DAPP offers diversified exposure to companies
across the digital transformation, including digital assets
exchanges, miners, payment gateways, hardware, and technology
providers.
VanEck today announced the launch of the VanEck Vectors® Digital
Transformation ETF (NASDAQ: DAPP), a new equity fund designed to
provide investors with pure-play exposure to the innovative
companies that are powering the digital transformation of the
world’s economy.
“The digitalization of the global economy has been picking up
steam for the past several years, and as digital assets1 mature,
this has driven the growth of several innovative companies—not only
miners of digital assets, but also digital asset exchanges,
payments, services, storage, e-commerce and much more,” said Ed
Lopez, Managing Director, Head of ETF Product for VanEck. “To this
point, however, investors have had to choose among funds that too
often included companies only tangentially involved with digital
assets. That is something we’ve sought to solve with the launch of
DAPP, a fund we’re very excited to be bringing to market.”
DAPP seeks to track, as closely as possible, the price and yield
performance of the MVIS Global Digital Assets Equity Index (“The
Index”), a rules-based modified capitalization weighted, float
adjusted index intended to give investors a means of tracking the
overall performance of companies involved in digital assets. As the
Index is designed to be a pure-play overview of the relevant
players in the space, to be eligible for inclusion, a company must
(i) generate at least 50% of its revenues from digital assets
projects; (ii) generate at least 50% of its revenues from projects
that, when developed, have the potential to generate at least 50%
of their revenues from digital assets or digital asset projects;
and/or (iii) have at least 50% of its assets invested in direct
digital asset holdings or digital asset projects. The Index
provides significant exposure to key companies in mining, hardware,
exchanges, holding and trading, payment gateways, patents and
services, and banking. The Fund will not invest in digital
assets (including cryptocurrencies) (i) directly or (ii) indirectly
through the use of digital asset derivatives. The Index
rebalances quarterly.
“Digital transformation companies cover a broad swath of the
investment landscape related to digital assets, well beyond what’s
taking place with cryptocurrencies like bitcoin. It’s also
important to note that digital transformation represents a
long-term structural growth story, supported by significant ongoing
investment and adoption on a global scale by both retail and
institutional investment participants,” continued Lopez. “We as a
firm have long believed in the utility and viability of digital
assets as an asset class, and we are thrilled to be providing
investors with exposure to companies powering the digital
transformation.”
“Nasdaq’s ETF listings business centers on working with
forward-thinking partners like VanEck, who provide access to
growing and innovative asset classes,” added Giang Bui, Head of
U.S. Exchange Traded Products at Nasdaq. “Today’s launch of the
VanEck Vectors Digital Transformation ETF demonstrates Nasdaq’s
value as a resource for growing digital asset strategies in the
evolving ETF market.”
DAPP, which has an expense ratio of 65 basis points, joins a
VanEck thematic equity ETF lineup that also includes the VanEck
Vectors Video Gaming and eSports ETF (NASDAQ: ESPO), which is the
largest ETF by assets under management that provides targeted
exposure to the fast-growing global video gaming and esports
industries2; VanEck Vectors Gaming ETF (BJK®), which is the first
ETF in the U.S. to focus on global gaming; and VanEck Vectors
Semiconductor ETF (SMH®), which is designed to track the largest
and most liquid semiconductor production and equipment companies,
based on market capitalization and trading volume.
About VanEck
VanEck has a history of looking beyond the financial markets to
identify trends that are likely to create impactful investment
opportunities. We were one of the first U.S. asset managers to
offer investors access to international markets. This set the tone
for the firm’s drive to identify asset classes and trends –
including gold investing in 1968, emerging markets in 1993, and
exchange traded funds in 2006 – that subsequently shaped the
investment management industry.
Today, VanEck offers active and passive strategies with
compelling exposures supported by well-designed investment
processes. As of March 31, 2021, VanEck managed approximately $71.2
billion in assets, including mutual funds, ETFs and institutional
accounts. The firm’s capabilities range from core investment
opportunities to more specialized exposures to enhance portfolio
diversification. Our actively managed strategies are fueled by
in-depth, bottom-up research and security selection from portfolio
managers with direct experience in the sectors and regions in which
they invest. Investability, liquidity, diversity, and transparency
are key to the experienced decision-making around market and index
selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests
first, in all market environments, has been at the heart of the
firm’s mission.
Important Disclosures
1A digital asset is an asset issued and transferred using
distributed ledger or blockchain technology. 2Source: Morningstar.
Data as of 3/31/21.
The Fund will not invest in digital assets (including
cryptocurrencies) (i) directly or (ii) indirectly through the use
of digital asset derivatives. The Fund also will not invest in
initial coin offerings. Therefore the Fund is not expected to track
the price movement of any digital asset.
Investors in the Fund should be willing to accept a high
degree of volatility in the price of the Fund’s Shares and the
possibility of significant losses. An investment in the Fund
involves a substantial degree of risk. An investment in the Fund is
not a deposit with a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Therefore, you should consider carefully the following
risks before investing in the Fund, each of which could
significantly and adversely affect the value of an investment in
the Fund.
An investment in the VanEck Vectors Digital Transformation ETF
may be subject to risks which include, among others, risks related
to investing in digital transformation companies, investing in
equity securities, Canadian issuers, small- and
medium-capitalization companies, information technology and
financials sectors, foreign securities, market, operational, index
tracking, authorized participant concentration, new fund, absence
of prior active market, trading issues, passive management, fund
shares trading, premium/discount and liquidity of fund shares,
non-diversified and concentration risks which may make these
investments volatile in price or difficult to trade. Small- and
medium-capitalization companies may be subject to elevated
risks.
The technology relating to digital assets, including blockchain,
is new and developing and the risks associated with digital assets
may not fully emerge until the technology is widely used. Digital
asset technologies are used by companies to optimize their business
practices, whether by using the technology within their business or
operating business lines involved in the operation of the
technology. The cryptographic keys necessary to transact a digital
asset may be subject to theft, loss, or destruction, which could
adversely affect a company’s business or operations if it were
dependent on the digital asset. There may be risks posed by the
lack of regulation for digital assets and any future regulatory
developments could affect the viability and expansion of the use of
digital assets.
An investment in the VanEck Vectors Video Gaming and eSports ETF
(ESPO) may be subject to risks which include, among others,
investing in the video gaming and esports companies, software,
internet software & services and semiconductor industries,
equity securities, communication services and information
technology sectors, small- and medium-capitalization companies,
issuer-specific changes, special risk considerations of investing
in Asian, Chinese and Japanese issuers, emerging markets issuers,
foreign securities, foreign currency, depositary receipts, market,
operational, cash transactions, index tracking, authorized
participant concentration, no guarantee of active trading market,
trading issues, passive management, fund shares trading,
premium/discount risk and liquidity of fund shares,
non-diversified, and concentration risks, all of which may
adversely affect the Fund. Foreign investments are subject to
risks, which include changes in economic and political conditions,
foreign currency fluctuations, changes in foreign regulations, and
changes in currency exchange rates which may negatively impact the
Fund's returns. Small- and medium-capitalization companies may be
subject to elevated risks.
An investment in the VanEck Vectors Gaming ETF (BJK®) may be
subject to risks which include, among others, investing in the
gaming industry, equity securities, consumer discretionary sector,
foreign securities, emerging market issuers, foreign currency,
special risk considerations of investing in Asian, Chinese and
European issuers, depositary receipts, small- and
medium-capitalization companies, cash transactions, market,
operational, index tracking, authorized participant concentration,
no guarantee of active trading market, trading issues, passive
management, fund shares trading, premium/discount risk and
liquidity of fund shares, non-diversified, and concentration risks,
all of which may adversely affect the Fund. Foreign investments are
subject to risks, which include changes in economic and political
conditions, foreign currency fluctuations, changes in foreign
regulations, and changes in currency exchange rates which may
negatively impact the Fund's returns. Small- and
medium-capitalization companies may be subject to elevated
risks.
An investment in the VanEck Vectors Semiconductor ETF (SMH®) may
be subject to risks which include, among others, investing in the
semiconductor industry, equity securities, foreign securities,
foreign currency, depositary receipts, medium-capitalization
companies, issuer-specific changes, market, operational, index
tracking, authorized participant concentration, no guarantee of
active trading market, trading issues, passive management, fund
shares trading, premium/discount risk and liquidity of fund shares,
non-diversified, and concentration risks, all of which may
adversely affect the Fund. Foreign investments are subject to
risks, which include changes in economic and political conditions,
foreign currency fluctuations, changes in foreign regulations, and
changes in currency exchange rates which may negatively impact the
Fund's returns. Medium-capitalization companies may be subject to
elevated risks.
MVIS is the index business of VanEck, a U.S. based investment
management firm and provider of VanEck Vectors® ETFs. An index's
performance is not illustrative of a fund's performance. Indices
are not securities in which investments can be made.
Investing involves substantial risk and high volatility,
including possible loss of principal. An investor should consider
the investment objective, risks, charges and expenses of a Fund
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210414005180/en/
Chris Sullivan/Julia Stoll MacMillan Communications 212.473.4442
chris@macmillancom.com
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