, ChinaAMC SME-ChiNext ETF, Egypt Index ETF, India Small-Cap Index ETF, Indonesia Index ETF, Israel ETF, Poland ETF, Russia ETF, Russia Small-Cap ETF and Vietnam ETF (each a “Fund” and, together, the “Funds”). China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) is the sub-adviser to ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF. ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF seek to achieve their investment objective by primarily investing directly in A-shares through the Hong Kong-Shanghai Stock Connect program and via the A-share quota granted to the Sub-Adviser. India Small-Cap Index ETF makes its investments through the India Small-Cap Mauritius Fund (the “Subsidiary”), a wholly owned subsidiary organized in the Republic of Mauritius. Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in substantially the same weighting, in an index published by the China Securities Index Co. Ltd., BlueStar Global Investors LLC or MV Index Solutions GmbH, a wholly owned subsidiary of Van Eck Associates Corporation (the “Adviser”).

 

The Funds’ commencement of operations dates and their respective indices are presented below:

 

Fund		Commencement of Operations		Index
Africa Index ETF		July 10, 2008		MVISTM GDP Africa Index*
Brazil Small-Cap ETF		May 12, 2009		MVISTM Brazil Small-Cap Index*
ChinaAMC CSI 300 ETF		October 13, 2010		CSI 300 Index
ChinaAMC SME-ChiNext ETF		July 23, 2014		SME-ChiNext 100 Index
Egypt Index ETF		February 16, 2010		MVISTM Egypt Index*
India Small-Cap Index ETF		August 24, 2010		MVISTM India Small-Cap Index*
Indonesia Index ETF		January 15, 2009		MVISTM Indonesia Index*
Israel ETF		June 25, 2013		BlueStar Israel Global IndexTM
Poland ETF		November 24, 2009		MVISTM Poland Index*
Russia ETF		April 24, 2007		MVISTM Russia Index*
Russia Small-Cap ETF		April 13, 2011		MVISTM Russia Small-Cap Index*
Vietnam ETF		August 11, 2009		MVISTM Vietnam Index*

 

*	Published by MV Index Solutions GmbH.

 

Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

 

The Funds are investment companies and are following accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946 Financial Services—Investment Companies.

 

The following is a summary of significant accounting policies followed by the Funds.

 

A.

Security Valuation—The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing price. Over-the-counter securities not included in the NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Standard Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Fund is open. Debt securities are valued on the basis of evaluated prices furnished by an independent pricing service approved by the Funds’ Board of Trustees or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date and/or (ii) quotations from bond dealers to determine current value and are categorized as Level 2 in the fair value hierarchy. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are considered to be Level 1 in the fair value hierarchy. The Pricing Committee of the Adviser provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset is not readily available, or if the Adviser believes it does not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis.

 

Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments.

 

The Funds utilize various methods to measure the fair value of their investments on a recurring basis which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The transfers between levels of the fair value hierarchy assume the financial instruments were transferred at the beginning of the reporting period. The three levels of the fair value hierarchy are described below:

 

Level 1—Quoted prices in active markets for identical securities.

 

Level 2—Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

Level 3—Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

 

A summary of the inputs, the levels used to value the Funds’ investments, and transfers between levels are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments.

 

B.

Basis for Consolidation—The Subsidiary, an Indian exempted company, was incorporated on February 25, 2010 and acts as an investment vehicle for the India Small-Cap Index ETF (the “SCIF”) in order to effect certain investments on behalf of the SCIF. The SCIF is the sole shareholder of the Subsidiary, and it is intended that the SCIF will remain the sole shareholder and will continue to control the Subsidiary. The consolidated financial statements of the SCIF include the financial results of its wholly owned subsidiary. All material interfund account balances and transactions have been eliminated in consolidation.

 

C.	Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
D.	Dividends and Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP.
E.	Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations.
F.	Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments.
G.	Repurchase Agreements—The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Adviser, to generate income from their excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Fund acquires securities from a seller, subject to resale to the seller at an agreed upon price and date. A Fund, through its custodian/securities lending agent, takes possession of securities collateralizing the repurchase agreement. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain their right to sell the underlying securities at market value and may claim any resulting loss against the seller. Repurchase agreements held as of June 30, 2017 are reflected in the Schedules of Investments.
H.	Use of Derivative Instruments—The Funds may make investments in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the Adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instruments. The Funds held no derivative instruments during the period ended June 30, 2017.
I.	Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of setoff in those agreements allows the Funds to set off any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and/or securities as collateral for derivative instruments, securities lending and repurchase agreements. For financial reporting purposes,

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

	the Funds present securities lending and repurchase agreement assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Collateral held at June 30, 2017 is presented in the Schedules of Investments. Refer to related disclosures in Note 2G (Repurchase Agreements) and Note 9 (Securities Lending).
J.	Other—Security transactions are accounted for on trade date. Realized gains and losses are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date/rate. Interest income, including amortization of premiums and discounts, is accrued as earned.
	In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.
	At June 30, 2017, ChinaAMC CSI 300 and ChinaAMC SME-ChiNext included $10,890 and $7,249, respectively, in cash denominated in foreign currency, at value on the Statements of Assets and Liabilities, which represents foreign investor minimum settlement reserve funds required by China Securities Depository and Clearing Corporation Limited.

 

Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.50% of each Fund’s average daily net assets. The Adviser has agreed, until at least May 1, 2018, to waive management fees and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses; and for Russia ETF and Russia Small-Cap ETF, depositary receipt fees up to 0.10% and 0.08% of average daily net assets, respectively) from exceeding the expense limitations as listed in the table below.

 

The current expense limitations and the amounts waived/assumed by the Adviser for the period ended June 30, 2017, are as follows:

 

Fund		Expense Limitation				Waiver of Management Fees				Expenses Assumed by the Adviser
Africa Index ETF			0.78	%		$	6,647			$	—
Brazil Small-Cap ETF			0.59				51,845				—
ChinaAMC CSI 300 ETF*			0.72				69,938				—
ChinaAMC SME-ChiNext ETF*			0.78				58,756				11,216
Egypt Index ETF			0.94				3,423				—
India Small-Cap Index ETF			0.85				—				—
Indonesia Index ETF			0.57				59,186				—
Israel ETF			0.59				64,905				—
Poland ETF			0.60				39,891				6,107
Russia ETF			0.62				456,109				—
Russia Small-Cap ETF			0.67				15,135				—
Vietnam ETF			0.76				—				—

 

*	The Adviser paid sub-advisory fees directly to the Sub-Adviser.

 

In addition, Van Eck Securities Corporation (“the Distributor”), an affiliate of the Adviser, acts as the Funds’ distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.

 

 

Note 4—Investments—For the period ended June 30, 2017, the cost of purchases and proceeds from sales of investments other than U.S. government obligations and short-term obligations (excluding in-kind transactions described in Note 6) were as follows:

 

Fund		Cost of Investments Purchased				Proceeds from Investments Sold
Africa Index ETF		$	8,208,697			$	8,253,277
Brazil Small-Cap ETF			24,391,406				29,861,669
ChinaAMC CSI 300 ETF			4,820,417				14,300,128
ChinaAMC SME-ChiNext ETF			1,506,663				3,019,016
Egypt Index ETF			21,340,314				14,253,446
India Small-Cap Index ETF			137,258,920				69,381,396
Indonesia Index ETF			5,789,688				4,439,819
Israel ETF			6,224,994				6,104,076
Poland ETF			2,064,674				1,495,694
Russia ETF			169,006,041				186,989,826
Russia Small-Cap ETF			16,266,520				27,757,619
Vietnam ETF			82,776,325				74,205,581

 

Note 5—Income Taxes—As of June 30, 2017, for Federal income tax purposes, the identified cost of investments owned, net unrealized appreciation (depreciation), gross unrealized appreciation, and gross unrealized depreciation of investments were as follows:

 

Fund		Cost of Investments				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Appreciation (Depreciation)
Africa Index ETF		$	64,428,127			$	14,107,268			$	(6,790,146	)		$	7,317,122
Brazil Small-Cap ETF			84,508,363				21,762,742				(13,551,982	)			8,210,760
ChinaAMC CSI 300 ETF			77,506,107				17,212,128				(7,232,604	)			9,979,524
ChinaAMC SME-ChiNext ETF			21,242,289				5,722,389				(3,367,454	)			2,354,935
Egypt Index ETF			61,803,634				4,641,549				(8,215,309	)			(3,573,760	)
India Small-Cap Index ETF			268,393,029				72,989,347				(23,513,950	)			49,475,397
Indonesia Index ETF			89,029,297				8,085,459				(19,218,110	)			(11,132,651	)
Israel ETF			44,992,447				7,049,599				(7,261,917	)			(212,318	)
Poland ETF			20,460,820				2,507,991				(3,878,963	)			(1,370,972	)
Russia ETF			2,252,327,174				112,535,088				(419,949,239	)			(307,414,151	)
Russia Small-Cap ETF			56,547,615				5,664,388				(9,976,501	)			(4,312,113	)
Vietnam ETF			304,164,760				53,505,566				(52,229,197	)			1,276,369

 

The tax character of dividends and distributions paid to shareholders during the year ended December 31, 2016 was as follows:

 

Fund		Ordinary Income				Long-Term Capital Gains				Return of Capital
Africa Index ETF		$	1,742,400			$	—			$	—
Brazil Small-Cap ETF			3,582,800				—				—
ChinaAMC CSI 300 ETF			401,102	*			584,046				45,252
India Small-Cap Index ETF			2,532,831				—				—
Indonesia Index ETF			988,000				—				—
Israel ETF			361,023				—				247,977
Poland ETF			291,000				—				—
Russia ETF			40,330,100				—				—
Russia Small-Cap ETF			1,860,321				—				—
Vietnam ETF			6,375,900				—				—

 

*	Includes short-term capital gains

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

The tax character of current year distributions will be determined at the end of the current fiscal year.

 

Qualified late year losses incurred after October 31, 2016 and within the taxable year, are deemed to arise on the first day of the Funds’ next taxable year. For the year ended December 31, 2016, the Funds have deferred qualified late year losses to January 1, 2017 for federal tax purposes as follows:

 

Fund		Late-Year Ordinary Losses
Africa Index ETF		$	376,256
ChinaAMC CSI 300 ETF			46,852
ChinaAMC SME-ChiNext ETF			1,902
Egypt Index ETF			1,993,843
India Small-Cap Index ETF			723,328
Vietnam ETF			352,196

 

At December 31, 2016, the Funds had capital loss carryforwards available to offset future capital gains, as follows:

 

		Post-Effective-				Post-Effective-
		No Expiration				No Expiration				Amount Expiring in
		Short-Term				Long-Term				the Year Ended December 31,
Fund		Capital Losses				Capital Losses				2018				2017
Africa Index ETF		$	9,465,262			$	45,726,686			$	1,095,985			$	951,177
Brazil Small-Cap ETF			27,517,893				152,760,433				—				—
ChinaAMC CSI 300 ETF			1,625,261				—				—				—
ChinaAMC SME-ChiNext ETF			6,389,337				1,179,822				—				—
Egypt Index ETF			11,833,036				16,194,085				128,400				—
India Small-Cap Index ETF			34,949,461				2,018,000				—				—
Indonesia Index ETF			36,729,289				60,740,613				2,845,870				—
Israel ETF			875,735				2,386,023				—				—
Poland ETF			2,868,435				14,313,467				171,326				—
Russia ETF			229,409,942				997,307,007				121,306,708				349,754,000
Russia Small-Cap ETF			5,048,850				2,925,476				—				—
Vietnam ETF			62,814,041				171,290,225				1,860,199				—

 

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. The Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.

 

The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2017, the Funds did not incur any interest or penalties.

 

Uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-Shares could result in unexpected tax liabilities for the ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF. China generally imposes withholding income tax (“WHT”) at a rate of 10% on dividends and interest (excluding government bond interest) derived by non-PRC resident enterprises (including a Qualified Foreign Institutional Investor (“QFII”) and a Renminbi Qualified Foreign Institutional Investor (“RQFII”)) from issuers resident in China. China also imposes WHT at a rate of 10% on capital gains derived by non-PRC resident enterprises from the disposal in shares of PRC enterprises. Effective November 17, 2014, investments through the Hong Kong-Shanghai Stock Connect program, QFIIs and RQFIIs, which includes these Funds, are exempted temporarily from WHT with respect to gains derived from the trading of equity investments (including A-shares).

 

The Finance Act, 2012 introduced a general anti-avoidance rule (“GAAR”), which became effective April 1, 2017. GAAR is applicable where the main purpose of an arrangement is tax avoidance and empowers Indian tax authorities to declare such an arrangement as an impermissible avoidance arrangement.

 

 

Additionally, on May 10, 2016, the Governments of India and Mauritius signed the Protocol for amending the tax treaty between India and Mauritius. The renegotiation of the Treaty clarifies the applicability of GAAR to a Mauritius subsidiary deemed a tax resident of Mauritius. As per the Protocol, India commenced taxation on capital gains arising from disposition of shares acquired on or after April 1, 2017 in a company resident in India, with shares acquired on or before March 31, 2017 being grandfathered as exempt from capital gains taxation. The Protocol could reduce the return to the Fund on its investments made after April 1, 2017 and the return received by Fund shareholders.

 

Note 6—Capital Share Transactions—As of June 30, 2017, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”), consisting of 50,000 shares or multiples thereof.

 

The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit at the Custodian for the benefit of the Funds, collateral consisting of cash in the form of U.S. dollars at least equal to 115% of the daily marked to market value of the missing Deposit Securities.

 

Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to The Bank of New York Mellon. In addition, the Funds may impose certain variable fees for creations and redemptions with respect to transactions in Creation Units for cash, or on transactions effected outside the clearing process, which are treated as increases in capital. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.

 

For the year ended June 30, 2017, the Funds had in-kind contributions and redemptions as follows:

 

Fund		In-Kind Contributions				In-Kind Redemptions
Africa Index ETF		$	—			$	742,072
Brazil Small-Cap ETF			334,941				974,458
ChinaAMC CSI 300 ETF			—				—
ChinaAMC SME-ChiNext ETF			—				—
Egypt Index ETF			5,216,402				881,995
India Small-Cap Index ETF			474,352				163,420
Indonesia Index ETF			—				17,635,567
Israel ETF			1,526,850				—
Poland ETF			—				886,939
Russia ETF			285,839,133				650,875,332
Russia Small-Cap ETF			6,772,199				33,522,648
Vietnam ETF			3,203,635				2,239,229

 

The in-kind contributions and in-kind redemptions in this table represent the accumulation of each Fund’s daily net shareholder transactions including rebalancing activity, while the Statements of Changes in Net Assets reflect shareholder transactions including any cash component of the transactions.

 

Note 7—Concentration of Risk—The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The Adviser uses a “passive” or index approach to achieve each Fund’s investment objective by investing in a portfolio of securities that generally replicates the Funds’ index. Each of the Funds (except Africa Index ETF, Brazil Small-Cap ETF, ChinaAMC CSI 300 ETF and India Small-Cap Index ETF) is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse political and economic developments and local/regional conflicts. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers. In addition, for Africa Index ETF and Egypt Index ETF there may be limitations or delays in the convertibility or repatriation of certain African currencies, which would adversely affect the U.S. dollar value and/or liquidity of the Fund’s investments denominated in such African currencies, may impair the Fund’s ability to achieve its investment objective and/or may impede the Fund’s ability to satisfy redemption requests in timely manner.

 

As a result of events involving Ukraine and the Russian Federation, the United States and the European Union (“EU”) have imposed sanctions on certain Russian individuals and companies. These sanctions do not currently impact the Funds. Additional economic sanctions may be imposed or other actions may be taken that may adversely affect the value and liquidity of the Russian-related issuers’ held by Russia ETF and Russia Small-Cap ETF.

 

In March 2017, the United Kingdom triggered Article 50, and is now scheduled to leave the EU by the end of March 2019. There is uncertainty on exactly how the withdrawal will take place and the terms of the Brexit deal. This may further impact the value of the Euro and the British pound sterling, and has caused volatility and uncertainty in European and global markets.

 

Should the Chinese government impose restrictions on the ability of ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF to repatriate funds associated with direct investment in A-Shares, the Funds may be unable to satisfy distribution requirements applicable to regulated investment companies (“RICs”) under the Internal Revenue Code of 1986, as amended, and the Funds may therefore be subject to Fund-level U.S. federal taxes.

 

A more complete description of risks is included in each Fund’s prospectus and Statement of Additional Information.

 

Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.

 

The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.

 

Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with The Bank of New York Mellon, the securities lending agent and also the Funds’ custodian. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value plus accrued interest on the securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and/or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. The Funds may pay reasonable finders’, administrative and custodial fees in connection with a loan of its securities. Securities lending income is disclosed as such in the Statements of Operations. The collateral for securities loaned is recognized in the Schedules of Investments and the Statements of Assets and Liabilities. The cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in repurchase agreements collateralized by obligations of the U.S. Treasury and/or Government Agencies. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related collateral outstanding at June 30, 2017 are presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities.

 

The following table presents the amount of repurchase agreements held as collateral by type of security on loan pledged as of June 30, 2017:

 

 

		Gross Amount of Recognized
		Liabilities for Securities
		Loaned in the Statements
		of Assets and Liabilities*
Fund		Equity Securities
Africa Index ETF		$	1,155,415
Brazil Small-Cap ETF			2,320
Egypt Index ETF			54,688
Israel ETF			1,688,381
Poland ETF			1,610,941
Vietnam ETF			1,093,729

 

*	Remaining contractual maturity of the agreements: overnight and continuous

 

Note 10—Share Split—On July 1, 2013, the Board of Trustees of the Trust approved a 1 for 3 reverse share split for Russia Small-Cap ETF, and 1 for 4 reverse share splits for Egypt Index ETF and India Small-Cap Index ETF. Fund shares began trading on the split adjusted NAV on July 1, 2013. The Financial Highlights prior to July 1, 2013 for the Funds have been adjusted to reflect these reverse share splits.

 

Note 11—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2017, the following Funds borrowed under this Facility:

 

														Outstanding Loan
		Days				Average Daily				Average				Balance as of
Fund		Outstanding				Loan Balance				Interest Rate				June 30, 2017
Africa Index ETF			181			$	3,348,676				2.22	%		$	1,117,811
Brazil Small-Cap ETF			137				290,949				2.21				457,112
ChinaAMC CSI 300 ETF			178				885,325				2.22				2,772,052
ChinaAMC SME-ChiNext ETF			150				235,604				2.21				409,149
Egypt Index ETF			36				462,979				2.29				—
India Small-Cap Index ETF			107				2,271,051				2.26				4,237,424
Indonesia Index ETF			24				262,285				2.38				—
Israel ETF			34				185,642				2.33				—
Poland ETF			175				254,614				2.23				650,488
Russia ETF			84				8,124,104				2.29				23,714,226
Russia Small-Cap ETF			62				310,922				2.27				261,840
Vietnam ETF			160				3,782,556				2.25				1,298,794

 

Note 12—Custodian Fees—The Funds have entered into an expense offset agreement with the custodian wherein they receive a credit toward the reduction of custodian fees whenever there are uninvested cash balances. The Funds could have invested their cash balances elsewhere if they had not agreed to a reduction in fees under the expense offset agreement with the custodian. For the period ended June 30, 2017, there were offsets to custodian fees and these amounts are reflected in custody expense in the Statements of Operations.

 

Note 13—Recent Accounting Pronouncements and Regulatory Requirements—In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management has evaluated the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures. Any required changes will be implemented for interim and annual periods after August 1, 2017.

 

Note 14—Subsequent Event Review—The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2017 (unaudited)

 

At a meeting held on June 9, 2017 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck Vectors^® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Vectors Africa Index ETF, Agribusiness ETF, Agriculture Producers ETF, Brazil Small-Cap ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, ChinaAMC CSI 300 ETF, ChinaAMC Environmental Protection ETF, ChinaAMC Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, ChinaAMC SME-ChiNext ETF, Coal ETF, Egypt Index ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Alternative Energy ETF, Global Frontier Index ETF, Gold Miners ETF, Hard Assets Producers Extra Liquid ETF, India Small-Cap Index ETF, Indonesia Index ETF, Internet ETF, Israel ETF, Junior Gold Miners ETF, Kuwait Index ETF, Metals ETF, MLP ETF, Mongolia ETF, Natural Resources ETF, Ned Davis Long/Flat International Equity ETF, Ned Davis Long/Flat US Equity ETF, Ned Davis Long/Flat US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Oil Refiners ETF, Oil Services ETF, Poland ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF, Solar Energy ETF, Steel ETF, Telecom ETF, Unconventional Oil & Gas ETF, Uranium+Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck Vectors ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF (the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”

 

The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.

 

In preparation for the Renewal Meeting, the Trustees held a meeting on May 8, 2017. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance (for those Funds which had begun operations) and expenses of the Funds and the Funds’ peer funds (other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund except for the VanEck Vectors ChinaAMC CSI 300 ETF generally invests in a different group of issuers than the funds in its designated peer group. In addition, as noted below, the Trustees reviewed certain performance information for each Fund that was not provided by Broadridge. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds.

 

The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 8, 2017 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds to the extent necessary to prevent the operating expenses of each of the Funds from exceeding

 

 

agreed upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Institutional Investors Scheme funds. The Trustees also noted that the Sub-Adviser is a wholly-owned subsidiary of China Asset Management Co. Ltd., China’s largest asset management company measured by fund assets under management.

 

The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance over relevant periods of each of the Funds that had commenced operations prior to the date of the Renewal Meeting (the “Operating Funds”), the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Operating Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Operating Funds was satisfactory.

 

The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.

 

As noted above, the Trustees were also provided various data from Broadridge comparing the Operating Funds’ expenses and performance to that of other ETFs. The Trustees noted that the information provided showed that each Operating Fund had management fees (after the effect of any applicable fee waiver) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Agribusiness ETF, Coal ETF, Global Alternative Energy ETF, Russia ETF, Russia Small-Cap ETF and Steel ETF, which had management fees (after the effect of any applicable fee waiver) greater than the average and/or the median, of its peer group of funds. The Trustees also noted that the information provided showed that each Operating Fund had a total expense ratio (after the effect of any applicable expense limitation) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Africa Index ETF, ChinaAMC SME-ChiNext ETF, Egypt Index ETF, Global Alternative Energy ETF, Israel ETF, Rare Earth/Strategic Metals ETF, Russia Small-Cap ETF, Solar Energy ETF, Steel ETF, Unconventional Oil & Gas ETF and Vietnam ETF, which had a total expense ratio (after the effect of any applicable expense limitation) greater than the average and/or median of its peer group of funds. With respect to these Operating Funds, the Trustees reviewed the amount by which these Operating Funds’ management fees and/or total expense ratios (after the effect of any applicable expense limitation) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Operating Funds were reasonable in light of the performance of the Operating Funds and the quality of services received.

 

The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds.

 

The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Operating Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Operating Funds invest, potential variability in the net assets of these Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Operating Funds effectively incorporate the benefits of economies of scale. The Trustees noted that the Adviser has capped expenses on each Operating Fund since its inception. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the profits earned by the Adviser with respect to the Funds that were profitable to the Adviser

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2017 (unaudited) (continued)

 

were reasonable in light of the nature and quality of the services received by such Funds. Due to the relatively small size of the China Funds during the period, the Sub-Adviser did not provide the Trustees with profitability information and, therefore, the Trustees did not consider such information.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability to the Adviser of VanEck Vectors Agriculture Producers ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, ChinaAMC Environmental Protection ETF, ChinaAMC Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Frontier Index ETF, Hard Assets Producers Extra Liquid ETF, Internet ETF, Kuwait Index ETF, Metals ETF, MLP ETF, Mongolia ETF, Ned Davis Long/Flat International Equity ETF, Ned Davis Long/Flat US Equity ETF, Ned Davis Long/Flat US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF and Telecom ETF because the Funds had not yet commenced operations at the time of the Renewal Meeting. The Trustees could not consider the historical performance or the quality of services previously provided to each of these Funds although they concluded that the nature, quality and extent of the services to be provided by the Adviser (and the Sub-Adviser, with respect to those Funds in respect of which the Sub-Adviser had been retained) were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.

 

The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 8, 2017 meeting as part of their consideration of the Agreements.

 

In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that each Agreement is in the best interest of each Fund and such Fund’s shareholders.

 

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a VanEck Vectors ETF Trust (the “Trust”) Prospectus, which includes more complete information. An investor should consider the investment objective, risks, and charges and expenses of the Funds carefully before investing. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing.

 

Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at https://www.sec.gov.

 

The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Form N-Qs are available on the Commission’s website at https://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.

 

 

Investment Adviser:	Van Eck Associates Corporation
Distributor:	Van Eck Securities Corporation 666 Third Avenue, New York, NY 10017 vaneck.com
Account Assistance:	800.826.2333	INTLSAR

SEMI-ANNUAL REPORT June 30, 2017 (unaudited)

 

VANECK VECTORS®
Agribusiness ETF	MOO®
Coal ETF	KOL®
Global Alternative Energy ETF	GEX®
Gold Miners ETF	GDX®
Junior Gold Miners ETF	GDXJ®
Natural Resources ETF	HAP®
Oil Refiners ETF	CRAK®
Oil Services ETF	OIH®
Rare Earth/Strategic Metals ETF	REMX®
Solar Energy ETF	KWT®
Steel ETF	SLX®
Unconventional Oil & Gas ETF	FRAK®
Uranium+Nuclear Energy ETF	NLR®

 

800.826.2333	vaneck.com

 

 

President’s Letter	1
Management Discussion	3
Performance Comparison
Agribusiness ETF	7
Coal ETF	7
Global Alternative Energy ETF	7
Gold Miners ETF	8
Junior Gold Miners ETF	8
Natural Resources ETF	8
Oil Refiners ETF	9
Oil Services ETF	9
Rare Earth/Strategic Metals ETF	9
Solar Energy ETF	10
Steel ETF	10
Unconventional Oil & Gas ETF	10
Uranium+Nuclear Energy ETF	11
Explanation of Expenses	13
Schedule of Investments	15
Agribusiness ETF	15
Coal ETF	18
Global Alternative Energy ETF	20
Gold Miners ETF	22
Junior Gold Miners ETF	26
Natural Resources ETF	30
Oil Refiners ETF	36
Oil Services ETF	38
Rare Earth/Strategic Metals ETF	40
Solar Energy ETF	42
Steel ETF	44
Unconventional Oil & Gas ETF	46
Uranium+Nuclear Energy ETF	48
Statements of Assets and Liabilities	50
Statements of Operations	52
Statements of Changes in Net Assets	54
Financial Highlights	60
Agribusiness ETF	60
Coal ETF	60
Global Alternative Energy ETF	61
Gold Miners ETF	61
Junior Gold Miners ETF	62
Natural Resources ETF	62
Oil Refiners ETF	63
Oil Services ETF	63
Rare Earth/Strategic Metals ETF	64
Solar Energy ETF	64
Steel ETF	65
Unconventional Oil & Gas ETF	65
Uranium+Nuclear Energy ETF	66
Notes to Financial Statements	67
Approval of Investment Management Agreements	76

 

The information contained in this report represents the opinions of VanEck and may differ from other persons. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. The information contained herein regarding each index has been provided by the relevant index provider. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings and the Funds’ performance, and the views of VanEck are as of June 30, 2017.

VANECK VECTORS ETFs

June 30, 2017 (unaudited)

 

Dear Shareholder:

 

2016 saw crude oil prices rising fitfully but decisively during the year. The first six months of 2017 saw a significant reversal. We continue to believe, however, that we are in a commodities bull market and that the current doldrums, especially for crude oil, are indicative of an early pause/correction in that market.

 

We also continue to believe that commodity markets, and especially the crude oil market, are rebalancing. Demand for oil remains robust, but, after the huge capex cuts that oil producers have been forced to make over the past several years, the longer-term outlook for supply looks anything but rosy.

 

 

 

Source: FactSet as of June 30, 2017. WTI = West Texas Intermediate. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.

 

Depending upon their particular outlooks, investors with a focus on energy will find that a number of funds in the suite of VanEck Vectors Hard Assets ETFs may offer interesting opportunities.

 

For those with a bullish outlook, there are two funds in particular that should be considered: VanEck Vectors Oil Services ETF (NYSE Arca: OIH) and VanEck Vectors Unconventional Oil & Gas ETF (NYSE Arca: FRAK). For those who might take a contrarian view there is VanEck Vectors Oil Refiners ETF (NYSE Arca: CRAK).

 

Three other ETFs provide alternative energy exposure: VanEck Vectors Uranium+Nuclear Energy ETF (NYSE Arca: NLR), VanEck Vectors Global Alternative Energy ETF (NYSE Arca: GEX), and VanEck Vectors Solar Energy ETF (NYSE Arca: KWT). In the first six months of 2017, GEX and KWT were the top two performers in the suite of funds, with GEX posting a return of 17.56% and KWT a return of 15.27% for the period.

 

Going forward, we will, of course, continue to seek out and evaluate the most attractive opportunities for you as a shareholder in the hard assets space.

 

Access investment and market insights from VanEck’s investment professionals by subscribing to our commentaries. To subscribe to the natural resources and commodities updates, please contact us at 800.826.2333 or visit vaneck.com/subscription/ to register.

VANECK VECTORS ETFs

(unaudited) (continued)

 

On the following pages, you will find the performance record of each of the funds for the period ended June 30, 2017. You will also find their financial statements. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.

 

 

 

Jan F. van Eck
Trustee and President
VanEck Vectors ETF Trust

 

July 19, 2017

 

Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.

 

 

Management Discussion (unaudited)

 

Hard Assets Market Overview

 

The VanEck^® Natural Resources Index (RVEIT)^‡ tracked by VanEck Vectors Natural Resources ETF (NYSE Arca: HAP), which includes equities of the world’s largest and most prominent hard assets producers, remains the most comprehensive index in this space. For the six month period ending June 30, 2017, the index returned +1.51%.

 

The table below shows average sector weightings within this index and the total return of each sector for the six month period ending June 30, 2017.

 

		Six Month Total Return
		for Period Ending
RVEIT Sector‡	Average Sector Weighting	June 30, 2017
Agriculture	40.85%	4.84%
Energy	29.11%	-7.97%
Base/Industrial Metals	13.94%	4.54%
Precious Metals	7.28%	3.72%
Alternatives	4.73%	16.54%
Paper & Forest Products	4.10%	19.40%

 

Source: VanEck; FactSet; S-Network Global Indexes, Inc. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted. Index performance is not illustrative of fund performance. Investors cannot invest directly in an index.

 

Five out of the six sectors—agriculture, base/industrial metals, precious metals, alternatives, and paper & forest products—had positive returns over the six months ending June 30, 2017. While the paper and forest products sector, with the smallest average weighting, posted the highest total return for the six month period, the second smallest by average weighting, alternatives, posted the next highest return for the same period. The precious metals sector, with the fourth largest average weighting, posted the second lowest positive return. The energy sector, with the second highest average weighting, was the only sector to post a negative return.

 

Eleven of the suite of 13 VanEck Vectors Hard Assets ETFs posted positive total returns during the six month period, with VanEck Vectors Global Alternative Energy ETF (NYSE Arca: GEX) (+17.56%) and VanEck Vectors Solar ETF (NYSE Arca: KWT) (+15.27%), the two top performing funds, each producing solid performance. VanEck Vectors Oil Services ETF (NYSE Arca: OIH) (-25.69%) and the VanEck Vectors Unconventional Oil and Gas ETF (NYSE Arca: FRAK) (-23.51%) were the two worst performing Hard Assets ETFs.

 

January 1 through June 30, 2 017
VanEck Vectors Hard Assets ETFs Total Return

 

 

 

Source: VanEck. Returns based on each fund’s net asset value (NAV). The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for certain funds reflect temporary waivers of expenses and/or fees. Had these 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. Current performance may be lower or higher than performance data quoted.

VANECK VECTORS ETFs

(unaudited) (continued)

 

Agribusiness

 

The performance of the agribusiness industry during the first six months of 2017 remained resilient, with the Fund returning 7.24%. The primary drivers of positive performance were companies in the industrial sector and, in particular, those in the machinery segment. The greatest positive returns came from companies in the U.S., while the greatest negative returns came from those in Canada. The consumer discretionary sector was the only sector to detract from performance.

 

Coal

 

The performance of coal stocks was lackluster in the first six months of 2017 with the Fund returning 7.03%. The 2017 edition of BP’s annual report “Statistical Review of World Energy” noted that: “Coal consumption fell sharply for the second consecutive year, with its share within primary energy falling to its lowest level since 2004.”¹ Globally coal production fell by 6.2%, and in the U.S. and China, declined 19% and 7.9%, respectively, during the year.² However, according to the U.S. Energy Information Agency: “Coal exports for the first quarter of 2017 were 58% higher than in the same quarter last year, with steam coal exports increasing by 6 million short tons.”³ Coal remains the world’s most important fuel for making cement, producing steel, and generating energy.⁴

 

China was the single largest contributor to returns, followed by Australia. Canada, followed by the U.S., detracted most from the sector’s performance.

 

Global Alternative Energy

 

The performance of global alternative energy stocks during the six month period was particularly notable and the Fund recorded a strong positive return of 17.56% for the six month period. Companies in the consumer discretionary and industrials sectors contributed the most to performance. The strongest negative performance came from companies involved oil, gas, and consumable fuels. Companies in the U.S. and Denmark contributed the most positively to performance. Companies from Germany and Brazil detracted the most from performance.

 

Gold Miners

 

Both major gold miners and their junior peers had a choppy six months. Despite the price of gold rising steadily if fitfully during the period, the larger gold miners (VanEck Vectors Gold Miners ETF) posted a positive return of 5.40%; junior gold miners (VanEck Vectors Junior Gold Miners ETF) posted a similar return of 5.39% for the period.

 

Among the larger mining stocks, Canadian companies, with the largest average sector weighting, were also the strongest contributors to performance. Companies in both China and South Africa detracted from performance. The situation was similar among the juniors, with Canada the strongest contributor, followed by Australia and Peru. China and South Africa were the two countries to detract most from performance.

 

Natural Resources

 

The Fund returned 1.55% over the six month period under review. Five sectors contributed positively to performance. Paper and forest products, constituting the second smallest segment of the natural resources industry, provided the largest positive returns. Energy and consumer discretionary sectors contributed negatively to performance during the period under review.

 

Oil Refiners

 

The first six months of the year were particularly positive for the refining stocks in the Fund. Much of this was related to the changes that occurred in the crude oil market. Refiners were helped by the fall in crude oil prices over the six month period, but especially in the four months from March through June, and subsequently benefited from lower refinery feedstock prices. The Fund returned 11.12% for the six month period. While exposure to refiners in India, Poland, Turkey, and Japan contributed most to performance, refiners in the U.S., with the largest average weighting in the sector, detracted most from performance for the period, albeit minimally.

 

 

Oil Services

 

From early January through June, oil services stocks embarked on a steady decline, suffering from the fall in oil prices during the first half of the year. While onshore drilling activity in the U.S. during the first six months of 2017 may have continued to pick up, oil services companies have lagged the recovery of U.S. shale oil producers.⁵ At the end of 2016, the U.S. rig count stood at 658. At the end of June, the count had hit 940.⁶ The Fund declined 25.69% for the six month period. Oil service stocks in the U.S., with the largest average weighting in the sector, detracted the most from performance. Companies in the U.K., the Netherlands, and Switzerland also all detracted from performance.

 

Rare Earth and Strategic Metals

 

Having peaked in late February, the Fund then declined, but still ended the six month period with a gain of 4.08%. The greatest contributors to performance were companies with mining operations in South Africa, Australia, and China mining rare earths, molybdenum, and titanium feedstock. The greatest detractors included companies involved in lithium and rare earths. Mid-cap companies performed better than their large- and small-cap peers during the period under review.

 

Solar Energy

 

In stark contrast to their poor performance in 2016, solar energy stocks posted a solid total return of 15.27% for the first six months of 2017. Within the sector, the greatest contributors to performance were companies involved in semiconductors and semiconductor equipment in the U.S., followed by solar companies in Switzerland, Spain, and China. Only companies in Thailand detracted from performance.

 

Steel

 

Having hit a high for the six month period in late February, steel stocks gave back those earlier gains and the Fund rose 1.82% over the period under review. At 143.3 million tonnes, May 2017 global steel production was up 2.0% compared with May 2016 and up 1.2 million tonnes (0.8%) from April 2017. Although capacity utilization rose from 67.6% in December 2016 to 73.6% in April 2017, it fell to 71.8% in May 2017.⁷ In an article at the end of May, Bloomberg reported that: “Chief executive officers of America’s largest steelmakers said global overcapacity of the metal is at crisis levels as they urged the U.S. to determine that cheap steel imports are a threat to national security.”⁸ Despite this, according to Bloomberg, “American steel producers are benefiting from many trade cases last year that helped boost many companies to their biggest gains in at least a decade.”⁹ Even with the benefit of these cases, companies in the U.S., with the largest average sector weighting during the period under review, were the greatest negative contributors to total return. Steel companies in Russia also detracted from performance. Geographically, the U.K. was the largest positive contributor to performance.

 

Unconventional Oil & Gas

 

During the first half of 2017, unconventional energy companies suffered from the continuing decline in oil prices and the Fund lost 23.51% over the period under review. This was despite the fact that OPEC and non-OPEC producers struck deals the end of November and early in December 2016 to reduce production and agreed to extend these same production cuts at the end of May 2017. Over the period under review, West Texas Intermediate (WTI) front month crude prices fell from $53.72/barrel to end June at $46.04/barrel. Unconventional energy, particularly shale oil, companies suffered accordingly. U.S. stocks (on average approximately 83% of the Fund by weight during the period under review) detracted the most from performance.

 

Uranium and Nuclear Energy

 

Performance in the first half of 2017 was positive and the Fund returned 5.78% for the period. Utility companies, with the largest average weighting over the period, produced all the Fund’s positive total return, with the energy and industrial sectors both detracting from performance. Geographically, companies in the U.S. contributed the most to performance, while Canada was the greatest detractor from performance.

 

According to the World Nuclear Association at the start of May, there were some 447 operable nuclear power reactors in 30 countries and 59 power reactors currently under construction in 14 countries, notably China, India, and Russia.¹⁰

VANECK VECTORS ETFs

(unaudited) (continued)

 

	All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results.
‡	The VanEck® Natural Resources Index (RVEIT) is a rules based, modified capitalization weighted, float adjusted index comprising publicly traded companies engaged in the production and distribution of commodities and commodity-related products and services in the following sectors: 1) Agriculture; 2) Alternatives (Water & Alternative Energy); 3) Base and Industrial Metals; 4) Energy; 5) Forest Products; and 6) Precious Metals.

 

1	BP: Statistical Review of World Energy, http://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical-review-2017/bp-statistical-review-of-world-energy-2017-full-report.pdf
2	Ibid.
3	EIA: Short-Term Energy Outlook (July 11, 2017), https://www.eia.gov/outlooks/steo/report/coal.cfm
4	International Energy Agency: Medium-Term Coal Market Report 2016, https://www.iea.org/newsroom/news/2016/december/medium-term-coal-market-report-2016.html
5	Reuters: U.S. oilfield service firms lag shale recovery; old deals hold, http://www.reuters.com/article/us-shale-oilservices-cost-analysis-idUSKBN18L0H5
6	Baker Hughes: North America Rig Count, http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-reportsother
7	World Steel Association: May 2017 crude steel production, https://www.worldsteel.org/media-centre/press-releases/2017/may-2017-crude-steel-production.html
8	Bloomberg: U.S. Steel Giants Warn Foreign Imports Imperil National Security, https://www.bloomberg.com/news/articles/2017-05-24/u-s-steel-giants-warn-foreign-imports-imperil-national-security
9	Ibid.
10	World Nuclear Association: World Nuclear Power Reactors & Uranium Requirements, http://www.world-nuclear.org/information-library/facts-and-figures/world-nuclear-power-reactors-and-uranium-requireme.aspx

 

PERFORMANCE COMPARISON

June 30, 2017 (unaudited)

 

VANECK VECTORS AGRIBUSINESS ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVMOOTR1				Share Price				NAV				MVMOOTR1
Six Months			7.15	%			7.24	%			7.03	%			7.15	%			7.24	%			7.03	%
One Year			17.04	%			17.30	%			17.49	%			17.04	%			17.30	%			17.49	%
Five Year			4.54	%			4.54	%			4.68	%			24.85	%			24.83	%			25.70	%
Life*			4.65	%			4.66	%			5.00	%			56.29	%			56.53	%			61.54	%

*	Commencement of Fund: 8/31/07; First Day of Secondary Market Trading: 9/5/07
1	MVISTM Global Agribusiness Index (MVMOOTR) is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors exposure to the overall performance of the global agribusiness industry.
Index data prior to March 18, 2013 reflects that of the DAXglobal Agribusiness Index (DXAG). From March 18, 2013, forward, the index data reflects that of the MVISTM Global Agribusiness Index (MVMOOTR). All Index history reflects a blend of the performance of the aforementioned Indexes.

 

VANECK VECTORS COAL ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVKOLTR1				Share Price				NAV				MVKOLTR1
Six Months			7.99	%			7.03	%			7.21	%			7.99	%			7.03	%			7.21	%
One Year			45.31	%			46.10	%			47.67	%			45.31	%			46.10	%			47.67	%
Five Year			(9.47	)%			(9.53	)%			(9.12	)%			(39.19	)%			(39.40	)%			(38.00	)%
Life*			(9.66	)%			(9.67	)%			(9.21	)%			(61.81	)%			(61.82	)%			(59.96	)%

*	Commencement of Fund: 1/10/08; First Day of Secondary Market Trading: 1/14/08
1	MVISTM Global Coal Index (MVKOLTR) is a rules-based, capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of a global universe of listed companies engaged in the coal industry.
Index data prior to September 24, 2012 reflects that of the Stowe Coal IndexSM (TCOAL). From September 24, 2012 forward, the index data reflects that of the MVISTM Global Coal Index (MVKOLTR). All Index history reflects a blend of the performance of the aforementioned Indexes.

 

VANECK VECTORS GLOBAL ALTERNATIVE ENERGY ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				AGIXLT1				Share Price				NAV				AGIXLT1
Six Months			18.56	%			17.56	%			17.68	%			18.56	%			17.56	%			17.68	%
One Year			22.94	%			21.31	%			21.65	%			22.94	%			21.31	%			21.65	%
Five Year			15.63	%			15.34	%			14.89	%			106.70	%			104.10	%			100.15	%
Ten Year			(6.43	)%			(6.42	)%			(6.86	)%			(48.58	)%			(48.52	)%			(50.86	)%

1	Ardour Global IndexSM (Extra Liquid) (AGIXLT) is a rules-based, global capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of a global universe of listed companies engaged in the alternative energy industry.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

 

PERFORMANCE COMPARISON

June 30, 2017 (unaudited) (continued)

 

VANECK VECTORS GOLD MINERS ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				GDMNTR1				Share Price				NAV				GDMNTR1
Six Months			5.54	%			5.40	%			5.29	%			5.54	%			5.40	%			5.29	%
One Year			(20.09	)%			(20.23	)%			(19.74	)%			(20.09	)%			(20.23	)%			(19.74	)%
Five Year			(12.54	)%			(12.56	)%			(12.16	)%			(48.82	)%			(48.89	)%			(47.71	)%
Ten Year			(4.64	)%			(4.65	)%			(4.18	)%			(37.79	)%			(37.86	)%			(34.79	)%

1	NYSE Arca Gold Miners Index (GDMNTR) is a modified capitalization-weighted index comprised of publicly traded companies involved primarily in the mining for gold.

 

VANECK VECTORS JUNIOR GOLD MINERS ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVGDXJTR1				Share Price				NAV				MVGDXJTR1
Six Months			5.80	%			5.39	%			3.47	%			5.80	%			5.39	%			3.47	%
One Year			(17.52	)%			(17.42	)%			(18.39	)%			(17.52	)%			(17.42	)%			(18.39	)%
Five Year			(13.59	)%			(13.45	)%			(13.36	)%			(51.83	)%			(51.42	)%			(51.19	)%
Life*			(10.52	)%			(10.49	)%			(10.31	)%			(57.19	)%			(57.10	)%			(56.45	)%

*	Commencement of Fund: 11/10/09; First Day of Secondary Market Trading: 11/11/09
1	MVISTM Global Junior Gold Miners Index (MVGDXJTR) is a rules-based, modified capitalization-weighted, float-adjusted index comprised of a global universe of publicly traded small- and medium-capitalization companies that generate at least 50% of their revenues from gold and/or silver mining, hold real property that has the potential to produce at least 50% of the company’s revenue from gold or silver mining when developed, or primarily invest in gold or silver.

 

VANECK VECTORS NATURAL RESOURCES ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				RVEIT1				Share Price				NAV				RVEIT1
Six Months			1.67	%			1.55	%			1.51	%			1.67	%			1.55	%			1.51	%
One Year			9.88	%			9.19	%			9.66	%			9.88	%			9.19	%			9.66	%
Five Year			1.88	%			1.83	%			1.98	%			9.74	%			9.48	%			10.30	%
Life*			(0.33	)%			(0.35	)%			(0.17	)%			(2.84	)%			(3.09	)%			(1.46	)%

*	Commencement of Fund: 8/29/08; First Day of Secondary Market Trading: 9/3/08
1	VanEck® Natural Resources Index (RVEIT) is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of a global universe of listed companies engaged in the production and distribution of commodities and commodity-related products and services.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

 

 

VANECK VECTORS OIL REFINERS ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVCRAKTR1				Share Price				NAV				MVCRAKTR1
Six Months			12.19	%			11.12	%			10.86	%			12.19	%			11.12	%			10.86	%
One Year			30.68	%			28.93	%			29.33	%			30.68	%			28.93	%			29.33	%
Life*			11.70	%			11.19	%			11.14	%			22.97	%			21.93	%			21.81	%

*	Commencement of Fund: 8/18/15; First Day of Secondary Market Trading: 8/19/15
1	MVISTM US Global Oil Refiners Index (MVCRAKTR) is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of companies involved in crude oil refining.

 

VANECK VECTORS OIL SERVICES ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVOIHTR1				Share Price				NAV				MVOIHTR1
Six Months			(25.67	)%			(25.69	)%			(25.70	)%			(25.67	)%			(25.69	)%			(25.70	)%
One Year			(14.07	)%			(14.02	)%			(14.11	)%			(14.07	)%			(14.02	)%			(14.11	)%
Five Year			(5.46	)%			(5.45	)%			(5.56	)%			(24.48	)%			(24.44	)%			(24.89	)%
Life*			(5.93	)%			(6.07	)%			(6.17	)%			(28.68	)%			(29.28	)%			(29.68	)%

*	Commencement of Fund: 12/20/11; First Day of Secondary Market Trading: 12/21/11
1	MVISTM US Listed Oil Services 25 Index (MVOIHTR) is a rules-based, modified capitalization-weighted, float-adjusted index intended to track the overall performance of 25 of the largest U.S. listed, publicly traded oil services companies.

 

VANECK VECTORS RARE EARTH/STRATEGIC METALS ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVREMXTR1				Share Price				NAV				MVREMXTR1
Six Months			2.94	%			4.08	%			3.38	%			2.94	%			4.08	%			3.38	%
One Year			8.11	%			8.77	%			9.63	%			8.11	%			8.77	%			9.63	%
Five Year			(18.73	)%			(18.59	)%			(18.86	)%			(64.56	)%			(64.24	)%			(64.84	)%
Life*			(18.21	)%			(18.16	)%			(18.56	)%			(73.86	)%			(73.76	)%			(74.60	)%

*	Commencement of Fund: 10/27/10; First Day of Secondary Market Trading: 10/28/10
1	MVISTM Global Rare Earth/Strategic Metals Index (MVREMXTR) is a rules-based, modified capitalization-weighted, float-adjusted index comprised of publicly traded companies engaged in a variety of activities that are related to the mining, refining and manufacturing of rare earth/strategic metals.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

 

PERFORMANCE COMPARISON

June 30, 2017 (unaudited) (continued)

 

VANECK VECTORS SOLAR ENERGY ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVKWTTR1				Share Price				NAV				MVKWTTR1
Six Months			16.14	%			15.27	%			13.99	%			16.14	%			15.27	%			13.99	%
One Year			(3.36	)%			(6.61	)%			(7.95	)%			(3.36	)%			(6.61	)%			(7.95	)%
Five Year			2.57	%			2.13	%			0.30	%			13.51	%			11.12	%			1.51	%
Life*			(24.20	)%			(24.35	)%			(25.42	)%			(92.17	)%			(92.30	)%			(93.25	)%

*	Commencement of Fund: 4/21/08; First Day of Secondary Market Trading: 4/23/08
1	MVISTM Global Solar Energy Index (MVKWTTR) is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors exposure to the overall performance of the global solar energy industry.
Index data prior to March 18, 2013 reflects that of the Ardour Solar Energy Index (SOLRXT). From March 18, 2013, forward, the index data reflects that of the MVISTM Global Solar Energy Index (MVKWTTR). All Index history reflects a blend of the performance of the aforementioned Indexes.

 

VANECK VECTORS STEEL ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				STEEL1				Share Price				NAV				STEEL1
Six Months			1.88	%			1.82	%			2.08	%			1.88	%			1.82	%			2.08	%
One Year			40.90	%			40.78	%			41.06	%			40.90	%			40.78	%			41.06	%
Five Year			(0.22	)%			(0.22	)%			(0.09	)%			(1.09	)%			(1.09	)%			(0.46	)%
Ten Year			(2.90	)%			(2.96	)%			(2.75	)%			(25.46	)%			(25.94	)%			(24.32	)%

1	NYSE Arca Steel Index (STEEL) is a modified capitalization-weighted index comprised of publicly traded companies predominantly involved in the production of steel products or mining and processing of iron ore.

 

VANECK VECTORS UNCONVENTIONAL OIL & GAS ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVFRAKTR1				Share Price				NAV				MVFRAKTR1
Six Months			(23.31	)%			(23.51	)%			(23.42	)%			(23.31	)%			(23.51	)%			(23.42	)%
One Year			(15.29	)%			(15.62	)%			(15.35	)%			(15.29	)%			(15.62	)%			(15.35	)%
Five Year			(6.79	)%			(6.87	)%			(6.73	)%			(29.66	)%			(29.96	)%			(29.43	)%
Life*			(9.31	)%			(9.34	)%			(9.20	)%			(40.88	)%			(40.96	)%			(40.47	)%

*	Commencement of Fund: 2/14/12; First Day of Secondary Market Trading: 2/15/12
1	MVISTM Global Unconventional Oil & Gas Index (MVFRAKTR) is a rules-based, modified capitalization-weighted, float-adjusted index intended to track the overall performance of companies involved in the exploration, development, extraction, production and/or refining of unconventional oil and natural gas.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

 

 

VANECK VECTORS URANIUM+NUCLEAR ENERGY ETF

 

		Average Annual Total Returns												Cumulative Total Returns
		Share Price				NAV				MVNLRTR1				Share Price				NAV				MVNLRTR1
Six Months			5.88	%			5.78	%			5.54	%			5.88	%			5.78	%			5.54	%
One Year			4.05	%			3.27	%			2.92	%			4.05	%			3.27	%			2.92	%
Five Year			6.29	%			6.23	%			5.80	%			35.63	%			35.26	%			32.56	%
Life*			(4.90	)%			(4.90	)%			(4.99	)%			(39.16	)%			(39.14	)%			(39.70	)%

*	Commencement of Fund: 8/13/07; First Day of Secondary Market Trading: 8/15/07
1	MVISTM Global Uranium & Nuclear Energy Index (MVNLRTR) is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of companies involved in uranium and nuclear energy.
Index data prior to March 24, 2014 reflects that of the DAXglobal ® Nuclear Energy Index (DXNE). From March 24, 2014, forward, the index data reflects that of the MVISTM Global Uranium & Nuclear Energy Index (MVNLRTR). All index history reflects a blend of the performance of the aforementioned Indexes.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

 

See “About Fund Performance” on page 12 for more information.

VANECK VECTORS ETF TRUST

ABOUT FUND PERFORMANCE

(unaudited)

 

The price used to calculate market return (Share Price) is determined by using the closing price listed on its primary listing exchange. Since the shares of each Fund did not trade in the secondary market until after each Fund’s commencement, for the period from commencement to the first day of secondary market trading in shares of each Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns.

 

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for certain Funds reflect temporary waivers of expenses and/or fees. Had these Funds incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

 

Investment return and value of the shares of each Fund 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 reinvestment of dividends and capital gains distributions. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

 

Fund shares are not individually redeemable and will be issued and redeemed at their 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. Shares may trade at a premium or discount to their NAV in the secondary market.

 

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell fund shares at NAV.

 

All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results.

 

The Gold Miners Index and Steel Index are published by NYSE Arca, Inc. The Agribusiness Index, Coal Index, Junior Gold Miners Index, Oil & Gas Index, Oil Refiners Index, Oil Services Index, Rare Earth/Strategic Metals Index, Solar Energy Index, and Nuclear Energy Index are published by MV Index Solutions GmbH (MVIS), which is a wholly owned subsidiary of the Adviser, Van Eck Associates Corporation. The Natural Resources Index is published by S-Network Global Indexes, LLC (S-Network). The Ardour Global Index is published by Ardour Global Indexes LLC (Ardour).

 

NYSE, MVIS, S-Network, and Ardour are referred to herein as the “Index Providers”. The Index Providers do not sponsor, endorse, or promote the Funds and bear no liability with respect to the Funds or any security.

 

Premium/discount information regarding how often the closing trading price of the Shares of each Fund were above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund for each of the four previous calendar quarters and the immediately preceding five years (if applicable) can be found at www.vaneck.com.

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited)

 

Hypothetical $1,000 investment at beginning of period

As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2017 to June 30, 2017.

 

Actual Expenses

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited) (continued)

 

		Beginning Account Value January 1, 2017		Ending Account Value June 30, 2017				Annualized Expense Ratio During Period				Expenses Paid During the Period* January 1, 2017– June 30, 2017
Agribusiness ETF
Actual		$1,000.00		$	1,072.40				0.55	%		$	2.83
Hypothetical**		$1,000.00		$	1,022.07				0.55	%		$	2.76
Coal ETF
Actual		$1,000.00		$	1,070.30				0.59	%		$	3.03
Hypothetical**		$1,000.00		$	1,021.87				0.59	%		$	2.96
Global Alternative Energy ETF
Actual		$1,000.00		$	1,175.60				0.63	%		$	3.40
Hypothetical**		$1,000.00		$	1,021.67				0.63	%		$	3.16
Gold Miners ETF
Actual		$1,000.00		$	1,054.00				0.51	%		$	2.60
Hypothetical**		$1,000.00		$	1,022.27				0.51	%		$	2.56
Junior Gold Miners ETF
Actual		$1,000.00		$	1,053.90				0.53	%		$	2.70
Hypothetical**		$1,000.00		$	1,022.17				0.53	%		$	2.66
Natural Resources ETF
Actual		$1,000.00		$	1,015.50				0.50	%		$	2.50
Hypothetical**		$1,000.00		$	1,022.32				0.50	%		$	2.51
Oil Refiners ETF
Actual		$1,000.00		$	1,111.20				0.59	%		$	3.09
Hypothetical**		$1,000.00		$	1,021.87				0.59	%		$	2.96
Oil Services ETF
Actual		$1,000.00		$	743.10				0.35	%		$	1.51
Hypothetical**		$1,000.00		$	1,023.06				0.35	%		$	1.76
Rare Earth / Strategic Metals ETF
Actual		$1,000.00		$	1,040.80				0.61	%		$	3.09
Hypothetical**		$1,000.00		$	1,021.77				0.61	%		$	3.06
Solar Energy ETF
Actual		$1,000.00		$	1,152.70				0.66	%		$	3.52
Hypothetical**		$1,000.00		$	1,021.52				0.66	%		$	3.31
Steel ETF
Actual		$1,000.00		$	1,018.20				0.56	%		$	2.80
Hypothetical**		$1,000.00		$	1,017.65				0.56	%		$	2.81
Unconventional Oil & Gas ETF
Actual		$1,000.00		$	764.90				0.54	%		$	2.36
Hypothetical**		$1,000.00		$	1,022.12				0.54	%		$	2.71
Uranium+Nuclear Energy ETF
Actual		$1,000.00		$	1,057.80				0.61	%		$	3.11
Hypothetical**		$1,000.00		$	1,021.77				0.61	%		$	3.06

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2017) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
**	Assumes annual return of 5% before expenses

VANECK VECTORS AGRIBUSINESS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS AGRIBUSINESS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

 

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
NOK	Norwegian Krone
NVDR	Non-Voting Depositary Receipt
PLN	Polish Zloty
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $24,742,208.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $253,874,762 which represents 31.9% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
§	Illiquid Security — the aggregate value of illiquid securities is $0 which represents 0.0% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			1.8	%		$	14,460,192
Consumer Staples			33.0				262,578,928
Financials			0.4				2,815,633
Health Care			11.2				88,812,591
Industrials			21.7				172,994,364
Materials			31.9				254,226,310
			100.0	%		$	795,888,018

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	30,334,695				$	—			$	30,334,695
Brazil			5,782,766				—					—				5,782,766
Canada			65,367,584				—					—				65,367,584
Chile			4,569,275				—					—				4,569,275
China / Hong Kong			—				12,957,905					0				12,957,905
Denmark			—				7,327,111					—				7,327,111
Germany			—				13,764,211					—				13,764,211
Indonesia			—				4,809,454					—				4,809,454
Israel			6,770,910				—					—				6,770,910
Japan			—				62,423,023					—				62,423,023
Malaysia			—				21,909,479					—				21,909,479
Netherlands			—				3,111,656					—				3,111,656
Norway			—				37,773,909					—				37,773,909
Russia			—				3,614,256					—				3,614,256
Singapore			—				30,636,654					—				30,636,654
South Africa			—				1,911,757					—				1,911,757
South Korea			—				3,000,308					—				3,000,308
Switzerland			—				5,884,558					—				5,884,558
Taiwan			—				2,775,451					—				2,775,451
Thailand			—				9,820,509					—				9,820,509
Ukraine			—				1,819,826					—				1,819,826
United Kingdom			31,197,076				—					—				31,197,076
United States			428,325,645				—					—				428,325,645
Repurchase Agreements			—				27,097,890					—				27,097,890
Total		$	542,013,256			$	280,972,652				$	0			$	822,985,908

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $12,709,981. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		China/Hong Kong
Balance as of December 31, 2016			$	—
Realized gain (loss)				(211,718	)
Net change in unrealized appreciation (depreciation)				(3,559,725	)
Purchases				229,037
Sales				(461,988	)
Transfers in and/or out of level 3*				4,004,394
Balance as of June 30, 2017			$	0

 

*	Transfers from Level 2 to Level 3 resulted primarily from limited observability of the security issuer’s current financial condition.

 

See Notes to Financial Statements

VANECK VECTORS COAL ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

 

NVDR	Non-Voting Depositary Receipt
USD	United States Dollar
*	Non-income producing
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $53,964,493 which represents 66.8% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $135,425 which represents 0.2% of net assets.

 

Summary of Investments by Sector		% of Investments				Value
Energy			72.3	%		$	58,279,617
Industrials			10.5				8,444,456
Materials			17.2				13,880,223
			100.0	%		$	80,604,296

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	12,981,348				$	—			$	12,981,348
Canada			9,103,693				—					—				9,103,693
China / Hong Kong			—				13,460,708					135,425				13,596,133
Indonesia			—				16,003,400					—				16,003,400
Philippines			—				3,406,819					—				3,406,819
Poland			3,419,998				—					—				3,419,998
South Africa			—				3,423,407					—				3,423,407
Thailand			—				4,553,386					—				4,553,386
United States			14,116,112				—					—				14,116,112
Total		$	26,639,803			$	53,829,068				$	135,425			$	80,604,296

 

During the period ended June 30, 2017, transfers of securities from Level 2 to Level 1 were $4,369,905. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		China/Hong Kong
Balance as of December 31, 2016			$	409,069
Realized gain (loss)				—
Change in unrealized appreciation (depreciation)				(273,644	)
Purchases				—
Sales				—
Transfers in and/or out of Level 3				—
Balance as of June 30, 2017			$	135,425

 

See Notes to Financial Statements

VANECK VECTORS GLOBAL ALTERNATIVE ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

ADR	American Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $21,751,589.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $30,150,651 which represents 38.0% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			9.9	%		$	7,829,580
Energy			2.7				2,117,633
Industrials			51.4				40,853,323
Information Technology			24.4				19,389,059
Utilities			11.6				9,191,826
Money Market Fund			0.0				13,039
			100.0	%		$	79,394,460

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Austria		$	—			$	931,491				$	—			$	931,491
Brazil			1,244,155				—					—				1,244,155
Canada			2,096,295				—					—				2,096,295
China / Hong Kong			726,336				5,249,902					—				5,976,238
Denmark			—				8,075,079					—				8,075,079
Germany			—				912,803					—				912,803
Japan			—				3,540,613					—				3,540,613
Spain			—				7,572,051					—				7,572,051
Sweden			—				3,868,712					—				3,868,712
United States			45,163,984				—					—				45,163,984
Money Market Fund			13,039				—					—				13,039
Repurchase Agreements			—				22,788,739					—				22,788,739
Total		$	49,243,809			$	52,939,390				$	—			$	102,183,199

 

There were no transfers between levels during the period ended June 30, 2017.

 

See Notes to Financial Statements

VANECK VECTORS GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

 

ADR	American Depositary Receipt
CAD	Canadian Dollar
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $175,534,767.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,281,876,255 which represents 15.7% of net assets.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Diversified Metals & Mining			0.8	%		$	67,144,299
Gold			89.5				7,331,223,908
Silver			9.4				770,483,727
Money Market Fund			0.3				25,095,992
			100.0	%		$	8,193,947,926

 

See Notes to Financial Statements

VANECK VECTORS GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited) (continued)

 

A summary of the Fund’s transactions in securities of affiliates for the period ended June 30, 2017 is set forth below:

 

Affiliates			Value 12/31/16				Purchases				Sales Proceeds				Realized Gain (Loss)					Dividend Income			Value 06/30/17
Agnico-Eagle Mines Ltd.			$	533,593,494			$	170,419,483			$	(286,774,328	)			$	58,998,504			$	2,411,726			$	—	(a)
Alamos Gold, Inc.				107,701,354				35,348,164				(52,675,778	)				(618,386	)			183,850				—	(a)
AngloGold Ashanti Ltd.				253,959,846				91,055,655				(144,533,467	)				(6,770,869	)			2,578,393				—	(a)
Asanko Gold, Inc.				36,415,313				1,742,771				(19,306,601	)				(31,487,317	)			—				—
B2GOLD Corp.				133,557,639				51,294,452				(74,213,763	)				19,321,978				—				—	(a)
Barrick Gold Corp.				1,050,349,548				339,918,762				(555,117,045	)				17,131,918				3,696,875				—	(a)
Cenatamin Plc				115,288,924				47,970,716				(78,159,942	)				38,817,409				10,015,352				—	(a)
Centerra Gold, Inc.				80,535,447				3,979,526				(22,629,028	)				(129,621	)			—				—	(a)
Cia de Minas Buenaventura SA				183,326,903				68,209,865				(102,642,369	)				4,871,500				1,080,007				—	(a)
Coeur Mining, Inc.				100,773,949				28,929,955				(48,823,689	)				(613,076	)			—				—	(a)
Detour Gold Corp.				140,388,737				44,327,560				(68,318,123	)				6,287,569				—				—	(a)
Eldorado Gold Corp.				136,051,710				46,602,139				(72,756,773	)				(11,268,001	)			681,022				—	(a)
Endeavour Mining Corp.				82,358,502				29,253,414				(45,009,600	)				604,980				—				—	(a)
Evolution Mining Ltd.				148,606,232				56,872,128				(92,874,787	)				39,095,524				1,623,021				—	(a)
First Majestic Silver Corp.				73,933,380				27,425,740				(42,182,798	)				4,834,213				—				—	(a)
Fortuna Silver Mines, Inc.				48,666,731				5,633,681				(12,179,247	)				(6,207,048	)			—				—	(a)
Franco-Nevada Corp.				597,508,567				197,550,737				(337,984,305	)				72,043,754				4,268,111				—	(a)
Gold Fields Ltd.				145,804,659				56,045,055				(91,276,157	)				(5,566,564	)			2,369,525				—	(a)
Goldcorp, Inc.				654,777,998				209,682,583				(336,986,572	)				(47,034,344	)			1,828,769				—	(a)
Guyana Goldfields, Inc.				45,967,851				3,503,426				(11,494,642	)				(5,902,967	)			—				—	(a)
Harmony Gold Mining Co. Ltd.				57,307,795				20,388,835				(29,261,063	)				(7,265,292	)			1,118,428				—	(a)
Hecla Mining Co.				122,130,352				43,795,212				(67,980,434	)				23,298,215				118,792				—	(a)
IAMGOLD Corp.				102,303,979				21,377,733				(44,344,206	)				8,166,073				—				—	(a)
Independence Group NL				106,473,786				32,828,119				(46,218,454	)				(266,638	)			281,802				—	(a)
Kinross Gold Corp.				228,303,557				91,674,582				(150,473,376	)				9,615,400				—				—	(a)
Kirkland Lake Gold Ltd.				62,873,576				5,535,640				(24,154,498	)				(632,207	)			73,681				—	(a)
Klondex Mines Ltd.				41,115,329				2,974,749				(8,398,455	)				(3,645,754	)			—				—	(a)
McEwen Mining, Inc.				51,393,615				2,862,245				(11,928,135	)				(3,167,374	)			—				—	(a)
New Gold, Inc.				105,902,685				36,862,539				(45,099,181	)				(5,664,819	)			—				—	(a)
Newcrest Mining Ltd.				622,167,668				207,789,905				(350,797,668	)				78,346,066				3,451,319				—	(a)
Newmont Mining Corp.				1,019,838,842				302,937,075				(494,528,161	)				42,046,216				2,820,033				—	(a)
Northern Star Resources Ltd.				90,809,629				38,747,366				(64,393,688	)				26,141,977				959,362				—	(a)
OceanaGold Corp.				105,042,581				38,260,790				(61,123,252	)				15,152,474				384,085				—	(a)
Osisko Gold Royalties Ltd.				61,066,716				5,695,090				(19,359,538	)				(2,714,775	)			351,595				—	(a)
Pan American Silver Corp.				135,277,377				53,144,307				(81,077,430	)				20,313,288				453,058				—	(a)
Randgold Resources Ltd.				421,909,576				125,641,376				(264,544,619	)				7,261,769				5,911,302				—	(a)
Regis Resources Ltd.				62,328,824				6,002,067				(20,311,758	)				(841,372	)			1,641,706				—	(a)
Resolute Mining Ltd.				39,662,865				15,481,555				(21,328,131	)				(4,246,096	)			—				—	(a)
Royal Gold, Inc.				245,387,048				88,781,887				(149,546,036	)				13,864,624				2,022,553				—	(a)
Sandstorm Gold Ltd.				35,009,192				1,820,581				(7,823,656	)				(3,521,381	)			—				—	(a)
Saracen Mineral Holdings Ltd.				33,496,978				3,369,588				(10,563,331	)				(2,405,628	)			—				—	(a)
Semafo, Inc.				63,128,790				17,217,187				(21,921,258	)				(11,043,653	)			—				—	(a)
Sibanye Gold Ltd.				96,150,225				42,222,683				(70,936,898	)				(10,841,002	)			2,774,904				—	(a)
Silver Standard Resources, Inc.				62,798,611				3,227,798				(16,316,168	)				(3,357,080	)			—				—	(a)
Silver Wheaton Corp.				446,884,776				102,009,425				(123,960,947	)				(364,319	)			1,820,909				—
St. Barbara Ltd.				42,513,293				8,900,112				(21,242,642	)				227,114				—				—	(a)
Tahoe Resources, Inc.				172,776,120				52,361,865				(83,258,614	)				(12,534,909	)			2,271,307				—	(a)
Torex Gold Resources, Inc.				72,804,842				30,385,366				(43,202,249	)				956,267				—				—	(a)
Yamana Gold, Inc.				157,003,726				65,600,023				(91,269,033	)				(45,178,254	)			572,828				—	(a)
Zhaojin Mining Industry Co. Ltd.				43,635,481				21,633,504				(22,566,714	)				2,269,993				267,610				—	(a)
Zijin Mining Group Ltd.				107,864,749				41,103,965				(61,536,934	)				9,765,746				—				—	(a)
			$	9,684,929,367			$	3,046,398,981			$	(5,025,405,541	)			$	286,143,825			$	58,031,925			$	—

(a)	Security held by the Fund, however not classified as an affiliate at the end of the reporting period.

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	87,213,286			$	1,041,151,998			$	—			$	1,128,365,284
Canada			4,429,903,907				—				—				4,429,903,907
China / Hong Kong			—				130,695,553				—				130,695,553
Monaco			76,285,281				—				—				76,285,281
Peru			150,275,917				—				—				150,275,917
South Africa			475,442,577				—				—				475,442,577
United Kingdom			351,750,398				110,028,704				—				461,779,102
United States			1,316,104,313				—				—				1,316,104,313
Money Market Fund			25,095,992				—				—				25,095,992
Repurchase Agreements			—				192,006,040				—				192,006,040
Total		$	6,912,071,671			$	1,473,882,295			$	—			$	8,385,953,966

 

There were no transfers between levels during the period ended June 30, 2017.

 

See Notes to Financial Statements

VANECK VECTORS JUNIOR GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

 

ADR	American Depositary Receipt
CAD	Canadian Dollar
GBP	British Pound
USD	United States Dollar
‡	Affiliated issuer - as defined under the Investment Company Act of 1940.
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $170,205,288.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $835,775,837 which represents 21.3% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $1,245,579 which represents 0.0% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Gold			82.1	%		$	3,217,487,781
Precious Metals & Minerals			1.5				58,360,837
Silver			16.4				644,557,496
Money Market Fund			0.0				178,738
			100.0	%		$	3,920,584,852

 

See Notes to Financial Statements

VANECK VECTORS JUNIOR GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

A summary of the Fund’s transactions in securities of affiliates for the period ended June 30, 2017 is set forth below:

 

Affiliates			Value 12/31/16				Purchases				Sales Proceeds				Realized Gain (Loss)				Dividend Income				Value 06/30/17
Alacer Gold Corp.			$	51,234,537			$	40,239,232			$	(54,052,511	)		$	(19,799,911	)		$	—			$	28,197,279
Alamos Gold, Inc.				189,253,976				125,635,528				(189,061,213	)			(21,084,131	)			398,721				109,992,883
Argonaut Gold, Inc.				27,022,343				23,813,545				(29,287,570	)			(14,135,706	)			—				20,849,919
Asanko Gold, Inc.				69,249,220				17,707,181				(28,690,185	)			(31,071,396	)			—				15,927,777
B2Gold Corp.				121,435,546				198,921,945				(191,453,082	)			(785,103	)			—				—	(a)
Beadell Resources Ltd.				20,287,324				20,965,527				(23,894,543	)			(10,750,452	)			—				—	(a)
Cenatamin Plc				—				131,950,202				—				—				—				125,745,241
Centerra Gold, Inc.				114,376,806				19,154,358				(86,751,406	)			(6,995,581	)			—				—	(a)
China Gold International Resources Corp. Ltd.				42,366,409				34,026,461				(45,330,184	)			(17,802,865	)			—				—	(a)
Coeur Mining, Inc.				—				78,921,495				—				—				—				80,883,291
Continental Gold, Inc.				40,891,721				32,162,335				(34,326,362	)			(920,297	)			—				—	(a)
Detour Gold Corp.				—				115,832,859				—				—				—				113,602,774
DRDGOLD Ltd.				29,801,363				16,679,431				(22,769,454	)			(8,906,436	)			—				7,363,100
Dundee Precious Metals, Inc.				21,032,717				16,013,344				(21,509,687	)			(7,214,241	)			—				—	(a)
Eldorado Gold Corp.				—				100,825,492				—				—				—				96,912,935
Endeavour Mining Corp.				107,053,281				74,384,300				(116,329,151	)			20,132,956				—				—	(a)
Endeavour Silver Corp.				53,331,347				33,615,523				(45,914,664	)			(17,269,327	)			—				25,320,609
First Majestic Silver Corp.				—				88,710,590				—				—				—				95,699,107
First Mining Finance Corp.				36,843,869				30,997,189				(33,648,998	)			(12,738,098	)			—				17,252,460
Fortuna Silver Mines, Inc.				90,047,705				39,740,632				(62,225,589	)			(24,685,703	)			—				44,496,770
Gold Fields Ltd.				—				148,528,205				—				—				—				150,655,050
Gold Resource Corp.				29,686,049				9,638,275				(19,112,254	)			(8,518,371	)			76,613				14,114,140
Golden Star Resources Ltd.				32,002,055				22,585,220				(31,008,081	)			(5,575,340	)			—				15,427,625
Great Panther Silver Ltd.				39,198,734				18,238,766				(30,503,148	)			(7,154,088	)			—				12,919,048
Guyana Goldfields, Inc.				85,201,458				25,026,666				(64,449,019	)			(21,796,672	)			—				41,439,669
Harmony Gold Mining Co. Ltd.				75,871,718				48,622,325				(71,116,364	)			(25,328,579	)			1,759,952				—	(a)
IAMGOLD Corp.				209,321,820				31,603,287				(162,251,825	)			38,290,090				—				128,114,007
Kirkland Lake Gold Ltd.				115,729,975				42,651,130				(132,850,651	)			5,227,284				84,969				106,242,838
Klondex Mines Ltd.				62,226,059				17,429,667				(28,619,127	)			(11,411,503	)			—				—	(a)
MAG Silver Corp.				70,702,785				50,991,977				(83,232,824	)			23,536				—				—	(a)
McEwen Mining, Inc.				74,227,369				14,085,519				(41,079,953	)			(9,102,073	)			—				—	(a)
Munsun Capital Group Ltd.				30,577,004				10,920,549				(18,828,930	)			(12,434,700	)			—				—	(a)
New Gold, Inc.				—				115,753,217				—				—				—				125,023,878
Northern Star Resources Ltd.				—				123,142,096				—				—				—				122,052,770
Novagold Resources, Inc.				107,701,628				72,762,680				(104,330,662	)			(13,351,228	)			—				57,698,870
OceanaGold Corp.				—				111,020,245				—				—				—				105,718,711
Osisko Gold Royalties Ltd.				107,836,446				46,195,400				(107,462,195	)			(9,317,145	)			592,996				72,533,386
Osisko Mining, Inc.				—				31,914,192				—				—				—				29,590,622
Pan American Silver Corp.				—				161,019,223				—				—				—				166,295,757
Perseus Mining Ltd.				27,358,990				15,805,432				(30,455,554	)			(3,454,436	)			—				11,786,874
Premier Gold Mines Ltd.				33,298,482				24,693,993				(43,016,952	)			(6,314,711	)			—				—	(a)
Pretium Resources, Inc.				136,668,525				86,644,616				(148,464,535	)			18,221,799				—				91,579,744
Primero Mining Corp.				13,872,230				6,595,055				(7,311,000	)			(18,402,266	)			—				3,444,459
Ramelius Resources Ltd.				26,679,409				14,201,503				(25,711,563	)			(2,556,066	)			—				11,318,141
Regis Resources Ltd.				124,528,501				27,153,916				(105,488,102	)			5,395,787				3,482,304				87,474,586
Resolute Mining Ltd.				44,872,755				39,055,792				(51,109,553	)			729,803				—				—	(a)
Richmont Mines, Inc.				40,661,504				28,626,304				(44,981,819	)			(11,141,981	)			—				27,668,768
Sandstorm Gold Ltd.				64,889,421				20,572,798				(45,760,075	)			(20,641,519	)			—				33,179,577
Saracen Mineral Holdings Ltd.				61,280,500				21,071,637				(59,173,924	)			1,598,850				—				40,012,754
Seabridge Gold, Inc.				31,938,652				43,569,159				(54,221,725	)			1,423,521				—				—	(a)
Semafo, Inc.				97,254,542				56,528,089				(77,167,684	)			(38,061,383	)			—				—	(a)
Silver Lake Resources Ltd.				30,579,113				17,731,528				(29,648,785	)			(2,957,972	)			—				10,666,185
Silver Standard Resources, Inc.				128,492,323				15,773,818				(80,518,294	)			(16,704,765	)			—				70,627,734
Silvercorp Metals, Inc.				49,838,985				39,721,634				(70,078,465	)			8,631,011				155,779				33,049,393
St. Barbara Ltd.				64,471,468				57,016,325				(100,195,928	)			1,531,737				—				56,946,398
Tahoe Resources, Inc.				—				140,374,783				—				—				306,441				143,858,111
Teranga Gold Corp.				33,537,178				20,054,591				(29,552,398	)			(16,620,263	)			—				—	(a)
Torex Gold Resources, Inc.				110,408,426				87,564,418				(137,263,223	)			(4,938,638	)			—				—	(a)
VanEck Vectors Gold Miners ETF				160,020,134				99,639,439				(263,828,429	)			(30,876,351	)			—				—
Yamana Gold, Inc.				—				134,974,774				—				—				270,905				133,366,485
Zhaojin Mining Industry Co. Ltd.				—				56,097,678				—				—				41,603				56,061,716
			$	3,335,162,402			$	3,395,893,090			$	(3,284,037,640	)		$	(389,612,923	)		$	7,170,283			$	2,741,111,441

(a)	Security held by the Fund, however not classified as an affiliate at the end of the reporting period.

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	105,718,711			$	540,034,297			$	—			$	645,753,008
Canada			2,208,964,250				—				—				2,208,964,250
China / Hong Kong			28,396,481				56,061,716				1,245,579				85,703,776
Monaco			71,550,654				—				—				71,550,654
Peru			—				46,976,452				—				46,976,452
South Africa			306,226,852				—				—				306,226,852
Turkey			—				15,791,553				—				15,791,553
United Kingdom			789,773				175,666,240				—				176,456,013
United States			362,983,556				—				—				362,983,556
Money Market Fund			178,738				—				—				178,738
Repurchase Agreements			—				177,665,632				—				177,665,632
Total		$	3,084,809,015			$	1,012,195,890			$	1,245,579			$	4,098,250,484

 

There were no transfers between levels during the period ended June 30, 2017.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		China/Hong Kong
Balance as of December 31, 2016			$	1,881,213
Realized gain (loss)				—
Change in unrealized appreciation (depreciation)				(635,634	)
Purchases				—
Sales				—
Transfers in and/or out of Level 3				—
Balance as of June 30, 2017			$	1,245,579

 

See Notes to Financial Statements

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

See Notes to Financial Statements

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

 

See Notes to Financial Statements

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

ADR	American Depositary Receipt
GBP	British Pound
GDR	Global Depositary Receipt
HKD	Hong Kong Dollar
NVDR	Non-Voting Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $1,612,344.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $32,113,921 which represents 32.1% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $480,825, or 0.5% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			1.4	%		$	1,369,623
Consumer Staples			16.6				16,657,982
Energy			28.5				28,634,437
Financials			0.5				471,052
Industrials			10.1				10,143,817
Information Technology			0.3				289,222
Materials			39.1				39,351,233
Real Estate			0.7				721,410
Utilities			2.8				2,850,428
			100.0	%		$	100,489,204

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Argentina		$	319,075			$	—				$	—			$	319,075
Australia			—				3,968,255					—				3,968,255
Austria			—				272,874					—				272,874
Brazil			779,003				—					—				779,003
Canada			11,323,563				—					—				11,323,563
Chile			107,792				104,538					—				212,330
China / Hong Kong			54,205				1,554,771					—				1,608,976
Denmark			—				702,558					—				702,558
Finland			—				307,148					—				307,148
France			—				2,078,727					—				2,078,727
Germany			—				592,452					—				592,452
Hungary			—				53,448					—				53,448
India			—				499,065					—				499,065
Indonesia			67,586				45,712					—				113,298
Ireland			—				179,803					—				179,803
Italy			—				506,570					—				506,570
Japan			—				3,620,005					—				3,620,005
Luxembourg			620,599				—					—				620,599
Malaysia			117,921				1,282,213					—				1,400,134
Mexico			851,914				—					—				851,914
Netherlands			56,205				1,258,765					—				1,314,970
Norway			—				2,622,935					—				2,622,935
Peru			172,869				40,793					—				213,662
Poland			27,527				257,250					—				284,777
Portugal			—				103,997					—				103,997
Russia			—				2,126,282					—				2,126,282
Singapore			—				1,443,881					—				1,443,881
South Africa			403,675				844,634					—				1,248,309
South Korea			—				1,285,531					—				1,285,531
Spain			—				474,749					—				474,749
Sweden			—				520,365					—				520,365
Switzerland			47,775				567,222					—				614,997
Taiwan			—				343,710					—				343,710
Thailand			—				160,572					—				160,572
Turkey			—				115,626					—				115,626
United Kingdom			2,367,027				4,179,470					—				6,546,497
United States			51,058,547				—					—				51,058,547
Repurchase Agreements			—				1,671,936					—				1,671,936
Total		$	68,375,283			$	33,785,857				$	—			$	102,161,140

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $1,979,408, transfers of securities from Level 2 to Level 1 were $652,982. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		Spain
Balance as of December 31, 2016			$	0
Realized gain (loss)				—
Change in unrealized appreciation (depreciation)				—
Purchases				—
Sales				—
Transfers in and/or out of Level 3*				0
Balance as of June 30, 2017			$	—

 

*	Transfers of securities out of Level 3 resulted from resumed trading.

 

See Notes to Financial Statements

VANECK VECTORS OIL REFINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

 

GDR	Global Depositary Receipt
NVDR	Non-Voting Depositary Receipt
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $62,951.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $3,093,195 which represents 66.7% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $374,550, or 8.1% of net assets.

 

See Notes to Financial Statements

 

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Energy			97.6	%		$	4,544,193
Materials			1.9				87,773
Money Market Fund			0.5				22,941
			100.0	%		$	4,654,907

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	199,352				$	—			$	199,352
Austria			—				218,943					—				218,943
China / Hong Kong			—				87,773					—				87,773
Finland			—				206,407					—				206,407
India			—				374,550					—				374,550
Israel			—				59,211					—				59,211
Italy			—				55,627					—				55,627
Japan			—				548,605					—				548,605
Poland			—				210,807					—				210,807
Portugal			—				202,640					—				202,640
South Korea			—				346,420					—				346,420
Taiwan			—				200,034					—				200,034
Thailand			—				205,611					—				205,611
Turkey			—				177,215					—				177,215
United States			1,538,771				—					—				1,538,771
Money Market Fund			22,941				—					—				22,941
Repurchase Agreement			—				64,115					—				64,115
Total		$	1,561,712			$	3,157,310				$	—			$	4,719,022

 

During the period ended June 30, 2017, transfers of securities from Level 1 to Level 2 were $272,335. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

 

See Notes to Financial Statements

VANECK VECTORS OIL SERVICES ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

ADR	American Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $118,494,222.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Oil & Gas Drilling			22.8	%		$	239,372,478
Oil & Gas Equipment & Services			77.2				811,605,978
			100.0	%		$	1,050,978,456

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks*		$	1,050,978,456			$	—				$	—			$	1,050,978,456
Repurchase Agreements			—				124,773,069					—				124,773,069
Total		$	1,050,978,456			$	124,773,069				$	—			$	1,175,751,525

 

*	See Schedule of Investments for security type and geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2017.

 

See Notes to Financial Statements

VANECK VECTORS RARE EARTH/STRATEGIC METALS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

AUD	Australian Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $9,263,753.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $39,145,406 which represents 72.4% of net assets.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Commodity Chemicals			6.3	%		$	3,387,878
Diversified Metals & Mining			38.1				20,485,866
Materials			51.6				27,747,052
Steel			4.0				2,124,712
			100.0	%		$	53,745,508

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	10,422,660			$	—			$	10,422,660
Canada			4,272,971				—				—				4,272,971
China / Hong Kong			2,344,931				15,897,163				—				18,242,094
France			—				2,340,375				—				2,340,375
Japan			—				7,451,097				—				7,451,097
Malaysia			—				3,034,111				—				3,034,111
South Africa			2,469,610				—				—				2,469,610
United States			3,387,878				—				—				3,387,878
Preferred Stocks
Brazil			2,124,712				—				—				2,124,712
Repurchase Agreements			—				10,537,427				—				10,537,427
Total		$	14,600,102			$	49,682,833			$	—			$	64,282,935

 

During the period ended June 30, 2017, transfers of securities from Level 2 to Level 1 were $2,086,786. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial of Statements.

 

See Notes to Financial Statements

VANECK VECTORS SOLAR ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

ADR	American Depositary Receipt
NOK	Norwegian Krone
NVDR	Non-Voting Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $2,687,068.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $7,197,225 which represents 60.9% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $83,715 which represents 0.7% of net assets.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Energy			8.9	%		$	1,053,218
Industrial Machinery			4.5				539,087
Industrials			3.3				394,726
Information Technology			5.6				665,971
Semiconductor Equipment			23.0				2,739,055
Semiconductors			33.9				4,024,374
Utilities			20.8				2,476,496
			100.0	%		$	11,892,927

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Canada		$	501,416			$	—			$	—			$	501,416
China / Hong Kong			602,020				1,946,806				4,867				2,553,693
Germany			—				412,907				—				412,907
Israel			401,140				—				—				401,140
South Korea			—				259,128				—				259,128
Spain			695,076				325,741				—				1,020,817
Switzerland			—				539,087				—				539,087
Taiwan			—				1,697,438				—				1,697,438
Thailand			—				1,803,246				—				1,803,246
United States			2,496,050				207,169				—				2,703,219
Rights
Taiwan			—				836				—				836
Repurchase Agreements			—				3,005,580				—				3,005,580
Total		$	4,695,702			$	10,197,938			$	4,867			$	14,898,507

 

There were no transfers between levels during the period ended June 30, 2017.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2017:

 

		Common Stocks
		China/Hong Kong
Balance as of December 31, 2016			$	0
Realized gain (loss)				—
Change in unrealized appreciation (depreciation)				4,867
Purchases				—
Sales				—
Transfers in and/or out of Level 3				—
Balance as of June 30, 2017			$	4,867

 

See Notes to Financial Statements

VANECK VECTORS STEEL ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

ADR	American Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $30,385,233.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Energy			5.9	%		$	8,483,377
Industrials			1.4				2,098,181
Materials			92.7				133,898,386
			100.0	%		$	144,479,944

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks*		$	144,479,944			$	—			$	—			$	144,479,944
Repurchase Agreements			—				31,133,566				—				31,133,566
Total		$	144,479,944			$	31,133,566			$	—			$	175,613,510

*	See Schedule of Investments for security type and geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2017.

 

See Notes to Financial Statements

VANECK VECTORS UNCONVENTIONAL OIL & GAS ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $5,204,527.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Gas Utilities			1.3	%		$	715,143
Integrated Oil & Gas			10.4				5,668,322
Oil & Gas Exploration & Production			88.2				48,056,688
Money Market Fund			0.1				33,782
			100.0	%		$	54,473,935

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks*		$	54,440,153			$	—			$	—			$	54,440,153
Money Market Fund			33,782				—				—				33,782
Repurchase Agreements			—				5,347,640				—				5,347,640
Total		$	54,473,935			$	5,347,640			$	—			$	59,821,575

*	See Schedule of Investments for security type and geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2017.

 

See Notes to Financial Statements

VANECK VECTORS URANIUM+NUCLEAR ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2017 (unaudited)

 

 

See Notes to Financial Statements

 

 

ADR	American Depositary Receipt
USD	United States Dollar
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $2,356,436.
#	Indicates a fair valued security which has been valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $10,344,047 which represents 33.4% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $428,221, or 1.4% of net assets.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Energy			1.8	%		$	547,474
Industrials			6.9				2,137,172
Utilities			91.3				28,315,487
			100.0	%		$	31,000,133

 

The summary of inputs used to value the Fund’s investments as of June 30, 2017 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Canada		$	547,474			$	—			$	—			$	547,474
China / Hong Kong			—				428,221				—				428,221
Czech Republic			—				453,725				—				453,725
Finland			—				1,103,128				—				1,103,128
France			—				671,616				—				671,616
Japan			—				6,504,168				—				6,504,168
South Korea			1,359,880				—				—				1,359,880
Spain			—				1,183,189				—				1,183,189
United States			18,748,732				—				—				18,748,732
Repurchase Agreements			—				2,515,587				—				2,515,587
Total		$	20,656,086			$	12,859,634			$	—			$	33,515,720

*	See Schedule of Investments for security type and geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2017.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2017 (unaudited)

 

																			Junior
		Agribusiness				Coal				Global Alternative					Gold Miners				Gold Miners
		ETF				ETF				Energy ETF					ETF				ETF
Assets:
Investments, at value (1)
Unaffiliated issuers (2)		$	795,888,018			$	80,604,296				$	79,394,460			$	8,193,947,926			$	1,179,473,411
Affiliated issuers (3)			—				—					—				—				2,741,111,441
Short-term investments held as collateral for securities loaned (4)			27,097,890				—					22,788,739				192,006,040				177,665,632
Cash			9,579				—					—				—				—
Cash denominated in foreign currency, at value (5)			394,993				26,907					81,035				335,582				13,059,113
Receivables:
Investment securities sold			160,440				133,106					21,030				240,570				37,400
Shares sold			—				—					—				—				5,080
Due from Adviser			—				—					—				—				—
Dividends and interest			2,823,812				1,088,303					189,264				920,290				1,264,248
Prepaid expenses			4,177				2,257					2,862				295,660				16,368
Total assets			826,378,909				81,854,869					102,477,390				8,387,746,068				4,112,632,693
Liabilities:
Payables:
Investment securities purchased			160,216				477,941					21,066				25,346,702				37,405
Collateral for securities loaned			27,097,890				—					22,788,739				192,006,040				177,665,632
Line of credit			1,888,048				484,588					203,644				735,700				2,784,515
Shares redeemed			—				—					—				8,028				—
Due to Adviser			330,377				31,334					27,638				3,616,425				1,478,125
Due to custodian			—				1,305					—				—				—
Deferred Trustee fees			409,431				19,924					10,276				738,932				159,578
Accrued expenses			365,672				104,462					76,725				16,232				16,875
Total liabilities			30,251,634				1,119,554					23,128,088				222,468,059				182,142,130
NET ASSETS		$	796,127,275			$	80,735,315				$	79,349,302			$	8,165,278,009			$	3,930,490,563
Shares outstanding			14,450,000				6,100,000					1,333,298				370,252,500				117,587,446
Net asset value, redemption and offering price per share		$	55.10			$	13.24				$	59.51			$	22.05			$	33.43
Net assets consist of:
Aggregate paid in capital		$	1,777,591,496			$	547,587,602				$	354,212,160			$	17,927,442,843			$	7,955,431,783
Net unrealized appreciation (depreciation)			(29,668,419	)			(4,293,755	)				2,671,765				(1,268,181,307	)			170,467,229
Undistributed (accumulated) net investment income (loss)			7,396,226				1,626,467					1,596,311				28,411,486				(147,830,427	)
Accumulated net realized loss			(959,192,028	)			(464,184,999	)				(279,130,934	)			(8,522,395,013	)			(4,047,578,022	)
		$	796,127,275			$	80,735,315				$	79,349,302			$	8,165,278,009			$	3,930,490,563
(1) Value of securities on loan		$	24,742,208			$	—				$	21,751,589			$	175,534,767			$	170,205,288
(2) Cost of investments – Unaffiliated issuers		$	825,482,972			$	84,897,414				$	76,727,571			$	9,462,134,827			$	1,930,422,436
(3) Cost of investments – Affiliated issuers		$	—			$	—				$	—			$	—			$	1,819,877,624
(4) Cost of short-term investments held as collateral for securities loaned		$	27,097,890			$	—				$	22,788,739			$	192,006,040			$	177,665,632
(5) Cost of cash denominated in foreign currency		$	388,618			$	26,908				$	79,191			$	332,208			$	12,878,020

 

See Notes to Financial Statements

 

 

Natural														Rare Earth/															Unconventional					Uranium+Nuclear
Resources				Oil Refiners					Oil Services					Strategic Metals					Solar Energy										Oil & Gas					Energy
ETF				ETF					ETF					ETF					ETF					Steel ETF					ETF					ETF
$	100,489,204				$	4,654,907				$	1,050,978,456				$	53,745,508				$	11,892,927				$	144,479,944				$	54,473,935				$	31,000,133
	—					—					—					—					—					—					—					—
	1,671,936					64,115					124,773,069					10,537,427					3,005,580					31,133,566					5,347,640					2,515,587
	416					—					—					209,099					—					—					—					—
	109,459					3,919					—					165,123					31,178					—					—					82,390
	106,118					2,452					—					—					—					3,406,490					—					113,904
	—					—					196					—					—					19,017					—					—
	—					5,289					—					—					3,744					—					—					—
	271,591					18,197					1,965,597					93,417					31,783					86,739					65,251					141,275
	2,844					2,536					7,840					2,475					2,585					2,791					2,700					2,689
	102,651,568					4,751,415					1,177,725,158					64,753,049					14,967,797					179,128,547					59,889,526					33,855,978
	61,166					2,448					—					—					—					3,169,052					—					113,761
	1,671,936					64,115					124,773,069					10,537,427					3,005,580					31,133,566					5,347,640					2,515,587
	700,147					—					3,759,349					—					—					308,937					—					72,686
	—					—					997					—					—					—					—					—
	26,362					—					277,940					14,167					—					53,842					13,077					5,197
	—					—					—					—					75,576					61					1,953					43,911
	10,357					21					122,609					12,048					1,930					15,137					2,693					9,922
	115,210					48,288					102,722					88,450					60,409					49,712					90,589					79,747
	2,585,178					114,872					129,036,686					10,652,092					3,143,495					34,730,307					5,455,952					2,840,811
$	100,066,390				$	4,636,543				$	1,048,688,472				$	54,100,957				$	11,824,302				$	144,398,240				$	54,433,574				$	31,015,167
	3,050,000					200,000					42,310,863					3,074,962					300,000					3,750,000					3,900,000					616,632
$	32.81				$	23.18				$	24.79				$	17.59				$	39.41				$	38.51				$	13.96				$	50.30
$	132,779,319				$	4,083,305				$	1,976,231,293				$	281,080,394				$	80,578,443				$	352,019,229				$	105,640,087				$	200,754,501
	1,871,748					490,445					(869,243,720	)				1,903,649					(1,314,605	)				(4,953,272	)				(20,280,986	)				1,198,690
	1,133,772					62,900					7,149,274					1,083,084					72,505					2,960,865					236,595					1,726,173
	(35,718,449	)				(107	)				(65,448,375	)				(229,966,170	)				(67,512,041	)				(205,628,582	)				(31,162,122	)				(172,664,197	)
$	100,066,390				$	4,636,543				$	1,048,688,472				$	54,100,957				$	11,824,302				$	144,398,240				$	54,433,574				$	31,015,167
$	1,612,344				$	62,951				$	118,494,222				$	9,263,753				$	2,687,068				$	30,385,233				$	5,204,527				$	2,356,436
$	98,617,335				$	4,164,483				$	1,920,222,176				$	51,842,544				$	13,207,937				$	149,433,217				$	74,754,972				$	29,802,496
$	—				$	—				$	—				$	—				$	—				$	—				$	—				$	—
$	1,671,936				$	64,115				$	124,773,069				$	10,537,427				$	3,005,580				$	31,133,566				$	5,347,640				$	2,515,587
$	107,568				$	3,914				$	—				$	164,456				$	30,585				$	—				$	—				$	82,276

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Period Ended June 30, 2017 (unaudited)

 

												Global										Junior
		Agribusiness					Coal					Alternative					Gold Miners					Gold Miners
		ETF					ETF					Energy ETF					ETF					ETF
Income:
Dividends – unaffiliated issuers			$	9,629,254				$	2,410,372				$	1,414,460				$	1,543,703				$	2,314,322
Dividends – affiliated issuers				—					—					—					58,031,925					7,170,283
Securities lending income				871,215					—					126,368					1,273,116					4,234,540
Foreign taxes withheld				(600,168	)				(311,304	)				(111,796	)				(4,792,281	)				(553,251	)
Total income				9,900,301					2,099,068					1,429,032					56,056,463					13,165,894
Expenses:
Management fees				2,038,330					253,402					175,134					26,337,196					10,758,400
Professional fees				26,807					28,377					29,617					102,819					87,207
Insurance				5,426					387					536					61,661					22,949
Trustees’ fees and expenses				5,096					232					536					89,010					34,254
Reports to shareholders				26,419					12,494					12,868					173,925					97,385
Indicative optimized portfolio value fee				3,267					1,520					2,173					—					1,867
Custodian fees				42,210					2,755					8,333					191,423					90,672
Registration fees				1,332					2,313					2,479					21,028					11,981
Transfer agent fees				1,190					1,174					1,190					769					1,190
Fund accounting fees				23,859					2,787					3,312					—					109,933
Interest				32,641					1,401					2,710					44,872					191,956
Other				15,493					3,440					10,251					78,642					48,290
Total expenses				2,222,070					310,282					249,139					27,101,345					11,456,084
Waiver of management fees				—					(9,867	)				(29,262	)				—					—
Expenses assumed by the Adviser				—					—					—					—					—
Net expenses				2,222,070					300,415					219,877					27,101,345					11,456,084
Net investment income				7,678,231					1,798,653					1,209,155					28,955,118					1,709,810
Net realized gain (loss) on:
Investments – unaffiliated issuers				4,336,109					(8,894,599	)				1,620,305					(583,996,502	)				(208,816,685	)
Investments – affiliated issuers				—					—					—					286,143,825					(389,612,923	)
In-kind redemptions				19,713,598					13,534,852					863,114					580,569,012					196,212,983
Foreign currency transactions and foreign denominated assets and liabilities				26,964					(14,660	)				18,235					(331,264	)				(331,664	)
Net realized gain (loss)				24,076,671					4,625,593					2,501,654					282,385,071					(402,548,289	)
Net change in unrealized appreciation (depreciation) on:
Investments				25,188,381					(776,638	)				7,576,281					180,878,074					335,838,167
Foreign currency transactions and foreign denominated assets and liabilities				52,702					(876	)				8,892					6,253					181,014
Net change in unrealized appreciation (depreciation)				25,241,083					(777,514	)				7,585,173					180,884,327					336,019,181
Net Increase (Decrease) in Net Assets Resulting from Operations			$	56,995,985				$	5,646,732				$	11,295,982				$	492,224,516				$	(64,819,298	)

 

See Notes to Financial Statements

 

 

Natural														Rare Earth/															Unconventional					Uranium+Nuclear
Resources				Oil Refiners					Oil Services					Strategic Metals					Solar Energy										Oil & Gas					Energy
ETF				ETF					ETF					ETF					ETF					Steel ETF					ETF					ETF
$	1,421,289				$	79,914				$	7,965,335				$	241,513				$	62,158				$	3,374,840				$	286,324				$	590,482
	—					—					—					—					—					—					—					—
	14,667					45					1,352,827					413,253					50,771					51,228					4,865					9,448
	(92,888	)				(9,661	)				(79,989	)				(27,008	)				(754	)				(8,838	)				(8,166	)				(30,102	)
	1,343,068					70,298					9,238,173					627,758					112,175					3,417,230					283,023					569,828
	244,209					8,775					1,996,558					139,790					27,403					441,717					133,177					80,774
	46,941					28,378					52,489					33,861					38,526					29,429					30,399					34,391
	585					24					6,056					244					83					1,338					290					246
	793					24					10,217					223					70					455					426					330
	8,100					5,061					43,517					11,654					6,475					12,793					8,788					8,163
	2,634					2,479					2,452					2,973					2,973					—					749					6,297
	23,383					3,427					12,816					5,359					5,244					1,344					1,612					3,261
	2,487					2,481					3,721					2,564					3,632					2,714					2,479					3,185
	1,190					1,190					1,113					1,190					1,191					1,190					1,191					1,190
	4,357					1,354					25,609					1,082					562					4,178					1,357					1,914
	4,059					42					20,102					12,683					480					6,331					195					1,548
	3,780					630					28,526					4,574					616					5,763					3,699					3,526
	342,518					53,865					2,203,176					216,197					87,255					507,252					184,362					144,825
	(99,133	)				(8,775	)				(186,517	)				(44,153	)				(27,403	)				(15,031	)				(40,335	)				(46,349	)
	—					(34,693	)				—					—					(23,748	)				—					—					—
	243,385					10,397					2,016,659					172,044					36,104					492,221					144,027					98,476
	1,099,683					59,901					7,221,514					455,714					76,071					2,925,009					138,996					471,352
	(3,060,454	)				18,141					(36,759,691	)				(138,223	)				(2,020,127	)				(21,784,293	)				(4,665,920	)				(107,993	)
	—					—					—					—					—					—					—					—
	2,553,630					—					(2,300,489	)				—					—					16,850,707					634,739					690,832
	4,262					252					—					5,887					(788	)				—					179					(2,589	)
	(502,562	)				18,393					(39,060,180	)				(132,336	)				(2,020,915	)				(4,933,586	)				(4,031,002	)				580,250
	809,880					289,721					(316,069,506	)				(225,841	)				3,512,060					3,812,007					(9,876,688	)				775,704
	6,380					69					—					(4,140	)				661					—					(30	)				1,824
	816,260					289,790					(316,069,506	)				(229,981	)				3,512,721					3,812,007					(9,876,718	)				777,528
$	1,413,381				$	368,084				$	(347,908,172	)			$	93,397				$	1,567,877				$	1,803,430				$	(13,768,724	)			$	1,829,130

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

		Agribusiness ETF										Coal ETF
		For the										For the
		Six Months					For the Year					Six Months					For the Year
		Ended					Ended					Ended					Ended
		June 30,					December 31,					June 30,					December 31,
		2017					2016					2017					2016
		(unaudited)										(unaudited)
Operations:
Net investment income			$	7,678,231				$	16,772,271				$	1,798,653				$	1,166,522
Net realized gain (loss)				24,076,671					(6,675,269	)				4,625,593					(35,329,599	)
Net change in unrealized appreciation (depreciation)				25,241,083					84,668,464					(777,514	)				75,502,845
Net increase (decrease) in net assets resulting from operations				56,995,985					94,765,466					5,646,732					41,339,768
Dividends to shareholders:
Dividends from net investment income				—					(17,183,700	)				—					(1,174,800	)
Share transactions:**
Proceeds from sale of shares				40,408,286					107,389,282					26,697,677					42,948,463
Cost of shares redeemed				(105,432,634	)				(216,366,402	)				(53,003,949	)				(20,966,254	)
Increase (Decrease) in net assets resulting from share transactions				(65,024,348	)				(108,977,120	)				(26,306,272	)				21,982,209
Total increase (decrease) in net assets				(8,028,363	)				(31,395,354	)				(20,659,540	)				62,147,177
Net Assets, beginning of period				804,155,638					835,550,992					101,394,855					39,247,678
Net Assets, end of period†			$	796,127,275				$	804,155,638				$	80,735,315				$	101,394,855
† Including undistributed (accumulated) net investment income (loss)			$	7,396,226				$	(282,005	)			$	1,626,467				$	(172,186	)
** Shares of Common Stock Issued (no par value)
Shares sold				750,000					2,200,000					1,900,000					3,800,000
Shares redeemed				(1,950,000	)				(4,500,000	)				(4,000,000	)				(1,850,000	)
Net increase (decrease)				(1,200,000	)				(2,300,000	)				(2,100,000	)				1,950,000

 

See Notes to Financial Statements

 

 

Global Alternative Energy ETF										Gold Miners ETF										Junior Gold Miners ETF
For the										For the Six										For the Six
Six Months					For the Year					Months					For the Year					Months					For the Year
Ended					Ended					Ended					Ended					Ended					Ended
June 30,					December 31,					June 30,					December 31,					June 30,					December 31,
2017					2016					2017					2016					2017					2016
(unaudited)										(unaudited)										(unaudited)
	$	1,209,155				$	1,710,911				$	28,955,118				$	17,751,572				$	1,709,810				$	4,322,640
		2,501,654					(8,409,157	)				282,385,071					(787,882,992	)				(402,548,289	)				224,135,173
		7,585,173					1,470,864					180,884,327					2,274,160,888					336,019,181					292,891,291
		11,295,982					(5,227,382	)				492,224,516					1,504,029,468					(64,819,298	)				521,349,104
		—					(1,374,412	)				—					(24,961,888	)				—					(156,407,681	)
		5,815,452					5,019,448					2,745,416,656					6,632,467,108					2,216,448,064					2,579,635,409
		(2,720,339	)				(25,316,282	)				(4,757,375,003	)				(2,743,240,625	)				(1,675,471,119	)				(790,925,366	)
		3,095,113					(20,296,834	)				(2,011,958,347	)				3,889,226,483					540,976,945					1,788,710,043
		14,391,095					(26,898,628	)				(1,519,733,831	)				5,368,294,063					476,157,647					2,153,651,466
		64,958,207					91,856,835					9,685,011,840					4,316,717,777					3,454,332,916					1,300,681,450
	$	79,349,302				$	64,958,207				$	8,165,278,009				$	9,685,011,840				$	3,930,490,563				$	3,454,332,916
	$	1,596,311				$	387,156				$	28,411,486				$	(543,632	)			$	(147,830,427	)			$	(149,540,237	)
		100,000					100,000					118,600,000					282,100,000					58,850,000					62,050,000
		(50,000	)				(500,000	)				(211,250,000	)				(133,850,000	)				(50,150,000	)				(20,850,000	)
		50,000					(400,000	)				(92,650,000	)				148,250,000					8,700,000					41,200,000

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Natural Resources ETF										Oil Refiners ETF
		For the										For the
		Six Months					For the Year					Six Months					For the Year
		Ended					Ended					Ended					Ended
		June 30,					December 31,					June 30,					December 31,
		2017					2016					2017					2016
		(unaudited)										(unaudited)
Operations:
Net investment income			$	1,099,683				$	1,851,647				$	59,901				$	109,068
Net realized gain (loss)				(502,562	)				(12,693,313	)				18,393					184,095
Net change in unrealized appreciation (depreciation)				816,260					28,777,831					289,790					88,251
Net increase (decrease) in net assets resulting from operations				1,413,381					17,936,165					368,084					381,414
Dividends and Distributions to shareholders:
Dividends from net investment income				—					(1,800,400	)				—					(106,950	)
Return of capital				—					—					—					—
Total Dividends and Distributions				—					(1,800,400	)				—					(106,950	)
Share transactions:**
Proceeds from sale of shares				13,272,038					15,462,894					1,139,031					—
Cost of shares redeemed				(9,941,574	)				(12,787,582	)				—					(1,083,497	)
Increase (Decrease) in net assets resulting from share transactions				3,330,464					2,675,312					1,139,031					(1,083,497	)
Total increase (decrease) in net assets				4,743,845					18,811,077					1,507,115					(809,033	)
Net Assets, beginning of period				95,322,545					76,511,468					3,129,428					3,938,461
Net Assets, end of period†			$	100,066,390				$	95,322,545				$	4,636,543				$	3,129,428
† Including undistributed (accumulated) net investment income (loss)			$	1,133,772				$	34,089				$	62,900				$	2,999
** Shares of Common Stock Issued (no par value)
Shares sold				400,000					500,000					50,000					—
Shares redeemed				(300,000	)				(450,000	)				—					(50,000	)
Net increase (decrease)				100,000					50,000					50,000					(50,000	)

 

See Notes to Financial Statements

 

 

Oil Services ETF										Rare Earth/Strategic Metals ETF										Solar Energy ETF
For the										For the Six										For the Six
Six Months					For the Year					Months					For the Year					Months					For the Year
Ended					Ended					Ended					Ended					Ended					Ended
June 30,					December 31,					June 30,					December 31,					June 30,					December 31,
2017					2016					2017					2016					2017					2016
(unaudited)										(unaudited)										(unaudited)
	$	7,221,514				$	16,111,826				$	455,714				$	504,103				$	76,071				$	353,906
		(39,060,180	)				(8,087,132	)				(132,336	)				(29,697,355	)				(2,020,915	)				(5,818,737	)
		(316,069,506	)				226,247,149					(229,981	)				36,316,815					3,512,721					(2,343,918	)
		(347,908,172	)				234,271,843					93,397					7,123,563					1,567,877					(7,808,749	)
		—					(16,268,462	)				—					(959,486	)				—					(369,437	)
		—					—					—					—					—					(58,063	)
		—					(16,268,462	)				—					(959,486	)				—					(427,500	)
		2,610,422,421					3,429,010,616					19,067,062					12,092,919					—					—
		(2,431,962,446	)				(3,547,778,125	)				(7,722,082	)				(3,975,509	)				—					—
		178,459,975					(118,767,509	)				11,344,980					8,117,410					—					—
		(169,448,197	)				99,235,872					11,438,377					14,281,487					1,567,877					(8,236,249	)
		1,218,136,669					1,118,900,797					42,662,580					28,381,093					10,256,425					18,492,674
	$	1,048,688,472				$	1,218,136,669				$	54,100,957				$	42,662,580				$	11,824,302				$	10,256,425
	$	7,149,274				$	(72,240	)			$	1,083,084				$	627,370				$	72,505				$	(3,566	)
		88,300,000					121,200,000					1,000,000					700,000					—					—
		(82,500,000	)				(127,000,000	)				(450,000	)				(250,000	)				—					—
		5,800,000					(5,800,000	)				550,000					450,000					—					—

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Steel ETF										Unconventional Oil & Gas ETF
		For the Six Months Ended June 30, 2017					For the Year Ended December 31, 2016					For the Six Months Ended June 30, 2017					For the Year Ended December 31, 2016
		(unaudited)										(unaudited)
Operations:
Net investment income			$	2,925,009				$	1,916,545				$	138,996				$	301,346
Net realized gain (loss)				(4,933,586	)				(4,894,984	)				(4,031,002	)				(9,453,955	)
Net change in unrealized appreciation (depreciation)				3,812,007					63,093,004					(9,876,718	)				24,323,067
Net increase (decrease) in net assets resulting from operations				1,803,430					60,114,565					(13,768,724	)				15,170,458
Dividends to shareholders:
Dividends from net investment income				—					(1,869,300	)				—					(198,450	)
Share transactions:**
Proceeds from sale of shares				24,700,786					162,573,081					15,630,720					20,232,434
Cost of shares redeemed				(67,429,480	)				(80,398,881	)				(6,752,196	)				(14,278,220	)
Increase (Decrease) in net assets resulting from share transactions				(42,728,694	)				82,174,200					8,878,524					5,954,214
Total increase (decrease) in net assets				(40,925,264	)				140,419,465					(4,890,200	)				20,926,222
Net Assets, beginning of period				185,323,504					44,904,039					59,323,774					38,397,552
Net Assets, end of period†			$	144,398,240				$	185,323,504				$	54,433,574				$	59,323,774
† Including undistributed net investment income			$	2,960,865				$	35,856				$	236,595				$	97,599
** Shares of Common Stock Issued (no par value)
Shares sold				600,000					5,450,000					1,050,000					1,250,000
Shares redeemed				(1,750,000	)				(2,850,000	)				(400,000	)				(900,000	)
Net increase (decrease)				(1,150,000	)				2,600,000					650,000					350,000

 

See Notes to Financial Statements

 

 

Uranium+Nuclear Energy ETF
For the Six Months Ended June 30, 2017					For the Year Ended December 31, 2016
(unaudited)
	$	471,352				$	1,275,905
		580,250					1,363,001
		777,528					677,051
		1,829,130					3,315,957
		—					(1,231,890	)
		—					—
		(4,889,708	)				(7,219,122	)
		(4,889,708	)				(7,219,122	)
		(3,060,578	)				(5,135,055	)
		34,075,745					39,210,800
	$	31,015,167				$	34,075,745
	$	1,726,173				$	1,254,821
		—					—
		(100,000	)				(150,000	)
		(100,000	)				(150,000	)

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Agribusiness ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$51.38				$46.55				$52.59				$54.44				$52.94				$47.21
Income from investment operations:
Net investment income			0.53				1.07				1.37				1.68				1.08				1.00
Net realized and unrealized gain (loss) on investments			3.19				4.86				(6.07	)			(1.84	)			1.46				5.70
Total from investment operations			3.72				5.93				(4.70	)			(0.16	)			2.54				6.70
Less:
Dividends from net investment income			—				(1.10	)			(1.34	)			(1.69	)			(1.04	)			(0.97	)
Net asset value, end of period			$55.10				$51.38				$46.55				$52.59				$54.44				$52.94
Total return (a)			7.24	%(b)			12.74	%			(8.96	)%			(0.13	)%			4.60	%			14.20	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$796,127				$804,156				$835,551				$1,440,901				$4,635,318				$5,667,221
Ratio of gross expenses to average net assets			0.55	%(c)			0.53	%			0.55	%			0.57	%			0.55	%			0.55	%
Ratio of net expenses to average net assets			0.55	%(c)			0.53	%			0.55	%			0.57	%			0.55	%			0.55	%
Ratio of net expenses, excluding interest expense, to average net assets			0.54	%(c)			0.53	%			0.54	%			0.56	%			0.55	%			0.54	%
Ratio of net investment income to average net assets			1.88	%(c)			2.04	%			2.00	%			1.77	%			1.79	%			1.89	%
Portfolio turnover rate (d)			16	%(b)			15	%			20	%			14	%			33	%			19	%

		Coal ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$12.37				$6.28				$14.64				$19.50				$25.17				$32.41
Income from investment operations:
Net investment income			0.29				0.14				0.29				0.34				0.39				0.49
Net realized and unrealized gain (loss) on investments			0.58				6.08				(8.36	)			(4.83	)			(5.62	)			(7.30	)
Total from investment operations			0.87				6.22				(8.07	)			(4.49	)			(5.23	)			(6.81	)
Less:
Dividends from net investment income			—				(0.13	)			(0.29	)			(0.37	)			(0.44	)			(0.43	)
Net asset value, end of period			$13.24				$12.37				$6.28				$14.64				$19.50				$25.17
Total return (a)			7.03	%(b)			99.10	%			(55.14	)%			(23.07	)%			(20.77	)%			(21.05	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$80,735				$101,395				$39,248				$114,905				$154,994				$235,358
Ratio of gross expenses to average net assets			0.61	%(c)			0.62	%			0.66	%			0.63	%			0.64	%			0.62	%
Ratio of net expenses to average net assets			0.59	%(c)			0.59	%			0.59	%			0.59	%			0.59	%			0.59	%
Ratio of net expenses, excluding interest expense, to average net assets			0.59	%(c)			0.59	%			0.59	%			0.59	%			0.59	%			0.59	%
Ratio of net investment income to average net assets			3.55	%(c)			1.66	%			2.31	%			1.75	%			1.78	%			2.02	%
Portfolio turnover rate (d)			21	%(b)			40	%			36	%			27	%			20	%			55	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Global Alternative Energy ETF#
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$50.62				$54.57				$54.09				$55.90				$33.26				$32.88
Income from investment operations:
Net investment income			0.90				1.38				0.46				0.12				0.51				0.66
Net realized and unrealized gain (loss) on investments			7.99				(4.26	)			0.33				(1.82	)			22.68				0.35
Total from investment operations			8.89				(2.88	)			0.79				(1.70	)			23.19				1.01
Less:
Dividends from net investment income			—				(1.07	)			(0.31	)			(0.11	)			(0.54	)			(0.63	)
Return of capital			—				—				—				—				(0.01	)			—
Total dividends and distributions			—				(1.07	)			(0.31	)			(0.11	)			(0.55	)			(0.63	)
Net asset value, end of period			$59.51				$50.62				$54.57				$54.09				$55.90				$33.26
Total return (a)			17.56	%(b)			(5.26	)%			1.45	%			(3.04	)%			69.69	%			3.07	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$79,349				$64,958				$91,857				$82,937				$91,309				$46,013
Ratio of gross expenses to average net assets			0.71	%(c)			0.64	%			0.62	%			0.64	%			0.72	%			0.81	%
Ratio of net expenses to average net assets			0.63	%(c)			0.62	%			0.62	%			0.62	%			0.62	%			0.62	%
Ratio of net expenses, excluding interest expense, to average net assets			0.62	%(c)			0.62	%			0.62	%			0.62	%			0.62	%			0.62	%
Ratio of net investment income to average net assets			3.45	%(c)			2.04	%			0.88	%			0.18	%			1.16	%			1.81	%
Portfolio turnover rate (d)			11	%(b)			32	%			27	%			31	%			18	%			35	%
		Gold Miners ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
	2017						2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$20.92				$13.72				$18.43				$21.16				$46.32				$51.50
Income from investment operations:
Net investment income			0.08				0.03				0.12				0.12				0.23				0.39
Net realized and unrealized gain (loss) on investments			1.05				7.23				(4.71	)			(2.73	)			(25.20	)			(5.11	)
Total from investment operations			1.13				7.26				(4.59	)			(2.61	)			(24.97	)			(4.72	)
Less:
Dividends from net investment income			—				(0.06	)			(0.12	)			(0.12	)			(0.19	)			(0.46	)
Net asset value, end of period			$22.05				$20.92				$13.72				$18.43				$21.16				$46.32
Total return (a)			5.40	%(b)			52.91	%			(24.93	)%			(12.31	)%			(53.90	)%			(9.16	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$8,165,278				$9,685,012				$4,316,718				$5,495,447				$6,652,611				$9,406,054
Ratio of gross expenses to average net assets			0.51	%(c)			0.51	%			0.52	%			0.53	%			0.53	%			0.52	%
Ratio of net expenses to average net assets			0.51	%(c)			0.51	%			0.52	%			0.53	%			0.53	%			0.52	%
Ratio of net expenses, excluding interest expense, to average net assets			0.51	%(c)			0.51	%			0.52	%			0.53	%			0.53	%			0.52	%
Ratio of net investment income to average net assets			0.55	%(c)			0.21	%			0.66	%			0.52	%			1.01	%			0.88	%
Portfolio turnover rate (d)			5	%(b)			26	%			24	%			18	%			33	%			5	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
#	On July 1, 2013, the Fund effected a 1 for 3 reverse share split (See Note 10). Per share data has been adjusted to reflect the share split.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Junior Gold Miners ETF#
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$31.72				$19.22				$24.04				$30.90				$79.13				$97.84
Income from investment operations:
Net investment income			0.11				0.14				0.15				—	(b)(c)			0.41				0.36
Net realized and unrealized gain (loss) on investments			1.60				13.87				(4.83	)			(6.68	)			(48.64	)			(16.07	)
Total from investment operations			1.71				14.01				(4.68	)			(6.68	)			(48.23	)			(15.71	)
Less:
Dividends from net investment income			—				(1.51	)			(0.14	)			(0.18	)			—				(3.00	)
Net asset value, end of period			$33.43				$31.72				$19.22				$24.04				$30.90				$79.13
Total return (a)			5.39	%(e)			73.75	%			(19.48	)%			(21.60	)%			(60.95	)%			(16.07	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$3,930,491				$3,454,333				$1,300,681				$1,522,690				$1,136,823				$2,537,231
Ratio of gross expenses to average net assets (d)			0.53	%(f)			0.52	%			0.56	%			0.55	%			0.58	%			0.55	%
Ratio of net expenses to average net assets (d)			0.53	%(f)			0.52	%			0.56	%			0.55	%			0.57	%			0.55	%
Ratio of net expenses, excluding interest expense, to average net assets(d)			0.52	%(f)			0.52	%			0.55	%			0.54	%			0.56	%			0.55	%
Ratio of net investment income (loss) to average net assets (d)			0.05	%(f)			0.14	%			0.66	%			(0.01	)%			(0.07	)%			0.01	%
Portfolio turnover rate (g)			55	%(e)			58	%			47	%			65	%			34	%			22	%
		Natural Resources ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$32.31				$26.38				$33.73				$37.46				$35.94				$33.76
Income from investment operations:
Net investment income			0.36				0.66				0.81				0.82				0.87				0.86
Net realized and unrealized gain (loss) on investments			0.14				5.91				(7.37	)			(3.70	)			1.48				2.17
Total from investment operations			0.50				6.57				(6.56	)			(2.88	)			2.35				3.03
Less:
Dividends from net investment income			—				(0.64	)			(0.79	)			(0.85	)			(0.83	)			(0.85	)
Net asset value, end of period			$32.81				$32.31				$26.38				$33.73				$37.46				$35.94
Total return(a)			1.55	%(e)			24.93	%			(19.48	)%			(7.71	)%			6.55	%			8.98	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$100,066				$95,323				$76,511				$86,023				$101,140				$122,204
Ratio of gross expenses to average net assets			0.70	%(f)			0.77	%			0.75	%			0.73	%			0.74	%			0.68	%
Ratio of net expenses to average net assets			0.50	%(f)			0.50	%			0.50	%			0.50	%			0.50	%			0.52	%
Ratio of net expenses, excluding interest expense, to average net assets			0.49	%(f)			0.49	%			0.49	%			0.49	%			0.49	%			0.51	%
Ratio of net investment income to average net assets			2.25	%(f)			2.18	%			2.66	%			2.10	%			2.13	%			1.95	%
Portfolio turnover rate (g)			25	%(e)			37	%			9	%			13	%			14	%			10	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Calculated based upon average shares outstanding.
(c)	Amount represents less than $0.005 per share.
(d)	The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds.
(e)	Not Annualized
(f)	Annualized
(g)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
#	On July 1, 2013, the Fund effected a 1 for 4 reverse share split (See Note 10). Per share data has been adjusted to reflect the share split.

 

See Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Oil Refiners ETF
		For the Six Months Ended June 30, 2017				For the Year Ended December 31, 2016				For the Period August 18, 2015(a) through December 31, 2015
		(unaudited)
Net asset value, beginning of period			$20.86				$19.69				$19.75
Income from investment operations:
Net investment income			0.29				0.73				0.07
Net realized and unrealized gain (loss) on investments			2.03				1.15				(0.04	)
Total from investment operations			2.32				1.88				0.03
Less:
Dividends from net investment income			—				(0.71	)			(0.07	)
Return of capital			—				—				(0.02	)
Total dividends and distributions			—				(0.71	)			(0.09	)
Net asset value, end of period			$23.18				$20.86				$19.69
Total return (b)			11.12	%(c)			9.55	%			0.16	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$4,637				$3,129				$3,938
Ratio of gross expenses to average net assets			3.06	%(d)			3.42	%			4.98	%(d)
Ratio of net expenses to average net assets			0.59	%(d)			0.59	%			0.59	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			0.59	%(d)			0.59	%			0.59	%(d)
Ratio of net investment income to average net assets			3.41	%(d)			2.85	%			1.19	%(d)
Portfolio turnover rate (e)			16	%(c)			15	%			12	%(c)
		Oil Services ETF#
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$33.36				$26.44				$35.89				$48.10				$38.64				$38.29
Income from investment operations:
Net investment income			0.17				0.46				0.63				0.85				0.55				0.42
Net realized and unrealized gain (loss) on investments			(8.74	)			6.93				(9.45	)			(12.20	)			9.45				0.34
Total from investment operations			(8.57	)			7.39				(8.82	)			(11.35	)			10.00				0.76
Less:
Dividends from net investment income			—				(0.47	)			(0.63	)			(0.86	)			(0.54	)			(0.40	)
Distributions from net realized capital gains			—				—				—				—				—				(0.01	)
Total dividends and distributions			—				(0.47	)			(0.63	)			(0.86	)			(0.54	)			(0.41	)
Net asset value, end of period			$24.79				$33.36				$26.44				$35.89				$48.10				$38.64
Total return (b)			(25.69	)%(c)			27.92	%			(24.58	)%			(23.64	)%			25.90	%			1.98	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$1,048,688				$1,218,137				$1,118,901				$929,834				$1,482,094				$1,283,326
Ratio of gross expenses to average net assets			0.39	%(d)			0.40	%			0.39	%			0.39	%			0.39	%			0.38	%
Ratio of net expenses to average net assets			0.35	%(d)			0.35	%			0.35	%			0.35	%			0.35	%			0.35	%
Ratio of net expenses, excluding interest expense, to average net assets			0.35	%(d)			0.35	%			0.35	%			0.35	%			0.35	%			0.35	%
Ratio of net investment income to average net assets			1.27	%(d)			1.70	%			2.30	%			1.99	%			1.24	%			1.23	%
Portfolio turnover rate (e)			21	%(c)			24	%			18	%			15	%			10	%			6	%

 

 

(a)	Commencement of operations
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Not Annualized
(d)	Annualized
(e)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
#	On February 14, 2012, the Fund effected a 3 for 1 share split (See Note 10). Per share data has been adjusted to reflect the share split.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Rare Earth/Strategic Metals ETF#
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$16.90				$13.68				$25.49				$35.98				$52.92				$60.40
Income from investment operations:
Net investment income			0.10				0.12				0.51				0.65				0.35				0.88
Net realized and unrealized gain (loss) on investments			0.59				3.48				(11.68	)			(10.75	)			(17.21	)			(7.44	)
Total from investment operations			0.69				3.60				(11.17	)			(10.10	)			(16.86	)			(6.56	)
Less:
Dividends from net investment income			—				(0.38	)			(0.64	)			(0.39	)			(0.08	)			(0.92	)
Net asset value, end of period			$17.59				$16.90				$13.68				$25.49				$35.98				$52.92
Total return (a)			4.08	%(b)			26.35	%			(43.76	)%			(28.07	)%			(31.85	)%			(10.88	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$54,101				$42,663				$28,381				$57,986				$96,243				$174,652
Ratio of gross expenses to average net assets			0.77	%(c)			0.86	%			0.82	%			0.72	%			0.70	%			0.66	%
Ratio of net expenses to average net assets			0.61	%(c)			0.61	%			0.57	%			0.58	%			0.57	%			0.59	%
Ratio of net expenses, excluding interest expense, to average net assets			0.57	%(c)			0.57	%			0.57	%			0.57	%			0.57	%			0.57	%
Ratio of net investment income to average net assets			1.63	%(c)			1.43	%			2.01	%			1.55	%			0.69	%			1.59	%
Portfolio turnover rate (d)			22	%(b)			104	%			49	%			37	%			31	%			44	%
		Solar Energy ETF*
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$34.19				$61.64				$67.70				$72.63				$36.38				$55.35
Income from investment operations:
Net investment income			0.25				1.19				0.64				0.51				0.32				1.29
Net realized and unrealized gain (loss) on investments			4.97				(27.21	)			(6.11	)			(4.99	)			36.66				(18.94	)
Total from investment operations			5.22				(26.02	)			(5.47	)			(4.48	)			36.98				(17.65	)
Less:
Dividends from net investment income			—				(1.24	)			(0.59	)			(0.45	)			(0.73	)			(1.32	)
Return of capital			—				(0.19	)			—				—				—				—
Total dividends and distributions			—				(1.43	)			(0.59	)			(0.45	)			(0.73	)			(1.32	)
Net asset value, end of period			$39.41				$34.19				$61.64				$67.70				$72.63				$36.38
Total return (a)			15.27	%(b)			(42.22	)%			(8.09	)%			(6.17	)%			101.66	%			(31.89	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$11,824				$10,256				$18,493				$20,310				$21,788				$10,914
Ratio of gross expenses to average net assets			1.59	%(c)			1.30	%			1.08	%			1.08	%			1.54	%			1.86	%
Ratio of net expenses to average net assets			0.66	%(c)			0.65	%			0.65	%			0.65	%			0.66	%			0.66	%
Ratio of net expenses, excluding interest expense, to average net assets			0.65	%(c)			0.65	%			0.65	%			0.65	%			0.65	%			0.65	%
Ratio of net investment income to average net assets			1.39	%(c)			2.69	%			0.93	%			0.60	%			0.58	%			3.47	%
Portfolio turnover rate (d)			22	%(b)			43	%			46	%			50	%			75	%			59	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
#	On July 1, 2013, the Fund effected a 1 for 4 reverse share split (See Note 10). Per share data has been adjusted to reflect the share split.
*	On July 2, 2012, the Fund effected a 1 for 15 reverse share split (See Note 10). Per share data has been adjusted to reflect the share split.

 

See Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Steel ETF
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$37.82				$19.52				$35.45				$49.76				$48.85				$47.64
Income from investment operations:
Net investment income			0.78				0.42				1.03				1.13				0.93				1.09
Net realized and unrealized gain (loss) on investments			(0.09	)			18.28				(15.92	)			(14.28	)			0.96				1.20
Total from investment operations			0.69				18.70				(14.89	)			(13.15	)			1.89				2.29
Less:
Dividends from net investment income			—				(0.40	)			(1.02	)			(1.16	)			(0.94	)			(1.08	)
Return of capital			—				—				(0.02	)			—				(0.04	)			—
Total dividends and distributions			—				(0.40	)			(1.04	)			(1.16	)			(0.98	)			(1.08	)
Net asset value, end of period			$38.51				$37.82				$19.52				$35.45				$49.76				$48.85
Total return (b)			1.82	%(c)			95.77	%			(42.03	)%			(26.44	)%			3.88	%			4.80	%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$144,398				$185,324				$44,904				$69,127				$144,312				$153,881
Ratio of gross expenses to average net assets			0.57	%(d)			0.60	%			0.69	%			0.63	%			0.62	%			0.60	%
Ratio of net expenses to average net assets			0.56	%(d)			0.55	%			0.55	%			0.55	%			0.55	%			0.55	%
Ratio of net expenses, excluding interest expense, to average net assets			0.55	%(d)			0.55	%			0.55	%			0.55	%			0.55	%			0.55	%
Ratio of net investment income to average net assets			3.32	%(d)			1.88	%			3.76	%			2.43	%			2.21	%			2.40	%
Portfolio turnover rate (e)			18	%(c)			20	%			15	%			11	%			15	%			13	%
			Unconventional Oil & Gas ETF
		For the																				For the Period
		Six Months																				February 14,
		Ended																				2012 (a) through
		June 30,					For the Year Ended December 31,															December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$18.25				$13.24				$22.12				$28.43				$22.54				$25.02
Income from investment operations:
Net investment income			0.03				0.09				0.32				0.30				0.13				0.23
Net realized and unrealized gain (loss) on investments			(4.32	)			4.98				(8.86	)			(6.32	)			5.90				(2.49	)
Total from investment operations			(4.29	)			5.07				(8.54	)			(6.02	)			6.03				(2.26	)
Less:
Dividends from net investment income			—				(0.06	)			(0.34	)			(0.29	)			(0.14	)			(0.22	)
Net asset value, end of period			$13.96				$18.25				$13.24				$22.12				$28.43				$22.54
Total return (b)			(23.51	)%(c)			38.31	%			(38.60	)%			(21.18	)%			26.77	%			(9.04	)%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$54,434				$59,324				$38,398				$61,937				$46,906				$15,780
Ratio of gross expenses to average net assets			0.69	%(d)			0.71	%			0.72	%			0.67	%			1.04	%			0.92	%(d)
Ratio of net expenses to average net assets			0.54	%(d)			0.54	%			0.54	%			0.54	%			0.54	%			0.54	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			0.54	%(d)			0.54	%			0.54	%			0.54	%			0.54	%			0.54	%(d)
Ratio of net investment income to average net assets			0.52	%(d)			0.63	%			1.62	%			1.07	%			0.89	%			1.12	%(d)
Portfolio turnover rate (e)			9	%(c)			23	%			22	%			11	%			11	%			35	%(c)

 

 

(a)	Commencement of operations
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Not Annualized
(d)	Annualized
(e)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Uranium+Nuclear Energy ETF #
		For the
		Six Months
		Ended
		June 30,					For the Year Ended December 31,
		2017					2016				2015				2014				2013				2012
		(unaudited)
Net asset value, beginning of period			$47.55				$45.25				$51.50				$48.11				$41.35				$44.82
Income from investment operations:
Net investment income			1.05				2.08				1.87				1.27				0.80				1.26
Net realized and unrealized gain (loss) on investments			1.70				1.94				(6.63	)			3.39				6.29				(2.84	)
Total from investment operations			2.75				4.02				(4.76	)			4.66				7.09				(1.58	)
Less:
Dividends from net investment income			—				(1.72	)			(1.49	)			(1.27	)			(0.33	)			(1.89	)
Net asset value, end of period			$50.30				$47.55				$45.25				$51.50				$48.11				$41.35
Total return (a)			5.78	%(b)			8.87	%			(9.26	)%			9.61	%			17.18	%			(3.53	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)			$31,015				$34,076				$39,211				$67,812				$77,778				$78,567
Ratio of gross expenses to average net assets			0.90	%(c)			0.79	%			0.70	%			0.76	%			0.80	%			0.67	%
Ratio of net expenses to average net assets			0.61	%(c)			0.61	%			0.61	%			0.60	%			0.60	%			0.60	%
Ratio of net expenses, excluding interest expense, to average net assets			0.60	%(c)			0.60	%			0.60	%			0.60	%			0.60	%			0.60	%
Ratio of net investment income to average net assets			2.92	%(c)			3.37	%			2.34	%			1.89	%			1.60	%			2.82	%
Portfolio turnover rate (d)			5	%(b)			36	%			27	%			31	%			48	%			52	%

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Not Annualized
(c)	Annualized
(d)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
#	On July 1, 2013, the Fund effected a 1 for 3 reverse share split (See Note 10). Per share data has been adjusted to give effect to the share split.

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

June 30, 2017 (unaudited)

 

Note 1—Fund Organization—VanEck Vectors ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and as of June 30, 2017, offers sixty investment portfolios, each of which represents a separate series of the Trust.

 

These financial statements relate only to the following investment portfolios: Agribusiness ETF, Coal ETF, Global Alternative Energy ETF, Gold Miners ETF, Junior Gold Miners ETF, Natural Resources ETF, Oil Refiners ETF, Oil Services ETF, Rare Earth/Strategic Metals ETF, Solar Energy ETF, Steel ETF, Unconventional Oil & Gas ETF and Uranium+Nuclear Energy ETF (each a “Fund” and, together, the “Funds”). Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in substantially the same weighting, in an index sponsored, licensed or managed by the NYSE Group Inc., Ardour Global Indexes, LLC, S-Network Global Indexes, LLC and MV Index Solutions GmbH (“MVIS”), a wholly owned subsidiary of Van Eck Associates Corporation (the “Adviser”).

 

The Funds’ commencement of operations dates and their respective Indices are presented below:

 

Fund		Commencement of Operations		Index
Agribusiness ETF		August 31, 2007		MVISTM Global Agribusiness Index*
Coal ETF		January 10, 2008		MVISTM Global Coal Index*
Global Alternative Energy ETF		May 03, 2007		Ardour Global IndexSM (Extra Liquid)
Gold Miners ETF		May 16, 2006		NYSE Arca Gold Miners Index
Junior Gold Miners ETF		November 10, 2009		MVISTM Global Junior Gold Miners Index*
Natural Resources ETF		August 29, 2008		VanEckTM-Natural Resources Index**
Oil Refiners ETF		August 18, 2015		MVISTM Global Oil Refiners Index*
Oil Services ETF		December 20, 2011		MVISTM US Listed Oil Services 25 Index*
Rare Earth/Strategic Metals ETF		October 27, 2010		MVISTM Global Rare Earth/Strategic Metals Index*
Solar Energy ETF		April 21, 2008		MVISTM Global Solar Energy Index*
Steel ETF		October 10, 2006		NYSE Arca Steel Index
Unconventional Oil & Gas ETF		February 14, 2012		MVISTM Global Unconventional Oil & Gas Index*
Uranium+Nuclear Energy ETF		August 13, 2007		MVISTM Global Uranium & Nuclear Energy Index*

 

*	Published by MV Index Solutions GmbH.

**	Effective April 11, 2017 VanEck™-Natural Resources Index (formerly known as Rogers™-Van Eck Natural Resources Index).

 

Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

 

The Funds are investment companies and are following accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946 Financial Services — Investment Companies.

 

The following is a summary of significant accounting policies followed by the Funds.

 

A.

Security Valuation—The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing price. Over-the-counter securities not included in the NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Standard Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

	Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Fund is open. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are considered to be Level 1 in the fair value hierarchy. The Pricing Committee of the Adviser provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes it does not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis.
	Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments.
	The Funds utilize various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The transfers between levels of the fair value hierarchy assume the financial instruments were transferred at the beginning of the reporting period. The three levels of the fair value hierarchy are described below:

 

	Level 1 — Quoted prices in active markets for identical securities.
	Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
	Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

 

	A summary of the inputs, the levels used to value the Funds’ investments, and transfers between levels are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments.
B.	Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
C.	Dividends and Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP.
D.	Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the

 

 

	exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations.
E.	Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments.
F.	Repurchase Agreements—The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Adviser, to generate income from their excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Fund acquires securities from a seller, subject to resale to the seller at an agreed upon price and date. A Fund, through its custodian/securities lending agent, takes possession of securities collateralizing the repurchase agreement. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain their right to sell the underlying securities at market value and may claim any resulting loss against the seller. Repurchase agreements held as of June 30, 2017 are reflected in the Schedules of Investments.
G.	Use of Derivative Instruments—The Funds may invest in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the Adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instruments. The Funds held no derivative instruments during the period ended June 30, 2017.
H.	Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of setoff in those agreements allows the Funds to set off any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and/or securities as collateral for derivative instruments, securities lending and repurchase agreements. For financial reporting purposes, the Funds present securities lending and repurchase agreement assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Collateral held at June 30, 2017 is presented in the Schedules of Investments. Refer to related disclosures in Note 2F (Repurchase Agreements) and Note 9 (Securities Lending).
I.	Other—Security transactions are accounted for on trade date. Realized gains and losses are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date/rate. Interest income, including amortization of premiums and discounts, is accrued as earned.
	In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.50% of each Fund’s average daily net assets (except for Oil Services ETF). The management fee rate for Oil Services ETF is 0.35%. The Adviser has agreed, until at least May 1, 2018, to waive management fees and assume expenses to prevent each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding expense limitations listed in the table below.

 

The current expense limitations and the amounts waived/assumed by the Adviser for the period ended June 30, 2017, are as follows:

 

Fund		Expense Limitation					Waiver of Management Fees					Expenses Assumed by the Adviser
Agribusiness ETF			0.56	%			$	—				$	—
Coal ETF			0.59					9,867					—
Global Alternative Energy ETF			0.62					29,262					—
Gold Miners ETF			0.53					—					—
Junior Gold Miners ETF			0.56					—					—
Natural Resources ETF			0.49					99,133					—
Oil Refiners ETF			0.59					8,775					34,693
Oil Services ETF			0.35					186,517					—
Rare Earth / Strategic Metals ETF			0.57					44,153					—
Solar Energy ETF			0.65					27,403					23,748
Steel ETF			0.55					15,031					—
Unconventional Oil & Gas ETF			0.54					40,335					—
Uranium+Nuclear Energy ETF			0.60					46,349					—

 

The Adviser offsets the management fees it charges the Funds by the amount it collects as a management fee from underlying fund investments that are also managed by the Adviser. For the period ended June 30, 2017, the Adviser reduced management fees charged by $494,366 due to such investments held in the Junior Gold Miners ETF.

 

In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ distributor (the “Distributor”). Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.

 

Note 4—Investments—For the period ended June 30, 2017, the cost of purchases and proceeds from sales of investments other than U.S. government obligations and short-term obligations (excluding in-kind transactions described in Note 6) were as follows:

 

Fund		Cost of Investments Purchased				Proceeds from Investments Sold
Agribusiness ETF		$	132,868,197			$	130,592,175
Coal ETF			23,403,633				21,329,310
Global Alternative Energy ETF			9,562,091				8,164,953
Gold Miners ETF			558,674,012				729,121,594
Junior Gold Miners ETF			2,381,723,141				2,616,181,260
Natural Resources ETF			26,152,128				24,374,400
Oil Refiners ETF			808,062				596,770
Oil Services ETF			249,721,106				239,511,179
Rare Earth/Strategic Metals ETF			15,219,196				11,996,197
Solar Energy ETF			2,606,824				2,449,518
Steel ETF			34,733,306				31,837,642
Unconventional Oil & Gas ETF			4,994,461				4,850,596
Uranium+Nuclear Energy ETF			2,342,071				1,760,162

 

 

Note 5—Income Taxes—As of June 30, 2017, for Federal income tax purposes, the identified cost of investments owned, net unrealized appreciation (depreciation), gross unrealized appreciation, and gross unrealized depreciation of investments were as follows:

 

Fund		Cost of Investments				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Appreciation (Depreciation)
Agribusiness ETF		$	862,976,226			$	131,827,722			$	(171,818,040	)		$	(39,990,318	)
Coal ETF			89,046,207				5,050,011				(13,491,922	)			(8,441,911	)
Global Alternative Energy ETF			99,962,084				16,283,381				(14,062,266	)			2,221,115
Gold Miners ETF			9,674,441,593				245,699,059				(1,534,186,686	)			(1,288,487,627	)
Junior Gold Miners ETF			4,046,881,616				352,896,310				(301,527,442	)			51,368,868
Natural Resources ETF			100,540,745				9,298,883				(7,678,488	)			1,620,395
Oil Refiners ETF			4,229,015				589,172				(99,165	)			490,007
Oil Services ETF			2,044,958,740				—				(869,207,215	)			(869,207,215	)
Rare Earth / Strategic Metals ETF			64,949,840				6,329,033				(6,995,938	)			(666,905	)
Solar Energy ETF			17,312,700				932,769				(3,346,962	)			(2,414,193	)
Steel ETF			181,590,209				8,360,298				(14,336,997	)			(5,976,699	)
Unconventional Oil & Gas ETF			80,955,729				137,288				(21,271,442	)			(21,134,154	)
Uranium+Nuclear Energy ETF			32,461,865				3,493,634				(2,439,779	)			1,053,855

 

The tax character of dividends paid to shareholders during the year ended December 31, 2016 was as follows:

 

		2016 Dividends and Distributions
Fund		Ordinary Income				Return of Capital
Agribusiness ETF		$	17,183,700			$	—
Coal ETF			1,174,800				—
Global Alternative Energy ETF			1,374,412				—
Gold Miners ETF			24,961,888				—
Junior Gold Miners ETF			156,407,681				—
Natural Resources ETF			1,800,400				—
Oil Refiners ETF			106,950				—
Oil Services ETF			16,268,462				—
Rare Earth/Strategic Metals ETF			959,486				—
Solar Energy ETF			369,437				58,063
Steel ETF			1,869,300				—
Unconventional Oil & Gas ETF			198,450				—
Uranium+Nuclear Energy ETF			1,231,890				—

 

The tax character of current year distributions will be determined at the end of the current fiscal year.

 

Qualified late-year losses incurred after October 31, 2016 and within the taxable year, are deemed to arise on the first day of the Funds’ next taxable year. For the year ended December 31, 2016, the Funds have deferred qualified late year losses to January 1, 2017 for federal tax purposes as follows:

 

Fund		Late Year Ordinary Losses
Coal ETF		$	3,886
Global Alternative Energy ETF			6,427
Junior Gold Miners ETF			64,582,654
Solar Energy ETF			1,831

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

At December 31, 2016, the Funds had capital loss carryforwards available to offset future capital gains, as follows:

 

		Post-Effective					Post-Effective
		No Expiration					No Expiration					Amount Expiring in
		Short-Term					Long-Term					the Year Ended December 31,
Fund		Capital Losses					Capital Losses					2018					2017
Agribusiness ETF		$	180,996,963				$	449,214,993				$	85,630,099				$	257,031,280
Coal ETF			21,267,947					268,927,556					18,822,843					155,793,705
Global Alternative Energy ETF			5,526,321					82,144,803					34,193,213					158,919,596
Gold Miners ETF			1,032,848,322					7,361,381,917					1,784,160					388,612,074
Junior Gold Miners ETF			966,258,344					2,644,671,756					—					—
Natural Resources ETF			2,632,443					30,078,513					540,880					1,722,348
Oil Refiners ETF			18,083					—					—					—
Oil Services ETF			17,263,307					9,124,888					—					—
Rare Earth/Strategic Metals ETF			39,391,934					188,468,345					—					—
Solar Energy ETF			6,456,092					30,332,843					8,586,525					19,016,483
Steel ETF			3,166,291					96,307,717					21,020,656					79,176,906
Unconventional Oil & Gas ETF			5,520,025					20,817,139					—					—
Uranium+Nuclear Energy ETF			14,195,083					68,269,684					41,593,262					49,042,636

 

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.

 

The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended June 30, 2017, the Funds did not incur any interest or penalties.

 

Note 6—Capital Share Transactions—As of June 30, 2017, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Fund shares are not individually redeemable and are issued and redeemed at their net asset value per share only through certain authorized broker-dealers (“Authorized Participants”) in blocks of shares (“Creation Units”), consisting of 50,000 shares, or multiples thereof.

 

The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index (“Deposit Securities”) plus a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Cash may also be substituted in an amount equivalent to the value of certain Deposit Securities, generally as a result of market circumstances, or when the securities are not available in sufficient quantity for delivery, or are not eligible for trading by the Authorized Participant. The Funds may issue Creation Units in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit at the Custodian for the benefit of the Funds, collateral consisting of cash in the form of U.S. dollars at least equal to 115% of the daily marked to market value of the missing Deposit Securities.

 

Authorized Participants purchasing and redeeming Creation Units may pay transaction fees directly to The Bank of New York Mellon. In addition, the Funds may impose certain variable fees for creations and redemptions with respect to transactions in Creation Units for cash, or on transactions effected outside the clearing process, which are treated as increases in capital. These variable fees, if any, are reflected in share transactions in the Statements of Changes in Net Assets.

 

 

For the period ended June 30, 2017 the Funds had in-kind contributions and redemptions as follows:

 

Fund		In-Kind Contributions					In-Kind Redemptions
Agribusiness ETF			$	37,639,785				$	97,396,916
Coal ETF				26,465,404					52,875,964
Global Alternative Energy ETF				5,815,070					2,718,950
Gold Miners ETF				2,587,153,933					4,396,378,193
Junior Gold Miners ETF				1,734,049,453					959,508,370
Natural Resources ETF				12,707,763					9,610,243
Oil Refiners ETF				996,202					—
Oil Services ETF				2,610,069,688					2,431,810,877
Rare Earth / Strategic Metals ETF				13,578,616					5,317,422
Solar Energy ETF				—					—
Steel ETF				24,697,242					67,376,319
Unconventional Oil & Gas ETF				15,631,957					6,751,836
Uranium+Nuclear Energy ETF				—					4,881,091

 

The in-kind contributions and in-kind redemptions in this table represent the accumulation of each Fund’s daily net shareholder transactions including rebalancing activity, while the Statements of Changes in Net Assets reflect gross shareholder transactions including any cash component of the transactions.

 

Note 7—Concentration of Risk—The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The Adviser uses a “passive” or index approach to achieve each Fund’s investment objective by investing in a portfolio of securities that generally replicates the Funds’ index. Each of the Funds (except for Natural Resources ETF) is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse political and economic developments and local/regional conflicts. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers.

 

In March 2017, the United Kingdom triggered Article 50, and is now scheduled to leave the European Union by the end of March 2019. There is uncertainty on exactly how the withdrawal will take place and the terms of the Brexit deal. This may further impact the value of the Euro and the British pound sterling, and has caused volatility and uncertainty in European and global markets.

 

As a result of events involving Ukraine and the Russian Federation, the United States and the European Union have imposed sanctions on certain Russian individuals and companies. These sanctions do not currently impact the Funds. Additional economic sanctions may be imposed or other actions may be taken that may adversely affect the value and liquidity of the Russian-related issuers held by the Funds.

 

At June 30, 2017, the Adviser owned 2,500 shares of Gold Miners ETF.

 

A more complete description of risks is included in each Fund’s prospectus and Statement of Additional Information.

 

Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.

 

The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with The Bank of New York Mellon, the securities lending agent and also the Funds’ custodian. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value plus accrued interest on the securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and/or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. The Funds may pay reasonable finders’, administrative and custodial fees in connection with a loan of its securities. Securities lending income is disclosed as such in the Statements of Operations. The collateral for securities loaned is recognized in the Schedules of Investments and the Statements of Assets and Liabilities. The cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in repurchase agreements collateralized by obligations of the U.S. Treasury and/or Government Agencies. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related collateral outstanding at June 30, 2017 are presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities.

 

The following table presents repurchase agreements held as collateral by type of security on loan pledged as of June 30, 2017:

 

		Gross Amount of Recognized
		Liabilities for Securities
		Loaned in the Statements of
		Assets and Liabilities*
Fund		Equity Securities
Agribusiness ETF		$	27,097,890
Global Alternative Energy ETF			22,788,739
Gold Miners ETF			192,006,040
Junior Gold Miners ETF			177,665,632
Natural Resources ETF			1,671,936
Oil Refiners ETF			64,115
Oil Services ETF			124,773,069
Rare Earth / Strategic Metals ETF			10,537,427
Solar Energy ETF			3,005,580
Steel ETF			31,133,566
Unconventional Oil & Gas ETF			5,347,640
Uranium+Nuclear Energy ETF			2,515,587

 

*	Remaining contractual maturity of the agreements: overnight and continuous

 

Note 10—Share Split—Effective February 14, 2012, the Board of Trustees of the Trust approved a 3 for 1 share split for the Oil Services ETF. Fund shares began trading on a split-adjusted basis on February 14, 2012. The Financial Highlights for the Oil Services ETF prior to February 14, 2012 have been adjusted to reflect the 3 for 1 share split.

 

On July 2, 2012, the Board of Trustees of the Trust approved a 1 for 15 reverse share split for Solar Energy ETF. Fund shares began trading on a split-adjusted basis on July 2, 2012. The Financial Highlights for Solar Energy ETF prior to July 2, 2012 have been adjusted to reflect the 1 for 15 reverse share split.

 

On July 1, 2013, the Board of Trustees of the Trust approved a 1 for 3 reverse share split for Global Alternative Energy ETF and Uranium+Nuclear Energy ETF, and 1 for 4 reverse share split for Junior Gold Miners ETF and Rare Earth/Strategic Metals ETF. Fund shares began trading on a split-adjusted basis on July 1, 2013. The Financial Highlights prior to July 1, 2013 for the respective Funds have been adjusted to reflect the reverse share splits.

 

 

Note 11—Bank Line of Credit—The Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2017, the following Funds borrowed under this Facility:

 

Fund		Days Outstanding				Average Daily Loan Balance				Average Interest Rate				Outstanding Loan Balance as of June 30, 2017
Agribusiness ETF			169			$	2,996,298				2.23	%		$	1,888,048
Coal ETF			73				277,704				2.36				484,588
Global Alternative Energy ETF			113				297,982				2.31				203,644
Gold Miners ETF			70				9,691,530				2.30				735,700
Junior Gold Miners ETF			86				32,720,937				2.28				2,784,515
Natural Resources ETF			156				384,691				2.23				700,147
Oil Refiners ETF			1				125,116				2.31				—
Oil Services ETF			146				2,155,197				2.24				3,759,349
Rare Earth / Strategic Metals ETF			43				300,038				2.29				—
Solar Energy ETF			43				61,900				2.30				—
Steel ETF			163				577,091				2.22				308,937
Uranium+Nuclear Energy ETF			94				130,816				2.16				72,686

 

Note 12—Custodian Fees—The Funds have entered into an expense offset agreement with the custodian wherein they receive a credit toward the reduction of custodian fees whenever there are uninvested cash balances. The Funds could have invested their cash balances elsewhere if they had not agreed to a reduction in fees under the expense offset agreement with the custodian. For the period ended June 30, 2017, there were offsets to custodian fees and these amounts are reflected in custody expense in the Statement of Operations.

 

Note 13—Recent Accounting Pronouncements and Regulatory Requirements—In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management has evaluated the impact that the adoption of the amendments to Regulation S-X will have on the Funds’ financial statements and related disclosures. Any required changes will be implemented for interim and annual periods after August 1, 2017.

 

Note 14—Subsequent Event Review—The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

JUNE 30, 2017 (unaudited)

 

At a meeting held on June 9, 2017 (the “Renewal Meeting”), the Board of Trustees (the “Board”) of VanEck Vectors^® ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved the continuation of (i) the investment management agreements between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreements”) with respect to the VanEck Vectors Africa Index ETF, Agribusiness ETF, Agriculture Producers ETF, Brazil Small-Cap ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, ChinaAMC CSI 300 ETF, ChinaAMC Environmental Protection ETF, ChinaAMC Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, ChinaAMC SME-ChiNext ETF, Coal ETF, Egypt Index ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Alternative Energy ETF, Global Frontier Index ETF, Gold Miners ETF, Hard Assets Producers Extra Liquid ETF, India Small-Cap Index ETF, Indonesia Index ETF, Internet ETF, Israel ETF, Junior Gold Miners ETF, Kuwait Index ETF, Metals ETF, MLP ETF, Mongolia ETF, Natural Resources ETF, Ned Davis Long/Flat International Equity ETF, Ned Davis Long/Flat US Equity ETF, Ned Davis Long/Flat US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Oil Refiners ETF, Oil Services ETF, Poland ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF, Solar Energy ETF, Steel ETF, Telecom ETF, Unconventional Oil & Gas ETF, Uranium+Nuclear Energy ETF and Vietnam ETF (each, a “Fund” and together, the “Funds”) and (ii) a sub-advisory agreement between the Adviser and China Asset Management (Hong Kong) Limited (the “Sub-Adviser”) (the “Sub-Advisory Agreement”) with respect to each of VanEck Vectors ChinaAMC CSI 300 ETF and ChinaAMC SME-ChiNext ETF (the “China Funds”). The Investment Management Agreements and the Sub-Advisory Agreement are collectively referred to as the “Agreements.”

 

The Board’s approval of the Agreements was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.

 

In preparation for the Renewal Meeting, the Trustees held a meeting on May 8, 2017. At that meeting, the Trustees discussed the information the Adviser, the Sub-Adviser (with respect to the China Funds) and Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, had provided to them in advance. The information provided to the Trustees included, among other things, information about the performance (for those Funds which had begun operations) and expenses of the Funds and the Funds’ peer funds (other index-based exchange-traded funds (“ETFs”)), information about the advisory services provided to the Funds and the personnel providing those services, and the profitability and other benefits enjoyed by the Adviser and its affiliates as a result of the Adviser’s relationship with the Funds. In reviewing performance information for the Funds against their peer groups, the Trustees considered that each Fund except for the VanEck Vectors ChinaAMC CSI 300 ETF generally invests in a different group of issuers than the funds in its designated peer group. In addition, as noted below, the Trustees reviewed certain performance information for each Fund that was not provided by Broadridge. For these and other reasons, the Trustees noted that the peer group performance information did not necessarily provide meaningful direct comparisons to the Funds.

 

The Independent Trustees’ consideration of the Agreements was based, in part, on their review of information obtained through discussions with the Adviser at the Renewal Meeting and with the Adviser at the May 8, 2017 meeting regarding the management of the Funds and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and the Sub-Adviser (with respect to the China Funds), including the background and experience of the portfolio manager(s) and others involved in the management and administration of the Funds. The Trustees considered the terms of, and scope of services that the Adviser and the Sub-Adviser (with respect to the China Funds) provide under, the Agreements, including the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds to the extent necessary to prevent the operating expenses of each of the Funds from exceeding

 

 

agreed upon limits for a period of time. With respect to the Sub-Advisory Agreement, the Trustees took into account the unique legal and operational aspects of the China Funds and the Sub-Adviser’s experience with respect to Renminbi Qualified Institutional Investors Scheme funds. The Trustees also noted that the Sub-Adviser is a wholly-owned subsidiary of China Asset Management Co. Ltd., China’s largest asset management company measured by fund assets under management.

 

The Trustees concluded that the Adviser, the Sub-Adviser (with respect to the China Funds) and their personnel have the requisite expertise and skill to manage the Funds’ portfolios. In evaluating the performance over relevant periods of each of the Funds that had commenced operations prior to the date of the Renewal Meeting (the “Operating Funds”), the Trustees reviewed various performance metrics but relied principally on a comparison of the “gross” performance of each Operating Fund (i.e., measured without regard to the impact of fees and expenses) to the performance of its benchmark index, in each case incorporating any systematic fair value adjustments to the underlying securities. Based on the foregoing, the Trustees concluded that the investment performance of the Operating Funds was satisfactory.

 

The Trustees also considered information relating to the financial condition of the Adviser and the Sub-Adviser (with respect to the China Funds) and the current status, as they understood it, of the Adviser’s and Sub-Adviser’s (with respect to the China Funds) compliance environment.

 

As noted above, the Trustees were also provided various data from Broadridge comparing the Operating Funds’ expenses and performance to that of other ETFs. The Trustees noted that the information provided showed that each Operating Fund had management fees (after the effect of any applicable fee waiver) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Agribusiness ETF, Coal ETF, Global Alternative Energy ETF, Russia ETF, Russia Small-Cap ETF and Steel ETF, which had management fees (after the effect of any applicable fee waiver) greater than the average and/or the median, of its peer group of funds. The Trustees also noted that the information provided showed that each Operating Fund had a total expense ratio (after the effect of any applicable expense limitation) below or equal to the average and median of its respective peer group of funds, except for each of VanEck Vectors Africa Index ETF, ChinaAMC SME-ChiNext ETF, Egypt Index ETF, Global Alternative Energy ETF, Israel ETF, Rare Earth/Strategic Metals ETF, Russia Small-Cap ETF, Solar Energy ETF, Steel ETF, Unconventional Oil & Gas ETF and Vietnam ETF, which had a total expense ratio (after the effect of any applicable expense limitation) greater than the average and/or median of its peer group of funds. With respect to these Operating Funds, the Trustees reviewed the amount by which these Operating Funds’ management fees and/or total expense ratios (after the effect of any applicable expense limitation) exceeded the average and/or median of their respective peer groups and information provided by the Adviser providing context for these comparisons. The Trustees concluded, in light of this information and the other information available to them, that the fees paid by the Operating Funds were reasonable in light of the performance of the Operating Funds and the quality of services received.

 

The Trustees also considered the benefits, other than the fees under the Investment Management Agreements, received by the Adviser from serving as adviser to the Funds.

 

The Trustees also considered information provided by the Adviser about the overall profitability of the Adviser and its profitability or loss in respect of each Operating Fund. The Trustees reviewed each Fund’s asset size, expense ratio and expense cap and noted that the Investment Management Agreements do not include breakpoints in the advisory fee rates as asset levels in a Fund increase. The Trustees considered the volatility of the asset classes in which certain of the Operating Funds invest, potential variability in the net assets of these Funds and the sustainability of any potential economies of scale which may exist given where fees are currently set. The Trustees also evaluated the extent to which management fees for the Operating Funds effectively incorporate the benefits of economies of scale. The Trustees noted that the Adviser has capped expenses on each Operating Fund since its inception. Based on the foregoing and the other information available to them, the Trustees determined that the advisory fee rate for each Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Fund and the other factors discussed above and that the advisory fee rate for each Fund currently reflects an appropriate sharing with shareholders of any economies of scale which may exist. The Trustees also determined that the profits earned by the Adviser with respect to the Funds that were profitable to the Adviser

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2017 (unaudited) (continued)

 

were reasonable in light of the nature and quality of the services received by such Funds. Due to the relatively small size of the China Funds during the period, the Sub-Adviser did not provide the Trustees with profitability information and, therefore, the Trustees did not consider such information.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability to the Adviser of VanEck Vectors Agriculture Producers ETF, China All-Cap ETF, China Consumer Discretionary ETF, China Consumer Staples ETF, China Energy ETF, China Financials ETF, China Health Care ETF, China Industrials ETF, China Information Technology ETF, China Materials ETF, China Small-Cap ETF, China Utilities ETF, ChinaAMC All China Consumer ETF, ChinaAMC Environmental Protection ETF, ChinaAMC Private-Owned Enterprises ETF, ChinaAMC MSCI All China ETF, ChinaAMC MSCI All China Small Cap ETF, Emerging Europe ex-Russia Index ETF, Energy Producers ETF, GDP Weighted Emerging Markets ETF, GDP Weighted Emerging Markets Small-Cap ETF, GDP Weighted International ex-US ETF, Germany Mid-Cap ETF, Global Frontier Index ETF, Hard Assets Producers Extra Liquid ETF, Internet ETF, Kuwait Index ETF, Metals ETF, MLP ETF, Mongolia ETF, Ned Davis Long/Flat International Equity ETF, Ned Davis Long/Flat US Equity ETF, Ned Davis Long/Flat US Small Cap Equity ETF, Nigeria ETF, Nigeria-Focused West Africa ETF, Saudi Arabia ETF, Saudi Arabia Small-Cap ETF, Software ETF and Telecom ETF because the Funds had not yet commenced operations at the time of the Renewal Meeting. The Trustees could not consider the historical performance or the quality of services previously provided to each of these Funds although they concluded that the nature, quality and extent of the services to be provided by the Adviser (and the Sub-Adviser, with respect to those Funds in respect of which the Sub-Adviser had been retained) were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.

 

The Independent Trustees were advised by and met in executive session with their independent counsel at the Renewal Meeting and at their May 8, 2017 meeting as part of their consideration of the Agreements.

 

In voting to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, concluded that the terms of each Agreement are reasonable and fair in light of the services to be performed, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that each Agreement is in the best interest of each Fund and such Fund’s shareholders.

 

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the respective Fund’s prospectus and summary prospectus, which includes more complete information. An investor should consider the investment objective, risks, and charges and expenses of each Fund carefully before investing. The prospectus and summary prospectus contains this and other information about the investment company. Please read the prospectus and summary prospectus carefully before investing.

 

Additional information about the VanEck Vectors ETF Trust’s (the “Trust”) Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at https://www.sec.gov.

 

The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Form N-Qs are available on the Commission’s website at https://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Fund’s complete schedule of portfolio holdings is also available by calling 800.826.2333 or by visiting vaneck.com.

 

Investment Adviser:	Van Eck Associates Corporation
Distributor:	Van Eck Securities Corporation
	666 Third Avenue, New York, NY 10017
	vaneck.com
Account Assistance:	800.826.2333		HASAR

Item 2. CODE OF ETHICS.

  Not applicable.

Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.

  Not applicable.

Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

  Not applicable.


Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

     Not applicable.

Item 6. SCHEDULE OF INVESTMENTS.

     Information included in Item 1.

Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
        MANAGEMENT INVESTMENT COMPANIES.

     Not applicable.

Item 8. PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

     Not applicable.

Item 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
        COMPANY AND AFFILIATED PURCHASERS.

     Not applicable.

Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     Not applicable.

Item 11. CONTROLS AND PROCEDURES.

(a)  The registrant's principal executive and principal financial officers, or
     persons performing similar functions, have concluded that the registrant's
     disclosure controls and procedures (as defined in Rule 30a-3(c) under the
     Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
     270.30a-3(c)) are effective, as of a date within 90 days of the filing
     date of the report that includes the disclosure required by this paragraph,
     based on their evaluation of these controls and procedures required
     by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules
     13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934,
     as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)  There were no changes in the registrant's internal control over financial
     reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
     270.30a-3(d)) that occurred during the second fiscal quarter of the period
     covered by this report that has materially affected, or is reasonably
     likely to materially affect, the registrant's internal control over
     financial reporting.


Item 12. EXHIBITS.

(a)(1) Not applicable.

(a)(2) A separate certification for each principal executive officer and
       principal financial officer of the registrant as required by Rule 30a-2(a)
       under the Act (17 CFR 270.30a-2(a)) is attached as Exhibit 99.CERT.

(b)  Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
     furnished as Exhibit 99.906CERT.

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) VANECK VECTORS ETF TRUST

By (Signature and Title) /s/ John J. Crimmins, Treasurer & Chief Financial Officer
                         ---------------------------------------------------------
Date September 8, 2017
     ------------------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title) /s/ Jan F. van Eck, Chief Executive Officer
                        --------------------------------------------
Date September 8, 2017
     ------------------

By (Signature and Title)  /s/ John J. Crimmins, Treasurer & Chief Financial Officer
                        -----------------------------------------------------------

Date September 8, 2017
     ------------------