Dear Happy Investor, as a long-term investor, the VanEck ETFs are accessible. Many of its trackers are available through the best investment platforms. In general, the annual costs (expense ratio) are higher compared to those of iShares and Vanguard. On the other hand, the best VanEck ETFs perform well. The issuer is known for niche themeETFs, trying to beat the market with higher than average returns. For inspiration, we share 10x the best VanEck ETF to buy below. This is a mix of different trackers from lower to high risk.
Note: this is no personal investment advice. The purpose of this article is for inspiration only.
Let us begin!
10x Best VanEck ETFs to buy
VanEck is an asset manager based in New York City. It was founded in 1955. VanEck's main products are all related to the gold market. VanEck also has Exchange Traded Funds based on specialized indices that aren't available from any other company.
VanEck's line of ETFs includes products that track the performance of different asset classes, such as international equities, domestic equities, emerging markets equities, fixed income, commodities, currencies, and real estate investment trusts.
The investment teams at VanEck offer both active and passive strategies with interesting exposures and well-designed investment processes to back them up. The firm can offer core investment opportunities as well as more specialized exposures to help diversify portfolios.
VanEck ETFs have a total of $56.37B in assets under management. They have 64 ETFs that trade on U.S. markets. With $12.03B in assets, the VanEck Gold Miners ETF (GDX) is the biggest Exchange Traded Fund.
Here are 10 of the best VanEck ETFs to buy as long-term investment:
- VanEck Semiconductor ETF
- VanEck Global Real Estate ETF
- VanEck Video Gaming and eSports ETF
- VanEck Rare Earth and Strategic Metals ETF
- VanEck Sustainable World ETF
- VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF
- VanEck Global Mining UCITS ETF
- VanEck Gold Miners UCITS ETF
- VanEck Morningstar Global Wide Moat UCITS ETF
- VanEck Emerging Markets High Yield Bond UCITS ETF
Some of these trackers are, in our opinion, among the best ETFs.
Most of these ETFs have been covered in separate ETF analyses. Below we will cover different kind of the best VanEck ETFs, like the low risk iBoxx EUR sovereign Capped ETF and the higher risk VanEck Gold Miners ETF to invest in commodities.
VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF
The Morningstar Developed Markets Large Cap Dividend Leaders index is made up of the highest yielding securities that meet the screening criteria. It follows the performance of companies whose dividend payment patterns are consistent and stable. The index only has stocks from countries that are already doing well.
- The fund's holdings are spread out across countries around the world, including European countries, Asian countries, Latin American countries and North American countries. This makes it an excellent choice for investors who want exposure to multiple markets but do not want to actively manage their portfolio by choosing individual stocks or funds themselves.
- This fund offers investors the opportunity to earn income on their investments, as well as the potential for capital gains.
- VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF has a high daily trading volume, which means you can buy and sell shares easily without affecting the price too much.
- The fund has a three-year return of 41.28%. This is an above-average performance compared to other dividend-focused funds in the same category.
- The fund's expense ratio is 0.35% per year. This makes it an inexpensive investment.
- No exposure to Emerging Markets - If you're looking for exposure to emerging markets (like China or India), this fund won't give it to you. This is because it focuses on developed markets only.
Besides this tracker there are many more of the best Dividend ETFs.
VanEck Global Mining UCITS ETF
The EMIX Global Mining Constrained Weights index keeps track of companies around the world that are mostly in the business of extracting metals and minerals. The index is based on market capitalization and is adjusted for free float. Both Emerging Markets and Developed Markets are included.
Demand from developing economies is going up at the same time that the need for green technologies like wind turbines and solar cells is going up faster. Still, after years of reorganizing, supply seems to be tight. This best VanEck ETF is a simple and effective way to invest in this powerful theme through a wide range of mining companies.
- If you want to invest in mining companies without having to worry about finding individual companies, this would be your fund.
- It provides investors with exposure to both traditional mining companies and resource exploration companies.
- The fund's holdings are diversified across all major mining sectors: precious metals, base metals, coal and diamonds.
- As with any investment in the mining industry, the fund is vulnerable to risk from political upheaval or changes in government policy that could affect mining operations in countries where they operate.
- The fund may be too large for investors who want to invest in specific sectors or regions of the mining industry. This is because it has holdings across many different regions of the world.
VanEck Gold Miners UCITS ETF
The NYSE Arca Gold Miners index follows companies that make at least half of their money from gold and silver mining around the world.
The main goal of the Fund's investments is to get a high total return from the gold mining industry. A secondary goal is to increase the value of the Fund's investments, which are mostly in gold mining companies.
- A pro of this best VanEck ETF is that it's diversified among gold miners, with exposure to the top 30 companies in the gold mining industry by market capitalization and liquidity. The fund also has low fees, which allow investors to earn higher returns on their investments.
- The fund has about a billion dollars in assets under management, which means it's easy to buy and sell shares quickly without moving the market too much.
- The biggest issue is that the VanEck Gold Miners UCITS ETF is not diversified enough to be considered as long-term investment. It only invests in gold miners
- Because this fund invests in junior mining companies, it tends to be more volatile than other types of investments
VanEck Morningstar Global Wide Moat UCITS ETF
The Morningstar Global Wide Moat Focus index follows global companies that are valued well and have a competitive advantage that will last. The goal of the fund is to invest in a wide range of stocks that meet the wide moat criteria.
The Fund's investment process includes looking for "wide moats," which are long-lasting competitive advantages like strong brand loyalty, network effects, cost advantages, intellectual property rights, and regulatory barriers.
- Diversified portfolio with exposure to large, mid, and small cap companies across multiple industries, including Amazon, McDonalds, Boeing etc.
- This best VanEck ETF also has low fees
- This fund doesn't have quite as much room for growth as some other options out there because it's focused on finding stocks that already have high returns or high growth potential rather than finding ones with lots of room for improvement like other funds might do.
- The fund has a high level of market sensitivity, which means that it will tend to move in line with the broader market trends.
VanEck iBoxx EUR Sovereign Capped 1-5 UCITS ETF
The iBoxx EUR Liquid Sovereigns Capped 1–5 index follows the largest and most liquid Euro government bonds issued by governments in the eurozone. This ETF invests in 15 government bonds that have investment-grade ratings and short maturity dates, which makes them even less volatile. This is really not the best VanEck tracker based on return, but for very defensive investors it may be worth considering.
- The iBoxx EUR Sovereign Capped 1-5 UCITS ETF is a good way to invest in European sovereign bonds. The fund invests in a broad range of European bonds, including those from Germany and France.
- This fund can be used as both a long-term investment and as a trading instrument for investors who want to take advantage of short-term fluctuations in interest rates. However, because it is an exchange-traded fund (ETF), it has low fees compared to other types of funds and mutual funds.
- The iBoxx EUR Sovereign Capped 1-5 UCITS ETF may not be the best choice if you want to invest in individual stocks because it doesn’t give you direct access to individual companies; instead, you have indirect exposure through this index fund.
- The VanEck iBoxx EUR Sovereign Capped 1-5 UCITS ETF does not have many holdings (only about 15) so there isn’t much diversification among them either; this could mean that some sectors within Europe are overrepresented while others are underrepresented or even absent altogether
- This kind of tracker offers in general a low return
VanEck Emerging Markets High Yield Bond UCITS ETF
This tracker follows below-investment-grade bonds issued in US dollars by non-sovereign issuers in emerging markets. This best VanEck ETF has the potential to give higher returns than bonds from developed markets. It also has a better credit rating. In the past few years, the EM bond market has grown a lot.
- The fund's holdings are diversified across different countries and industries, with a focus on Asia. This ETF has potential for higher returns than developed market high-yield bonds, which can be attractive for investors who are looking for a high return on investment.
- The VanEck Emerging Markets High Yield Bond UCITS ETF has a diversified portfolio of emerging market bonds, which means that it can be used as a hedge against risk.
- The fund has low liquidity
- Emerging markets are more volatile than developed markets, so this ETF is not suitable for all investors.
VanEck J.P. Morgan EM Local Currency Bond UCITS ETF
The JP Morgan GBI-Emerging Markets Global Core index tracks the local currency value of government bonds from emerging markets. This ETF gives investors access to a diversified and liquid portfolio of bonds from Emerging Markets.
- This ETF has significantly higher yields than developed market bonds of the same quality. The fund is well-diversified across 19 countries. It gives investors exposure to local currencies, which can help mitigate risks associated with currency fluctuations.
- The fund is restricted to countries whose debt can be freely traded by international investors. The fund has a high level of market sensitivity, which means that it will tend to move in line with the broader market trends.
Bond funds are not chosen for the sake of the highest attainable return. Bonds are a diversification on equity portfolios. As far as we are concerned, investing in bonds is not that useful for the long term. The reason: equities offer higher returns on average. But beware: this only works if you hold for the long term. Even the best VanEck ETFs you buy for the long term of at least 5 to ideally 20 years. In this way, you can survive intermediate stock market crashes and the result converges to the market average.