VanEck IG Corporate ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns it an Above Average Process Pillar rating. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

VanEck Mdy's Aly IG Corp Bd ETF earns an Above Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The main driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 83% also contributes to the process. Lastly, the process is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track, as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Moody's Analytics® US Investment Grade Corporate Bond Index.  The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The inndex is comprised of U.S. dollar-denominated corporate bonds issued in the U.S. domestic market that have an investment grade rating based on the bond's composite rating, and which is an average of ratings from various rating agencies. It is non-diversified.  

 This strategy has a 4.5% 12-month yield, higher than its average peer's 4.2%. In addition, it has a 5.3% 30-day SEC yield (a measure similar to yield-to-maturity). Typically, higher yields come at the cost of higher credit risk.

Above Average

Process

VanEck’s team is good but unexceptional, earning the strategy an Average People Pillar rating. The fund takes a solo manager approach, with Francis Rodilosso as the only listed manager at the helm, who brings 20 years of portfolio management experience to the table. They manage a total of 12 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. With only one manager listed on the strategy, the passive strategy is vulnerable to key-person risk. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

Mobeus Income & Growth 2 VCT PLC

MIG tracks a market-value-weighted index of investment grade corporate bonds issued in the US domestic market.

BBB-rated corporate bonds are fixtures in a variety of actively managed funds and exchange traded funds. Why? Because that form of debt offers attractive yields while not residing in speculative territory.

Why This Corporate Bond ETF Merits Attention Now

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M&A was almost dormant in 2023. In the US, as a proportion of the market value of the benchmark equity indices, it fell to its lowest level in 20 years, according to McKinsey. Credit investors are not traditionally supposed to be fans of M&A, and it's true we are wary of leveraging M&A, where debt is loaded onto balance sheets to buy competitors. We are seeing a comeback for M&A that we think is likely to continue through 2024.

The Credit Opportunity In M&A

Investment-grade corporate bonds and the related exchange traded funds, broadly speaking, were solid performers in 2023 and through January. Those funds are sporting just modest losses, indicating the asset class could be ready for better things in 2024.

Corporate Bonds Beckon, but Prudence Is Necessary

Amid expectations that the Federal Reserve will lower interest rates this year, perhaps multiple times, there's optimism that corporate bonds and the related exchange traded funds could be in for another round of solid annual performances. Encouraging as that may be, advisors and investors still need to exercise discretion in the corporate bond universe.

This Could Be the Right Corporate Bond ETF for 2024

With stocks on a blistering pace to conclude 2023, familiar valuation concerns are again part of the conversation. So intense has been the recent rally that some experts argue equities are currently priced to perfection.

There's Value to Be Had in Bonds

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Yields have reset higher across fixed income markets, leaving bonds well positioned in a range of different economic and interest rate scenarios in 2024. Introduction to Income Investing Income investing is a strategy that aims to generate a steady stream of income from investments, typically through interest payments or dividends.

Income Investing Playbook 2024: Navigating the New Interest Rate Regime

To be specific, investment-grade corporate bonds could shine this year in the fixed income arena, potentially lifting dozens of related exchange traded funds in the process. Among that group, the VanEck Moody's Analytics IG Corporate Bond ETF (MIG) might merit consideration due to a compelling methodology.

Corporate Bonds Could Be 2023 Fixed Income Stars

After a rough year in 2022, corporate bonds are emerging as fixed income rebound ideas in 2023, but investors need to be judicious when it comes to evaluating both high-yield and investment-grade opportunities.

Corporate Credit Quality Will Be Meaningful in 2023

Amid aggressive interest rate tightening by the Federal Reserve, investors are obviously chastened by bonds and fixed income exchange traded funds, but through the carnage, opportunities are emerging. Those include investment-grade bonds accessible via several ETFs, including the VanEck Moody's Analytics IG Corporate Bond ETF (MIG).

Marvel at MIG for IG Corporate Opportunities

Investors frequently hear about valuations as they realte to equities, but hunting for good bargains also has its applications in the world of corporate bonds. The VanEck Vectors Moody's Analytics IG Corporate Bond ETF (MIG) helps with that objective, making it unique relative to old-guard corporate debt exchange traded funds.

It's Not Just for Stocks: Valuations Matter with Corporate Bonds Too

Bill Sokol, Director of ETF Product Management, discusses how MIG and MBBB stand out from other corporate bonds by using purely quantitative approach. Both have similar approaches.

Uncover Hidden Value In Credit

Higher-than-average yield is the number one reason most fixed income investors will add corporate bonds to their debt portfolio. Whether you're looking for safer haven, investment-grade corporate bonds, or high-risk high-yield debt, VanEck offers plenty of options to consider: VanEck Vectors Fallen Angel High Yield Bond ETF (BATS: ANGL): seeks to replicate as closely as [.

4 Tactical ETFs to Consider for Corporate Bond Exposure

The vast corporate bond market is rife with data that is conducive to analytics. VanEck was quick to recognize the opportunity and collaborate with ratings company Moody's to create the VanEck Vectors Moody's Analytics IG Corporate Bond ETF (MIG).

What If You Could Use the Latest Statistical Expertise to Analyze Default Risk?

VanEck debuted two new corporate bond ETFs on Wednesday designed to provide investors with important new tools to enhance their investment grade bond exposures. The VanEck Vectors Moody's Analytics IG Corporate Bond ETF (MIG) and the VanEck Vectors Moody's Analytics BBB Corporate Bond ETF (MBBB) both began trading on Dec. 2 on the CBOE BZX Exchange, and join VanEck's [.

VanEck Debuts 2 Corporate Bond ETFs Based on Moody's Analytics Credit Model

MIG and MBBB utilize Moody's Analytics credit risk data to look beyond traditional fixed income risk measures in selecting investment grade and BBB-rated bonds with the most attractive valuations

News for Mobeus Income & Growth 2 VCT PLC ETF (MIG)