Frankfurt (2 December 2020) – Today, MV Index Solutions GmbH (MVIS®) announcedthe licensing of the MVIS Moody's Analytics® US BBB Corporate Bond Index (ticker:MVBI) and the MVIS Moody's Analytics® US Investment Grade Corporate Bond Index(ticker: MVCI) to VanEck for the use as underlying indices for 'smart-beta\ETFs that seek to track MVIS indices driven by the industry-leading credit riskplatform from Moody’s Analytics, CreditEdge®.
“Buildinga portfolio of attractively valued bonds, which have historically providedconsistent outperformance relative to the broad market, begins with an accurateevaluation of credit risk. By using forward-looking credit metrics developed byMoody’s Analytics, these innovative indices allow investors to achieve anattractive level of yield within an income oriented portfolio without having toassume excessive levels of risk,” says William Sokol, Senior ETF ProductManager at VanEck.
The MVIS Moody's Analytics® US BBB Corporate Bond Index (ticker: MVBI) is designed to track the performance of U.S. dollar-denominated BBBrated corporate bonds and the MVIS Moody's Analytics® US Investment Grade Corporate Bond Index(ticker: MVCI) tracks the performance of U.S.dollar-denominated investment grade corporate bonds. The underlying indiceswill seek stay a step ahead of basic credit ratings by selecting bonds with alow probability of becoming fallen angels and trading at an attractive fairvalue, based on proprietary credit risk metrics developed by Moody’s Analytics,Inc.
“We are excited to announce the licensing of these innovativecorporate bond indices to VanEck,” said Thomas Kettner, COO at MV IndexSolutions. “Both ETFs provide exposure to U.S. corporate bonds that exhibit arelatively low risk of being downgraded.”
The indices are calculated in U.S. dollars asa total return gross index and are rebalanced on a monthly basis. A modifiedmarket cap weighting methodology is used. The weightings of the MVIS Moody's Analytics® US BBB Corporate BondIndex (ticker: MVBI)are capped at 5% and weightings of the MVIS Moody's Analytics® US Investment GradeCorporate Bond Index (ticker: MVCI) at 3% per issuer ofcorporate bonds on the index level and at 25% per business sector in which theissuer of the corporate bonds operates on the index level. The excess weightshall be redistributed proportionally across all other uncapped corporatebonds.
Detailed information about the Indices, including methodology details and index data, are available on the MV Index Solutions website.
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