VanEck Taps Moody’s Analytics Data for Two New ETFs

Rhea-AI Summary

Moody’s Analytics has partnered with VanEck to provide data and analytics for two new exchange-traded funds (ETFs): VanEck Vectors® Moody’s Analytics® IG Corporate Bond ETF (MIG®) and VanEck Vectors® Moody’s Analytics® BBB Corporate Bond ETF (MBBB®). These funds focus on the US corporate investment-grade market and BBB-rated securities, respectively. Moody’s Analytics will supply credit risk metrics via its CreditEdge solution to enhance investor decision-making. This collaboration comes as the ETF industry gains traction amid the ongoing economic challenges.

Positive

• Partnership with VanEck enhances Moody's Analytics' visibility in the ETF market.
• Utilization of CreditEdge solution may improve investor decision-making regarding corporate securities.
• Focus on income generation and risk management could attract more investors in a low-yield environment.

Negative

• No direct financial metrics or impact on Moody's revenue from this partnership mentioned.

NEW YORK--(BUSINESS WIRE)--Moody’s Analytics today announced that it is working with VanEck, a global investment manager, as a data and analytics provider for two new exchange-traded funds (ETFs). The funds are VanEck Vectors® Moody’s Analytics® IG Corporate Bond ETF (MIG®), which focuses on the US corporate investment-grade market, and the VanEck Vectors® Moody’s Analytics® BBB Corporate Bond ETF (MBBB®), which concentrates on the market’s BBB segment, for bonds with the lowest investment grade rating.

Moody’s Analytics has offered its credit risk metrics for use in the indices underlying these two new VanEck funds. VanEck is using several data points produced by the Moody’s Analytics industry-leading CreditEdge^TM solution as inputs for the indices underlying the new ETFs.

These metrics are based on information from financial markets and are combined with a detailed picture of a company's capital structure. They are used by investors for credit quality assessment and to identify corporate securities that offer attractive spreads relative to their market-implied credit risk.

In recent years, the ETF industry has grown in popularity as investors look for new smart beta fixed-income strategies. Many ETFs performed well during the financial crisis of 2007-08 and are performing strongly now, even amid the economic downturn caused by the COVID-19 pandemic.

“The CreditEdge solution has a comprehensive set of credit risk metrics for early warning detection of credit deterioration,” said Nihil Patel, Managing Director at Moody’s Analytics. “These metrics have been shown to help identify undervalued corporate securities. We are pleased that VanEck will be using these metrics as key inputs for the indices underlying their new ETFs.”

“The new corporate bond funds are designed to provide investors with robust new tools to enhance their investment-grade bond exposures,” said Fran Rodilosso, Head of Fixed Income ETF Portfolio Management at VanEck. “They offer investors income potential and outperformance without having to assume excessive risk—particularly important in this prolonged low-yield environment.”

About Moody’s Analytics

Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter and LinkedIn.

Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody's Corporation reported revenue of $4.8 billion in 2019, employs approximately 11,400 people worldwide and maintains a presence in more than 40 countries.

About Van Eck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. As of October 31, 2020, VanEck managed approximately $60.1 billion in assets, including mutual funds, ETFs and institutional accounts. It is 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. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Its actively managed strategies are fuelled 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 its founding in 1955, putting clients’ interests first, in all market environments, has been at the heart of the firm’s mission.