New fund offers actively managed exposure to
the leading innovators and disruptors solving some of today’s most
difficult agricultural challenges.
VanEck today announced the launch of the VanEck Future of Food
ETF (YUMY), an actively managed equity ETF that provides exposure
to companies engaged in agri-food technology and innovation.
YUMY is the first VanEck ETF to incorporate bottom-up,
fundamental company research and will be overseen by portfolio
managers Shawn Reynolds and Ammar James.
“The growing global population and the concurrent threats from
climate change are driving the need for more sustainable agri-food
processes and technologies in order to provide for a future with
more affordable, nutritious and safe food for all,” said Mr.
Reynolds, Portfolio Manager for YUMY. Mr. Reynolds also oversees
VanEck’s Environmental Sustainability and Natural Resources Equity
Strategies. “We are now in the early stages of a multi-decade
agri-food system transformation. Growth opportunities in this space
currently exist, but the market remains nascent. A number of
private firms appear poised to enter the public markets and several
established companies are pivoting their business models to embrace
the future of food, so an active approach to stock selection will
position YUMY and its investors to capitalize on emerging
trends.”
To better understand and research the expansive global
agriculture and food industry, VanEck has identified three
proprietary pillars of the agri-food technology and innovation
opportunity set:
- Food Technology: alternative proteins, animal feed and
nutrition, and sustainable aquaculture.
- Precision Agriculture: vertical/indoor farming, robotics
and automation, data collection and analysis, water and
irrigation.
- Agriculture Sustainability: seed genetics, sustainable
and safe fertilizer and crop chemicals, and sustainable food
preservation and packaging.
VanEck further noted the growing global population is driving
the need for innovation as the population is expected to increase
by 25% from 7.8 billion today to nearly 10 billion by 2050.1 More
people are expected to enter the middle class than any time in
history, accelerating anticipated consumption of protein and
animal-based foods, which are resource-intensive to produce. By
some estimates it may take as much as 70% more food production to
feed this larger and wealthier population.2
“These growing needs have to be met with innovation, but they
will also have to take into account the demands from both
governments and consumers for cleaner, healthier and more
environmentally sustainable approaches to feeding the world,” added
Mr. James, who also serves as an analyst specializing in
agribusiness, timber, and paper and packaging research for the
firm. “We’re thrilled to be bringing YUMY to the marketplace and
look forward to continuing to share our insights and research with
investors and advisors around this essential topic and key
investment category.”
Mr. James recently joined VanEck’s Head of ETF Product Ed Lopez
on an episode of the Trends with Benefits podcast, to discuss the
future of food, going into more detail on all of the points and
trends discussed above.
VanEck has a long history in agriculture and
sustainability-focused investing and is a leader in providing
investors with solutions focused on relevant themes such as green
bonds and the low carbon energy ecosystem. As a signatory of the
Principles of Responsible Investment (PRI), VanEck incorporates ESG
factors and analysis into their investment processes, and YUMY
joins a lineup of sustainability-focused equity solutions that also
includes the recently launched VanEck Green Metals ETF (GMET) and
VanEck Environmental Sustainability Fund (ENVIX).
YUMY is listed on the NYSE Arca and has a net expense ratio of
0.69%.
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 October 31, 2021, VanEck managed approximately
$82.2 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
The Fund will be sensitive to, and its performance will depend
to a greater extent on, the overall condition of companies
operating in the food technology, precision agriculture, and
agricultural sustainability markets. These companies may have
limited product lines, markets, financial resources or personnel
and may face intense competition or potentially rapid product
obsolescence which may adversely affect the Fund.
An investment in the Fund may be subject to risks which include,
among others, risk of investing in agri-food technology and
innovation food companies, equity securities, investing in small-
and medium-capitalization companies, basic materials, industrials
and consumer staples sectors, investing in European issuers,
foreign securities, foreign currency, management, market,
operational, authorized participant concentration, new fund,
absence of prior active market, trading issues, fund shares
trading, premium/discount and liquidity of fund shares,
non-diversified, initial public offerings, special purpose
acquisition companies, 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.
An investment in GMET may be subject to risks which include,
among others, risks related to investing in green metals, clean
energy companies, regulatory action and changes in governments,
rare earth and strategic metals companies, Australian, Asian
issuers and Chinese issuers, investing through stock connect,
foreign securities, emerging market issuers, foreign currency,
basic materials sector, mining industry, small- and
medium-capitalization companies, cash transactions, equity
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 risk.
You can lose money by investing in ENVIX. Any investment in
ENVIX should be part of an overall investment program, not a
complete program. An investment in ENVIX may be subject to risks
which include, among others, investing in derivatives, equity
securities, emerging market securities. environmental-related
securities, foreign currency transactions, foreign securities,
investments in other investment companies, management, market, new
fund risk, non-diversification, operational, sectors, small and
medium capitalization companies, special purpose acquisition
companies. Small- and medium-capitalization companies may be
subject to elevated risks.
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.
____________________________________ 1 Source: United
Nations
2 Ibid.
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version on businesswire.com: https://www.businesswire.com/news/home/20211202005256/en/
Media: Chris Sullivan/Julia Stoll MacMillan Communications
212.473.4442 chris@macmillancom.com
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