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, 2018

Item 1. Report to Shareholders

 

SEMI-ANNUAL REPORT June 30, 2018 (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
Explanation of Expenses	3
Schedule of Investments	5
Africa Index ETF	5
Brazil Small-Cap ETF	8
ChinaAMC CSI 300 ETF	11
ChinaAMC SME-ChiNext ETF	16
Egypt Index ETF	19
India Small-Cap Index ETF	21
Indonesia Index ETF	25
Israel ETF	27
Poland ETF	30
Russia ETF	32
Russia Small-Cap ETF	34
Vietnam ETF	36
Statements of Assets and Liabilities	38
Statements of Operations	42
Statements of Changes in Net Assets	46
Financial Highlights	51
Africa Index ETF	51
Brazil Small-Cap ETF	51
ChinaAMC CSI 300 ETF	52
ChinaAMC SME-ChiNext ETF	52
Egypt Index ETF	53
India Small-Cap Index ETF	53
Indonesia Index ETF	54
Israel ETF	54
Poland ETF	55
Russia ETF	55
Russia Small-Cap ETF	56
Vietnam ETF	56
Notes to Financial Statements	57
Approval of Investment Management Agreements	66

 

 

The information contained in this shareholder letter represents the opinion of the investment adviser and may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2018.

VANECK VECTORS ETFs

June 30, 2018 (unaudited)

 

Dear Shareholders:

 

We are pleased to present this semi-annual report, which affords us the opportunity to provide a review of the economic backdrop for the first half of the year. But first, in light of the many developments that occurred across global markets during the first half of 2018, we want to reemphasize VanEck’s corporate mission and its implications to you as our valued shareholders.

 

As you may know, VanEck has a history of looking beyond the financial markets to identify historical, political, and/or technological trends that are likely to create or impact investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets, which set the tone for our drive to identify promising asset classes and trends. In this respect, our unconventional (at the time) efforts to introduce investors to gold investing in 1968, emerging markets (including China) in 1993, and ETFs in 2006, are now considered mainstream, permanently shaping the investment management industry as we now know it.

 

Today, we offer both active and passive strategies with compelling exposures supported by well-designed investment processes. Our firm’s capabilities range from strategies designed to strengthen core investment allocations to more specialized exposures that enhance portfolio diversification and reduce volatility.

 

Putting clients’ interests first in all market environments is at the heart of the firm’s mission and has been since our founding in 1955. We will, as always, continue to seek out and evaluate the most attractive opportunities for you as shareholders.

 

As we wrote in our Market Insights research, which can be found at www.vaneck.com/blogs/market-insights, we began 2018 by noting that global growth had gone from “ticking up” to “firmly in place” and that, while central banks were tightening, Europe remained “two years” behind the U.S. in this trend and had a trickier task. Further, our base case was for 10-year interest rates to rise to 3.5% with the curve not inverting. In its third longest bull market ever, we remained bullish on U.S. equities in the short-term, but were prepared for a correction. And, finally, we believed that investors should not be underweight commodities as global growth was supporting the bullish “grind trade” narrative from supply cutbacks.

 

Over the last six months we have seen interest rates in the U.S. rise as expected and, as a consequence, the U.S. dollar has strengthened. These events, along with both inflation fears and concern about trade and tariffs, have resulted not only in an increasingly evident decoupling of the U.S. dollar and emerging markets local currencies, but also significant outflows from emerging markets themselves (in May, for example, outflows were evenly split between equities and debt). From a regional perspective, countries in Latin America and Europe (e.g. Argentina and Turkey) rather than in Asia, have been the primary sources of emerging markets outflows. We still believe that credit exposure in high yield and emerging markets is still better than in governments, which have pure interest rate risk with no offset.

 

The biggest change in our outlook from six months ago is that global growth appears to be less synchronized – more relevant to the U.S. and China – with Europe uncertain and Africa, South America, and the Middle East struggling. In Europe, for example, economic growth has started to slow and weaker bank balance sheets remain an obstacle to monetary policy normalization. Despite these growing concerns, supply discipline has continued to support the bullish “grind trade” in commodities, with increasing chances of commodities and natural resources ending 2018 as the best performing area of the market.

 

To keep you informed on an ongoing basis, we encourage you to stay in touch with us through the videos, email subscriptions, and research blogs available on our website, vaneck.com. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit vaneck.com.

VANECK VECTORS ETFs

(unaudited) (continued)

 

We sincerely thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each of the funds for the six-month period ended June 30, 2018. 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 17, 2018

 

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

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, 2018 to June 30, 2018.

 

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 the 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, 2018				Ending Account Value June 30, 2018				Annualized Expense Ratio During Period				Expenses Paid During the Period* January 1, 2018 — June 30, 2018
Africa Index ETF
	Actual		$	1,000.00			$	949.60				0.78	%		$	3.77
	Hypothetical**		$	1,000.00			$	1,020.93				0.78	%		$	3.91
Brazil Small-Cap ETF
	Actual		$	1,000.00			$	770.70				0.61	%		$	2.68
	Hypothetical**		$	1,000.00			$	1,021.77				0.61	%		$	3.06
ChinaAMC CSI 300 ETF
	Actual		$	1,000.00			$	849.90				0.84	%		$	3.85
	Hypothetical**		$	1,000.00			$	1,020.63				0.84	%		$	4.21
ChinaAMC SME-ChiNext ETF
	Actual		$	1,000.00			$	841.00				0.83	%		$	3.79
	Hypothetical**		$	1,000.00			$	1,020.68				0.83	%		$	4.16
Egypt Index ETF
	Actual		$	1,000.00			$	1,101.20				0.85	%		$	4.43
	Hypothetical**		$	1,000.00			$	1,020.58				0.85	%		$	4.26
India Small-Cap Index ETF
	Actual		$	1,000.00			$	708.50				0.71	%		$	3.01
	Hypothetical**		$	1,000.00			$	1,021.27				0.71	%		$	3.56
Indonesia Index ETF
	Actual		$	1,000.00			$	840.80				0.57	%		$	2.60
	Hypothetical**		$	1,000.00			$	1,021.97				0.57	%		$	2.86
Israel ETF
	Actual		$	1,000.00			$	1,028.60				0.59	%		$	2.97
	Hypothetical**		$	1,000.00			$	1,021.87				0.59	%		$	2.96
Poland ETF
	Actual		$	1,000.00			$	802.50				0.60	%		$	2.68
	Hypothetical**		$	1,000.00			$	1,021.82				0.60	%		$	3.01
Russia ETF
	Actual		$	1,000.00			$	990.50				0.67	%		$	3.31
	Hypothetical**		$	1,000.00			$	1,021.47				0.67	%		$	3.36
Russia Small-Cap ETF
	Actual		$	1,000.00			$	887.40				0.76	%		$	3.56
	Hypothetical**		$	1,000.00			$	1,021.03				0.76	%		$	3.81
Vietnam ETF
	Actual		$	1,000.00			$	911.90				0.63	%		$	2.99
	Hypothetical**		$	1,000.00			$	1,021.67				0.63	%		$	3.16

 

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2018) 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, 2018 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS AFRICA INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

 

Definitions:

ADR	American Depositary Receipt
CAD	Canadian Dollar
GBP	British Pound
GDR	Global Depositary Receipt
USD	United States Dollar
Footnotes:
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $1,290,426.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $31,647,245 which represents 46.3% 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 $204,427, or 0.3% of net assets.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			11.1	%		$	7,614,581
Consumer Staples			10.3				7,072,342
Energy			5.4				3,667,824
Financials			38.4				26,239,034
Health Care			1.5				1,063,316
Industrials			0.6				394,676
Materials			18.4				12,545,723
Real Estate			1.2				797,017
Telecommunication Services			13.1				8,951,301
			100.0	%		$	68,345,814

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Canada		$	4,551,792			$	—				$	—			$	4,551,792
Egypt			5,670,131				566,934					—				6,237,065
India			736,990				—					—				736,990
Kenya			3,078,687				3,942,491					—				7,021,178
Monaco			1,830,621				—					—				1,830,621
Morocco			11,237,507				—					—				11,237,507
Nigeria			3,988,767				2,963,292					—				6,952,059
Singapore			—				504,778					—				504,778
South Africa			3,219,882				18,259,836					—				21,479,718
United Kingdom			1,435,863				5,409,914					—				6,845,777
United States			948,329				—					—				948,329
Repurchase Agreements			—				1,348,812					—				1,348,812
Total		$	36,698,569			$	32,996,057				$	—			$	69,694,626

*	See Schedule of Investments for geographic sector breakouts.

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $9,510,127 and transfers from Level 2 to Level 1 were $7,048,696. 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 BRAZIL SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

 

Definitions:

ADR	American Depositary Receipt
BRL	Brazilian Real
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $151,651.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,480,557 which represents 1.9% 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.
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 $641,357, or 0.8% of net assets.

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			26.3	%		$	20,513,884
Consumer Staples			7.4				5,800,295
Energy			5.7				4,430,463
Financials			2.8				2,181,444
Health Care			4.3				3,353,688
Industrials			8.7				6,782,160
Information Technology			9.6				7,501,746
Materials			6.5				5,106,228
Real Estate			3.8				2,956,618
Telecommunication Services			0.9				740,134
Utilities			24.0				18,737,847
			100.0	%		$	78,104,507

 

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, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	1,224,139			$	—				$	—			$	1,224,139
Capital Goods			1,584,401				—					—				1,584,401
Commercial & Professional Services			951,834				—					—				951,834
Consumer Durables & Apparel			7,746,161				—					—				7,746,161
Consumer Services			6,349,338				—					—				6,349,338
Energy			2,949,906				1,480,557					—				4,430,463
Food, Beverage & Tobacco			5,800,295				—					—				5,800,295
Health Care Equipment & Services			3,353,688				—					—				3,353,688
Insurance			402,378				—					—				402,378
Materials			2,680,549				—					—				2,680,549
Media			3,014,326				—					—				3,014,326
Real Estate			3,981,793				—					—				3,981,793
Retailing			999,329				—					—				999,329
Semiconductor			992,496				—					—				992,496
Software & Services			5,629,980				—					—				5,629,980
Technology Hardware & Equipment			879,270				—					—				879,270
Telecommunication Services			735,490				—					—				735,490
Transportation			2,456,851				—					—				2,456,851
Utilities			16,663,028				—					—				16,663,028
Preferred Stocks*			8,208,862				—					—				8,208,862
Rights			4,644				—					—				4,644
Warrants*			15,192				—					—				15,192
Repurchase Agreement			—				162,749					—				162,749
Total		$	76,623,950			$	1,643,306				$	—			$	78,267,256

*	See Schedule of Investments for industry sector breakouts.

 

During the period ended June 30, 2018, transfers of securities from Level 2 to Level 1 were $6,089,732. 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 CSI 300 ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (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

 

 

 

 

Footnotes:

*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $55,641,273 which represents 100.3% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $2,391,406 which represents 4.3% of net assets.

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			12.1	%		$	6,765,124
Consumer Staples			9.2				5,130,349
Energy			2.5				1,374,940
Financials			31.4				17,500,248
Health Care			7.3				4,096,685
Industrials			13.4				7,506,130
Information Technology			8.8				4,909,610
Materials			7.4				4,148,758
Real Estate			4.7				2,601,708
Telecommunication Services			0.6				325,896
Utilities			2.6				1,458,565
			100.0	%		$	55,818,013

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

	Level 1 Quoted Prices					Level 2 Significant Observable Inputs				Level 3 Significant Unobservable  Inputs					Value
Common Stocks
Automobiles & Components		$	63,964			$	1,683,396				$	—			$	1,747,360
Banks			18,087				9,219,999					—				9,238,086
Capital Goods			—				5,310,627					—				5,310,627
Commercial & Professional Services			—				330,668					—				330,668
Consumer Durables & Apparel			—				3,355,761					—				3,355,761
Consumer Services			—				537,076					—				537,076
Diversified Financials			23,146				3,489,832					—				3,512,978
Energy			—				1,374,940					—				1,374,940
Financials			—				517,468					—				517,468
Food, Beverage & Tobacco			—				5,130,349					—				5,130,349
Health Care Equipment & Services			—				951,913					—				951,913
Insurance			—				4,231,716					—				4,231,716
Materials			26,619				4,122,139					—				4,148,758
Media			—				597,341					—				597,341
Pharmaceuticals, Biotechnology			—				3,144,772					—				3,144,772
Real Estate			—				2,601,708					—				2,601,708
Retailing			—				527,586					—				527,586
Semiconductor			—				441,996					—				441,996
Software & Services			—				1,345,174					—				1,345,174
Technology Hardware & Equipment			—				3,105,908					—				3,105,908
Telecommunication Services			—				325,896					—				325,896
Transportation			—				1,864,835					—				1,864,835
Utilities			28,392				1,430,173					—				1,458,565
Foreign Debt Obligation			—				16,532					—				16,532
Total		$	160,208			$	55,657,805				$	—			$	55,818,013

*	See Schedule of Investments for industry breakouts.

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $19,139,811. 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, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

 

Footnotes:

*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $23,137,764 which represents 98.9% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $1,503,819 which represents 6.4% of net assets.

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			10.6	%		$	2,483,373
Consumer Staples			8.8				2,056,217
Financials			4.9				1,144,940
Health Care			13.6				3,194,982
Industrials			16.3				3,808,269
Information Technology			34.5				8,068,808
Materials			10.2				2,389,410
Real Estate			0.8				177,572
Utilities			0.3				83,564
			100.0	%		$	23,407,135

 

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, 2018 is as follows:

 

	Level 1 Quoted Prices					Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	126,734			$	525,706				$	—			$	652,440
Banks			—				466,683					—				466,683
Capital Goods			142,637				3,194,274					—				3,336,911
Commercial & Professional Services			—				344,494					—				344,494
Consumer Durables & Apparel			—				589,944					—				589,944
Consumer Services			—				190,601					—				190,601
Diversified Financials			—				678,257					—				678,257
Food, Beverage & Tobacco			—				2,056,217					—				2,056,217
Health Care Equipment & Services			—				1,185,289					—				1,185,289
Materials			—				2,389,410					—				2,389,410
Media			—				491,409					—				491,409
Pharmaceuticals, Biotechnology			—				2,009,693					—				2,009,693
Real Estate			—				177,572					—				177,572
Retailing			—				558,979					—				558,979
Semiconductor			—				270,323					—				270,323
Software & Services			—				2,920,949					—				2,920,949
Technology Hardware & Equipment			—				4,877,536					—				4,877,536
Transportation			—				126,864					—				126,864
Utilities			—				83,564					—				83,564
Total		$	269,371			$	23,137,764				$	—			$	23,407,135

 

During the period ended June 30, 2018, transfers of securities from Level 2 to Level 1 were $388,381 and transfers from Level 1 to Level 2 were $11,782,523. 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 lose, as described in the Notes to Financial Statements.

 

See Notes to Financial Statements

VANECK VECTORS EGYPT INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS EGYPT INDEX ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

Definitions:
GBP	British Pound
GDR	Global Depositary Receipt
USD	United States Dollar
Footnotes:
*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $23,037.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $37,929,212 which represents 68.7% 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 $588,514, or 1.1% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			1.7	%		$	932,548
Consumer Staples			12.4				6,906,155
Energy			0.7				408,707
Financials			26.1				14,569,566
Health Care			4.3				2,405,247
Industrials			5.9				3,280,946
Materials			17.8				9,895,314
Real Estate			20.5				11,438,644
Telecommunication Services			10.6				5,898,136
			100.0	%		$	55,735,263

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stock
Banks		$	5,224,116			$	—				$	—			$	5,224,116
Capital Goods			3,280,946				—					—				3,280,946
Consumer Durables & Apparel			932,548				—					—				932,548
Diversified Financials			4,260,936				5,084,514					—				9,345,450
Energy			—				408,707					—				408,707
Food, Beverage & Tobacco			—				6,906,155					—				6,906,155
Health Care Equipment & Services			2,225,440				179,807					—				2,405,247
Materials			—				9,895,314					—				9,895,314
Real Estate			—				11,438,644					—				11,438,644
Telecommunication Services			1,882,065				4,016,071					—				5,898,136
Repurchase Agreement			—				24,033					—				24,033
Total		$	17,806,051			$	37,953,245				$	—			$	55,759,296

 

During the period ended June 30, 2018, transfers of securities from Level 2 to Level 1 were $18,539,404 and transfers from Level 1 to Level 2 were $27,432,825. 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 INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS INDIA SMALL-CAP INDEX ETF

SCHEDULE OF INVESTMENTS (a)

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

 

 

Definitions:
USD	United States Dollar
Footnotes:
(a)	Represents Consolidated Schedule of Investments.
*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $204,743,037 which represents 98.8% of net assets.
ø	Restricted Security — the aggregate value of restricted securities is $10,657, or 0.0% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $10,657 which represents 0.0% of net assets.
∞	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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 $7,369,253, or 3.6% of net assets.

 

Restricted securities held by the Fund as of June 30, 2018 are as follows:

 

Security

Acquisition Date

Number of Shares

Acquisition Cost

Value

% of Net Assets

Chennai Super Kings Cricket Ltd.

10/08/15

1,298,085

$35,108

$10,657

0.0%

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			19.5	%		$	40,492,328
Consumer Staples			7.0				14,434,119
Energy			1.2				2,549,113
Financials			13.4				27,783,472
Health Care			4.9				10,157,364
Industrials			17.8				36,946,971
Information Technology			12.0				24,879,344
Materials			18.4				38,102,087
Real Estate			2.6				5,361,328
Telecommunication Services			1.5				3,167,305
Utilities			1.7				3,470,418
			100.0	%		$	207,343,849

 

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, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	3,942,173				$	—			$	3,942,173
Banks			—				16,026,941					—				16,026,941
Capital Goods			—				24,794,132					—				24,794,132
Consumer Durables & Apparel			—				15,915,547					—				15,915,547
Consumer Services			—				4,983,042					10,657				4,993,699
Consumer, Cyclical			—				303,920					—				303,920
Diversified Financials			—				11,756,531					—				11,756,531
Energy			—				2,549,113					—				2,549,113
Food, Beverage & Tobacco			—				13,543,102					—				13,543,102
Health Care Equipment & Services			—				1,972,027					—				1,972,027
Household & Personal Products			—				891,017					—				891,017
Materials			—				38,102,087					—				38,102,087
Media			2,101,619				8,785,609					—				10,887,228
Pharmaceuticals, Biotechnology			—				8,185,337					—				8,185,337
Real Estate			—				5,361,328					—				5,361,328
Retailing			499,193				4,451,787					—				4,950,980
Software & Services			—				20,534,223					—				20,534,223
Technology Hardware & Equipment			—				4,345,121					—				4,345,121
Telecommunication Services			—				3,167,305					—				3,167,305
Transportation			—				11,301,454					—				11,301,454
Utilities			—				3,820,584					—				3,820,584
Total		$	2,600,812			$	204,732,380				$	10,657			$	207,343,849

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $65,711,879. 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, 2018:

 

		Common Stocks
		Consumer Services
Balance as of December 31, 2017			$	11,440
Realized gain (loss)				—
Net change in unrealized appreciation (depreciation)				(783	)
Purchases				—
Sales				—
Transfers in and/or out of level 3				—
Balance as of June 30, 2018			$	10,657

 

See Notes to Financial Statements

VANECK VECTORS INDONESIA INDEX ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

 

Definitions:
ADR	American Depositary Receipt
HKD	Hong Kong Dollar
NVDR	Non-Voting Depositary Receipt
SGD	Singapore Dollar
THB	Thai Baht
Footnotes:
*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $45,805,655 which represents 91.7% 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			12.1	%		$	6,084,025
Consumer Staples			15.6				7,800,882
Energy			11.7				5,867,834
Financials			30.1				15,043,185
Health Care			3.0				1,517,583
Industrials			2.1				1,033,081
Materials			9.9				4,935,327
Real Estate			4.6				2,307,510
Telecommunication Services			9.1				4,536,168
Utilities			1.8				892,885
Money Market Fund			0.0				14,666
			100.0	%		$	50,033,146

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	3,319,583				$	—			$	3,319,583
Banks			—				14,115,781					—				14,115,781
Capital Goods			—				641,621					—				641,621
Diversified Financials			—				927,404					—				927,404
Energy			—				5,867,834					—				5,867,834
Food, Beverage & Tobacco			—				5,530,806					—				5,530,806
Health Care Equipment & Services			459,478				—					—				459,478
Household & Personal Products			—				2,270,076					—				2,270,076
Materials			—				4,935,327					—				4,935,327
Media			—				504,698					—				504,698
Pharmaceuticals, Biotechnology			—				1,058,105					—				1,058,105
Real Estate			—				2,307,510					—				2,307,510
Retailing			—				2,259,744					—				2,259,744
Telecommunication Services			3,753,347				782,821					—				4,536,168
Transportation			—				391,460					—				391,460
Utilities			—				892,885					—				892,885
Money Market Fund			14,666				—					—				14,666
Total		$	4,227,491			$	45,805,655				$	—			$	50,033,146

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $25,994,658. 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 ISRAEL ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS ISRAEL ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

See Notes to Financial Statements

 

 

Definitions:

ADR	American Depositary Receipt
AUD	Australian Dollar
GBP	British Pound
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $779,202.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $25,187,268 which represents 53.7% 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 $26,578, or 0.1% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			2.6	%		$	1,218,131
Consumer Staples			1.3				591,124
Energy			5.0				2,331,389
Financials			16.8				7,866,185
Health Care			22.0				10,322,140
Industrials			3.7				1,724,235
Information Technology			35.8				16,781,873
Materials			4.1				1,945,553
Real Estate			5.2				2,422,123
Telecommunication Services			2.0				916,977
Utilities			1.5				708,390
			100.0	%		$	46,828,120

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	—			$	6,513,890				$	—			$	6,513,890
Capital Goods			285,259				1,366,312					—				1,651,571
Commercial & Professional Services			22,284				28,297					—				50,581
Consumer Durables & Apparel			529,031				275,589					—				804,620
Consumer Services			—				228,582					—				228,582
Diversified Financials			32,453				553,891					—				586,344
Energy			1,395,653				935,736					—				2,331,389
Food & Staples Retailing			—				280,141					—				280,141
Food, Beverage & Tobacco			—				310,983					—				310,983
Health Care Equipment & Services			561,052				424,251					—				985,303
Insurance			—				765,951					—				765,951
Materials			—				1,945,553					—				1,945,553
Media			74,793				—					—				74,793
Pharmaceuticals, Biotechnology			3,866,150				5,470,687					—				9,336,837
Real Estate			—				2,422,123					—				2,422,123
Retailing			—				110,136					—				110,136
Semiconductor			2,484,757				198,221					—				2,682,978
Software & Services			10,042,828				2,075,973					—				12,118,801
Technology Hardware & Equipment			1,808,947				171,147					—				1,980,094
Telecommunication Services			—				916,977					—				916,977
Transportation			—				22,083					—				22,083
Utilities			537,645				170,745					—				708,390
Repurchase Agreement			—				814,384					—				814,384
Total		$	21,640,852			$	26,001,652				$	—			$	47,642,504

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $2,744,126 and transfers from Level 2 to Level 1 were $220,925. 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 POLAND ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

 

Definitions:

EUR	Euro
ZAR	South African Rand

Footnotes:

*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $13,704,076 which represents 95.8% 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.
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 $441,464, or 3.1% of net assets.

 

See Notes to Financial Statements

 

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			9.8	%		$	1,430,247
Consumer Staples			7.4				1,084,602
Energy			14.6				2,135,622
Financials			40.1				5,867,597
Information Technology			6.2				915,237
Materials			8.1				1,192,921
Real Estate			4.4				638,405
Telecommunication Services			1.8				264,246
Utilities			5.6				813,604
Money Market Fund			2.0				290,330
			100.0	%		$	14,632,811

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

	Level 1 Quoted Prices					Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	—			$	4,404,419				$	—			$	4,404,419
Consumer Durables & Apparel			—				1,081,425					—				1,081,425
Diversified Financials			—				240,988					—				240,988
Energy			—				2,135,622					—				2,135,622
Food & Staples Retailing			—				1,084,602					—				1,084,602
Insurance			—				1,222,190					—				1,222,190
Materials			—				1,192,921					—				1,192,921
Media			—				348,822					—				348,822
Real Estate			638,405				—					—				638,405
Software & Services			—				915,237					—				915,237
Telecommunication Services			—				264,246					—				264,246
Utilities			—				813,604					—				813,604
Money Market Fund			290,330				—					—				290,330
Total		$	928,735			$	13,704,076				$	—			$	14,632,811

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $3,402,796. 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 RUSSIA ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

 

Definitions:

ADR	American Depositary Receipt
GBP	British Pound
GDR	Global Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,402,178,119 which represents 87.9% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $208,317 which represents 0.0% of net assets.
∞	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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			8.7	%		$	138,026,159
Energy			40.0				636,993,839
Financials			12.7				202,331,698
Information Technology			7.5				119,807,738
Materials			20.2				322,316,029
Telecommunication Services			7.6				121,164,660
Utilities			3.3				52,967,196
			100.0	%		$	1,593,607,319

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	35,562,365			$	131,475,981				$	—			$	167,038,346
Diversified Financials			—				35,293,352					—				35,293,352
Energy			—				574,654,659					—				574,654,659
Food & Staples Retailing			—				138,026,159					—				138,026,159
Materials			—				322,316,029					—				322,316,029
Software & Services			74,242,923				45,564,815					—				119,807,738
Telecommunication Services			81,623,912				39,540,748					—				121,164,660
Utilities			—				52,758,879					208,317				52,967,196
Preferred Stock*			—				62,339,180					—				62,339,180
Total		$	191,429,200			$	1,401,969,802				$	208,317			$	1,593,607,319

 

*	See Schedule of Investments for industry breakouts.

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $80,879,602 and transfers from Level 2 to Level 1 were $214,547,666. 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, 2018:

 

		Common Stocks
		Utilities
Balance as of December 31, 2017			$	250,487
Realized gain (loss)				—
Net change in unrealized appreciation (depreciation)				(42,170	)
Purchases				—
Sales				—
Transfers in and/or out of level 3				—
Balance as of June 30, 2018			$	208,317

 

See Notes to Financial Statements

VANECK VECTORS RUSSIA SMALL-CAP ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

 

Definitions:

ADR	American Depositary Receipt
GBP	British Pound
GDR	Global Depositary Receipt
SDR	Swedish Depositary Receipt
SEK	Swedish Krona

Footnotes:

*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $29,977,166 which represents 64.7% 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

 

 

Summary of Investments by Sector		% of Investments				Value
Consumer Discretionary			5.5	%		$	2,550,222
Consumer Staples			9.5				4,382,004
Energy			4.7				2,160,877
Financials			15.9				7,366,585
Industrials			17.9				8,294,434
Information Technology			3.1				1,410,287
Materials			12.7				5,854,075
Real Estate			12.4				5,741,610
Telecommunication Services			5.6				2,600,789
Utilities			11.6				5,364,341
Money Market Fund			1.1				526,858
			100.0	%		$	46,252,082

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Banks		$	3,361,997			$	—				$	—			$	3,361,997
Capital Goods			—				2,422,700					—				2,422,700
Diversified Financials			2,091,930				1,912,658					—				4,004,588
Energy			—				2,160,877					—				2,160,877
Food & Staples Retailing			663,516				—					—				663,516
Food, Beverage & Tobacco			1,753,213				—					—				1,753,213
Household & Personal Products			—				1,965,275					—				1,965,275
Materials			2,700,099				3,153,976					—				5,854,075
Media			—				898,874					—				898,874
Real Estate			3,296,444				2,445,166					—				5,741,610
Retailing			—				1,180,776					—				1,180,776
Software & Services			1,410,287				—					—				1,410,287
Telecommunication Services			—				2,600,789					—				2,600,789
Transportation			—				5,871,734					—				5,871,734
Utilities			—				5,364,341					—				5,364,341
Rights*			470,572				—					—				470,572
Money Market Fund			526,858				—					—				526,858
Total		$	16,274,916			$	29,977,166				$	—			$	46,252,082

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $12,809,280 and transfers from Level 2 to Level 1 were $2,131,874. 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 VIETNAM ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Footnotes:

‡	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 $233,001.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $290,886,122 which represents 82.1% 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 $10,727,375, or 3.0% of net assets.

 

A summary of the Fund’s transactions in securities of affiliates for the period ended June 30, 2018 is set forth below:

 

Affiliates		Value 12/31/17				Purchases				Sales Proceeds				Realized Gain (Loss)				Dividend Income				Net Change in Unrealized Appreciation (Depreciation)				Value 06/30/18
Synopex, Inc.		$	15,851,688			$	3,438,560			$	(2,962,639	)		$	(925,512	)		$	—			$	(5,311,162	)		$	10,090,935

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			11.0	%		$	39,027,950
Consumer Staples			18.2				64,666,361
Energy			4.4				15,462,424
Financials			16.5				58,471,733
Health Care			4.8				16,871,357
Industrials			7.9				27,935,450
Information Technology			8.3				29,366,859
Materials			5.6				20,050,767
Real Estate			21.8				77,158,463
Utilities			1.5				5,505,615
			100.0	%		$	354,516,979

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Automobiles & Components		$	—			$	3				$	—			$	3
Banks			—				29,159,699					—				29,159,699
Capital Goods			21,612,418				6,323,022					—				27,935,440
Consumer Durables & Apparel			—				39,027,947					—				39,027,947
Diversified Financials			1				14,621,474					—				14,621,475
Energy			15,462,416				8					—				15,462,424
Food, Beverage & Tobacco			—				64,666,361					—				64,666,361
Health Care Equipment & Services			—				16,871,357					—				16,871,357
Insurance			—				14,690,559					—				14,690,559
Materials			—				20,050,767					—				20,050,767
Real Estate			26,556,022				50,602,441					—				77,158,463
Technology Hardware & Equipment			—				29,366,859					—				29,366,859
Transportation			—				10					—				10
Utilities			—				5,505,615					—				5,505,615
Repurchase Agreement			—				255,375					—				255,375
Total		$	63,630,857			$	291,141,497				$	—			$	354,772,354

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $102,945,911 and transfers from Level 2 to Level 1 were $41,627,036. 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 ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

For the Six Months Ended June 30, 2018 (unaudited)

 

			Africa Index ETF					Brazil Small-Cap ETF					ChinaAMC CSI 300 ETF					ChinaAMC SME-ChiNext ETF
Assets:
Investments, at value (1) (2)				$	68,345,814				$	78,104,507				$	55,818,013				$	23,407,135
Short-term investments held as collateral for securities loaned (3)					1,348,812					162,749					—					—
Cash					—					—					3,946					—
Cash denominated in foreign currency, at value (4)					—					517,775					1,865,634					449,502	(b)
Receivables:
Investment securities sold					4,832					—					—					1,460,887
Shares sold					4,844					10,172					—					—
Due from Adviser					—					—					—					—
Dividends and Interest					156,084					245,318					11					—
Prepaid expenses					474					3,191					3,104					4,714
Total assets					69,860,860					79,043,712					57,690,708					25,322,238
Liabilities:
Payables:
Investment securities purchased					10,881					—					—					1,638,115
Collateral for securities loaned					1,348,812					162,749					—					—
IRS compliance fee for foreign withholding tax claims (See Note 13)					—					—					—					—
Line of credit					50,806					487,094					2,028,220					138,721
Shares redeemed					4,844					—					2,990					—
Due to Adviser					24,646					24,294					11,905					4,026
Due to custodian					2,837					84,244					—					35,123
Deferred Trustee fees					9,584					33,805					3,596					353
Accrued expenses					79,906					57,429					145,239					99,092
Total liabilities					1,532,316					849,615					2,191,950					1,915,430
NET ASSETS				$	68,328,544				$	78,194,097				$	55,498,758				$	23,406,808
Shares outstanding					2,900,000					4,350,000					1,350,000					800,000
Net asset value, redemption and offering price per share				$	23.56				$	17.98				$	41.11				$	29.26
Net assets consist of:
Aggregate paid in capital				$	112,098,932				$	246,282,531				$	45,104,686				$	30,515,495
Net unrealized appreciation (depreciation)					12,435,205					(37,136	)				5,462,343					2,349,086
Undistributed (accumulated) net investment income (loss)					450,485					1,608,286					201,508					(4,194	)
Accumulated net realized gain (loss)					(56,656,078	)				(169,659,584	)				4,730,221					(9,453,579	)
				$	68,328,544				$	78,194,097				$	55,498,758				$	23,406,808
(1)	Value of securities on loan			$	1,290,426				$	151,651				$	—				$	—
(2)	Cost of investments			$	55,910,985				$	78,097,085				$	50,294,326				$	21,040,739
(3)	Cost of short-term investments held as collateral for securities loaned			$	1,348,812				$	162,749				$	—				$	—
(4)	Cost of cash denominated in foreign currency			$	—				$	542,825				$	1,926,977				$	466,561

(a)	Represents consolidated Statement of Assets and Liabilities.
(b)	Includes $7,375 on foreign investor minimum settlement reserve funds (See Note 2J).

 

See Notes to Financial Statements

 

 

Egypt Index ETF					India Small-Cap Index ETF (a)					Indonesia Index ETF					Israel ETF					Poland ETF					Russia ETF					Russia Small-Cap ETF
	$	55,735,263				$	207,343,849				$	50,033,146				$	46,828,120				$	14,632,811				$	1,593,607,319				$	46,252,082
		24,033					—					—					814,384					—					—					—
		—					7,579,629					—					—					—					2,692,152					—
		246,652					135,818					—					9,753					—					20,699					—
		3,068,100					19,138,688					—					145,116					—					—					—
		19,337					150,730					—					—					—					—					—
		—					—					—					—					2,861					—					—
		57,997					46,236					95,497					40,351					11,256					12,124,525					182,371
		2,840					4,139					3,150					2,806					2,638					17,645					3,011
		59,154,222					234,399,089					50,131,793					47,840,530					14,649,566					1,608,462,340					46,437,464
		128,982					19,132,332					—					9,904					—					—					—
		24,033					—					—					814,384					—					—					—
		—					—					—					—					320,945					—					—
		3,689,041					7,792,670					—					—					—					9,675,105					—
		—					—					—					—					—					—					—
		24,729					95,472					11,231					7,621					—					568,547					17,660
		23,617					—					308					104,185					—					—					—
		4,228					10,022					27,592					2,112					2,816					143,583					2,122
		30,818					188,405					146,609					35,731					23,909					2,482,534					95,105
		3,925,448					27,218,901					185,740					973,937					347,670					12,869,769					114,887
	$	55,228,774				$	207,180,188				$	49,946,053				$	46,866,593				$	14,301,896				$	1,595,592,571				$	46,322,577
		1,524,974					4,274,967					2,400,000					1,500,000					900,000					76,200,000					1,283,318
	$	36.22				$	48.46				$	20.81				$	31.24				$	15.89				$	20.94				$	36.10
	$	73,462,861				$	210,528,847				$	166,919,837				$	49,950,655				$	36,302,539				$	3,086,678,699				$	54,804,980
		11,456,926					10,387,504					(15,841,793	)				2,135,866					(2,881,630	)				(173,355,373	)				(7,043,143	)
		(567,720	)				(2,371,257	)				949,393					91,792					(304,636	)				17,859,737					337,587
		(29,123,293	)				(11,364,906	)				(102,081,384	)				(5,311,720	)				(18,814,377	)				(1,335,590,492	)				(1,776,847	)
	$	55,228,774				$	207,180,188				$	49,946,053				$	46,866,593				$	14,301,896				$	1,595,592,571				$	46,322,577
	$	23,037				$	—				$	—				$	779,202				$	—				$	—				$	—
	$	44,278,555				$	196,956,600				$	65,872,463				$	44,692,313				$	17,514,635				$	1,766,963,783				$	53,295,930
	$	24,033				$	—				$	—				$	814,384				$	—				$	—				$	—
	$	246,493				$	135,395				$	—				$	9,824				$	—				$	20,646				$	—

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2018 (unaudited) (continued)

 

			Vietnam ETF
Assets:
Investments, at value (1)
Unaffiliated issuers (2)				$	344,426,044
Affiliated issuers (3)					10,090,935
Short-term investments held as collateral for securities loaned (4)					255,375
Cash denominated in foreign currency, at value (5)					3,902,051
Receivables:
Dividends					18,303
Prepaid expenses					2,207
Total assets					358,694,915
Liabilities:
Payables:
Collateral for securities loaned					255,375
Line of credit					3,556,262
Due to Adviser					154,295
Due to custodian					95,438
Deferred Trustee fees					34,372
Accrued expenses					230,876
Total liabilities					4,326,618
NET ASSETS				$	354,368,297
Shares outstanding					22,300,000
Net asset value, redemption and offering price per share				$	15.89
Net assets consist of:
Aggregate paid in capital				$	586,776,935
Net unrealized appreciation					35,800,365
Undistributed net investment income					750,603
Accumulated net realized loss					(268,959,606	)
				$	354,368,297
(1)	Value of securities on loan			$	233,001
(2)	Cost of investments - Unaffiliated issuers			$	303,216,689
(3)	Cost of investments - Affiliated issuers			$	15,483,761
(4)	Cost of short-term investments held as collateral for securities loaned			$	255,375
(5)	Cost of cash denominated in foreign currency			$	3,918,340

 

See Notes to Financial Statements

[This Page Intentionally Left Blank.]

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Six Months Ended June 30, 2018 (unaudited)

 

		Africa Index ETF					Brazil Small-Cap ETF					ChinaAMC CSI 300 ETF					ChinaAMC SME-ChiNext ETF
Income:
Dividends			$	1,632,623				$	1,939,720				$	619,650				$	156,476
Interest				—					—					109					25
Securities lending income				6,314					909					—					—
Foreign taxes withheld				(161,344	)				(31,364	)				(62,342	)				(15,702	)
Total income				1,477,593					1,909,265					557,417					140,799
Expenses:
Management fees				184,916					257,044					179,615					60,430
Professional fees				32,149					29,609					47,063					37,728
Insurance				341					455					418					104
Trustees’ fees and expenses				741					1,121					1,018					238
Reports to shareholders				14,045					12,545					9,663					6,318
Indicative optimized portfolio value fee				2,617					4,609					2,616					2,145
Custodian fees				57,777					31,488					59,021					15,605
Registration fees				2,340					2,480					2,480					2,480
Transfer agent fees				1,101					1,191					1,191					1,191
Fund accounting fees				4,696					2,540					15,969					5,919
Interest				1,619					8,702					44,160					5,562
Other				3,127					3,052					4,652					5,011
Total expenses				305,469					354,836					367,866					142,731
Waiver of management fees				(15,381	)				(42,822	)				(65,059	)				(42,898	)
Expenses assumed by the Adviser				—					—					—					—
Net expenses				290,088					312,014					302,807					99,833
Net investment income (loss)				1,187,505					1,597,251					254,610					40,966
Net realized gain (loss) on:
Investments.				(676,502	)				6,026,664					7,925,148					(635,395	)
In-kind redemptions				997,093					350,593					—					—
Foreign currency transactions and foreign denominated assets and liabilities				(13,685	)				(109,465	)				79,289					(20,063	)
Net realized gain (loss)				306,906					6,267,792					8,004,437					(655,458	)
Net change in unrealized appreciation (depreciation) on:
Investments				(4,923,995	)				(31,254,668	)				(18,986,962	)				(3,809,958	)
Foreign currency transactions and foreign denominated assets and liabilities				(4,074	)				(39,530	)				(110,375	)				(19,458	)
Net change in unrealized appreciation (depreciation)				(4,928,069	)				(31,294,198	)				(19,097,337	)				(3,829,416	)
Net Increase (Decrease) in Net Assets Resulting from Operations			$	(3,433,658	)			$	(23,429,155	)			$	(10,838,290	)			$	(4,443,908	)

(a)	Represents consolidated Statement of Operations.

 

See Notes to Financial Statements

 

 

Egypt Index ETF					India Small-Cap Index ETF (a)					Indonesia Index ETF					Israel ETF					Poland ETF					Russia ETF					Russia Small-Cap ETF
	$	1,355,694				$	257,683				$	1,149,650				$	468,267				$	98,941				$	28,055,950				$	661,624
		—					—					—					—					—					—					—
		11,313					—					1,391					10,585					1,796					—					—
		(116,704	)				(1,354	)				(192,568	)				(80,593	)				(15,255	)				(3,974,789	)				(59,792	)
		1,250,303					256,329					958,473					398,259					85,482					24,081,161					601,832
		187,412					782,117					152,002					113,313					41,647					4,642,390					131,070
		27,562					103,264					34,756					28,330					27,732					51,553					27,957
		290					1,588					363					211					86					9,526					259
		572					7,762					1,509					429					194					21,474					560
		6,067					13,880					17,867					7,225					6,886					57,969					7,212
		2,480					2,616					2,616					2,482					2,480					2,386					2,170
		75,396					98,407					28,316					36,796					11,961					1,792,257					35,929
		2,480					2,481					2,480					2,622					2,480					7,193					2,480
		1,191					2,382					1,191					1,192					1,191					1,125					1,191
		1,940					26,098					4,137					4,229					1,511					60,466					2,386
		12,197					31,442					1,316					818					14					27,425					2,811
		2,843					39,821					5,469					3,528					3,613					29,630					3,849
		320,430					1,111,858					252,022					201,175					99,795					6,703,394					217,874
		—					—					(77,423	)				(66,646	)				(41,647	)				(455,167	)				(18,459	)
		—					—					—					—					(8,157	)				—					—
		320,430					1,111,858					174,599					134,529					49,991					6,248,227					199,415
		929,873					(855,529	)				783,874					263,730					35,491					17,832,934					402,417
		5,265,175					12,648,350					(2,148,521	)				(1,504,938	)				(593,779	)				(65,162,482	)				(821,105	)
		1,093,568					670,287					963,482					526,828					—					148,849,097					2,299,376
		(334,161	)				(266,400	)				2,933					(1,540	)				697					(29,242	)				3,868
		6,024,582					13,052,237					(1,182,106	)				(979,650	)				(593,082	)				83,657,373					1,482,139
		(837,173	)				(113,933,749	)				(9,347,634	)				2,107,009					(2,964,563	)				(97,996,044	)				(6,881,604	)
		908					(1,022	)				(2,476	)				29					(309	)				1,091					(1,899	)
		(836,265	)				(113,934,771	)				(9,350,110	)				2,107,038					(2,964,872	)				(97,994,953	)				(6,883,503	)
	$	6,118,190				$	(101,738,063	)			$	(9,748,342	)			$	1,391,118				$	(3,522,463	)			$	3,495,354				$	(4,998,947	)

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Six Months Ended June 30, 2018 (unaudited) (continued)

 

		Vietnam ETF
Income:
Dividends			$	2,205,164
Securities lending income				9,647
Foreign taxes withheld				(22,391	)
Total income				2,192,420
Expenses:
Management fees				1,018,577
Professional fees				33,754
Insurance				1,434
Trustees’ fees and expenses				2,936
Reports to shareholders				21,173
Indicative optimized portfolio value fee				2,616
Custodian fees				121,452
Registration fees				2,363
Transfer agent fees				1,191
Fund accounting fees				8,996
Interest				63,021
Other				9,366
Total expenses				1,286,879
Net investment income				905,541
Net realized gain (loss) on:
Investments – unaffiliated issuers				(1,374,461	)
Investments – affiliated issuers				(925,512	)
In-kind redemptions				886,231
Foreign currency transactions and foreign denominated assets and liabilities				(457,676	)
Net realized loss				(1,871,418	)
Net change in unrealized appreciation (depreciation) on:
Investments – unaffiliated issuers				(34,344,566	)
Investments – affiliated issuers				(5,311,162	)
Foreign currency transactions and foreign denominated assets and liabilities				(19,008	)
Net change in unrealized appreciation (depreciation)				(39,674,736	)
Net Decrease in Net Assets Resulting from Operations			$	(40,640,613	)

 

See Notes to Financial Statements

[This Page Intentionally Left Blank.]

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

		Africa Index ETF										Brazil Small-Cap ETF
		For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
		(unaudited)										(unaudited)
Operations:
Net investment income (loss)			$	1,187,505				$	1,243,799				$	1,597,251				$	2,322,197
Net realized gain (loss)				306,906					2,191,708					6,267,792					17,528,708
Net change in unrealized appreciation (depreciation)				(4,928,069	)				13,246,791					(31,294,198	)				20,099,730
Net increase (decrease) in net assets resulting from operations				(3,433,658	)				16,682,298					(23,429,155	)				39,950,635
Dividends to shareholders:
Dividends from net investment income				—					(1,580,800	)				—					(5,049,250	)
Share transactions:**
Proceeds from sale of shares				—					1,196,030					2,440,152					20,774,766
Cost of shares redeemed				(3,915,676	)				(6,915,711	)				(9,301,146	)				(30,089,605	)
Increase (Decrease) in net assets resulting from share transactions				(3,915,676	)				(5,719,681	)				(6,860,994	)				(9,314,839	)
Total increase (decrease) in net assets				(7,349,334	)				9,381,817					(30,290,149	)				25,586,546
Net Assets, beginning of period				75,677,878					66,296,061					108,484,246					82,897,700
Net Assets, end of period†			$	68,328,544				$	75,677,878				$	78,194,097				$	108,484,246
† Including undistributed (accumulated) net investment income (loss)			$	450,485				$	(737,020	)			$	1,608,286				$	11,035
** Shares of Common Stock Issued (no par value)
Shares sold				—					50,000					100,000					900,000
Shares redeemed				(150,000	)				(300,000	)				(400,000	)				(1,400,000	)
Net increase (decrease)				(150,000	)				(250,000	)				(300,000	)				(500,000	)

 

See Notes to Financial Statements

 

 

ChinaAMC CSI 300 ETF										ChinaAMC SME-ChiNext ETF										Egypt Index ETF
For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
(unaudited)										(unaudited)										(unaudited)
	$	254,610				$	933,299				$	40,966				$	(8,663	)			$	929,873				$	1,614,778
		8,004,437					501,852					(655,458	)				(116,108	)				6,024,582					(2,522,734	)
		(19,097,337	)				25,186,415					(3,829,416	)				4,174,049					(836,265	)				15,141,019
		(10,838,290	)				26,621,566					(4,443,908	)				4,049,278					6,118,190					14,233,063
		—					(1,021,800	)				—					(42,250	)				—					(575,568	)
		—					24,077,249					5,237,649					6,344,435					15,041,824					25,969,597
		(27,983,915	)				(40,646,130	)				—					(11,095,431	)				(42,390,668	)				(4,152,935	)
		(27,983,915	)				(16,568,881	)				5,237,649					(4,750,996	)				(27,348,844	)				21,816,662
		(38,822,205	)				9,030,885					793,741					(743,968	)				(21,230,654	)				35,474,157
		94,320,963					85,290,078					22,613,067					23,357,035					76,459,428					40,985,271
	$	55,498,758				$	94,320,963				$	23,406,808				$	22,613,067				$	55,228,774				$	76,459,428
	$	201,508				$	(53,102	)			$	(4,194	)			$	(45,160	)			$	(567,720	)			$	(1,497,593	)
		—					550,000					150,000					100,000					400,000					900,000
		(600,000	)				(900,000	)				—					(250,000	)				(1,200,000	)				(150,000	)
		(600,000	)				(350,000	)				150,000					(150,000	)				(800,000	)				750,000

 

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 Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
		(unaudited)										(unaudited)
Operations:
Net investment income (loss)			$	(855,529	)			$	113,742				$	783,874				$	1,172,187
Net realized gain (loss)				13,052,237					23,119,902					(1,182,106	)				(2,136,309	)
Net change in unrealized appreciation (depreciation)				(113,934,771	)				112,044,856					(9,350,110	)				14,380,985
Net increase (decrease) in net assets resulting from operations				(101,738,063	)				135,278,500					(9,748,342	)				13,416,863
Dividends to shareholders:
Dividends from net investment income				—					(414,748	)				—					(1,150,000	)
Share transactions:**
Proceeds from sale of shares				—					123,305,942					7,535,740					—
Cost of shares redeemed				(96,327,641	)				(36,550,840	)				(9,705,246	)				(35,643,355	)
Increase (Decrease) in net assets resulting from share transactions				(96,327,641	)				86,755,102					(2,169,506	)				(35,643,355	)
Total increase (decrease) in net assets				(198,065,704	)				221,618,854					(11,917,848	)				(23,376,492	)
Net Assets, beginning of period				405,245,892					183,627,038					61,863,901					85,240,393
Net Assets, end of period†			$	207,180,188				$	405,245,892				$	49,946,053				$	61,863,901
† Including undistributed (accumulated) net investment income (loss)			$	(2,371,257	)			$	(1,515,728	)			$	949,393				$	165,519
** Shares of Common Stock Issued (no par value)
Shares sold				—					2,100,000					300,000					—
Shares redeemed				(1,650,000	)				(650,000	)				(400,000	)				(1,500,000	)
Net increase (decrease)				(1,650,000	)				1,450,000					(100,000	)				(1,500,000	)

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

 

See Notes to Financial Statements

 

 

Israel ETF										Poland ETF										Russia ETF
For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
(unaudited)										(unaudited)										(unaudited)
	$	263,730				$	424,913				$	35,491				$	296,272				$	17,832,934				$	75,283,178
		(979,650	)				(476,866	)				(593,082	)				1,188,188					83,657,373					78,237,276
		2,107,038					5,514,296					(2,964,872	)				5,627,577					(97,994,953	)				(134,034,079	)
		1,391,118					5,462,343					(3,522,463	)				7,112,037					3,495,354					19,486,375
		—					(670,600	)				—					(874,800	)				—					(77,787,600	)
		4,484,506					2,926,885					—					5,956,748					608,867,306					540,313,797
		(1,529,591	)				(1,434,123	)				—					(7,862,936	)				(823,477,802	)				(1,280,469,661	)
		2,954,915					1,492,762					—					(1,906,188	)				(214,610,496	)				(740,155,864	)
		4,346,033					6,284,505					(3,522,463	)				4,331,049					(211,115,142	)				(798,457,089	)
		42,520,560					36,236,055					17,824,359					13,493,310					1,806,707,713					2,605,164,802
	$	46,866,593				$	42,520,560				$	14,301,896				$	17,824,359				$	1,595,592,571				$	1,806,707,713
	$	91,792				$	(171,938	)			$	(304,636	)			$	(340,127	)			$	17,859,737				$	26,803
		150,000					100,000					—					300,000					28,700,000					25,150,000
		(50,000	)				(50,000	)				—					(400,000	)				(37,950,000	)				(63,200,000	)
		100,000					50,000					—					(100,000	)				(9,250,000	)				(38,050,000	)

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Russia Small-Cap ETF										Vietnam ETF
		For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
		(unaudited)										(unaudited)
Operations:
Net investment income			$	402,417				$	1,916,897				$	905,541				$	4,083,851
Net realized gain (loss)				1,482,139					14,201,154					(1,871,418	)				(3,987,649	)
Net change in unrealized appreciation (depreciation)				(6,883,503	)				(9,897,882	)				(39,674,736	)				92,437,526
Net increase (decrease) in net assets resulting from operations				(4,998,947	)				6,220,169					(40,640,613	)				92,533,728
Dividends and Distributions to shareholders:
Dividends from net investment income				—					(2,099,811	)				—					(3,499,225	)
Return of capital				—					—					—					(33,175	)
Total Dividends and Distributions				—					(2,099,811	)				—					(3,532,400	)
Share transactions:**
Proceeds from sale of shares				3,757,271					16,509,389					84,849,917					34,995,235
Cost of shares redeemed				(10,748,115	)				(51,072,615	)				(38,870,019	)				(32,516,406	)
Increase (Decrease) in net assets resulting from share transactions				(6,990,844	)				(34,563,226	)				45,979,898					2,478,829
Total increase (decrease) in net assets				(11,989,791	)				(30,442,868	)				5,339,285					91,480,157
Net Assets, beginning of period				58,312,368					88,755,236					349,029,012					257,548,855
Net Assets, end of period†			$	46,322,577				$	58,312,368				$	354,368,297				$	349,029,012
† Including undistributed (accumulated) net investment income (loss)			$	337,587				$	(64,830	)			$	750,603				$	(154,938	)
** Shares of Common Stock Issued (no par value)
Shares sold				100,000					400,000					4,500,000					2,400,000
Shares redeemed				(250,000	)				(1,300,000	)				(2,200,000	)				(2,250,000	)
Net increase (decrease)				(150,000	)				(900,000	)				2,300,000					150,000

 

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,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$24.81				$20.09				$18.11				$26.20				$30.93				$30.77
Income from investment operations:
Net investment income			0.40	(a)			0.39	(a)			0.58				0.50				0.64				0.67
Net realized and unrealized gain (loss) on investments			(1.65	)			4.82				1.93				(8.20	)			(4.61	)			0.32
Total from investment operations			(1.25	)			5.21				2.51				(7.70	)			(3.97	)			0.99
Less:
Dividends from net investment income			—				(0.49	)			(0.53	)			(0.39	)			(0.76	)			(0.83	)
Net asset value, end of period			$23.56				$24.81				$20.09				$18.11				$26.20				$30.93
Total return (b)			(5.04	)%(c)			26.02	%			13.94	%			(29.41	)%			(12.86	)%			3.24	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$68,329				$75,678				$66,296				$59,766				$95,645				$108,245
Ratio of gross expenses to average net assets			0.83	%(d)			0.87	%			0.83	%			0.82	%			0.80	%			0.93	%
Ratio of net expenses to average net assets			0.78	%(d)			0.84	%			0.79	%			0.79	%			0.80	%			0.81	%
Ratio of net expenses to average net assets excluding interest expense			0.78	%(d)			0.78	%			0.78	%(f)			0.78	%			0.78	%			0.78	%
Ratio of net investment income to average net assets			3.21	%(d)			1.73	%			2.85	%			2.05	%			2.00	%			2.35	%
Portfolio turnover rate (e)			10	%(c)			38	%			45	%			33	%			30	%			86	%
		Brazil Small-Cap ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$23.33				$16.10				$10.44				$21.23				$29.61				$42.20
Income from investment operations:
Net investment income			0.35	(a)			0.48	(a)			0.51				0.44				0.88				0.54
Net realized and unrealized gain (loss) on investments			(5.70	)			7.81				5.83				(10.83	)			(8.37	)			(12.58	)
Total from investment operations			(5.35	)			8.29				6.34				(10.39	)			(7.49	)			(12.04	)
Less:
Dividends from net investment income			—				(1.06	)			(0.68	)			(0.40	)			(0.89	)			(0.55	)
Net asset value, end of period			$17.98				$23.33				$16.10				$10.44				$21.23				$29.61
Total return (b)			(22.93	)%(c)			51.71	%			60.92	%			(48.97	)%			(25.19	)%			(28.58	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$78,194				$108,484				$82,898				$65,264				$104,011				$196,891
Ratio of gross expenses to average net assets			0.69	%(d)			0.68	%			0.69	%			0.72	%			0.66	%			0.64	%
Ratio of net expenses to average net assets			0.61	%(d)			0.60	%			0.60	%			0.60	%			0.60	%			0.60	%
Ratio of net expenses to average net assets excluding interest expense			0.59	%(d)			0.59	%			0.59	%			0.59	%			0.59	%			0.59	%
Ratio of net investment income to average net assets			3.11	%(d)			2.24	%			3.14	%			3.29	%			2.99	%			1.11	%
Portfolio turnover rate (e)			26	%(c)			53	%			44	%			57	%			64	%			33	%

 

 

(a)	Calculated based upon average shares outstanding
(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.
(f)	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,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$48.37				$37.08				$44.76				$46.06				$30.89				$33.17
Income from investment operations:
Net investment income (loss)			0.17	(a)			0.41	(a)			0.41				0.45				0.32	(a)			(0.40	)
Net realized and unrealized gain (loss) on investments			(7.43	)			11.40				(7.64	)			(0.34	)			14.85				(1.18	)
Total from investment operations			(7.26	)			11.81				(7.23	)			0.11				15.17				(1.58	)
Less:
Dividends from net investment income			—				(0.52	)			(0.15	)			(0.52	)			—				(0.70	)
Distributions from net realized capital gains			—				—				(0.28	)			(0.89	)			—				—
Return of capital			—				—				(0.02	)			—				—				—
Total dividends and distributions			—				(0.52	)			(0.45	)			(1.41	)			—				(0.70	)
Net asset value, end of period			$41.11				$48.37				$37.08				$44.76				$46.06				$30.89
Total return (b)			(15.01	)%(c)			31.86	%			(16.16	)%			0.22	%			49.11	%			(4.74	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$55,499				$94,321				$85,290			$105,193					$94,414				$29,344
Ratio of gross expenses to average net assets			1.02	%(d)			0.82	%			1.06	%			1.20	%			1.69	%			1.14	%
Ratio of net expenses to average net assets			0.84	%(d)			0.78	%			0.71	%			0.75	%			0.72	%			0.72	%
Ratio of net expenses to average net assets excluding interest expense			0.72	%(d)			0.72	%			0.72	%(h)			0.72	%			0.72	%			0.72	%
Ratio of net investment income (loss) to average net assets			0.71	%(d)			0.96	%			1.26	%			0.91	%			1.00	%			(0.70	)%
Portfolio turnover rate (e)			5	%(c)			37	%			50	%			70	%			59	%			0	%
		ChinaAMC SME-ChiNext ETF
		For the																For the Period
		Six Months																July 23,
		Ended																2014(f) through
		June 30,				For the Year Ended December 31,												December 31,
		2018				2017				2016				2015				2014
		(unaudited)
Net asset value, beginning of period			$34.79				$29.20				$41.74				$28.60				$24.68
Income from investment operations:
Net investment income (loss)			0.06	(a)			(0.01	)(a)			(0.06	)			(0.10	)			(0.05	)
Net realized and unrealized gain (loss) on investments			(5.59	)			5.67				(12.48	)			13.24				3.97
Total from investment operations			(5.53	)			5.66				(12.54	)			13.14				3.92
Less:
Dividends from net investment income			—				(0.07	)			—				—				—
Net asset value, end of period			$29.26				$34.79				$29.20				$41.74				$28.60
Total return (b)			(15.90	)%(c)			19.37	%			(30.04	)%			45.94	%			15.88	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$23,407				$22,613			$23,357					$56,343				$21,451
Ratio of gross expenses to average net assets			1.18	%(d)			1.38	%			1.16	%			1.11	%			1.48	%(d)
Ratio of net expenses to average net assets			0.83	%(d)			0.82	%			0.81	%			0.79	%			0.78	%(d)
Ratio of net expenses to average net assets excluding interest expense			0.78	%(d)			0.78	%			0.78	%			0.78	%			0.78	%(d)
Ratio of net investment income (loss) to average net assets			0.34	%(d)			(0.04	)%			(0.07	)%			(0.29	)%			(0.73	)%(d)
Portfolio turnover rate (e)			9	%(c)			34	%			39	%			160	%			7	%(c)

 

 

(a)	Calculated based upon average shares outstanding
(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.
(f)	Commencement of operations
(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,
		2018				2017				2016				2015				2014				2013(#)
		(unaudited)
Net asset value, beginning of period			$32.89				$26.02				$39.01				$59.95				$55.51				$51.00
Income from investment operations:
Net investment income			0.45	(a)			0.81	(a)			1.17				0.04				0.53				1.13
Net realized and unrealized gain (loss) on investments			2.88				6.31				(14.16	)			(20.37	)			6.67				4.42
Total from investment operations			3.33				7.12				(12.99	)			(20.33	)			7.20				5.55
Less:
Dividends from net investment income			—				(0.25	)			—				(0.61	)			(2.76	)			(1.04	)
Net asset value, end of period			$36.22				$32.89				$26.02				$39.01				$59.95				$55.51
Total return (b)			10.12	%(c)			27.39	%			(33.30	)%			(33.89	)%			12.92	%			10.90	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$55,229				$76,459				$40,985				$26,329				$49,461				$48,571
Ratio of gross expenses to average net assets			0.85	%(d)			1.09	%			1.14	%			1.07	%			0.97	%			1.18	%
Ratio of net expenses to average net assets			0.85	%(d)			0.94	%			1.01	%			0.98	%			0.97	%			0.98	%
Ratio of net expenses to average net assets excluding interest expense			0.82	%(d)			0.94	%			0.94	%			0.94	%			0.92	%			0.94	%
Ratio of net investment income to average net assets			2.48	%(d)			2.82	%			1.17	%			0.60	%			0.63	%			2.31	%
Portfolio turnover rate (e)			28	%(c)			41	%			56	%			57	%			69	%			78	%
		India Small-Cap Index ETF (g)
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013(#)
		(unaudited)
Net asset value, beginning of period			$68.40				$41.03				$43.66				$44.53				$31.31				$44.24
Income from investment operations:
Net investment income (loss)			(0.16	)(a)			0.02	(a)			0.39				0.06	(a)			0.37				0.25
Net realized and unrealized gain (loss) on investments			(19.78	)			27.42				(2.45	)			0.42				13.29				(13.04	)
Total from investment operations			(19.94	)			27.44				(2.06	)			0.48				13.66				(12.79	)
Less:
Dividends from net investment income			—				(0.07	)			(0.57	)			(1.35	)			(0.44	)			(0.14	)
Net asset value, end of period			$48.46				$68.40				$41.03				$43.66				$44.53				$31.31
Total return (b)			(29.15	)%(c)			66.88	%			(4.70	)%			1.07	%			43.65	%			(28.91	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$207,180				$405,246				$183,627				$171,370				$272,745				$110,352
Ratio of gross expenses to average net assets			0.71	%(d)			0.72	%			0.78	%			0.78	%			0.92	%			1.39	%
Ratio of net expenses to average net assets			0.71	%(d)			0.72	%			0.78	%(f)			0.78	%			0.89	%			0.93	%
Ratio of net expenses to average net assets excluding interest expense			0.69	%(d)			0.70	%			0.78	%			0.75	%			0.85	%			0.85	%
Ratio of net investment income (loss) to average net assets			(0.55	)%(d)			0.04	%			0.96	%			0.13	%			0.82	%			0.73	%
Portfolio turnover rate (e)			16	%(c)			42	%			29	%			40	%			120	%			77	%

 

 

(a)	Calculated based upon average shares outstanding
(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.
(f)	Excludes reimbursement from prior year custodial charge of 0.01%.
(g)	Represents consolidated Financial Highlights.
(#)	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,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$24.75				$21.31				$18.36				$24.32				$20.98				$28.63
Income from investment operations:
Net investment income			0.31	(a)			0.35	(a)			0.28				0.47				0.53				0.75
Net realized and unrealized gain (loss) on investments			(4.25	)			3.55				2.92				(5.98	)			3.31				(7.68	)
Total from investment operations			(3.94	)			3.90				3.20				(5.51	)			3.84				(6.93	)
Less:
Dividends from net investment income			—				(0.46	)			(0.25	)			(0.45	)			(0.50	)			(0.72	)
Net asset value, end of period			$20.81				$24.75				$21.31				$18.36				$24.32				$20.98
Total return (b)			(15.92	)%(c)			18.35	%			17.49	%			(22.69	)%			18.34	%			(24.20	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$49,946			$61,864				$85,240				$86,293				$184,831				$183,618
Ratio of gross expenses to average net assets			0.83	%(d)			0.73	%			0.68	%			0.72	%			0.66	%			0.67	%
Ratio of net expenses to average net assets			0.57	%(d)			0.57	%			0.58	%			0.58	%			0.58	%			0.57	%
Ratio of net expenses to average net assets excluding interest expense			0.57	%(d)			0.57	%			0.57	%			0.57	%			0.57	%			0.57	%
Ratio of net investment income to average net assets			2.58	%(d)			1.53	%			1.05	%			1.65	%			1.80	%			1.95	%
Portfolio turnover rate (e)			7	%(c)			14	%			12	%			11	%			12	%			20	%
		Israel ETF
		For the																				For the Period
		Six Months																				June 25,
		Ended																				2013(f) through
		June 30,				For the Year Ended December 31,																December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$30.37				$26.84				$28.81				$29.56				$30.04				$25.30
Income from investment operations:
Net investment income			0.18	(a)			0.30	(a)			0.27				0.32				0.31				0.10
Net realized and unrealized gain (loss) on investments			0.69				3.71				(1.80	)			(0.69	)			(0.05	)			4.80
Total from investment operations			0.87				4.01				(1.53	)			(0.37	)			0.26				4.90
Less:
Dividends from net investment income			—				(0.48	)			(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			—				(0.48	)			(0.44	)			(0.38	)			(0.74	)			(0.16	)
Net asset value, end of period			$31.24				$30.37				$26.84				$28.81				$29.56				$30.04
Total return (b)			2.86	%(c)			14.96	%			(5.34	)%			(1.27	)%			0.88	%			19.39	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$46,867			$42,521				$36,236				$46,091				$44,335				$30,036
Ratio of gross expenses to average net assets			0.89	%(d)			0.92	%			0.92	%			0.85	%			0.76	%			0.94	%(d)
Ratio of net expenses to average net assets			0.59	%(d)			0.59	%			0.60	%			0.59	%			0.60	%			0.59	%(d)
Ratio of net expenses to average net assets excluding interest expense			0.59	%(d)			0.59	%			0.59	%			0.59	%			0.59	%			0.59	%(d)
Ratio of net investment income to average net assets			1.16	%(d)			1.04	%			0.94	%			1.04	%			1.03	%			0.83	%(d)
Portfolio turnover rate (e)			4	%(c)			21	%			19	%			18	%			17	%			24	%(c)

 

 

(a)	Calculated based upon average shares outstanding
(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.
(f)	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,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$19.80				$13.49				$13.28				$17.99				$22.60				$22.25
Income from investment operations:
Net investment income			0.04	(a)			0.30	(a)(f)			0.42				0.45				0.80				0.74
Net realized and unrealized gain (loss) on investments			(3.95	)			6.98				0.08				(4.72	)			(4.61	)			0.36
Total from investment operations			(3.91	)			7.28				0.50				(4.27	)			(3.81	)			1.10
Less:
Dividends from net investment income			—				(0.97	)			(0.29	)			(0.44	)			(0.80	)			(0.75	)
Net asset value, end of period			$15.89				$19.80				$13.49				$13.28				$17.99				$22.60
Total return (b)			(19.75	)%(c)			54.44	%(f)			3.60	%			(23.85	)%			(16.90	)%			4.92	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$14,302				$17,824				$13,493			$15,269				$18,886				$30,514
Ratio of gross expenses to average net assets			1.20	%(d)			1.31	%			1.30	%			1.11	%			0.99	%			1.07	%
Ratio of net expenses to average net assets			0.60	%(d)			0.66	%			0.60	%			0.60	%			0.60	%			0.61	%
Ratio of net expenses to average net assets excluding interest expense			0.60	%(d)			0.60	%			0.60	%			0.60	%			0.60	%			0.61	%
Ratio of net investment income to average net assets			0.43	%(d)			1.64	%			2.98	%			2.69	%			2.91	%			3.31	%
Portfolio turnover rate (e)			10	%(c)			28	%			18	%			30	%			19	%			21	%
		Russia ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$21.14				$21.09				$14.69				$15.17				$28.69				$29.63
Income from investment operations:
Net investment income			0.21	(a)			0.71	(a)			0.38				0.50				0.59				0.80
Net realized and unrealized gain (loss) on investments			(0.41	)			0.25				6.36				(0.46	)			(13.45	)			(1.00	)
Total from investment operations			(0.20	)			0.96				6.74				0.04				(12.86	)			(0.20	)
Less:
Dividends from net investment income			—				(0.91	)			(0.34	)			(0.52	)			(0.66	)			(0.74	)
Net asset value, end of period			$20.94				$21.14				$21.09				$14.69				$15.17				$28.69
Total return (b)			(0.95	)%(c)			4.62	%			45.91	%			0.39	%			(44.95	)%			(0.65	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$1,595,593			$1,806,708				$2,605,165				$1,735,849				$1,541,945				$1,187,720
Ratio of gross expenses to average net assets			0.72	%(d)			0.72	%			0.79	%			0.72	%			0.61	%			0.71	%
Ratio of net expenses to average net assets			0.67	%(d)			0.67	%			0.65	%			0.63	%			0.61	%			0.63	%
Ratio of net expenses to average net assets excluding interest expense and a portion of depositary receipt fees (g)			0.67	%(d)			0.66	%			0.65	%			0.62	%			0.61	%			0.62	%
Ratio of net investment income to average net assets			1.92	%(d)			3.40	%			2.48	%			2.98	%			3.92	%			2.52	%
Portfolio turnover rate (e)			9	%(c)			15	%			22	%			33	%			23	%			27	%

 

 

(a)	Calculated based upon average shares outstanding
(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.
(f)	For the year ended December 31, 2017, 0.52% of total return, representing $0.10 net investment income per share, consisted of a one-time, positive effect of foreign withholding tax claims, net of the associated IRS compliance fee (See Note 13).
(g)	Effective May 1, 2016, the Fund excludes depositary 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,
		2018				2017				2016				2015				2014				2013(#)
		(unaudited)
Net asset value, beginning of period			$40.68				$38.04				$19.31				$19.60				$42.24				$45.15
Income from investment operations:
Net investment income			0.31	(a)			1.17	(a)			0.77				0.38				0.91				0.30
Net realized and unrealized gain (loss) on investments			(4.89	)			2.94				18.77				(0.29	)			(23.14	)			(2.01	)
Total from investment operations			(4.58	)			4.11				19.54				0.09				(22.23	)			(1.71	)
Less:
Dividends from net investment income			—				(1.47	)			(0.81	)			(0.38	)			(0.41	)			(1.20	)
Net asset value, end of period			$36.10				$40.68				$38.04				$19.31				$19.60				$42.24
Total return (b)			(11.26	)%(c)			11.01	%			101.07	%			0.48	%			(52.67	)%			(3.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$46,323				$58,312				$88,755				$35,392				$53,573				$16,191
Ratio of gross expenses to average net assets			0.83	%(d)			0.82	%			0.86	%			1.19	%			0.95	%			1.87	%
Ratio of net expenses to average net assets			0.76	%(d)			0.76	%			0.75	%			0.69	%			0.68	%			0.67	%
Ratio of net expenses to average net assets excluding interest expense and a portion of depositary receipt fees (f)			0.75	%(d)			0.75	%			0.73	%			0.67	%			0.67	%			0.67	%
Ratio of net investment income to average net assets			1.53	%(d)			2.87	%			3.28	%			1.58	%			2.42	%			0.59	%
Portfolio turnover rate (e)			29	%(c)			39	%			72	%			30	%			32	%			74	%
		Vietnam ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$17.45				$12.97				$14.78				$18.84				$18.63				$17.06
Income from investment operations:
Net investment income			0.04	(a)			0.20	(a)			0.39				0.55				0.51				0.59
Net realized and unrealized gain (loss) on investments			(1.57	)			4.46				(1.83	)			(4.11	)			0.21				1.58
Total from investment operations			(1.53	)			4.66				(1.44	)			(3.56	)			0.72				2.17
Less:
Dividends from net investment income			—				(0.18	)			(0.37	)			(0.50	)			(0.49	)			(0.60	)
Return of capital			—				—	(g)			—				—				(0.02	)			—
Total dividends			—				(0.18	)			(0.37	)			(0.50	)			(0.51	)			(0.60	)
Net asset value, end of period			$15.89				$17.45				$12.97				$14.78				$18.84				$18.63
Total return (b)			(8.81	)%(c)			35.76	%			(9.78	)%			(18.87	)%			3.95	%			12.75	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$354,368			$349,029				$257,549				$379,231				$468,233				$372,634
Ratio of gross expenses to average net assets			0.63	%(d)			0.66	%			0.66	%			0.67	%			0.66	%			0.72	%
Ratio of net expenses to average net assets			0.63	%(d)			0.66	%			0.66	%			0.67	%			0.66	%			0.72	%
Ratio of net expenses to average net assets excluding interest expense			0.60	%(d)			0.63	%			0.63	%			0.65	%			0.65	%			0.70	%
Ratio of net investment income to average net assets			0.44	%(d)			1.37	%			2.14	%			3.29	%			2.32	%			2.98	%
Portfolio turnover rate (e)			25	%(c)			50	%			47	%			67	%			67	%			48	%

 

 

(a)	Calculated based upon average shares outstanding
(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.
(f)	Effective May 1, 2016, the Fund excludes depositary receipt fees in excess of 0.08% of average daily net assets (See Note 3).
(g)	Amount represents less than $0.005 per share.
(#)	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, 2018 (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, 2018, offers fifty-seven 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 objectives 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., Shenzhen Securities Information Co., Ltd., BlueStar Global Investors LLC or MV Index Solutions GmbH, a wholly owned subsidiary of Van Eck Associates Corporation (the “Adviser”).

 

The Funds’ respective indices are presented below:

 

Fund	Index
Africa Index ETF	MVIS® GDP Africa Index*
Brazil Small-Cap ETF	MVIS® Brazil Small-Cap Index*
ChinaAMC CSI 300 ETF	CSI 300 Index
ChinaAMC SME-ChiNext ETF	SME-ChiNext 100 Index
Egypt Index ETF	MVIS® Egypt Index*
India Small-Cap Index ETF	MVIS® India Small-Cap Index*
Indonesia Index ETF	MVIS® Indonesia Index*
Israel ETF	BlueStar Israel Global Index®
Poland ETF	MVIS® Poland Index*
Russia ETF	MVIS® Russia Index*
Russia Small-Cap ETF	MVIS® Russia Small-Cap Index*
Vietnam ETF	MVIS® 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 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 Trustees,

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

	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 where 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 net investment 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. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statements of Operations. 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, 2018 are reflected in the Schedules of Investments.
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, 2018 is presented in the Schedules of Investments. Refer to related disclosures in Note 2G (Repurchase Agreements) and Note 9 (Securities Lending).
I.	Other—Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. 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. 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)

 

At June 30, 2018, ChinaAMC SME-ChiNext included $7,375, 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, 2019, 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. Refer to the Statements of Operations for the amounts waived/assumed by the Advisor for the period ended June 30, 2018.

 

		Expense
Fund		Limitation
Africa Index ETF			0.78	%
Brazil Small-Cap ETF			0.59
ChinaAMC CSI 300 ETF*			0.72
ChinaAMC SME-ChiNext ETF*			0.78
Egypt Index ETF			0.94
India Small-Cap Index ETF			0.85
Indonesia Index ETF			0.57
Israel ETF			0.59
Poland ETF			0.60
Russia ETF			0.62
Russia Small-Cap ETF			0.67
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, 2018, 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:

 

		Cost of Investments				Proceeds from
Fund		Purchased				Investments Sold
Africa Index ETF		$	7,708,591			$	7,807,287
Brazil Small-Cap ETF			26,802,075				31,299,957
ChinaAMC CSI 300 ETF			3,907,695				32,027,585
ChinaAMC SME-ChiNext ETF			6,754,553				2,167,516
Egypt Index ETF			20,966,849				41,353,777
India Small-Cap Index ETF			48,965,134				142,456,187
Indonesia Index ETF			4,797,513				3,924,048
Israel ETF			2,174,010				1,964,400
Poland ETF			1,722,381				1,632,889
Russia ETF			175,488,555				157,689,848
Russia Small-Cap ETF			15,543,461				15,742,877
Vietnam ETF			143,112,194				101,202,809

 

 

Note 5—Income Taxes—As of June 30, 2018, 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:

 

														Net Unrealized
		Cost of				Gross Unrealized				Gross Unrealized				Appreciation
Fund		Investments				Appreciation				Depreciation				(Depreciation)
Africa Index ETF		$	58,855,697			$	15,275,236			$	(4,436,307	)		$	10,838,929
Brazil Small-Cap ETF			87,993,926				13,571,270				(23,297,940	)			(9,726,670	)
ChinaAMC CSI 300 ETF			52,159,805				13,142,657				(9,484,449	)			3,658,208
ChinaAMC SME-ChiNext ETF			22,003,503				5,066,862				(3,663,230	)			1,403,632
Egypt Index ETF			49,534,181				13,307,439				(7,082,324	)			6,225,115
India Small-Cap Index ETF			212,114,762				45,401,733				(50,172,646	)			(4,770,913	)
Indonesia Index ETF			65,914,282				3,764,696				(19,645,832	)			(15,881,136	)
Israel ETF			46,168,639				9,677,008				(8,203,143	)			1,473,865
Poland ETF			17,630,520				1,258,712				(4,256,421	)			(2,997,709	)
Russia ETF			1,782,732,287				129,112,128				(318,237,096	)			(189,124,968	)
Russia Small-Cap ETF			53,854,037				2,722,403				(10,324,358	)			(7,601,955	)
Vietnam ETF			341,933,024				86,615,468				(73,776,138	)			12,839,330

 

The tax character of dividends and distributions paid to shareholders during the year ended December 31, 2017 was as follows:

 

		Ordinary				Return
Fund		Income**				of Capital
Africa ETF		$	1,580,800			$	—
Brazil Small-Cap ETF			5,049,250				—
ChinaAMC CSI 300 ETF			1,021,800				—
ChinaAMC SME-ChiNext ETF			42,250				—
Egypt Index ETF			575,568				—
India Small-Cap Index ETF			414,748				—
Indonesia Index ETF			1,150,000				—
Israel ETF			670,600				—
Poland ETF			874,800				—
Russia ETF			77,787,600				—
Russia Small-Cap ETF			2,099,811				—
Vietnam ETF			3,499,225				33,175

 

**	Includes short-term capital gains (if any)

 

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

 

At December 31, 2017, the Funds had capital loss carryforwards available to offset future capital gains, as follows:

 

										Short-Term
		Short-Term				Long-Term				Capital Losses
		Capital Losses				Capital Losses				Expiring in the
		with No				with No				Year Ended
Fund		Expiration				Expiration				12/31/2018				Total
Africa Index ETF		$	(8,134,343	)		$	(46,903,635	)		$	(1,095,985	)		$	(56,133,963	)
Brazil Small-Cap ETF			(21,968,031	)			(144,423,452	)			—				(166,391,483	)
ChinaAMC CSI 300 ETF			—				(1,450,887	)			—				(1,450,887	)
ChinaAMC SME-ChiNext ETF			(6,386,066	)			(1,469,233	)			—				(7,855,299	)
Egypt Index ETF			(12,807,371	)			(18,762,299	)			(128,400	)			(31,698,070	)
India Small-Cap Index ETF			(10,982,970	)			—				—				(10,982,970	)
Indonesia Index ETF			(36,632,180	)			(61,379,710	)			(2,845,870	)			(100,857,760	)
Israel ETF			(772,785	)			(3,071,515	)			—				(3,844,300	)
Poland ETF			(2,805,616	)			(15,161,828	)			(171,326	)			(18,138,770	)
Russia ETF			(227,728,835	)			(1,054,443,816	)			(121,306,708	)			(1,403,479,359	)
Russia Small-Cap ETF			(2,743,123	)			—				—				(2,743,123	)
Vietnam ETF			(61,056,184	)			(181,194,606	)			(1,860,199	)			(244,110,989	)

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

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, 2018, 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 from 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. 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.

 

Effective April 1, 2018, an amendment to the Indian Income Tax Act extended the scope of capital gain taxation to apply to gains on the transfer of long-term capital assets. As a result of this amendment, long-term capital gains exceeding INR 100,000 on the transfer of listed equity shares or units of an equity-oriented fund or business trust are taxable at a maximum marginal rate of 10.92%.

 

Note 6—Capital Share Transactions—As of June 30, 2018, 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, 2018, the Funds had in-kind contributions and redemptions as follows:

 

Fund		In-Kind Contributions					In-Kind Redemptions
Africa Index ETF			$	—				$	2,517,549
Brazil Small-Cap ETF				220,983					963,522
Egypt Index ETF				2,979,101					8,388,645
India Small-Cap Index ETF				—					2,762,690
Indonesia Index ETF				7,526,151					9,698,660
Israel ETF				4,483,579					1,528,577
Russia ETF				608,432,507					823,276,872
Russia Small-Cap ETF				3,757,222					10,748,633
Vietnam ETF				4,955,726					10,272,395

 

The table represent the accumulation of each Fund’s daily net in-kind 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, ChinaAMC SME-ChiNext 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 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 certain events, 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 the Funds.

 

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.

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, 2018 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 as of June 30, 2018:

 

		Gross Amount of Recognized
		Liabilities for Securities
		Loaned in the Statements
		of Assets and Liabilities*
Fund		Equity Securities
Africa Index ETF			$1,348,812
Brazil Small-Cap ETF			162,749
Egypt Index ETF			24,033
Israel ETF			814,384
Vietnam ETF			255,375

 

*	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 year ended June 30, 2018, the following Funds borrowed under this Facility:

 

														Outstanding Loan
		Days				Average Daily				Average				Balance as of
Fund		Outstanding				Loan Balance				Interest Rate				June 30, 2018
Africa Index ETF			52			$	347,641				3.07	%		$	50,806
Brazil Small-Cap ETF			180				564,224				2.99				487,094
ChinaAMC SME-ChiNext ETF			166				416,997				2.98				138,721
Egypt Index ETF			72				1,890,542				3.04				3,689,041
India Small-Cap Index ETF			53				4,208,762				2.94				7,792,670
Indonesia Index ETF			40				309,157				3.10				—
Israel ETF			69				133,431				3.11				—
Russia ETF			64				4,428,382				3.04				9,675,105
Russia Small-Cap ETF			95				337,251				3.08				—
Vietnam ETF			139				5,163,330				3.00				3,556,262

 

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, 2018, there were offsets to custodian fees and these amounts are reflected in custody expense in the Statements of Operations.

 

Note 13—Foreign Withholding Tax Claims—In 2015, the VanEck Vectors Poland ETF (the “Fund”) filed claims to recover taxes withheld by Poland on dividend income received during calendar years 2010 through 2014 on the basis that Poland had violated certain provisions in the Treaty on the Functioning of the European Union. In October 2016 through June 2017, the Fund received favorable rulings from various local Polish tax offices. The Fund later received cash refunds of $153,952 and $413,347 during calendar years 2016 and 2017 and recorded them as an offset to foreign withholding tax expense. The Fund continues to accrue Polish foreign withholding taxes due to the need to file further claims in order to potentially recover any additional amounts. Professional fees associated with the filing of claims in Poland that resulted in the recovery of these taxes were approved by the Board as appropriate expenses of the Fund.

 

For calendar years 2010 through 2014, the Fund elected to pass through the Polish withholding taxes as foreign tax credits to its shareholders. The Fund’s shareholders benefitted from the tax savings generated from foreign tax credits claimed on their tax returns in prior years. Accordingly, the Fund is obligated to return a portion of the Polish refund received to the Internal Revenue Service (“IRS”) to compensate for prior years’ U.S. income tax liabilities attributable to the foreign taxes refunded. The IRS has stated that they are willing to enter into closing agreements with funds in order to satisfy these obligations. A closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by the Fund’s shareholders on their tax returns in prior years. The Fund has accrued a liability of $320,945 for the estimated IRS compliance fee, which is recorded in the Statement of Operations as “IRS compliance fee for foreign withholding tax claims”. The actual IRS compliance fee may differ from the estimate and that difference may be material.

 

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, 2018 (unaudited)

 

At a meeting held on June 22, 2018 (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 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, 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 June 6, 2018. 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 and expenses (for those Funds which had begun operations) 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 seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. 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 June 6, 2018 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., one of China’s largest asset management companies 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 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 the average and/or median of its respective peer group of funds, except for each of VanEck Vectors Agribusiness ETF, Coal ETF, Egypt Index ETF, Global Alternative Energy ETF, Rare Earth/Strategic Metals ETF and Vietnam ETF, which had management fees (after the effect of any applicable fee waiver) greater than the average and 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/or median of its respective peer group of funds, except for each of VanEck Vectors Africa Index ETF, ChinaAMC CSI 300 ETF, ChinaAMC SME-ChiNext ETF, Egypt Index ETF, Global Alternative Energy ETF, Israel ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF and Unconventional Oil & Gas ETF, which had a total expense ratio (after the effect of any applicable expense limitation) greater than the average and 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 Operating 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 Operating Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Operating Fund and the other factors discussed above and that the advisory fee rate for each Operating 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

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2018 (unaudited) (continued)

 

were profitable to the Adviser were reasonable in light of the nature and quality of the services received by such Funds. The Trustees also considered information from the Sub-Adviser informing them that the Sub-Adviser did not earn any profits from managing the China Funds.

 

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 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 actual management fees or operating expenses of, 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 June 6, 2018 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. Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary 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, 2018 (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®
Steel ETF	SLX®
Unconventional Oil & Gas ETF	FRAK®
Uranium+Nuclear Energy ETF	NLR®

 

800.826.2333	vaneck.com

 

 

President’s Letter	1
Explanation of Expenses	3
Schedule of Investments	5
Agribusiness ETF	5
Coal ETF	8
Global Alternative Energy ETF	10
Gold Miners ETF	12
Junior Gold Miners ETF	16
Natural Resources ETF	20
Oil Refiners ETF	26
Oil Services ETF	28
Rare Earth/Strategic Metals ETF	30
Steel ETF	32
Unconventional Oil & Gas ETF	34
Uranium+Nuclear Energy ETF	36
Statements of Assets and Liabilities	38
Statements of Operations	40
Statements of Changes in Net Assets	42
Financial Highlights	47
Agribusiness ETF	47
Coal ETF	47
Global Alternative Energy ETF	48
Gold Miners ETF	48
Junior Gold Miners ETF	49
Natural Resources ETF	49
Oil Refiners ETF	50
Oil Services ETF	50
Rare Earth/Strategic Metals ETF	51
Steel ETF	51
Unconventional Oil & Gas ETF	52
Uranium+Nuclear Energy ETF	52
Notes to Financial Statements	53
Approval of Investment Management Agreements	61

 

 

The information contained in this shareholder letter represents the opinion of the investment adviser and may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2018.

VANECK VECTORS ETFs

June 30, 2018 (unaudited)

 

Dear Shareholders:

 

We are pleased to present this semi-annual report, which affords us the opportunity to provide a review of the economic backdrop for the first half of the year. But first, in light of the many developments that occurred across global markets during the first half of 2018, we want to reemphasize VanEck’s corporate mission and its implications to you as our valued shareholders.

 

As you may know, VanEck has a history of looking beyond the financial markets to identify historical, political, and/or technological trends that are likely to create or impact investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets, which set the tone for our drive to identify promising asset classes and trends. In this respect, our unconventional (at the time) efforts to introduce investors to gold investing in 1968, emerging markets (including China) in 1993, and ETFs in 2006, are now considered mainstream, permanently shaping the investment management industry as we now know it.

 

Today, we offer both active and passive strategies with compelling exposures supported by well-designed investment processes. Our firm’s capabilities range from strategies designed to strengthen core investment allocations to more specialized exposures that enhance portfolio diversification and reduce volatility.

 

Putting clients’ interests first in all market environments is at the heart of the firm’s mission and has been since our founding in 1955. We will, as always, continue to seek out and evaluate the most attractive opportunities for you as shareholders.

 

As we wrote in our Market Insights research, which can be found at www.vaneck.com/blogs/market-insights, we began 2018 by noting that global growth had gone from “ticking up” to “firmly in place” and that, while central banks were tightening, Europe remained “two years” behind the U.S. in this trend and had a trickier task. Further, our base case was for 10-year interest rates to rise to 3.5% with the curve not inverting. In its third longest bull market ever, we remained bullish on U.S. equities in the short-term, but were prepared for a correction. And, finally, we believed that investors should not be underweight commodities as global growth was supporting the bullish “grind trade” narrative from supply cutbacks.

 

Over the last six months we have seen interest rates in the U.S. rise as expected and, as a consequence, the U.S. dollar has strengthened. These events, along with both inflation fears and concern about trade and tariffs, have resulted not only in an increasingly evident decoupling of the U.S. dollar and emerging markets local currencies, but also significant outflows from emerging markets themselves (in May, for example, outflows were evenly split between equities and debt). From a regional perspective, countries in Latin America and Europe (e.g. Argentina and Turkey) rather than in Asia, have been the primary sources of emerging markets outflows. We still believe that credit exposure in high yield and emerging markets is still better than in governments, which have pure interest rate risk with no offset.

 

The biggest change in our outlook from six months ago is that global growth appears to be less synchronized—more relevant to the U.S. and China—with Europe uncertain and Africa, South America, and the Middle East struggling. In Europe, for example, economic growth has started to slow and weaker bank balance sheets remain an obstacle to monetary policy normalization. Despite these growing concerns, supply discipline has continued to support the bullish “grind trade” in commodities, with increasing chances of commodities and natural resources ending 2018 as the best performing area of the market.

 

To keep you informed on an ongoing basis, we encourage you to stay in touch with us through the videos, email subscriptions, and research blogs available on our website, vaneck.com. Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit vaneck.com.

VANECK VECTORS ETFs

(unaudited) (continued)

 

We sincerely thank you for investing in VanEck’s investment strategies. On the following pages, you will find financial statements for each of the funds for the six-month period ended June 30, 2018. 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 17, 2018

 

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

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, 2018 to June 30, 2018.

 

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 the 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, 2018				Ending Account Value June 30, 2018				Annualized Expense Ratio During Period				Expenses Paid During the Period* January 1, 2018 – June 30, 2018
Agribusiness ETF
Actual		$	1,000.00			$	1,009.10				0.54	%			$2.69
Hypothetical**		$	1,000.00			$	1,022.12				0.54	%			$2.71
Coal ETF
Actual		$	1,000.00			$	984.10				0.60	%			$2.95
Hypothetical**		$	1,000.00			$	1,021.82				0.60	%			$3.01
Global Alternative Energy ETF
Actual		$	1,000.00			$	953.20				0.62	%			$3.00
Hypothetical**		$	1,000.00			$	1,021.72				0.62	%			$3.11
Gold Miners ETF
Actual		$	1,000.00			$	957.90				0.52	%			$2.52
Hypothetical**		$	1,000.00			$	1,022.22				0.52	%			$2.61
Junior Gold Miners ETF
Actual		$	1,000.00			$	954.70				0.53	%			$2.57
Hypothetical**		$	1,000.00			$	1,022.17				0.53	%			$2.66
Natural Resources ETF
Actual		$	1,000.00			$	998.10				0.50	%			$2.48
Hypothetical**		$	1,000.00			$	1,022.32				0.50	%			$2.51
Oil Refiners ETF
Actual		$	1,000.00			$	1,042.40				0.59	%			$2.99
Hypothetical**		$	1,000.00			$	1,021.87				0.59	%			$2.96
Oil Services ETF
Actual		$	1,000.00			$	1,010.00				0.35	%			$1.74
Hypothetical**		$	1,000.00			$	1,023.06				0.35	%			$1.76
Rare Earth/Strategic Metals ETF
Actual		$	1,000.00			$	781.80				0.58	%			$2.56
Hypothetical**		$	1,000.00			$	1,021.92				0.58	%			$2.91
Steel ETF
Actual		$	1,000.00			$	990.90				0.56	%			$2.76
Hypothetical**		$	1,000.00			$	1,022.02				0.56	%			$2.81
Unconventional Oil & Gas ETF
Actual		$	1,000.00			$	1,107.40				0.54	%			$2.82
Hypothetical**		$	1,000.00			$	1,022.12				0.54	%			$2.71
Uranium+Nuclear Energy ETF
Actual		$	1,000.00			$	1,038.30				0.60	%			$3.03
Hypothetical**		$	1,000.00			$	1,021.82				0.60	%			$3.01

 

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2018) 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, 2018 (unaudited)

 

 

See Notes to Financial Statements

VANECK VECTORS AGRIBUSINESS ETF

SCHEDULE OF INVESTMENTS

(unaudited) (continued)

 

 

 

Definitions:

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
NOK	Norwegian Krone
NVDR	Non-Voting Depositary Receipt
PLN	Polish Zloty
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $31,305,106.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $282,738,066 which represents 33.8% 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.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			2.4	%		$	19,585,723
Consumer Staples			36.1				301,900,339
Health Care			13.6				114,009,932
Industrials			20.0				167,468,811
Materials			27.9				233,508,077
			100.0	%		$	836,472,882

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	38,893,205			$	—			$	38,893,205
Brazil			11,986,503				—				—				11,986,503
Canada			71,045,240				—				—				71,045,240
Chile			15,842,662				—				—				15,842,662
China / Hong Kong			—				22,626,928				—				22,626,928
Denmark			—				8,555,319				—				8,555,319
Germany			—				13,716,129				—				13,716,129
Indonesia			—				5,622,622				—				5,622,622
Israel			9,264,621				—				—				9,264,621
Japan			—				55,337,880				—				55,337,880
Malaysia			6,392,894				26,136,416				—				32,529,310
Netherlands			—				4,935,668				—				4,935,668
Norway			—				52,660,546				—				52,660,546
Russia			—				3,763,222				—				3,763,222
Singapore			—				21,809,458				—				21,809,458
South Africa			1,631,915				—				—				1,631,915
South Korea			—				2,564,706				—				2,564,706
Switzerland			—				5,862,127				—				5,862,127
Taiwan			—				2,976,880				—				2,976,880
Thailand			—				10,998,586				—				10,998,586
Ukraine			—				1,362,659				—				1,362,659
United Kingdom			29,760,750				4,915,715				—				34,676,465
United States			407,810,231				—				—				407,810,231
Repurchase Agreements			—				32,478,567				—				32,478,567
Total		$	553,734,816			$	315,216,633			$	—			$	868,951,449

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $21,758,107, transfers of securities from Level 2 to Level 1 were $7,006,177. 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 COAL ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

 

Definitions:

NVDR	Non-Voting Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $69,776,750 which represents 69.6% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $0 which represents 0.0% of net assets.
∞	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

 

Summary of Investments by Sector		% of Investments				Value
Energy			71.6	%		$	71,568,542
Industrials			10.3				10,313,762
Materials			18.1				18,097,608
			100.0	%		$	99,979,912

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	18,143,209			$	—			$	18,143,209
Canada			10,496,230				—				—				10,496,230
China / Hong Kong			—				16,647,511				0				16,647,511
Indonesia			—				20,822,686				—				20,822,686
Philippines			2,986,725				—				—				2,986,725
Poland			—				4,094,193				—				4,094,193
South Africa			—				4,319,382				—				4,319,382
Thailand			—				5,749,769				—				5,749,769
United States			16,720,207				—				—				16,720,207
Total		$	30,203,162			$	69,776,750			$	0			$	99,979,912

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $9,396,894. 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, 2018:

 

		Common Stocks
		China/Hong Kong
Balance as of December 31, 2017			$	0
Realized gain (loss)				—
Change in unrealized appreciation (depreciation)				0
Purchases				—
Sales				—
Transfers in and/or out of Level 3				—
Balance as of June 30, 2018			$	0

 

See Notes to Financial Statements

VANECK VECTORS GLOBAL ALTERNATIVE ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Definitions:

ADR	American Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $18,532,054.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $30,754,579 which represents 35.7% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			13.0	%		$	11,178,866
Energy			2.6				2,235,642
Industrials			50.1				43,093,532
Information Technology			25.8				22,237,038
Utilities			8.5				7,319,668
Money Market Fund			0.0				12,735
			100.0	%		$	86,077,481

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Austria		$	—			$	1,685,518			$	—			$	1,685,518
Brazil			1,332,610				—				—				1,332,610
Canada			687,888				—				—				687,888
China / Hong Kong			767,450				7,304,063				—				8,071,513
Denmark			—				8,470,450				—				8,470,450
Japan			—				3,849,177				—				3,849,177
Spain			—				3,841,237				—				3,841,237
Sweden			—				5,604,134				—				5,604,134
United States			52,522,219				—				—				52,522,219
Money Market Fund			12,735				—				—				12,735
Repurchase Agreements			—				19,120,980				—				19,120,980
Total		$	55,322,902			$	49,875,559			$	—			$	105,198,461

 

There were no transfers between levels during the period ended June 30, 2018.

 

See Notes to Financial Statements

VANECK VECTORS GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

 

Definitions:

ADR	American Depositary Receipt
CAD	Canadian Dollar
USD	United States Dollar

Footnotes:

‡	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 $140,843,706.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,470,105,974 which represents 17.3% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Gold			90.2	%		$	7,676,632,597
Silver			9.8				831,300,617
Money Market Fund			0.0				803,017
			100.0	%		$	8,508,736,231

 

See Notes to Financial Statements

VANECK VECTORS 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, 2018 is set forth below:

 

Affiliates		Value 12/31/17					Purchases				Sales Proceeds				Realized Gain (Loss)				Dividend Income				Net Change in Unrealized Appreciation (Depreciation)				Value 06/30/18
AngloGold Ashanti Ltd.			$	—	(a)		$	77,836,802			$	(52,015,411	)		$	(15,727,298	)		$	1,078,478			$	(21,325,362	)		$	177,849,388
B2Gold Corp.				—	(a)			56,402,764				(38,217,381	)			2,643,739				—				(24,549,133	)			133,675,659
Cenatamin Plc				—	(a)			45,040,074				(33,682,909	)			4,079,080				5,203,539				(31,441,955	)			95,358,588
Centerra Gold, Inc.				—	(a)			32,525,765				(22,103,976	)			(1,105,071	)			—				8,250,153				85,380,439
Cia de Minas Buenaventura SA				—	(a)			86,122,460				(56,637,467	)			5,068,322				378,608				(12,598,736	)			197,266,363
Coeur Mining, Inc.				—	(a)			30,774,333				(20,679,511	)			(3,745,232	)			—				5,058,350				74,470,918
Detour Gold Corp.				—	(a)			32,980,340				(24,089,345	)			(9,539,309	)			—				(9,918,214	)			82,776,023
Eldorado Gold Corp.				—	(a)			18,436,537				(11,723,787	)			(27,411,114	)			—				10,801,602				41,532,673
Endeavour Mining Corp.				—	(a)			40,965,726				(25,062,483	)			1,400,098				—				(13,655,417	)			101,713,097
Evolution Mining Ltd.				—	(a)			86,211,519				(51,662,297	)			10,546,783				2,180,121				29,393,815				232,715,600
Fortuna Silver Mines, Inc.				—	(a)			17,318,794				(11,124,789	)			(538,068	)			—				4,320,905				47,792,222
Gold Fields Ltd.				—	(a)			65,738,764				(43,594,871	)			(6,958,228	)			1,712,610				(20,953,159	)			154,241,436
Guyana Goldfields, Inc.				—	(a)			13,743,461				(9,132,437	)			(2,880,237	)			—				549,771				34,057,790
Hecla Mining Co.				—	(a)			31,601,545				(20,964,798	)			(4,129,316	)			90,808				(4,856,593	)			73,402,641
IAMGOLD Corp.				—	(a)			55,021,000				(33,734,790	)			3,493,613				—				(4,812,481	)			142,682,021
Kinross Gold Corp.				—	(a)			99,502,074				(65,243,550	)			(10,460,516	)			—				(20,364,803	)			247,437,700
Kirkland Lake Gold Ltd.				—	(a)			77,438,624				(42,536,113	)			18,070,772				398,289				38,174,866				235,332,581
McEwen Mining, Inc.				—	(a)			14,996,626				(9,193,254	)			(1,945,474	)			57,675				(1,507,665	)			36,737,410
New Gold, Inc.				—	(a)			28,614,917				(19,554,480	)			(11,622,683	)			—				(19,824,546	)			63,379,208
Northern Star Resources Ltd.				—	(a)			61,500,823				(40,422,801	)			10,587,382				971,892				9,584,769				171,642,659
OceanaGold Corp.				—	(a)			34,168,298				(22,063,582	)			(1,482,186	)			303,410				7,720,625				90,158,038
Osisko Gold Royalties Ltd.				—	(a)			31,705,198				(21,146,998	)			(3,133,912	)			587,983				(11,723,146	)			77,890,153
Pan American Silver Corp.				—	(a)			53,784,385				(33,468,228	)			(507,413	)			486,885				16,734,401				144,493,508
Pretium Resources, Inc.				—	(a)			27,216,124				(18,581,677	)			(3,209,880	)			—				(28,642,204	)			70,484,706
Randgold Resources Ltd.				—	(a)			177,052,435				(62,022,584	)			94,922				8,460,277				(77,088,259	)			376,878,748
Regis Resources Ltd.				—	(a)			37,408,463				(23,449,785	)			8,168,954				1,541,668				2,515,702				100,946,465
Resolute Mining Ltd.				—	(a)			14,442,646				(9,315,821	)			(1,626,120	)			—				3,914,795				37,183,633
Royal Gold, Inc.				—	(a)			120,244,404				(75,923,987	)			7,516,683				1,501,776				25,018,091				319,917,170
Sandstorm Gold Ltd.				—	(a)			17,977,495				(11,411,979	)			(560,797	)			—				(3,587,722	)			43,642,805
Saracen Mineral Holdings Ltd.				—	(a)			24,701,098				(15,412,415	)			2,762,293				—				9,066,599				69,802,654
Semafo, Inc.				—	(a)			19,521,197				(12,537,999	)			(996,448	)			—				1,739,200				49,653,358
Sibanye Gold Ltd.				—	(a)			39,940,899				(31,860,793	)			(22,507,598	)			—				(39,893,671	)			72,172,989
SSR Mining, Inc.				—	(a)			23,982,981				(15,075,243	)			(346,782	)			—				6,183,980				62,353,853
St. Barbara Ltd.				—	(a)			35,732,000				(19,126,639	)			5,434,602				758,777				8,142,005				97,430,296
Tahoe Resources, Inc.				—	(a)			31,008,853				(20,717,216	)			(13,095,236	)			—				16,015,496				81,073,398
Torex Gold Resources, Inc.				—	(a)			15,637,018				(8,298,230	)			(2,056,591	)			—				91,487				39,788,309
Yamana Gold, Inc.				—	(a)			59,679,126				(37,086,674	)			(14,264,778	)			464,827				2,540,787				144,874,798
Zhaojin Mining Industry Co. Ltd.				—	(a)			17,241,106				(11,111,174	)			(1,440,502	)			424,268				708,013				42,162,275
Zijin Mining Group Ltd.				—	(a)			52,908,597				(36,713,685	)			7,472,470				3,424,658				(5,800,846	)			115,892,255
			$	—			$	1,807,125,271			$	(1,116,701,159	)		$	(73,951,076	)		$	30,026,549			$	(146,018,500	)		$	4,466,243,827

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

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	90,158,038			$	1,216,692,856			$	—			$	1,306,850,894
Canada			4,460,976,203				—				—				4,460,976,203
China / Hong Kong			—				158,054,530				—				158,054,530
Monaco			101,713,097				—				—				101,713,097
Peru			197,266,363				—				—				197,266,363
South Africa			440,828,965				—				—				440,828,965
United Kingdom			376,878,748				95,358,588				—				472,237,336
United States			1,370,005,826				—				—				1,370,005,826
Money Market Fund			803,017				—				—				803,017
Repurchase Agreements			—				146,400,476				—				146,400,476
Total		$	7,038,630,257			$	1,616,506,450			$	—			$	8,655,136,707

 

There were no transfers between levels during the period ended June 30, 2018.

 

See Notes to Financial Statements

VANECK VECTORS JUNIOR GOLD MINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

 

Definitions:
ADR	American Depositary Receipt
CAD	Canadian Dollar
GBP	British Pound
USD	United States Dollar
Footnotes:
‡	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 $217,615,907.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $1,221,624,216 which represents 24.9% of net assets.
§	Illiquid Security — the aggregate value of illiquid securities is $0 which represents 0.0% of net assets.
∞	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
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
Gold			84.7	%		$	4,149,342,288
Precious Metals & Minerals			0.2				10,998,310
Silver			14.6				712,286,620
Money Market Fund			0.5				24,830,946
			100.0	%		$	4,897,458,164

 

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, 2018 is set forth below:

 

																						Net Change
																						in Unrealized
		Value								Sales				Realized Gain				Dividend				Appreciation				Value
Affiliates		12/31/17				Purchases				Proceeds				(Loss)				Income				(Depreciation)				06/30/18
Alacer Gold Corp.		$	39,908,724			$	8,430,498			$	(8,236,117	)		$	(490,172	)		$	—			$	1,589,258			$	41,202,191
Alamos Gold, Inc.			140,175,553				26,599,960				(27,078,188	)			(2,096,489	)			216,328				(13,930,154	)			123,670,682
AngloGold Ashanti Ltd.			—				216,644,545				—				—				—				1,498,423				218,142,968
Argonaut Gold, Inc.			24,036,977				5,663,953				(4,582,415	)			(671,761	)			—				(1,561,356	)			22,885,398
Asanko Gold, Inc.			9,119,788				3,654,786				(4,448,102	)			(5,090,771	)			—				8,782,701				—	(b)
B2Gold Corp.			160,608,629				31,065,652				(27,921,201	)			3,731,522				—				(30,108,939	)			137,375,663
Cenatamin Plc			148,079,397				31,679,931				(32,025,684	)			(3,036,365	)			7,102,613				(38,796,225	)			105,901,054
Coeur Mining, Inc.			77,056,387				19,743,612				(15,001,084	)			(226,930	)			—				1,132,507				82,704,492
Continental Gold, Inc.			25,621,420				7,050,679				(5,378,538	)			295,664				—				1,292,007				28,881,232
Detour Gold Corp.			129,244,120				23,582,998				(13,874,968	)			993,505				—				(28,812,882	)			111,132,773
DRDGOLD Ltd.			9,730,031				1,854,388				(1,349,319	)			(190,621	)			125,236				(1,915,791	)			8,128,688
Dundee Precious Metals, Inc.			—	(a)			4,740,941				(2,849,220	)			520,511				—				(647,501	)			21,933,341
Eldorado Gold Corp.			78,550,255				11,494,317				(22,358,773	)			(24,451,063	)			—				1,512,112				44,746,848
Endeavour Silver Corp.			23,311,118				5,787,418				(4,539,982	)			(481,152	)			—				7,857,714				31,935,116
Evolution Mining Ltd.			180,160,455				57,302,856				(23,123,662	)			5,322,994				2,426,373				42,635,297				262,297,940
First Majestic Silver Corp.			80,896,014				28,919,004				(9,002,620	)			598,259				—				11,719,109				113,129,766
First Mining Finance Corp.			20,902,939				—				(25,819,883	)			5,470				—				4,911,474				—
First Mining Gold Corp.			—				28,999,968				(2,217,537	)			(999,555	)			—				(10,638,306	)			15,144,570
Fortuna Silver Mines, Inc.			55,614,047				14,236,697				(9,660,051	)			1,313,987				—				3,381,249				64,885,929
Gold Fields Ltd.			207,010,394				48,530,664				(22,609,492	)			3,523,634				2,052,595				(39,376,991	)			197,078,209
Gold Resource Corp.			17,928,733				4,758,451				(4,812,064	)			1,277,454				41,471				7,836,362				26,988,936
Golden Star Resources Ltd.			24,259,745				4,287,835				(3,071,717	)			(34,131	)			—				(5,919,042	)			19,522,690
Great Panther Silver Ltd.			16,615,777				3,483,386				(2,673,043	)			(46,099	)			—				(1,537,531	)			15,842,490
Guyana Goldfields, Inc.			38,827,811				7,863,802				(7,444,973	)			1,450,648				—				(4,567,347	)			36,129,941
Harmony Gold Mining Co. Ltd.			54,146,482				17,418,629				(8,528,541	)			56,583				—				(10,653,705	)			52,439,448
Hecla Mining Co.			87,671,646				18,428,627				(14,881,923	)			(1,735,973	)			113,592				(9,180,862	)			80,301,515
Highland Gold Mining Ltd.			—	(a)			11,757,046				(6,768,910	)			1,120,546				1,263,522				(8,273,885	)			32,668,927
IAMGOLD Corp.			172,039,814				35,904,760				(38,537,390	)			6,901,282				—				(8,394,655	)			167,913,811
Kirkland Lake Gold Ltd.			186,539,075				45,578,329				(32,526,234	)			17,375,088				485,247				55,516,759				272,483,017
McEwen Mining, Inc.			40,781,115				10,436,886				(6,718,142	)			149,472				77,036				(3,851,167	)			40,798,164
Munsun Capital Group Ltd.			6,654,743				2,539,891				(2,930,020	)			(18,152,141	)			—				11,887,527				—
New Gold, Inc.			134,667,626				22,891,720				(17,580,590	)			(2,557,549	)			—				(47,075,764	)			90,345,443
Northern Star Resources Ltd.			168,694,335				38,710,418				(23,927,290	)			4,866,123				1,268,416				19,732,195				208,075,781
OceanaGold Corp.			99,372,763				22,849,550				(17,102,642	)			(549,812	)			395,739				9,005,186				113,575,045
Pan American Silver Corp.			159,067,328				40,843,597				(28,538,490	)			550,823				746,847				24,471,765				196,395,023
Perseus Mining Ltd.			19,003,941				4,977,943				(7,253,851	)			1,365,244				—				461,180				18,554,457
Premier Gold Mines Ltd.			31,674,029				5,858,880				(6,083,823	)			(1,286,259	)			—				(8,762,466	)			21,400,361
Pretium Resources, Inc.			118,257,450				23,432,497				(15,536,935	)			(181,636	)			—				(40,685,846	)			85,285,530
Ramelius Resources Ltd.			11,241,363				3,018,200				(3,599,501	)			303,094				—				4,346,445				15,309,601
Regis Resources Ltd.			124,131,148				28,872,549				(24,083,322	)			9,274,004				2,323,419				7,413,156				145,607,535
Resolute Mining Ltd.			—	(a)			12,346,555				(6,253,286	)			1,631,491				—				1,123,449				40,061,335
Sandstorm Gold Ltd.			63,706,427				12,623,567				(13,704,253	)			1,643,849				—				(7,827,625	)			56,441,965
Saracen Mineral Holdings Ltd.			71,734,287				18,239,050				(18,283,122	)			7,132,431				—				10,814,095				89,636,741
Seabridge Gold, Inc.			38,582,336				7,909,832				(7,208,714	)			211,483				—				(755,254	)			38,739,683
Semafo, Inc.			55,758,881				12,322,719				(11,228,645	)			435,337				—				323,423				57,611,715
Sibanye Gold Ltd.			162,676,276				23,782,516				(55,208,186	)			(24,033,190	)			—				(50,990,432	)			—	(b)
Silver Lake Resources Ltd.			10,625,961				3,143,666				(1,970,948	)			166,344				—				5,329,813				17,294,836
Silvercorp Metals, Inc.			33,685,696				7,651,789				(6,111,105	)			581,362				170,124				(416,997	)			35,390,745
SSR Mining, Inc.			76,304,127				18,681,567				(13,695,850	)			3,018,777				—				6,641,159				90,949,780
St. Barbara Ltd.			97,682,108				22,250,176				(35,810,424	)			7,216,685				1,049,256				12,240,719				103,579,264
Tahoe Resources, Inc.			97,549,471				25,913,526				(22,190,827	)			(6,049,596	)			3,619				9,595,546				104,818,120
Teranga Gold Corp.			16,053,605				5,018,583				(4,677,292	)			356,718				—				7,295,577				24,047,191
Torex Gold Resources, Inc.			—	(a)			18,522,096				(4,076,853	)			145,284				—				(2,996,617	)			47,484,933
Wesdome Gold Mines Ltd.			14,313,868				2,955,713				(4,607,290	)			(2,484,055	)			—				7,588,505				17,766,741
Westgold Resources Ltd.			23,954,960				6,554,657				(2,539,141	)			2,032				—				398,321				28,370,829
Yamana Gold, Inc.			197,456,335				43,056,100				(32,101,234	)			3,492,557				660,456				(17,394,973	)			194,508,785
Zhaojin Mining Industry Co. Ltd.			45,005,365				10,210,891				(11,361,686	)			(195,032	)			580,807				(233,110	)			43,426,428
		$	3,926,690,875			$	1,181,078,866			$	(785,705,093	)		$	(8,010,095	)		$	21,102,696			$	(106,972,390	)		$	4,260,943,666

 

(a)	Security held by the Fund, however not classified as an affiliate at the beginning of the reporting period.
(b)	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, 2018 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Australia		$	113,575,045			$	928,788,319				$	—			$	1,042,363,364
Canada			2,579,469,772				—					—				2,579,469,772
China / Hong Kong			—				59,100,122					0				59,100,122
Monaco			89,353,260				—					—				89,353,260
Peru			—				45,724,539					—				45,724,539
South Africa			532,016,297				—					—				532,016,297
Turkey			—				37,021,291					—				37,021,291
United Kingdom			573,374				150,989,945					—				151,563,319
United States			336,015,254				—					—				336,015,254
Money Market Fund			24,830,946				—					—				24,830,946
Repurchase Agreements			—				228,820,345					—				228,820,345
Total		$	3,675,833,948			$	1,450,444,561				$	0			$	5,126,278,509

 

There were no transfers between levels during the period ended June 30, 2018.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the period ended June 30, 2018:

 

		Common Stocks
		China/Hong Kong
Balance as of December 31, 2017			$	338,263
Realized gain (loss)				—
Change in unrealized appreciation (depreciation)				(338,263	)
Purchases				—
Sales				—
Transfers in and/or out of level 3				—
Balance as of June 30, 2018			$	0

 

See Notes to Financial Statements

VANECK VECTORS NATURAL RESOURCES ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (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)

 

Definitions:

ADR	American Depositary Receipt
GBP	British Pound
GDR	Global Depositary Receipt
HKD	Hong Kong Dollar
NVDR	Non-Voting Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $1,346,477.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $34,368,463 which represents 34.4% 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 $393,678, or 0.4% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Consumer Discretionary			1.9	%		$	1,950,992
Consumer Staples			21.0				20,999,295
Energy			24.2				24,302,754
Financials			0.6				578,627
Industrials			12.2				12,231,875
Information Technology			0.4				447,022
Materials			36.2				36,237,777
Real Estate			0.7				691,370
Utilities			2.8				2,811,221
			100.0	%		$	100,250,933

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs					Value
Common Stocks
Argentina		$	246,499			$	—				$	—			$	246,499
Australia			—				4,589,450					—				4,589,450
Austria			—				245,817					—				245,817
Brazil			1,512,335				—					—				1,512,335
Canada			12,987,449				—					—				12,987,449
Chile			171,595				99,168					—				270,763
China / Hong Kong			—				1,754,303					—				1,754,303
Denmark			—				544,629					—				544,629
Finland			—				374,698					—				374,698
France			—				2,141,972					—				2,141,972
Germany			—				492,426					—				492,426
Hungary			—				41,422					—				41,422
India			—				405,469					—				405,469
Indonesia			—				188,490					—				188,490
Ireland			—				208,491					—				208,491
Italy			—				426,972					—				426,972
Japan			—				3,833,379					—				3,833,379
Luxembourg			114,850				415,287					—				530,137
Malaysia			107,498				1,649,389					—				1,756,887
Mexico			799,901				—					—				799,901
Netherlands			—				1,214,951					—				1,214,951
Norway			71,267				3,197,102					—				3,268,369
Peru			244,588				31,892					—				276,480
Poland			—				175,599					—				175,599
Portugal			—				107,012					—				107,012
Russia			—				2,054,302					—				2,054,302
Singapore			—				1,709,236					—				1,709,236
South Africa			376,602				636,556					—				1,013,158
South Korea			—				1,144,783					—				1,144,783
Spain			—				399,553					—				399,553
Sweden			—				543,892					—				543,892
Switzerland			—				514,860					—				514,860
Taiwan			—				274,625					—				274,625
Thailand			—				165,529					—				165,529
Turkey			—				105,437					—				105,437
United Kingdom			2,365,522				4,681,772					—				7,047,294
United States			46,877,849				—					—				46,877,849
Rights			6,515				—					—				6,515
Repurchase Agreements			—				1,455,039					—				1,455,039
Total		$	65,882,470			$	35,823,502				$	—			$	101,705,972

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $1,355,272. 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 REFINERS ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

 

Definitions:

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
NVDR	Non-Voting Depositary Receipt

Footnotes:

#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $36,485,398 which represents 64.0% of net assets.
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 $4,142,729, or 7.3% of net assets.

 

Summary of Investments by Sector		% of Investments				Value
Energy			98.7	%		$	56,390,652
Materials			1.3				753,889
			100.0	%		$	57,144,541

 

See Notes to Financial Statements

 

 

The summary of inputs used to value the Fund’s investments as of The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	2,418,386				$	—			$	2,418,386
Austria			—				2,635,990					—				2,635,990
China / Hong Kong			753,889				—					—				753,889
Finland			—				2,826,401					—				2,826,401
Hungary			—				1,245,358					—				1,245,358
India			—				4,142,729					—				4,142,729
Japan			—				8,484,520					—				8,484,520
Poland			—				2,269,625					—				2,269,625
Portugal			—				2,684,330					—				2,684,330
South Korea			—				4,035,072					—				4,035,072
Taiwan			—				2,587,664					—				2,587,664
Thailand			—				1,884,693					—				1,884,693
Turkey			—				1,270,630					—				1,270,630
United States			19,905,254				—					—				19,905,254
Total		$	20,659,143			$	36,485,398				$	—			$	57,144,541

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $274,073. 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, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Definitions:

ADR	American Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $194,753,721.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Oil & Gas Drilling			23.7	%		$	375,550,623
Oil & Gas Equipment & Services			76.3				1,206,758,621
			100.0	%		$	1,582,309,244

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks*		$	1,582,309,244			$	—				$	—			$	1,582,309,244
Repurchase Agreements			—				199,961,055					—				199,961,055
Total		$	1,582,309,244			$	199,961,055				$	—			$	1,782,270,299

 

*	See Schedule of Investments for geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2018.

 

See Notes to Financial Statements

VANECK VECTORS RARE EARTH/STRATEGIC METALS ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Definitions:

AUD	Australian Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $29,627,886.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $125,424,405 which represents 78.4% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Commodity Chemicals			5.2	%		$	8,341,781
Diversified Metals & Mining			30.4				49,012,337
Materials			61.6				99,470,689
Steel			2.8				4,484,592
			100.0	%		$	161,309,399

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Australia		$	—			$	36,875,427				$	—			$	36,875,427
Canada			13,690,203				—					—				13,690,203
China / Hong Kong			1,822,424				44,979,101					—				46,801,525
France			—				7,056,625					—				7,056,625
Japan			—				20,064,323					—				20,064,323
Malaysia			—				7,246,253					—				7,246,253
Netherlands			—				9,202,676					—				9,202,676
South Africa			7,545,994				—					—				7,545,994
United States			8,341,781				—					—				8,341,781
Preferred Stocks			4,484,592				—					—				4,484,592
Repurchase Agreements			—				32,309,701					—				32,309,701
Total		$	35,884,994			$	157,734,106				$	—			$	193,619,100

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $23,013,506. 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 STEEL ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Definitions:

ADR	American Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $26,514,488.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Energy			6.3	%		$	7,756,347
Industrials			1.2				1,427,100
Materials			92.5				113,196,853
			100.0	%		$	122,380,300

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks*		$	122,380,300			$	—				$	—			$	122,380,300
Repurchase Agreements			—				27,264,866					—				27,264,866
Total		$	122,380,300			$	27,264,866				$	—			$	149,645,166

 

*	See Schedule of Investments for geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2018.

 

See Notes to Financial Statements

VANECK VECTORS UNCONVENTIONAL OIL & GAS ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Definitions:

USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $2,947,856.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Gas Utilities			0.9	%		$	751,767
Integrated Oil & Gas			12.0				10,549,274
Oil & Gas Exploration & Production			86.9				76,499,083
Money Market Fund			0.2				184,363
			100.0	%		$	87,984,487

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks*		$	87,800,124			$	—				$	—			$	87,800,124
Money Market Fund			184,363				—					—				184,363
Repurchase Agreements			—				3,082,984					—				3,082,984
Total		$	87,984,487			$	3,082,984				$	—			$	91,067,471

 

*	See Schedule of Investments for geographic sector breakouts.

 

There were no transfers between levels during the period ended June 30, 2018.

 

See Notes to Financial Statements

VANECK VECTORS URANIUM+NUCLEAR ENERGY ETF

SCHEDULE OF INVESTMENTS

June 30, 2018 (unaudited)

 

 

See Notes to Financial Statements

 

 

Definitions:

ADR	American Depositary Receipt
USD	United States Dollar

Footnotes:

*	Non-income producing
†	Security fully or partially on loan. Total market value of securities on loan is $2,461,597.
#	Security has been fair valued in good faith pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $9,839,252 which represents 34.1% 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 $672,393, or 2.3% of net assets.

 

Summary of Investments by Sector Excluding Collateral for Securities Loaned		% of Investments				Value
Energy			3.8	%		$	1,099,144
Industrials			3.8				1,088,899
Utilities			92.3				26,627,359
Money Market Fund			0.1				40,590
			100.0	%		$	28,855,992

 

The summary of inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs					Value
Common Stocks
Canada		$	1,099,144			$	—				$	—			$	1,099,144
China / Hong Kong			—				672,393					—				672,393
Czech Republic			—				890,019					—				890,019
Finland			—				1,265,430					—				1,265,430
France			—				1,321,983					—				1,321,983
Japan			—				4,255,573					—				4,255,573
South Korea			1,199,713				190,494					—				1,390,207
Spain			—				1,243,360					—				1,243,360
United States			16,677,293				—					—				16,677,293
Money Market Fund			40,590				—					—				40,590
Repurchase Agreements			—				2,609,573					—				2,609,573
Total		$	19,016,740			$	12,448,825				$	—			$	31,465,565

 

During the period ended June 30, 2018, transfers of securities from Level 1 to Level 2 were $769,646. 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 ETF TRUST

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2018 (unaudited)

 

			Agribusiness ETF					Coal ETF					Global Alternative Energy ETF					Gold Miners ETF					Junior Gold Miners ETF
Assets:
Investments, at value (1)
Unaffiliated issuers (2)				$	836,472,882				$	99,979,912				$	86,077,481				$	4,042,492,404				$	636,514,498
Affiliated issuers (3)					—					—					—					4,466,243,827					4,260,943,666
Short-term investments held as collateral for securities loaned (4)					32,478,567					—					19,120,980					146,400,476					228,820,345
Cash					—					520					—					—					—
Cash denominated in foreign currency, at value (5)					123,078					14					59,883					3,465,494					522,559
Receivables:
Investment securities sold					126,857					—					27,163					3,463,845					522,568
Shares sold					—					—					—					21,339					—
Dividends and interest					2,098,154					797,548					253,936					932,599					1,158,399
Prepaid expenses					8,135					3,195					3,043					69,849					37,046
Total assets					871,307,673					100,781,189					105,542,486					8,663,089,833					5,128,519,081
Liabilities:
Payables:
Investment securities purchased					126,921					—					27,174					3,465,493					522,816
Collateral for securities loaned					32,478,567					—					19,120,980					146,400,476					228,820,345
Line of credit					1,210,183					364,331					120,116					—					—
Shares redeemed					—					—					—					—					16,898
Due to Adviser					354,691					36,849					35,626					3,230,405					1,955,117
Due to custodian					—					—					—					—					—
Deferred Trustee fees					434,057					21,033					10,977					794,208					175,882
Accrued expenses					248,572					86,020					56,273					616,257					414,753
Total liabilities					34,852,991					508,233					19,371,146					154,506,839					231,905,811
NET ASSETS				$	836,454,682				$	100,272,956				$	86,171,340				$	8,508,582,994				$	4,896,613,270
Shares outstanding					13,450,000					6,350,000					1,483,298					382,002,500					149,937,446
Net asset value, redemption and offering price per share				$	62.19				$	15.79				$	58.09				$	22.27				$	32.66
Net assets consist of:
Aggregate paid in capital				$	1,488,168,875				$	415,245,926				$	204,651,333				$	18,515,209,837				$	9,163,325,572
Net unrealized appreciation (depreciation)					50,163,118					(2,126,105	)				5,074,984					(975,721,047	)				101,538,381
Undistributed (accumulated) net investment income (loss)					6,551,589					2,937,175					1,426,590					14,930,837					(29,389,403	)
Accumulated net realized gain (loss)					(708,428,900	)				(315,784,040	)				(124,981,567	)				(9,045,836,633	)				(4,338,861,280	)
				$	836,454,682				$	100,272,956				$	86,171,340				$	8,508,582,994				$	4,896,613,270
(1)	Value of securities on loan			$	31,305,106				$	—				$	18,532,054				$	140,843,706				$	217,615,907
(2)	Cost of investments – Unaffiliated issuers			$	786,279,116				$	102,105,636				$	81,005,727				$	4,442,899,018				$	769,711,387
(3)	Cost of investments – Affiliated issuers			$	—				$	—				$	—				$	5,041,560,465				$	4,026,209,721
(4)	Cost of short-term investments held as collateral for securities loaned			$	32,478,567				$	—				$	19,120,980				$	146,400,476				$	228,820,345
(5)	Cost of cash denominated in foreign currency			$	123,806				$	14				$	58,948				$	3,465,493				$	522,558

 

See Notes to Financial Statements

 

 

Natural Resources ETF					Oil Refiners ETF					Oil Services ETF					Rare Earth/ Strategic Metals ETF					Steel ETF					Unconventional Oil & Gas ETF					Uranium+Nuclear Energy ETF
	$	100,250,933				$	57,144,541				$	1,582,309,244				$	161,309,399				$	122,380,300				$	87,984,487				$	28,855,992
		—					—					—					—					—					—					—
		1,455,039					—					199,961,055					32,309,701					27,264,866					3,082,984					2,609,573
		21,008					—					—					32					3,245					10,966					—
		97,885					20,662					—					440,658					—					3,592					24,578
		44,078					17,807					—					—					3,524,698					3,563					62,760
		—					—					1,259					—					—					—					—
		318,797					142,757					2,653,218					343,917					60,497					89,879					152,574
		3,187					2,562					13,516					2,778					1,071					2,920					2,770
		102,190,927					57,328,329					1,784,938,292					194,406,485					153,234,677					91,178,391					31,708,247
		44,292					17,753					—					1,296					3,428,799					3,592					62,690
		1,455,039					—					199,961,055					32,309,701					27,264,866					3,082,984					2,609,573
		564,360					186,189					2,218,824					2,006,140					80,377					—					—
		—					—					1,698					—					—					—					—
		37,535					21,329					417,098					74,383					51,798					29,197					6,022
		—					5,145					—					—					—					—					61,895
		11,056					42					133,448					12,964					16,134					3,003					10,485
		132,100					57,095					142,619					93,416					86,066					87,743					76,079
		2,244,382					287,553					202,874,742					34,497,900					30,928,040					3,206,519					2,826,744
	$	99,946,545				$	57,040,776				$	1,582,063,550				$	159,908,585				$	122,306,637				$	87,971,872				$	28,881,503
		2,700,000					1,800,000					60,210,863					6,874,962					2,700,000					5,050,000					566,632
	$	37.02				$	31.69				$	26.28				$	23.26				$	45.30				$	17.42				$	50.97
	$	126,815,461				$	54,972,494				$	2,440,028,984				$	399,837,916				$	253,120,283				$	124,500,830				$	150,249,574
		6,430,599					1,269,367					(756,693,126	)				(9,678,321	)				(3,000,262	)				822,610					1,148,185
		1,283,013					491,257					11,947,759					3,904,005					2,339,398					212,292					1,174,858
		(34,582,528	)				307,658					(113,220,067	)				(234,155,015	)				(130,152,782	)				(37,563,860	)				(123,691,114	)
	$	99,946,545				$	57,040,776				$	1,582,063,550				$	159,908,585				$	122,306,637				$	87,971,872				$	28,881,503
	$	1,346,477				$	—				$	194,753,721				$	29,627,886				$	26,514,488				$	2,947,856				$	2,461,597
	$	93,814,838				$	55,875,297				$	2,339,002,370				$	170,981,600				$	125,380,562				$	87,161,876				$	27,708,883
	$	—				$	—				$	—				$	—				$	—				$	—				$	—
	$	1,455,039				$	—				$	199,961,055				$	32,309,701				$	27,264,866				$	3,082,984				$	2,609,573
	$	97,998				$	20,755				$	—				$	446,760				$	—				$	3,592				$	24,664

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF OPERATIONS

For the Period Ended June 30, 2018 (unaudited)

 

		Agribusiness ETF					Coal ETF					Global Alternative Energy ETF					Gold Miners ETF					Junior Gold Miners ETF
Income:
Dividends – unaffiliated issuers			$	9,723,805				$	3,574,394				$	763,342				$	21,515,899				$	932,574
Dividends – affiliated issuers				—					—					—					30,026,549					21,102,696
Securities lending income				299,008					20,803					159,957					997,152					2,298,285
Foreign taxes withheld				(717,199	)				(381,828	)				(56,699	)				(3,137,829	)				(998,212	)
Total income				9,305,614					3,213,369					866,600					49,401,771					23,335,343
Expenses:
Management fees				2,187,094					248,803					224,116					19,181,468					11,247,393
Professional fees				19,979					27,558					27,999					158,624					94,737
Insurance				3,714					401					384					40,536					20,124
Trustees’ fees and expenses				7,677					302					189					85,681					35,293
Reports to shareholders				30,525					15,974					13,594					195,051					95,089
Indicative optimized portfolio value fee				3,139					1,750					2,478					—					2,481
Custodian fees				44,394					6,206					6,660					164,177					121,606
Registration fees				2,479					2,482					2,482					90,141					35,517
Transfer agent fees				1,260					1,260					1,260					1,258					1,260
Fund accounting fees				25,168					3,348					2,796					—					127,481
Interest				24,588					4,120					1,889					49,158					5,213
Other				19,565					3,528					2,411					56,916					65,648
Total expenses				2,369,582					315,732					286,258					20,023,010					11,851,842
Waiver of management fees				—					(18,024	)				(6,465	)				—					—
Net expenses				2,369,582					297,708					279,793					20,023,010					11,851,842
Net investment income				6,936,032					2,915,661					586,807					29,378,761					11,483,501
Net realized gain (loss) on:
Investments – unaffiliated issuers				(26,463,812	)				(869,523	)				(299,438	)				(245,489,026	)				(146,871,033	)
Investments – affiliated issuers				—					—					—					(73,951,076	)				(8,010,095	)
In-kind redemptions.				45,700,752					6,797,953					—					183,226,634					112,697,506
Foreign currency transactions and foreign denominated assets and liabilities				(2,850	)				(20,086	)				(3,895	)				(468,393	)				(52,185	)
Net realized gain (loss)				19,234,090					5,908,344					(303,333	)				(136,681,861	)				(42,235,807	)
Net change in unrealized appreciation (depreciation) on:
Investments – unaffiliated issuers				(16,218,338	)				(12,592,404	)				(4,404,830	)				5,290,247					(56,524,834	)
Investments – affiliated issuers				—					—					—					(146,018,500	)				(106,972,390	)
Foreign currency transactions and foreign denominated assets and liabilities				(6,543	)				(459	)				(3,982	)				(2,135	)				(1,273	)
Net change in unrealized appreciation (depreciation)				(16,224,881	)				(12,592,863	)				(4,408,812	)				(140,730,388	)				(163,498,497	)
Net Increase (Decrease) in Net Assets Resulting from Operations			$	9,945,241				$	(3,768,858	)			$	(4,125,338	)			$	(248,033,488	)			$	(194,250,803	)

 

See Notes to Financial Statements

 

 

Natural Resources ETF					Oil Refiners ETF					Oil Services ETF					Rare Earth/ Strategic Metals ETF					Steel ETF					Unconventional Oil & Gas ETF					Uranium+Nuclear Energy ETF
	$	1,604,807				$	647,846				$	13,207,972				$	1,761,328				$	2,674,406				$	472,257				$	522,339
		—					—					—					—					—					—					—
		9,956					381					1,395,644					2,076,805					51,486					7,003					7,120
		(89,772	)				(59,189	)				(113,248	)				(134,751	)				(7,759	)				(18,274	)				(33,525	)
		1,524,991					589,038					14,490,368					3,703,382					2,718,133					460,986					495,934
		263,144					82,481					2,923,238					540,661					390,351					193,815					69,019
		70,054					25,946					41,802					31,353					28,051					27,017					24,827
		496					24					5,150					271					721					267					143
		914					42					12,143					464					1,318					580					383
		10,893					7,604					40,827					15,489					17,638					11,398					11,023
		2,310					2,478					2,482					2,305					—					1,026					3,472
		30,493					2,739					16,577					7,777					9,207					2,537					3,562
		2,478					2,478					4,027					3,190					5,644					2,482					3,056
		1,189					1,189					1,259					1,260					1,260					1,260					1,260
		10,757					1,238					33,319					2,832					4,662					1,549					1,551
		6,198					421					37,728					16,006					4,133					20					319
		3,123					3,309					19,084					9,678					2,924					2,300					3,448
		402,049					129,949					3,137,636					631,286					465,909					244,251					122,063
		(137,970	)				(32,199	)				(176,670	)				—					(32,390	)				(34,912	)				(38,922	)
		264,079					97,750					2,960,966					631,286					433,519					209,339					83,141
		1,260,912					491,288					11,529,402					3,072,096					2,284,614					251,647					412,793
		(1,659,654	)				(132,155	)				(21,084,481	)				(16,625,749	)				(3,169,826	)				(2,008,968	)				(97,543	)
		—					—					—					—					—					—					—
		4,318,414					459,862					72,559,902					11,501,394					20,181,658					994,166					—
		(8,265	)				(7,029	)				—					(61,532	)				—					(355	)				(130	)
		2,650,495					320,678					51,475,421					(5,185,887	)				17,011,832					(1,015,157	)				(97,673	)
		(3,983,421	)				(1,141,407	)				(51,438,889	)				(51,465,624	)				(21,051,838	)				8,888,847					750,985
		—					—					—					—					—					—					—
		(3,899	)				(148	)				—					(8,680	)				—					(63	)				497
		(3,987,320	)				(1,141,555	)				(51,438,889	)				(51,474,304	)				(21,051,838	)				8,888,784					751,482
	$	(75,913	)			$	(329,589	)			$	11,565,934				$	(53,588,095	)			$	(1,755,392	)			$	8,125,274				$	1,066,602

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

		Agribusiness ETF										Coal ETF
		For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
			(unaudited)										(unaudited)
Operations:
Net investment income			$	6,936,032				$	12,142,433				$	2,915,661				$	3,664,763
Net realized gain (loss)				19,234,090					27,240,924					5,908,344					8,950,994
Net change in unrealized appreciation (depreciation)				(16,224,881	)				121,297,501					(12,592,863	)				13,982,999
Net increase (decrease) in net assets resulting from operations				9,945,241					160,680,858					(3,768,858	)				26,598,756
Dividends to shareholders:
Dividends from net investment income				—					(12,243,400	)				—					(3,597,300	)
Share transactions:**
Proceeds from sale of shares				141,248,495					58,446,520					35,473,473					73,211,081
Cost of shares redeemed				(168,317,043	)				(157,461,627	)				(32,632,213	)				(96,406,838	)
Increase (Decrease) in net assets resulting from share transactions				(27,068,548	)				(99,015,107	)				2,841,260					(23,195,757	)
Total increase (decrease) in net assets				(17,123,307	)				49,422,351					(927,598	)				(194,301	)
Net Assets, beginning of period				853,577,989					804,155,638					101,200,554					101,394,855
Net Assets, end of period †			$	836,454,682				$	853,577,989				$	100,272,956				$	101,200,554
† Including undistributed (accumulated) net investment income (loss)			$	6,551,589				$	(384,443	)			$	2,937,175				$	21,514
** Shares of Common Stock Issued (no par value)
Shares sold				2,250,000					1,050,000					2,050,000					5,100,000
Shares redeemed				(2,650,000	)				(2,850,000	)				(2,000,000	)				(7,000,000	)
Net increase (decrease)				(400,000	)				(1,800,000	)				50,000					(1,900,000	)

 

See Notes to Financial Statements

 

 

Global Alternative Energy ETF										Gold Miners ETF										Junior Gold Miners ETF
For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
(unaudited)										(unaudited)										(unaudited)
	$	586,807				$	1,494,996				$	29,378,761				$	38,772,198				$	11,483,501				$	6,745,774
		(303,333	)				(1,608,236	)				(136,681,861	)				291,402,819					(42,235,807	)				(402,589,274	)
		(4,408,812	)				14,397,204					(140,730,388	)				614,074,975					(163,498,497	)				430,588,830
		(4,125,338	)				14,283,964					(248,033,488	)				944,249,992					(194,250,803	)				34,745,330
		—					(1,099,340	)				—					(61,169,240	)				—					(1,476,062	)
		2,945,549					11,928,638					2,646,133,011					4,444,326,017					977,484,099					3,071,722,395
		—					(2,720,340	)				(1,464,101,649	)				(7,437,833,489	)				(521,115,453	)				(1,924,829,152	)
		2,945,549					9,208,298					1,182,031,362					(2,993,507,472	)				456,368,646					1,146,893,243
		(1,179,789	)				22,392,922					933,997,874					(2,110,426,720	)				262,117,843					1,180,162,511
		87,351,129					64,958,207					7,574,585,120					9,685,011,840					4,634,495,427					3,454,332,916
	$	86,171,340				$	87,351,129				$	8,508,582,994				$	7,574,585,120				$	4,896,613,270				$	4,634,495,427
	$	1,426,590				$	839,783				$	14,930,837				$	(14,447,924	)			$	(29,389,403	)			$	(40,872,904	)
		50,000					200,000					120,050,000					191,600,000					30,100,000					84,550,000
		—					(50,000	)				(63,800,000	)				(328,750,000	)				(15,650,000	)				(57,950,000	)
		50,000					150,000					56,250,000					(137,150,000	)				14,450,000					26,600,000

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Natural Resources ETF										Oil Refiners ETF
		For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
		(unaudited)										(unaudited)
Operations:
Net investment income			$	1,260,912				$	2,089,795				$	491,288				$	127,538
Net realized gain (loss)				2,650,495					4,489,484					320,678					32,641
Net change in unrealized appreciation (depreciation)				(3,987,320	)				9,362,431					(1,141,555	)				2,210,267
Net increase (decrease) in net assets resulting from operations				(75,913	)				15,941,710					(329,589	)				2,370,446
Dividends and Distributions to shareholders:
Dividends from net investment income				—					(2,100,000	)				—					(130,544	)
Distributions from net realized capital gains				—					—					—					(27,306	)
Total Dividends and Distributions				—					(2,100,000	)				—					(157,850	)
Share transactions:**
Proceeds from sale of shares				18,993,443					29,249,662					48,229,796					5,298,547
Cost of shares redeemed				(22,833,513	)				(34,551,389	)				(1,500,002	)				—
Increase (Decrease) in net assets resulting from share transactions				(3,840,070	)				(5,301,727	)				46,729,794					5,298,547
Total increase (decrease) in net assets				(3,915,983	)				8,539,983					46,400,205					7,511,143
Net Assets, beginning of period				103,862,528					95,322,545					10,640,571					3,129,428
Net Assets, end of period †			$	99,946,545				$	103,862,528				$	57,040,776				$	10,640,571
† Including undistributed (accumulated) net investment income (loss)			$	1,283,013				$	22,101				$	491,257				$	(31	)
** Shares of Common Stock Issued (no par value)
Shares sold				500,000					850,000					1,500,000					200,000
Shares redeemed				(600,000	)				(1,000,000	)				(50,000	)				—
Net increase (decrease)				(100,000	)				(150,000	)				1,450,000					200,000

 

See Notes to Financial Statements

 

 

Oil Services ETF										Rare Earth/Strategic Metals ETF										Steel ETF
For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
(unaudited)										(unaudited)										(unaudited)
	$	11,529,402				$	39,788,062				$	3,072,096				$	1,619,827				$	2,284,614				$	3,706,978
		51,475,421					(124,081,978	)				(5,185,887	)				7,432,489					17,011,832					114,116
		(51,438,889	)				(152,080,023	)				(51,474,304	)				39,662,353					(21,051,838	)				26,816,855
		11,565,934					(236,373,939	)				(53,588,095	)				48,714,669					(1,755,392	)				30,637,949
		—					(39,297,465	)				—					(4,502,217	)				—					(3,688,050	)
		—					—					—					—					—					—
		—					(39,297,465	)				—					(4,502,217	)				—					(3,688,050	)
		2,052,960,061					4,341,700,337					76,298,219					114,232,215					59,552,030					50,388,894
		(2,133,727,406	)				(3,632,900,641	)				(45,008,297	)				(18,900,489	)				(86,426,628	)				111,725,670	)
		(80,767,345	)				708,799,696					31,289,922					95,331,726					(26,874,598	)				(61,336,776	)
		(69,201,411	)				433,128,292					(22,298,173	)				139,544,178					(28,629,990	)				(34,386,877	)
		1,651,264,961					1,218,136,669					182,206,758					42,662,580					150,936,627					185,323,504
	$	1,582,063,550				$	1,651,264,961				$	159,908,585				$	182,206,758				$	122,306,637				$	150,936,627
	$	11,947,759				$	418,357				$	3,904,005				$	831,909				$	2,339,398				$	54,784
		78,600,000					158,500,000					2,450,000					4,550,000					1,200,000					1,200,000
		(81,850,000	)				(131,550,000	)				(1,700,000	)				(950,000	)				(1,800,000	)				(2,800,000	)
		(3,250,000	)				26,950,000					750,000					3,600,000					(600,000	)				(1,600,000	)

 

See Notes to Financial Statements

VANECK VECTORS ETF TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Unconventional Oil & Gas ETF										Uranium+Nuclear Energy ETF
		For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017					For the Six Months Ended June 30, 2018					For the Year Ended December 31, 2017
		(unaudited)										(unaudited)
Operations:
Net investment income			$	251,647				$	329,292				$	412,793				$	856,164
Net realized gain (loss)				(1,015,157	)				(8,271,671	)				(97,673	)				1,841,277
Net change in unrealized appreciation (depreciation)				8,888,784					2,338,094					751,482					(24,459	)
Net increase (decrease) in net assets resulting from operations				8,125,274					(5,604,285	)				1,066,602					2,672,982
Dividends to shareholders:
Dividends from net investment income				—					(500,500	)				—					(1,349,717	)
Share transactions:**
Proceeds from sale of shares				16,771,675					27,840,458					—					—
Cost of shares redeemed				(6,128,099	)				(11,856,425	)				—					(7,584,109	)
Increase (Decrease) in net assets resulting from share transactions				10,643,576					15,984,033					—					(7,584,109	)
Total increase (decrease) in net assets				18,768,850					9,879,248					1,066,602					(6,260,844	)
Net Assets, beginning of period				69,203,022					59,323,774					27,814,901					34,075,745
Net Assets, end of period †			$	87,971,872				$	69,203,022				$	28,881,503				$	27,814,901
† Including undistributed (accumulated) net investment income (loss)			$	212,292				$	(39,355	)			$	1,174,858				$	762,065
** Shares of Common Stock Issued (no par value)
Shares sold				1,050,000					1,900,000					—					—
Shares redeemed				(400,000	)				(750,000	)				—					(150,000	)
Net increase (decrease)				650,000					1,150,000					—					(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,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$61.63				$51.38				$46.55				$52.59				$54.44				$52.94
Income from investment operations:
Net investment income			0.49	(a)			0.83	(a)			1.07				1.37				1.68				1.08
Net realized and unrealized gain (loss) on investments			0.07				10.30				4.86				(6.07	)			(1.84	)			1.46
Total from investment operations			0.56				11.13				5.93				(4.70	)			(0.16	)			2.54
Less:
Dividends from net investment income			—				(0.88	)			(1.10	)			(1.34	)			(1.69	)			(1.04	)
Net asset value, end of period			$62.19				$61.63				$51.38				$46.55				$52.59				$54.44
Total return (b)			0.91	%(c)			21.68	%			12.74	%			(8.96	)%			(0.13	)%			4.60	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$836,455			$853,578				$804,156				$835,551				$1,440,901				$4,635,318
Ratio of gross expenses to average net assets			0.54	%(d)			0.54	%			0.53	%			0.55	%			0.57	%			0.55	%
Ratio of net expenses to average net assets			0.54	%(d)			0.54	%			0.53	%			0.55	%			0.57	%			0.55	%
Ratio of net expenses to average net assets excluding interest expense			0.54	%(d)			0.53	%			0.53	%			0.54	%			0.56	%			0.55	%
Ratio of net investment income to average net assets			1.59	%(d)			1.48	%			2.04	%			2.00	%			1.77	%			1.79	%
Portfolio turnover rate (e)			9	%(c)			22	%			15	%			20	%			14	%			33	%
		Coal ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$16.06				$12.37				$6.28				$14.64				$19.50				$25.17
Income from investment operations:
Net investment income			0.49	(a)			0.53	(a)			0.14				0.29				0.34				0.39
Net realized and unrealized gain (loss) on investments			(0.76	)			3.73				6.08				(8.36	)			(4.83	)			(5.62	)
Total from investment operations			(0.27	)			4.26				6.22				(8.07	)			(4.49	)			(5.23	)
Less:
Dividends from net investment income			—				(0.57	)			(0.13	)			(0.29	)			(0.37	)			(0.44	)
Net asset value, end of period			$15.79				$16.06				$12.37				$6.28				$14.64				$19.50
Total return (b)			(1.59	)%(c)			34.42	%			99.10	%			(55.14	)%			(23.07	)%			(20.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$100,273			$101,201				$101,395				$39,248				$114,905				$154,994
Ratio of gross expenses to average net assets			0.63	%(d)			0.64	%			0.62	%			0.66	%			0.63	%			0.64	%
Ratio of net expenses to average net assets			0.60	%(d)			0.60	%			0.59	%			0.59	%			0.59	%			0.59	%
Ratio of net expenses to average net assets excluding interest expense			0.59	%(d)			0.59	%			0.59	%			0.59	%			0.59	%			0.59	%
Ratio of net investment income to average net assets			5.86	%(d)			3.80	%			1.66	%			2.31	%			1.75	%			1.78	%
Portfolio turnover rate (e)			8	%(c)			39	%			40	%			36	%			27	%			20	%

 

 

(a)	Calculated based upon average shares outstanding
(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:

 

		Global Alternative Energy ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013#
		(unaudited)
Net asset value, beginning of period			$60.94				$50.62				$54.57				$54.09				$55.90				$33.26
Income from investment operations:
Net investment income			0.40	(a)			1.12	(a)			1.38				0.46				0.12				0.51
Net realized and unrealized gain (loss) on investments			(3.25	)			9.97				(4.26	)			0.33				(1.82	)			22.68
Total from investment operations			(2.85	)			11.09				(2.88	)			0.79				(1.70	)			23.19
Less:
Dividends from net investment income			—				(0.77	)			(1.07	)			(0.31	)			(0.11	)			(0.54	)
Return of capital			—				—				—				—				—				(0.01	)
Total dividends			—				(0.77	)			(1.07	)			(0.31	)			(0.11	)			(0.55	)
Net asset value, end of period			$58.09				$60.94				$50.62				$54.57				$54.09				$55.90
Total return (b)			(4.68	)%(c)			21.90	%			(5.26	)%			1.45	%			(3.04	)%			69.69	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$86,171				$87,351				$64,958				$91,857				$82,937				$91,309
Ratio of gross expenses to average net assets			0.64	%(d)			0.67	%			0.64	%			0.62	%			0.64	%			0.72	%
Ratio of net expenses to average net assets			0.62	%(d)			0.63	%			0.62	%			0.62	%			0.62	%			0.62	%
Ratio of net expenses to average net assets excluding interest expense			0.62	%(d)			0.62	%			0.62	%			0.62	%			0.62	%			0.62	%
Ratio of net investment income to average net assets			1.31	%(d)			1.94	%			2.04	%			0.88	%			0.18	%			1.16	%
Portfolio turnover rate (e)			8	%(c)			21	%			32	%			27	%			31	%			18	%
		Gold Miners ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$23.25				$20.92				$13.72				$18.43				$21.16				$46.32
Income from investment operations:
Net investment income (loss)			0.09	(a)			0.10	(a)			0.03				0.12				0.12				0.23
Net realized and unrealized gain (loss) on investments			(1.07	)			2.41				7.23				(4.71	)			(2.73	)			(25.20	)
Total from investment operations			(0.98	)			2.51				7.26				(4.59	)			(2.61	)			(24.97	)
Less:
Dividends from net investment income			—				(0.18	)			(0.06	)			(0.12	)			(0.12	)			(0.19	)
Net asset value, end of period			$22.27				$23.25				$20.92				$13.72				$18.43				$21.16
Total return (b)			(4.21	)%(c)			11.99	%			52.91	%			(24.93	)%			(12.31	)%			(53.90	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$8,508,583			$7,574,585				$9,685,012				$4,316,718				$5,495,447				$6,652,611
Ratio of gross expenses to average net assets			0.52	%(d)			0.53	%			0.51	%			0.52	%			0.53	%			0.53	%
Ratio of net expenses to average net assets			0.52	%(d)			0.53	%			0.51	%			0.52	%			0.53	%			0.53	%
Ratio of net expenses to average net assets excluding interest expense			0.52	%(d)			0.53	%			0.51	%			0.52	%			0.53	%			0.53	%
Ratio of net investment income to average net assets			0.77	%(d)			0.42	%			0.21	%			0.66	%			0.52	%			1.01	%
Portfolio turnover rate (e)			12	%(c)			12	%			26	%			24	%			18	%			33	%

 

 

(a)	Calculated based upon average shares outstanding
(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 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

 

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,
		2018				2017				2016				2015				2014				2013#
		(unaudited)
Net asset value, beginning of period			$34.21				$31.72				$19.22				$24.04				$30.90				$79.13
Income from investment operations:
Net investment income (loss)			0.08	(a)			0.05	(a)			0.14				0.15				—	(a)(b)			0.41
Net realized and unrealized gain (loss) on investments			(1.63	)			2.45				13.87				(4.83	)			(6.68	)			(48.64	)
Total from investment operations			(1.55	)			2.50				14.01				(4.68	)			(6.68	)			(48.23	)
Less:
Dividends from net investment income			—				(0.01	)			(1.51	)			(0.14	)			(0.18	)			—
Net asset value, end of period			$32.66				$34.21				$31.72				$19.22				$24.04				$30.90
Total return (c)			(4.53	)%(d)			7.89	%			73.75	%			(19.48	)%			(21.60	)%			(60.95	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$4,896,613			$4,634,495				$3,454,333				$1,300,681				$1,522,690				$1,136,823
Ratio of gross expenses to average net assets			0.53	%(e)			0.54	%			0.52	%			0.56	%			0.55	%			0.58	%
Ratio of net expenses to average net assets			0.53	%(e)			0.54	%			0.52	%			0.56	%			0.55	%			0.57	%
Ratio of net expenses to average net assets excluding interest expense			0.53	%(e)			0.53	%			0.52	%			0.55	%			0.54	%			0.56	%
Ratio of net investment income (loss) to average net assets			0.51	%(e)			0.16	%			0.14	%			0.66	%			(0.01	)%			(0.07	)%
Portfolio turnover rate (f)			9	%(d)			67	%			58	%			47	%			65	%			34	%
		Natural Resources ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$37.09				$32.31				$26.38				$33.73				$37.46				$35.94
Income from investment operations:
Net investment income			0.44	(a)			0.72	(a)			0.66				0.81				0.82				0.87
Net realized and unrealized gain (loss) on investments			(0.51	)			4.81				5.91				(7.37	)			(3.70	)			1.48
Total from investment operations			(0.07	)			5.53				6.57				(6.56	)			(2.88	)			2.35
Less:
Dividends from net investment income			—				(0.75	)			(0.64	)			(0.79	)			(0.85	)			(0.83	)
Net asset value, end of period			$37.02				$37.09				$32.31				$26.38				$33.73				$37.46
Total return (c)			(0.19	)%(d)			17.14	%			24.93	%			(19.48	)%			(7.71	)%			6.55	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$99,947				$103,863				$95,323				$76,511				$86,023				$101,140
Ratio of gross expenses to average net assets			0.76	%(e)			0.80	%			0.77	%			0.75	%			0.73	%			0.74	%
Ratio of net expenses to average net assets			0.50	%(e)			0.50	%			0.50	%			0.50	%			0.50	%			0.50	%
Ratio of net expenses to average net assets excluding interest expense			0.49	%(e)			0.49	%			0.49	%			0.49	%			0.49	%			0.49	%
Ratio of net investment income to average net assets			2.40	%(e)			2.09	%			2.18	%			2.66	%			2.10	%			2.13	%
Portfolio turnover rate (f)			13	%(d)			34	%			37	%			9	%			13	%			14	%

 

 

(a)	Calculated based upon average shares outstanding
(b)	Amount represents less than $0.005 per share.
(c)	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.
(d)	Not Annualized
(e)	Annualized
(f)	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

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

						Oil Refiners ETF
						For the												For the Period
						Six Months												August 18,
						Ended				For the Year								2015(a) through
						June 30,				Ended December 31,								December 31,
						2018				2017				2016				2015
						(unaudited)
Net asset value, beginning of period							$30.40				$20.86				$19.69				$19.75
Income from investment operations:
Net investment income							0.47	(b)			0.61	(b)			0.73				0.07
Net realized and unrealized gain (loss) on investments							0.82				9.38				1.15				(0.04	)
Total from investment operations							1.29	(g)			9.99				1.88				0.03
Less:
Dividends from net investment income							—				(0.37	)			(0.71	)			(0.07	)
Distributions from net realized capital gains							—				(0.08	)			—				—
Return of capital							—				—				—				(0.02	)
Total dividends and distributions							—				(0.45	)			(0.71	)			(0.09	)
Net asset value, end of period							$31.69				$30.40				$20.86				$19.69
Total return (c)							4.24	%(d)			47.91	%			9.55	%			0.16	%(d)
Ratios/Supplemental Data
Net assets, end of period (000’s)					$57,041				$10,641				$3,129				$3,938
Ratio of gross expenses to average net assets							0.79	%(e)			2.71	%			3.42	%			4.98	%(e)
Ratio of net expenses to average net assets							0.59	%(e)			0.59	%			0.59	%			0.59	%(e)
Ratio of net expenses to average net assets excluding interest expense							0.59	%(e)			0.59	%			0.59	%			0.59	%(e)
Ratio of net investment income to average net assets							2.98	%(e)			2.43	%			2.85	%			1.19	%(e)
Portfolio turnover rate (f)							15	%(d)			24	%			15	%			12	%(d)

		Oil Services ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$26.02				$33.36				$26.44				$35.89				$48.10				$38.64
Income from investment operations:
Net investment income			0.18	(b)			0.90	(b)			0.46				0.63				0.85				0.55
Net realized and unrealized gain (loss) on investments			0.08				(7.56	)			6.93				(9.45	)			(12.20	)			9.45
Total from investment operations			0.26				(6.66	)			7.39				(8.82	)			(11.35	)			10.00
Less:
Dividends from net investment income			—				(0.68	)			(0.47	)			(0.63	)			(0.86	)			(0.54	)
Net asset value, end of period			$26.28				$26.02				$33.36				$26.44				$35.89				$48.10
Total return (c)			1.00	%(d)			(19.95	)%			27.92	%			(24.58	)%			(23.64	)%			25.90	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$1,582,064			$1,651,265				$1,218,137				$1,118,901				$929,834				$1,482,094
Ratio of gross expenses to average net assets			0.38	%(e)			0.39	%			0.40	%			0.39	%			0.39	%			0.39	%
Ratio of net expenses to average net assets			0.35	%(e)			0.35	%			0.35	%			0.35	%			0.35	%			0.35	%
Ratio of net expenses to average net assets excluding interest expense			0.35	%(e)			0.35	%			0.35	%			0.35	%			0.35	%			0.35	%
Ratio of net investment income to average net assets			1.38	%(e)			3.36	%			1.70	%			2.30	%			1.99	%			1.24	%
Portfolio turnover rate (f)			10	%(d)			34	%			24	%			18	%			15	%			10	%

 

 

(a)	Commencement of operations
(b)	Calculated based upon average shares outstanding
(c)	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.
(d)	Not Annualized
(e)	Annualized
(f)	Portfolio turnover rates exclude securities received or delivered as a result of processing in-kind capital share transactions.
(g)	The amount shown for a share outstanding does not correspond with the aggregate net income on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.

 

See Notes to Financial Statements

 

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,
		2018				2017				2016				2015				2014				2013#
		(unaudited)
Net asset value, beginning of period			$29.75				$16.90				$13.68				$25.49				$35.98				$52.92
Income from investment operations:
Net investment income			0.40	(a)			0.44	(a)			0.12				0.51				0.65				0.35
Net realized and unrealized gain (loss) on investments			(6.89	)			13.28				3.48				(11.68	)			(10.75	)			(17.21	)
Total from investment operations			(6.49	)			13.72				3.60				(11.17	)			(10.10	)			(16.86	)
Less:
Dividends from net investment income			—				(0.87	)			(0.38	)			(0.64	)			(0.39	)			(0.08	)
Net asset value, end of period			$23.26				$29.75				$16.90				$13.68				$25.49				$35.98
Total return (b)			(21.82	)%(c)			81.43	%			26.35	%			(43.76	)%			(28.07	)%			(31.85	)%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$159,909			$182,207				$42,663				$28,381				$57,986				$96,243
Ratio of gross expenses to average net assets			0.58	%(d)			0.73	%			0.86	%			0.82	%			0.72	%			0.70	%
Ratio of net expenses to average net assets			0.58	%(d)			0.61	%			0.61	%			0.57	%			0.58	%			0.57	%
Ratio of net expenses to average net assets excluding interest expense			0.57	%(d)			0.57	%			0.57	%			0.57	%			0.57	%			0.57	%
Ratio of net investment income to average net assets			2.84	%(d)			1.99	%			1.43	%			2.01	%			1.55	%			0.69	%
Portfolio turnover rate (e)			36	%(c)			57	%			104	%			49	%			37	%			31	%
		Steel ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$45.74				$37.82				$19.52				$35.45				$49.76				$48.85
Income from investment operations:
Net investment income			0.70	(a)			0.92	(a)			0.42				1.03				1.13				0.93
Net realized and unrealized gain (loss) on investments			(1.14	)			8.12				18.28				(15.92	)			(14.28	)			0.96
Total from investment operations			(0.44	)			9.04				18.70				(14.89	)			(13.15	)			1.89
Less:
Dividends from net investment income			—				(1.12	)			(0.40	)			(1.02	)			(1.16	)			(0.94	)
Return of capital			—				—				—				(0.02	)			—				(0.04	)
Total dividends			—				(1.12	)			(0.40	)			(1.04	)			(1.16	)			(0.98	)
Net asset value, end of period			$45.30				$45.74				$37.82				$19.52				$35.45				$49.76
Total return (b)			(0.91	)%(c)			23.86	%			95.77	%			(42.03	)%			(26.44	)%			3.88	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$122,307			$150,937				$185,324				$44,904				$69,127				$144,312
Ratio of gross expenses to average net assets			0.60	%(d)			0.62	%			0.60	%			0.69	%			0.63	%			0.62	%
Ratio of net expenses to average net assets			0.56	%(d)			0.56	%			0.55	%			0.55	%			0.55	%			0.55	%
Ratio of net expenses to average net assets excluding interest expense			0.55	%(d)			0.55	%			0.55	%			0.55	%			0.55	%			0.55	%
Ratio of net investment income to average net assets			2.93	%(d)			2.25	%			1.88	%			3.76	%			2.43	%			2.21	%
Portfolio turnover rate (e)			7	%(c)			31	%			20	%			15	%			11	%			15	%

 

 

(a)	Calculated based upon average shares outstanding
(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 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

VANECK VECTORS ETF TRUST

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Unconventional Oil & Gas ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013
		(unaudited)
Net asset value, beginning of period			$15.73				$18.25				$13.24				$22.12				$28.43				$22.54
Income from investment operations:
Net investment income			0.05	(a)			0.09	(a)			0.09				0.32				0.30				0.13
Net realized and unrealized gain (loss) on investments			1.64				(2.50	)			4.98				(8.86	)			(6.32	)			5.90
Total from investment operations			1.69				(2.41	)			5.07				(8.54	)			(6.02	)			6.03
Less:
Dividends from net investment income			—				(0.11	)			(0.06	)			(0.34	)			(0.29	)			(0.14	)
Net asset value, end of period			$17.42				$15.73				$18.25				$13.24				$22.12				$28.43
Total return (b)			10.74	%(c)			(13.20	)%			38.31	%			(38.60	)%			(21.18	)%			26.77	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$87,972				$69,203				$59,324				$38,398				$61,937				$46,906
Ratio of gross expenses to average net assets			0.63	%(d)			0.70	%			0.71	%			0.72	%			0.67	%			1.04	%
Ratio of net expenses to average net assets			0.54	%(d)			0.54	%			0.54	%			0.54	%			0.54	%			0.54	%
Ratio of net expenses to average net assets excluding interest expense			0.54	%(d)			0.54	%			0.54	%			0.54	%			0.54	%			0.54	%
Ratio of net investment income to average net assets			0.65	%(d)			0.56	%			0.63	%			1.62	%			1.07	%			0.89	%
Portfolio turnover rate (e)			6	%(c)			17	%			23	%			22	%			11	%			11	%
		Uranium+Nuclear Energy ETF
		For the
		Six Months
		Ended
		June 30,				For the Year Ended December 31,
		2018				2017				2016				2015				2014				2013#
		(unaudited)
Net asset value, beginning of period			$49.09				$47.55				$45.25				$51.50				$48.11				$41.35
Income from investment operations:
Net investment income			0.73	(a)			1.35	(a)			2.08				1.87				1.27				0.80
Net realized and unrealized gain (loss) on investments			1.15				2.57				1.94				(6.63	)			3.39				6.29
Total from investment operations			1.88				3.92				4.02				(4.76	)			4.66				7.09
Less:
Dividends from net investment income			—				(2.38	)			(1.72	)			(1.49	)			(1.27	)			(0.33	)
Net asset value, end of period			$50.97				$49.09				$47.55				$45.25				$51.50				$48.11
Total return (b)			3.83	%(c)			8.27	%			8.87	%			(9.26	)%			9.61	%			17.18	%
Ratios/Supplemental Data
Net assets, end of period (000’s)		$28,882				$27,815				$34,076				$39,211				$67,812			$77,778
Ratio of gross expenses to average net assets			0.88	%(d)			0.89	%			0.79	%			0.70	%			0.76	%			0.80	%
Ratio of net expenses to average net assets			0.60	%(d)			0.61	%			0.61	%			0.61	%			0.60	%			0.60	%
Ratio of net expenses to average net assets excluding interest expense			0.60	%(d)			0.60	%			0.60	%			0.60	%			0.60	%			0.60	%
Ratio of net investment income to average net assets			2.99	%(d)			2.67	%			3.37	%			2.34	%			1.89	%			1.60	%
Portfolio turnover rate (e)			16	%(c)			19	%			36	%			27	%			31	%			48	%

 

 

(a)	Calculated based upon average shares outstanding
(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 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

NOTES TO FINANCIAL STATEMENTS

June 30, 2018 (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, 2018, offers fifty-seven 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, 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’ respective Indices are presented below:

 

Fund		Index
Agribusiness ETF		MVIS® Global Agribusiness Index*
Coal ETF		MVIS® Global Coal Index*
Global Alternative Energy ETF		Ardour Global IndexSM (Extra Liquid)
Gold Miners ETF		NYSE Arca Gold Miners Index
Junior Gold Miners ETF		MVIS® Global Junior Gold Miners Index*
Natural Resources ETF		VanEck®-Natural Resources Index**
Oil Refiners ETF		MVIS® Global Oil Refiners Index*
Oil Services ETF		MVIS® US Listed Oil Services 25 Index*
Rare Earth/Strategic Metals ETF		MVIS® Global Rare Earth/Strategic Metals Index*
Steel ETF		NYSE Arca Steel Index
Unconventional Oil & Gas ETF		MVIS® Global Unconventional Oil & Gas Index*
Uranium+Nuclear Energy ETF		MVIS® Global Uranium & Nuclear Energy Index*

 

*	Published by MVIS.
**	Published by S-Network Global Indexes, LLC

 

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 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

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

	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 where 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 net investment 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. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statements of Operations. 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, 2018 are reflected in the Schedules of Investments.
G.	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, 2018 is presented in the Schedules of Investments. Refer to related disclosures in Note 2F (Repurchase Agreements) and Note 9 (Securities Lending).
H.	Other—Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. 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. 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, 2019, 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 for the period ended June 30, 2018, are as follows:

 

Fund		Expense Limitations
Agribusiness ETF			0.56	%
Coal ETF			0.59
Global Alternative Energy ETF			0.62
Gold Miners ETF			0.53
Junior Gold Miners ETF			0.56
Natural Resources ETF			0.49
Oil Refiners ETF			0.59
Oil Services ETF			0.35
Rare Earth/Strategic Metals ETF			0.57
Steel ETF			0.55
Unconventional Oil & Gas ETF			0.54
Uranium+Nuclear Energy ETF			0.60

 

Refer to Statements of Operations for the amounts waived/assumed by the Adviser.

 

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, 2018, 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		$	89,911,387			$	77,327,388
Coal ETF			10,778,672				8,112,950
Global Alternative Energy ETF			7,887,279				7,312,304
Gold Miners ETF			981,282,371				956,122,444
Junior Gold Miners ETF			384,409,770				393,714,045
Natural Resources ETF			14,881,702				14,098,660
Oil Refiners ETF			10,813,340				4,773,257
Oil Services ETF			173,743,611				162,393,582
Rare Earth/Strategic Metals ETF			87,154,513				74,488,415
Steel ETF			13,198,113				10,879,301
Unconventional Oil & Gas ETF			5,221,324				5,065,630
Uranium+Nuclear Energy ETF			4,765,795				4,382,085

 

 

Note 5—Income Taxes—As of June 30, 2018, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments were as follows:

 

Fund		Cost of Investments				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Appreciation (Depreciation)
Agribusiness ETF		$	831,334,325			$	145,193,538			$	(107,576,414	)		$	37,617,124
Coal ETF			103,473,960				6,450,819				(9,944,867	)			(3,494,048	)
Global Alternative Energy ETF			99,760,804				14,806,780				(9,369,123	)			5,437,657
Gold Miners ETF			9,668,494,672				396,627,931				(1,409,985,896	)			(1,013,357,965	)
Junior Gold Miners ETF			5,141,796,195				613,933,360				(629,451,046	)			(15,517,686	)
Natural Resources ETF			95,799,224				9,702,293				(3,795,545	)			5,906,748
Oil Refiners ETF			55,892,781				2,487,373				(1,235,613	)			1,251,760
Oil Services ETF			2,538,926,920				—				(756,656,621	)			(756,656,621	)
Rare Earth/Strategic Metals ETF			215,600,393				10,447,702				(32,428,995	)			(21,981,293	)
Steel ETF			153,713,423				6,082,107				(10,150,364	)			(4,068,257	)
Unconventional Oil & Gas ETF			91,832,797				8,286,336				(9,051,662	)			(765,326	)
Uranium+Nuclear Energy ETF			30,439,072				3,097,239				(2,070,746	)			1,026,493

 

The tax character of dividends paid to shareholders during the year ended December 31, 2017 was as follows:

 

		2017 Dividends and Distributions
Fund		Ordinary Income					Long-Term Capital Gains
Agribusiness ETF			$	12,243,400				$	—
Coal ETF				3,597,300					—
Global Alternative Energy ETF				1,099,340					—
Gold Miners ETF				61,169,240					—
Junior Gold Miners ETF				1,476,062					—
Natural Resources ETF				2,100,000					—
Oil Refiners ETF				130,544					27,306
Oil Services ETF				39,297,465					—
Rare Earth/Strategic Metals ETF				4,502,217					—
Steel ETF				3,688,050					—
Unconventional Oil & Gas ETF				500,500					—
Uranium+Nuclear Energy ETF				1,349,717					—

 

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

 

At December 31, 2017, the Funds had capital loss carryforwards available to offset future capital gains, as follows:

 

Fund		Short-Term Capital Losses with No Expiration						Long-Term Capital Losses with No Expiration						Short-Term Capital Losses Expiring in the Year Ending 12/31/2018						Total
Agribusiness ETF			$	(174,582,415	)				$	(455,171,228	)				$	(85,630,099	)				$	(715,383,742	)
Coal ETF				(21,809,697	)					(279,691,520	)					(18,822,843	)					(320,324,060	)
Global Alternative Energy ETF				(4,135,191	)					(85,982,549	)					(34,193,213	)					(124,310,953	)
Gold Miners ETF				(1,224,871,727	)					(7,663,249,085	)					(1,784,160	)					(8,889,904,971	)
Junior Gold Miners ETF				(1,475,786,874	)					(2,742,415,444	)					—						(4,218,202,318	)
Natural Resources ETF				(2,328,154	)					(33,856,687	)					(540,880	)					(36,725,721	)
Oil Refiners ETF				—						—						—						—
Oil Services ETF				(39,913,577	)					(124,781,911	)					—						(164,695,488	)
Rare Earth/Strategic Metals ETF				(37,778,919	)					(189,611,799	)					—						(227,390,718	)
Steel ETF				(4,235,969	)					(120,839,994	)					(21,020,656	)					(146,096,619	)
Unconventional Oil & Gas ETF				(6,007,251	)					(29,069,767	)					—						(35,077,018	)
Uranium+Nuclear Energy ETF				(14,047,241	)					(67,832,322	)					(41,593,262	)					(123,472,825	)

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

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, 2018, the Funds did not incur any interest or penalties.

 

Note 6—Capital Share Transactions—As of June 30, 2018, 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, 2018 the following Funds had in-kind contributions and redemptions:

 

Fund		In-Kind Contributions				In-Kind Redemptions
Agribusiness ETF		$	130,211,639			$	162,478,943
Coal ETF			35,486,961				32,649,540
Global Alternative Energy ETF			2,945,462				—
Gold Miners ETF			2,646,362,297				1,461,923,033
Junior Gold Miners ETF			977,747,711				516,985,681
Natural Resources ETF			18,164,181				21,574,658
Oil Refiners ETF			42,605,963				1,304,864
Oil Services ETF			2,052,793,433				2,133,643,435
Rare Earth/Strategic Metals ETF			55,553,179				31,580,629
Steel ETF			59,551,967				86,427,144
Unconventional Oil & Gas ETF			16,771,082				6,128,082

 

This table represents the accumulation of each Fund’s daily net in-kind 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 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.

 

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, 2018, 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.

 

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, 2018 are presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities.

VANECK VECTORS ETF TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited) (continued)

 

The following table presents repurchase agreements held as collateral by type of security on loan as of June 30, 2018:

 

		Gross Amount of Recognized Liabilities for Securities Loaned in the Statements of Assets and Liabilities*
Fund		Equity Securities
Agribusiness ETF		$	32,478,567
Global Alternative Energy ETF			19,120,980
Gold Miners ETF			146,400,476
Junior Gold Miners ETF			228,820,345
Natural Resources ETF			1,455,039
Oil Services ETF			199,961,055
Rare Earth/Strategic Metals ETF			32,309,701
Steel ETF			27,264,866
Unconventional Oil & Gas ETF			3,082,984
Uranium+Nuclear Energy ETF			2,609,573

 

*	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 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, 2018, the following Funds borrowed under this Facility:

 

Fund		Days Outstanding				Average Daily Loan Balance					Average Interest Rate				Outstanding Loan Balance as of June 30, 2018
Agribusiness ETF			159				$	1,818,241				3.01	%			$	1,210,183
Coal ETF			124					320,195				3.07					364,331
Global Alternative Energy ETF			101					206,517				3.12					120,116
Gold Miners ETF			116					5,004,039				2.99					—
Junior Gold Miners ETF			21					2,647,576				3.00					—
Natural Resources ETF			177					415,503				2.99					564,360
Oil Services ETF			154					3,002,181				2.97					2,218,824
Oil Refiners ETF			29					146,832				3.13					186,189
Rare Earth/Strategic Metals ETF			73					1,684,551				3.06					2,006,140
Steel ETF			173					260,779				2.99					80,377
Uranium+Nuclear Energy ETF			10					181,491				3.32					—

 

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, 2018, there were offsets to custodian fees and these amounts are reflected in custody expense in the Statements of Operations.

 

Note 13—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, 2018 (unaudited)

 

At a meeting held on June 22, 2018 (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 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, 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 June 6, 2018. 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 and expenses (for those Funds which had begun operations) 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 seeks to track a different index than the funds in its designated peer group and, therefore, each Fund’s performance will differ from its peers. In addition, as noted below, the Trustees reviewed certain performance information for each Fund which was not provided by Broadridge and which did not compare each Fund’s performance to the performance of its peer group. 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 June 6, 2018 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

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2018 (unaudited) (continued)

 

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., one of China’s largest asset management companies 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 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 the average and/or median of its respective peer group of funds, except for each of VanEck Vectors Agribusiness ETF, Coal ETF, Egypt Index ETF, Global Alternative Energy ETF, Rare Earth/Strategic Metals ETF and Vietnam ETF, which had management fees (after the effect of any applicable fee waiver) greater than the average and 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/or median of its respective peer group of funds, except for each of VanEck Vectors Africa Index ETF, ChinaAMC CSI 300 ETF, ChinaAMC SME-ChiNext ETF, Egypt Index ETF, Global Alternative Energy ETF, Israel ETF, Rare Earth/Strategic Metals ETF, Russia ETF, Russia Small-Cap ETF and Unconventional Oil & Gas ETF, which had a total expense ratio (after the effect of any applicable expense limitation) greater than the average and 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 Operating 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 Operating Fund and the sub-advisory fee rates for the China Funds are reasonable and appropriate in relation to the current asset size of each Operating Fund and the other factors discussed above and that the advisory fee rate for each Operating 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 were reasonable in light of the nature and quality of the services received by such Funds. The Trustees also considered information from the Sub-Adviser informing them that the Sub-Adviser did not earn any profits from managing the China Funds.

 

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 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 actual management fees or operating expenses of, 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 June 6, 2018 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.

VANECK VECTORS ETF TRUST

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

June 30, 2018 (unaudited) (continued)

 

At a meeting held on June 22, 2018 (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 the investment management agreement between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Vectors Long/Flat Commodity ETF (the “Fund”).

 

The Board’s approval of the Investment Management Agreement 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 June 6, 2018. At that meeting, the Trustees received materials from the Adviser. The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on information obtained through discussions with the Adviser and its affiliates at the Renewal Meeting and the June 6, 2018 meeting regarding the proposed management of the Fund and information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser and its affiliates, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Fund. In evaluating the terms of the Investment Management Agreement at each Meeting, the Trustees considered the terms and scope of services that the Adviser would provide under the Investment Management Agreement, including the Adviser’s agreement to pay all of the direct expenses of the Fund (excluding interest expense, trading expenses, taxes, accrued deferred tax liability and extraordinary expenses). The Trustees concluded that the Adviser and its personnel have the requisite expertise and skill to manage the Fund’s portfolio.

 

The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of the Fund to the Adviser because the Fund has not yet commenced operations. The Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Fund by the Adviser, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser 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 June 6, 2018 meeting as part of their consideration of the Investment Management Agreement.

 

In voting to approve the continuation of the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreement are reasonable and fair in light of the services to be performed, the fees paid by certain other funds, 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 the Investment Management Agreement is in the best interest of the Fund and its shareholders.

 

 

At a meeting held on June 22, 2018 (the “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”), considered and approved an investment management agreement between the Trust and Van Eck Absolute Return Advisers Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the VanEck Vectors Bitcoin Strategy ETF (the “Fund”).

 

The Board’s approval of the Investment Management Agreement 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 advance of the Meeting, the Trustees received materials from the Adviser, including expense information for other funds. The Adviser provided the Trustees with information regarding, among other things, the various aspects of the Fund’s proposed investment program, fee arrangements and service provider arrangements. The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on their review of information obtained through discussions with the Adviser at the Meeting regarding the management of the Fund, information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser, including the background and experience of the portfolio managers and others proposed to be involved in the management and administration of the Fund. The Trustees also considered the terms and scope of services that the Adviser would provide under the Investment Management Agreement, including the Adviser’s commitment to waive certain fees and/or pay expenses of the Fund to the extent necessary to prevent the operating expenses of the Fund from exceeding agreed upon limits for a period of at least one year following the effective date of the Fund’s registration statement.

 

The Trustees considered the benefits, other than the fees under the Investment Management Agreement, that the Adviser would receive from serving as adviser to the Fund. The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of the Fund to the Adviser because the Fund had not yet commenced operations. In addition, because the Fund had not yet commenced operations, the Trustees could not consider the historical performance or actual management fees or operating expenses of, or the quality of services previously provided to, the Fund by the Adviser, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser 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 Meeting as part of their consideration of the Investment Management Agreement.

 

In voting to approve the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management 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 the Investment Management Agreement is in the best interest of the Fund and the 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. Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. 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 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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
         INVESTMENT COMPANIES.

(a)  Not applicable.

(b)  Not applicable.

Item 13. 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 7, 2018
     ------------------

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 7, 2018
     ------------------

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

Date September 7, 2018
     ------------------