MIG Profile
The VanEck Moody's Analytics IG Corporate Bond ETF seeks to provide investors with exposure to a diversified portfolio of investment-grade corporate bonds. The fund is designed to invest at least 80% of its total assets in the securities that constitute its benchmark index. This benchmark index is a comprehensive representation of U.S. dollar-denominated corporate bonds that are issued in the domestic U.S. market and have been assigned investment-grade ratings. These ratings are determined through a composite measure, which averages ratings from multiple credit rating agencies, ensuring a robust assessment of the creditworthiness of the bonds.
The index tracked by the ETF includes a broad range of investment-grade corporate bonds, encompassing various sectors and industries. By focusing on investment-grade securities, the fund aims to offer investors a relatively stable income stream with lower credit risk compared to non-investment-grade bonds. The bonds included in the index are selected based on their credit ratings and other relevant criteria, providing exposure to high-quality debt instruments with strong credit profiles.
VanEck, a well-established asset management firm known for its expertise in fixed income and thematic investing, manages the ETF. The firm employs a systematic approach to replicate the performance of the index, ensuring that the fund's holdings closely match the characteristics and risk profile of the benchmark. This includes regular rebalancing and adjustments to align with changes in the index, thereby maintaining the fund's investment objective and performance consistency.
As a non-diversified fund, the VanEck Moody's Analytics IG Corporate Bond ETF concentrates its investments in a specific category of securities, which can lead to higher exposure to particular sectors or issuers within the investment-grade corporate bond market. This focus aims to enhance the fund's ability to track the performance of its benchmark index closely while providing investors with targeted exposure to high-quality corporate bonds in the U.S. domestic market.
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