Frankfurt (2 December 2020) – Today, MV Index Solutions GmbH (MVIS®) announced the 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 risk platform from Moody’s Analytics, CreditEdge®.
“Building a portfolio of attractively valued bonds, which have historically provided consistent outperformance relative to the broad market, begins with an accurate evaluation of credit risk. By using forward-looking credit metrics developed by Moody’s Analytics, these innovative indices allow investors to achieve an attractive level of yield within an income oriented portfolio without having to assume excessive levels of risk,” says William Sokol, Senior ETF Product Manager 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 BBB rated 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 indices will seek stay a step ahead of basic credit ratings by selecting bonds with a low probability of becoming fallen angels and trading at an attractive fair value, based on proprietary credit risk metrics developed by Moody’s Analytics, Inc.
“We are excited to announce the licensing of these innovative corporate bond indices to VanEck,” said Thomas Kettner, COO at MV Index Solutions. “Both ETFs provide exposure to U.S. corporate bonds that exhibit a relatively low risk of being downgraded.”
The indices are calculated in U.S. dollars as a total return gross index and are rebalanced on a monthly basis. A modified market cap weighting methodology is used. The weightings of the MVIS Moody's Analytics® US BBB Corporate Bond Index (ticker: MVBI) are capped at 5% and weightings of the MVIS Moody's Analytics® US Investment Grade Corporate Bond Index (ticker: MVCI) at 3% per issuer of corporate bonds on the index level and at 25% per business sector in which the issuer of the corporate bonds operates on the index level. The excess weight shall be redistributed proportionally across all other uncapped corporate bonds.
Detailed information about the Indices, including methodology details and index data, are available on the MV Index Solutions website.
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