Notice of index change for the VanEck Small Companies Masters ETF
August 2024
The VanEck Small Companies Masters ETF (ASX: MVS) will be undergoing an enhancement to its reference index.
The current investment objective is to track the MVIS Australia Small-Cap Dividend Payers Index (the MVIS Index).
VanEck, as the Responsible Entity of the fund, is obligated to take reasonable steps to ensure the fund continuously operates in investors’ best interests. Since its inception MVS has consistently tracked the MVIS Index and delivered returns reflective of the risk and return characteristics of the MVIS Index. We believe there is a more optimal index strategy focused on targeting growth opportunities of Australian small companies.
We have resolved to replace the MVIS Index with the MarketGrader Australia Small Cap 60 Index (the MarketGrader Index). The MarketGrader Index seeks to identify ASX-listed small companies with the best GARP (growth at a reasonable price) attributes. For more information on the MarketGrader Index, please read the Product Disclosure Statement (PDS) which can be found on vaneck.com.au/mvs. VanEck considers this change to be in investors’ best interests.
The table below sets out the key differences between the two indices.
The change to MVS’s reference index will come into effect at market open on Monday, 23 September 2024. A copy of the replacement PDS has been lodged with the Australian Securities and Investments Commission (ASIC), as well as being released to the Australian Securities Exchange (ASX) and made available on our website today.
What does this mean for you?
If you remain invested in MVS after 23 September 2024, you will have exposure to the companies in the MarketGrader Index. Please read the Appendix and with your financial adviser or stockbroker, consider whether remaining in the ETF following the change of reference index is appropriate for your individual objectives, financial situation and needs. This change is not expected to result in any changes to the attributes contained within the target market determination (TMD) document. If you wish to remain in the fund you do not need to take any action. If you do not wish to remain in the fund you can sell your units on ASX at any time. Selling may have tax consequences.
Any questions?
Please contact Investor Services on 1300 68 38 37. We will make any further announcements in relation to the upcoming changes via the ASX.
Appendix
Key differences between the MVIS Australia Small-Cap Dividend Payers Index and the MarketGrader Australia Small Cap 60 Index:
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MVIS Australia Small-Cap Dividend Payers Index |
MarketGrader Australia Small Cap 60 Index |
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Index calculation methodology |
MarketVector calculates the MVIS Australia Small-Cap Dividend Payers Index as follows: 1. The eligible universe of securities is ASX-listed companies ranked between 90% and 98% of the full market capitalisation. 2. Constituents are selected by including securities that did not omit its last dividend payment. 3. Constituents are then weighted by free-float market capitalisation, subject to the weight of any individual company being capped at 8% with a minimum of 25 companies. |
MarketGrader calculates the MarketGrader Australia Small Cap 60 Index as follows: 1. The eligible universe of securities is ASX-listed companies ranked 101stto 300thby free float market capitalisation as determined by MarketGrader. 2. Constituents are selected by excluding the lowest scoring securities on the basis of their fundamentals across four factor categories: growth, value, profitability and cash flow. The top 60 by earnings yield score are then selected. 3. Constituents are equally weighted. |
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Rebalances |
Quarterly basis, as of the close of the third Friday of March, June, September and December. |
Semi-annual basis, as of the close of the third Friday of March and September. |
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Number of constituents |
81 |
60 |
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More information |
Further information about the Reference Index and MarketVector is available at www.marketvector.com. |
Further information about the Reference Index and MarketGrader is available at www.marketgrader.com. |
IMPORTANT NOTICE:
Issued by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’). VanEck is the responsible entity and product issuer of a range of VanEck exchange traded funds (‘Funds’). This information contains general information only about financial products and is not personal advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision in relation to a VanEck Fund, you should read the relevant Product Disclosure Statement and the relevant Target Market Determination which are available at www.vaneck.com.au or by calling 1300 68 38 37 and with the assistance of a financial adviser consider if it is appropriate for your circumstances. No member of the VanEck group of companies gives any guarantee or assurance as to the repayment of capital, the performance, or any particular rate of return of any VanEck Fund. Past performance is not a reliable indicator of future performance.