VanEck Swapping Indexes on China, India Small-Cap ETFs | ETF Trends

VanEck is altering the names, investment objectives and underlying benchmarks for two of its emerging markets ETFs – the VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: PEK) and the VanEck Vectors India Small-Cap Index ETF (NYSEArca: SCIF).

The China fund will become the VanEck Vectors China Growth Leaders ETF and will trade under a new ticker, “GLCN,” according to a statement issued by VanEck. Its new underlying index will be the MarketGrader China All-Cap Growth Leaders Index.

SCIF, one of the first ETFs dedicated to Indian small caps, is transitioning to the VanEck Vectors India Growth Leaders ETF with the ticker “GLIN.” In its new iteration, the fund will track the MarketGrader India All-Cap Growth Leaders Index.

SCIF currently targets the MVIS India Small-Cap Index, “which includes securities of small-capitalization companies that are incorporated in India or that are incorporated outside of India but have at least 50% of their revenues/related assets in India,” according to VanEck.

New Benchmark Benefits

“The new indices select the top-ranked companies in each market based on the index provider’s proprietary fundamental scoring methodology that emphasizes growth at reasonable valuations. Companies of all market capitalizations are eligible for inclusion in each index,” according to VanEck. “Additionally, the new index for GLCN broadens the universe of Chinese companies eligible for inclusion from the fund’s current index. The new index that GLCN will seek to track includes locally listed China A-shares, as well as Chinese companies listed on eligible stock exchanges as determined by the index provider, allowing investors to access leading growth companies from the full China opportunity set.”

The original PEK was one of the first ETFs dedicated to China A-shares.

“Investors often seek to invest in emerging markets in order capture the growth potential of those economies, but we believe that the investor risk and return experience may be improved over broad benchmarks through a selective approach that considers the growth, value and quality characteristics of a company,” said Ed Lopez, Managing Director, Head of ETF Product.

Including the aforementioned PEK and SCIF, VanEck offers 10 emerging markets equity ETFs and four fixed income products.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.