VanEck restructures 3 ETFs

By Adrian Flores

— 1 minute read

01 September 2019

VanEck has announced it has simplified three exchange-traded funds for Australian investors and converting them to locally domiciled funds.

In a statement, VanEck said it is restructuring its Vectors Gold Miners ETF (GDX), Vectors Morningstar Wide Moat ETF (MOAT) and Vectors ChinaAMC CSI 300 ETF (CETF).

The new structure reduces the administration burden for investors and will allow VanEck to offer investors dividend reinvestment plans (DRP) on each ETF.

“While there are no changes to the current investment exposure or the fees or costs for investors in these three ETFs, the restructure will streamline the investment experience for our clients,” said VanEck managing director and head of Asia Pacific, Arian Neiron.

“Investors will no longer be required to complete W-8BEN forms, meaning less administration. Furthermore, a DRP will be available in the new ETFs.”

Mr Neiron said for existing investors in the three ETFs, they will need to accept an offer from VanEck to exchange their CHESS Depositary Interests (CDIs) for units in the new Australian funds by 4 October 2019 before the CDIs no longer trade on 8 October 2019.

Further, he said the new ETFs will retain the existing trading codes.

“No additional fees and charges will apply when the CDIs are converted to units in the Australian ETFs. Importantly, there has been no change to the management costs,” Mr Neiron said.