Transcription
4th Quarter 2021The Investment Case for GoldRecent economic trends and gold’s role in a portfoliofrom a trusted leader in the space
Important Disclosuresvaneck.com/goldThis material does not constitute an offer to sell or solicitation to buy any security, including shares of any Fund. An offer or solicitation will be made only through a Fund’s prospectus or summaryprospectus and will be subject to the terms and conditions contained. This material and the information provided herein are not directed at or intended for distribution to any person (or entity) who is acitizen or resident of (or located or established in) any jurisdiction where the distribution of these materials and/or the purchase or sale of interests of a Fund would be contrary to applicable law orregulation or would subject a Fund to any registration or licensing requirement in such jurisdiction. Persons who wish to review this material are required to inform themselves about and to observe anylegal or regulatory restrictions which may affect their eligibility to make an investment in a Fund. Professional advice should be sought in cases of doubt.Any projections, market outlooks or estimates in this material are forward-looking statements and are based upon certain assumptions that are solely the opinion of VanEck. Any projections, outlooks or assumptionsshould not be construed to be indicative of the actual events which will occur. Further, any information regarding portfolio composition, portfolio composition methodology, investment process or limits, or valuationmethods of evaluating companies and markets are intended as guidelines which may be modified or changed by VanEck at any time in its sole discretion without notice.Any performance presented herein is for illustrative purposes only. Historical information is not indicative of future results; current data may differ from data quoted. An index’s performance is not illustrative of a fund’sperformance. You cannot invest in an index.Non-VanEck proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any otherpublication, without express written permission of VanEck. 2022, VanEck.VanEck International Investors Gold FundYou can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to the risks associated with concentrating itsassets in the gold industry, which can be significantly affected by international economic, monetary and political developments. The Fund’s overall portfolio may decline in value due to developments specific to the goldindustry. The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility ofarbitrary action by foreign governments, or political, economic or social instability. The Fund is subject to risks associated with investments in Canadian issuers, commodities and commodity-linked derivatives,commodities and commodity-linked derivatives tax, concentration in gold-mining industry, derivatives, direct investments, emerging market securities, foreign currency transactions, foreign securities, other investmentcompanies, management, market, non-diversification, operational, regulatory, small- and medium-capitalization companies and subsidiary risks.Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully beforeinvesting. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectuscarefully before investing.VanEck Vectors Gold Miners ETF (GDX) and VanEck Vectors Junior Gold Miners ETF (GDXJ)Gold- and silver-related investments, including gold exchange-traded funds (ETFs), are subject to risks including bullion price volatility, changes in world political developments, competitive pressures and risksassociated with foreign investments. In times of stable economic growth, the value of gold, silver and other precious metals may be adversely affected. Mining companies are subject to elevated risks, which include,among others, competitive pressures, commodity and currency price fluctuations, and adverse governmental or environmental regulations. In particular, small and mid-cap mining companies may be subject toadditional risks including inability to commence production and generate material revenues, significant expenditures and inability to secure financing, which may cause such companies to operate at a loss, greatervolatility, lower trading volume and less liquidity than larger companies. Investors should be willing to accept a high degree of volatility and the potential of significant loss. The Funds may loan their securities, whichmay subject them to additional credit and counterparty risk.NYSE Arca Gold Miners Index is a service mark of ICE Data Indices, LLC or its affiliates (“ICE Data”) and has been licensed for use by VanEck Vectors ETF Trust (the “Trust”) in connection with VanEck Vectors GoldMiners ETF (the “Fund”). Neither the Trust nor the Fund is sponsored, endorsed, sold or promoted by ICE Data. ICE Data makes no representations or warranties regarding the Trust or the Fund or the ability of theNYSE Arca Gold Miners Index to track general stock market performance.MVIS Global Junior Gold Miners Index is the exclusive property of MV Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index.Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards MV Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to thirdparties. The VanEck Vectors Junior Gold Miners ETF is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability ofinvesting in the Fund.2
Important Disclosuresvaneck.com/goldVanEck Merk Gold Trust (OUNZ)To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Before investing you should carefully consider the VanEck Merk GoldTrust's (the “Trust") investment objectives, risks, charges and expenses. Please read the prospectus carefully before investing.Investing involves risk, including possible loss of principal. The Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for the purposes of theCommodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. Because shares of the Trust are intended to reflect the price of the gold held in theTrust, the market price of the shares is subject to fluctuations similar to those affecting gold prices. Additionally, shares of the Trust are bought and sold at market price, not at net asset value (“NAV”).Brokerage commissions will reduce returns.The request for redemption of shares for gold is subject to a number of risks including but not limited to the potential for the price of gold to decline during the time between the submission of the request and delivery.Delivery may take a considerable amount of time depending on your location.Commodities and commodity-index linked securities may be affected by changes in overall market movements and other factors such as weather, disease, embargoes, or political and regulatory developments, as wellas trading activity of speculators and arbitrageurs in the underlying commodities.Trust shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of Trust shares relates directly to the value of the gold held by the Trust (less its expenses), and fluctuations inthe price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the goldrepresented by them. The Trust does not generate any income, and as the Trust regularly issues shares to pay for the Sponsor’s ongoing expenses, the amount of gold represented by each Share will decline overtime. Investing involves risk, and you could lose money on an investment in the Trust. For a more complete discussion of the risk factors relative to the Trust, carefully read the prospectus.The sponsor of the Trust is Merk Investments LLC (the “Sponsor”). Van Eck Securities Corporation and Foreside Fund Services, LLC, provide marketing services to the Trust. 2022 Merk Investments LLC. 2022 VanEck. All trademarks, service marks or registered trademarks are the property of their respective owners.Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully beforeinvesting. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectuscarefully before investing.Van Eck Securities Corporation, Distributor of VanEck International Investors Gold Fund, VanEck Vectors Gold Miners ETF, and VanEck Vectors Junior Gold Miners ETF. 666 Third Avenue, New York, NY 10017vaneck.com 800.826.2333.3
Table of ContentsAbout VanEck5Investment Case for Gold Bullion10Investment Case for Gold Miners20Role of Gold in a Portfolio27VanEck’s Gold Investments30
About VanEck
Mission and Historyvaneck.com/goldVanEck’s mission is to strengthen portfolios by offering forward looking, intelligent solutions Transformative Investments: Started offering active strategies in international equities (1955), gold shares (1968), emerging markets (1993);added passive strategies in 2006 and has emerged as top 10 ETF sponsor globally Private Ownership: As an independent, private firm we can focus on client interests with a long-term perspective Accessible Management: We pride ourselves on being available to clients and engaging directly with them6
Corporate Overviewvaneck.com/goldToday, VanEck manages approximately 81.7 billion in assets Global headquarters in New York with robust lineups of local funds inEurope and Australia 311 full-time staff, including 53 investment professionals; portfoliomanagers average 24 years of experience Lead portfolio managers all have direct experience in the sectors andregions in which they invest Institutional and wealth management clients Active funds and smart beta ETFs have won numerous performanceawards 3.0%B 1.7%B 6.3%BGlobal and International EquityEmerging Markets Equity 8.4%BMunicipal Bonds 9.5%BU.S. Equity 55.9%BCorporate BondsEmerging Markets and International Bonds 8.5%B 6.7%BEquity IncomeAsset Allocation, Commodities and Digital AssetsData as of December 31, 2021. Awards received available at erage/awards/. Strategies offered in mutual, pooled and off-shore funds, separate accounts, variableinsurance portfolios, sub-advisory, ETFs and limited partnerships.7
Over 50 Years of Gold Leadershipvaneck.com/gold VanEck has led the development of strategies that allow investors to easily access the potential portfolio benefits ofgold The firm launched the nation’s first gold fund (INIVX) in 1968 and also issued the first gold miners ETF (GDX) in2006VanEck’s History In Gold1955VanEck founded,launchedinternationalequity mutual fund196819941983Opens firstsub-advisory goldrelated separatelymanaged accountInternational equityobjective changed,creating the U.S.’sfirst gold equity fundLaunches first long-onlyhard assets fund,which can includeallocations to gold1992Becomes investmentadviser for goldequity mutual fundin Europe20062009Second gold minersETF lists, specializingin junior gold miningfirmsLaunches gold minersETF; gold-related assetsunder management cross 1B level20122015Becomes marketing agentfor gold bullion ETF withoption to take physicaldelivery of goldOpens gold UCITSfund availableoutside U.S.2020Gold related assetsat approximately 23B as of June 308
VanEck’s Full Range of Gold Investing Accessvaneck.com/goldVanEck offers gold investing access through active strategies and goldETFs providing exposure to both gold mining stocks and gold bullionActively ManagedGold MiningINIVXVanEckInternationalInvestors GoldFundPhysical Gold withOption for DeliveryIndex Exposure to Gold MiningOUNZGDX VanEck Merk Gold TrustVanEck Vectors Gold Miners ETFPlease see important disclosures at the beginning of this presentation.GDXJ VanEck Vectors Junior Gold MinersETF9
Investment Case for GoldBullion
Gold Bull Marketvaneck.com/goldGold Price 2,256Bullish positioning » Overweighthigh-cost producers, juniors / smallcaps Defensive positioning » largecaps, royalty co’s (historic max 16%), gold (historic max 10%),cash (historic max 10%)Bullish Positioning2016 - 2020 2,056 1,856 1,656Price ( /oz) 1,456 1,256 1,056 856Bullish Positioning2001 - 2013Defensive Positioning2013 - 2015 656 456 2562001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Source: Bloomberg, VanEck. Data as of December 2021.Please note the information in this presentation represents the investment team’s current implementation of its investment strategy and this implementation may change without notice.11
Are Negative Real Rates Here To Stay?vaneck.com/goldGold vs. Real RatesGold ( US/oz)10% 2,2508% 2,0006% 1,7504% 1,5002% 1,2500% 1,000-2% 750-4% 500-6% 250-8% 0Gold Price ( US/oz)Real U.S. Interest RatesU.S. Real Rates Negative real rates have historicallybeen a positive environment forgold Indicative of high financial risks Gold becomes an alternative tointerest-bearing assets Inflation could drive real rates lowerSource: VanEck, FactSet, Bloomberg. Data as of December 2021. Please see important disclosures at the beginning of this presentation.12
Central Bank Stimulus Creates Systemic Riskvaneck.com/goldCentral Bank Balance Sheets (in US, Trillions)FedECBBoJSNBBoEBoCRBA A historical relationship betweenrising balance sheets and goldprices suggests the recent spikemay potentially be supportive ofgold In addition, sovereign debt andgovernment spending has risen bytrillions of dollars Massive monetary and fiscalstimulus may lead to an unwantedcycle of inflation 30 25 US, Trillion 20 15 10 5 0Source: VanEck, Bloomberg. Data as of December 2021. Fed U.S. Federal Reserve Bank. ECB European Central Bank. BoJ Bank of Japan. SNB Swiss National Bank. BoE Bank of England. BoC Bankof Canada. RBA Reserve Bank of Australia. Please see important disclosures at the beginning of this presentation.13
Big Government Debt Fueling Gold Pricesvaneck.com/gold 2,000 2,000 1,800 1,800 1,600 1,600 1,400 1,400 1,200 1,200 1,000 1,000 800 600 600 400 400 500 0- 500- 1,000- 1,500- 2,000- 2,500- 3,000- 3,500- 4,000ClintonBushObamaTrump 200 500 0- 500- 1,000- 1,500- 2,000- 2,500- 3,000- 3,500- 4,000Historically, a widening U.S. budgetdeficit has been negative for thedollar and positive for gold The deficit is likely to continuingbuilding as we exit the previousrecession and as plans develop fornew green infrastructure Increased liquidity in the systemshould be positive for goldDeficit/SurplusDeficit/Surplus 200Biden 800 US/oz US/ozGold vs. U.S. Federal Government Surplus/DeficitSource: Ned Davis, CBO, FRED, VanEck. Data as of August 2021. Please see important disclosures at the beginning of this presentation.14
Inflation Expectations Risingvaneck.com/goldU.S. Market Inflation Expectations (5 Years Ahead)3.5% COVID recession tempered inflationexpectations, similar to the GlobalFinancial Crisis With economic growth or additionalstimulus, inflation expectations mayaccelerate Commodities, labor, housingcreating inflationary pressures5-year USD Inflation Swap (Zero Coupon)3.0%2.5%2.0%Average Crisis-1.0%Source: Bloomberg. Data as of December 2021. Please see important disclosures at the beginning of this presentation.15
Gold May Thrive When Inflation Heats Upvaneck.com/goldGold vs. Other Asset Classes In Various Inflation Regimes – 1970 to 2021Average Trailing 12-Month Return35%30%23%Frequency of Inflation Regime60% Gold has generated some of itslargest outperformance vs. U.S.stocks and bonds in periods of highinflation With inflation averaging 2% for thelast 10 years (and barely 2% for thelast 20), 3% inflation wouldprobably bring a strong goldresponse17%Gold Bullion25%Commodities (Broad Basket)20%U.S. Stocks15%U.S. Bonds10%5%0%-5%-10%-15% 2%2-6%Inflation Regime(U.S. CPI, YoY) 6%Source: VanEck, Bloomberg, Morningstar. Data as of December 2021. “Commodities (Broad Basket)” represented by the Bloomberg Commodity Index TR; “U.S. Equities” represented by the S&P 500 TR; “U.S.Bonds” represented by the Bloomberg Barclays US Aggregate Bond Index TR from 1976 to 2021, the Bloomberg Barclays US Government/Credit Index TR from 1973 to 1976, and a blend of Morningstar’s U.S. LongTerm Government Bond, U.S. Intermediate Government Bond, and U.S. Long-Term Corporate Bond Indices from 1970 to 1973. Please see important disclosures at the beginning of this presentation.16
Inflows To ETPs Driving Gold Pricesvaneck.com/goldTotal Known ETF Holdings in Gold (oz, Millions)ETF Holdings of Gold120 Western demand (investmentdemand) in bullion ETPs andfutures drives bull markets100 Investment demand more impactfulthan jewelry demand Positive trend of ETP inflows since2015 Recent bullion ETF outflowsaccompanies rise in rates,correction in gold price806040200Source: VanEck, Bloomberg. Data as of December 2021. Please see important disclosures at the beginning of this presentation.17
Gold Has Outperformed in Modern Marketvaneck.com/goldGold Outperformance Over 20 Years: 2000 – 2021Gold ( /oz)800U.S. StocksU.S. BondsU.S. Treasuries800 Gold is more than a diversificationand hedging tool Gold has outperformed many otherasset classes since the beginningof the century Since the dotcom bubble in 2000,economic and financial risks haveescalated, driving gold higherCumulative Return (Indexed at 0000Source: FactSet. Data as of December, 2021. US Stocks represented by S&P 500 Index; US Bonds represented by Bloomberg Barclays US Aggregate Bond Index; Gold Bullion represented by LBMA PM GoldPrice; US Treasuries represented by the Bloomberg Barclays US 1-3 Year Treasury Bond Index. Past performance is not indicative of future results. Indices are not securities in which investments can be made. Anindex’s performance is not illustrative of a fund’s performance. Please see important disclosures at the beginning of this presentation and definitions at end.18
Investment Case for GoldMiners
Gold Equity Valuations Currently At Attractive Levelsvaneck.com/goldHistoric P/CF of Seniors and Mid-Tiers (2006 – 2020)P/CF (Average, Seniors & Mid-Tiers)25x20x2006 - 201114.9x15x2006 - Present10.6x Major and Mid-Tier miner price/cashflow (P/CF) valuations have beenbelow average in recent years Gold miners historically have tradedat prices above their valuations,based on cash flow, due in part toinvestor expectations of excessreturn versus rising gold prices andthe potential for gold discovery bythese companies10x2012 - Present7.9x5x0xSource: RBC Capital Markets. Data as of October, 2021. “Mid-Tier” and “Senior” mining companies produce, on average, approximately 0.3-1.5 million ounces and 1.5-6.0 million ounces of gold per year,respectively. Please see important disclosures at the beginning of this presentation.20
Cost Improvements Aiding With Higher Marginsvaneck.com/goldAverage All-In Sustaining Costs* vs. Average Annual Gold PriceAverage All-In Sustaining Costs (AISC)Average Annual Gold Price All-in sustaining costs haveremained at/near 1,000 for the lastseveral years, despite higher goldprices Recent cost inflation should driveaverage AISC to around 1,100/oz Increasing margins have helpeddisciplined companies generatesubstantial free cash flowAverage AISC / Annual Gold Price ( /oz) 1,800 1,600 1,400 1,200 1,000 800 600 972 01970 200Source: Scotiabank. Data as of December 2021. *All-In Sustaining Costs (AISC) Total cash costs plus sustaining capital plus general and administrative (G&A) and exploration costs. Please see importantdisclosures at the beginning of this presentation.21
Miners Have Fundamentally Transformed Their Businessesvaneck.com/goldGold Miner Free Cash Flow Yield and Net Debt/EBITDA*FCF YieldNet Debt / EBITDA (RHS)6%1.2x5%1.0x4%0.8x3%0.6x2%0.4x1%0.2x0%Gold miners are making a strongcase for value investors right now A persistent focus on debt reductionand free cash flow generation hasfundamentally transformed howthese companies look on both anabsolute and relative valuationperspective1.4x20182019202020212022 YTDNet Debt / EBITDAFree Cash Flow Yield7% 0.0xSource: FactSet. Data as of January 2022. Figures represent the average value of the underlying constituents of the MSCI ACWI Select Gold Miners IMI Index for each of the time periods shown.* “Gold Miners” NYSE Arca Gold Miners Index. Index descriptions provided in the disclosures at the end of this presentation.22
Gold Production Reaching A Plateauvaneck.com/goldGold Discoveries and Exploration Spending: 1990 to 2021Projected new gold in discoveriesGold exploration budgets240 12,000220 11,000200 10,000180 9,000160 8,000140 7,000120 6,000100 5,00080 4,00060 3,00040 2,00020 1,0000Gold Exploration Budgets ( M)Gold in Discoveries (Moz)Gold in reserves, resources & past production Industry no longer able to growproduction Decline in discoveries, despiterecord spending on exploration Supply issues may become a driverin the future Companies focused on maintainingproduction, growing profits 0Source: BofA Merrill Lynch Global Research; S&P Global Intelligence. Data as of June 2021 (latest available). Please see important disclosures at the beginning of this presentation.23
Gold Mining Industry Has Been Transformedvaneck.com/goldFocus on Returns and Disciplined Capital AllocationGrowing Margins,Reserves andResourcesMaintaining/StrengtheningBalance SheetReturning CashTo Shareholders Disciplined and value-based approach to growth Advancing the most profitable projects Investing in exploration across cycles Financially conservative – low debtlevels, no hedging Maintaining low costs Capital discipline – sequenceprojects, recent history of highIRRs, lower capex Incentivized to deliver profits notounces Maintaining sufficient liquidity and low net debt Refinancing outstanding debt Preserving balance sheet optionality and flexibility Increasing dividends Increasing share buybacks Committing to long-term value creationSource: VanEck, Newmont Mining Corporation. Data as of June 2019. Not a recommendation to buy or sell any security. Past performance is no guarantee of future results. Please see important disclosures at thebeginning of this presentation.24
Gold Industry Addressing Climate Changevaneck.com/goldEstimates of Potential Reductions In Gold Mining’s Power Emissions By 2030 Gold industry has taken a proactivestance on determining the mosteffective means for limiting theiroverall carbon footprint Power and electricity data reportedby 31 companies (owning a total of158 assets around the globe) hasbeen collected/analyzed for broaduse In addition to follow-through onannounced plans, companiesshould see support from griddecarbonization and improvedenergy efficiencySource: World Gold Council. Data as of December 2020. “RES” renewable energy sources; “HFO” heavy fuel oil. “ 2 C” and “1.5 C target alignments” Guidelines set forth in the Paris Agreement aiming to limitglobal temperature rise in the next century to “well below 2 degrees Celsius” with a target closer to (or even lower than) 1.5 degrees Celsius. Please see important disclosures at the beginning of this presentation.25
Role of Goldin a Portfolio
The Role Of Gold In A Portfolio: Portfolio Diversificationvaneck.com/goldAsset Class Correlations, January 1990 to December 2021U.S. StocksInternationalStocksEmerging MarketStocksREITsGlobal BondsGold MinersU.S. Stocks1.00International Stocks0.871.00Emerging Market Stocks0.760.861.00REITs0.690.650.571.00Global Bonds0.180.370.370.351.00Gold Miners0.200.290.430.220.491.00Gold Bullion0.060.160.300.140.540.81Gold Bullion Low correlation with mainstreaminvestments – global stocks andbonds, REITs May enhance risk-adjusted returns1.00Source: Bloomberg, VanEck. Data as of December 2021. U.S Stocks represented by S&P 500 Index; International Stocks represented by MSCI EAFE Index; Emerging Markets Stocks represented MSCI EMIndex; Global Bonds represented by Bloomberg Barclays Global Aggregate Bond Index; REITS represented by FTSE NAREIT Index; Gold Miners represented by NYSE Arca Gold Miners Index. Past performance isnot indicative of future results. Please see important disclosures at the beginning of this presentation.27
The Role Of Gold In A Portfolio: Hedge Against Systemic Risksvaneck.com/goldDow/Gold Ratio, 1896 to 2021 454035Arrows indicateperiods of goldoutperformanceDow/Gold Ratio30Historically outperforms the broadermarket, e.g. DJIA, during—Deflationary periods (‘30s, ‘09)—High inflation (‘70s)—Market turmoil (‘00s) caused byasset bubbles2520151050Source: Bloomberg, VanEck. Data as of December 2021. Please see important disclosures at the beginning of this presentation.28
VanEck’s Gold Investments
Over 50 Years of Gold Leadershipvaneck.com/gold VanEck has led the development of strategies that allow investors to easily access the portfolio benefits of gold The firm launched the nation’s first gold fund (INIVX) in 1968 and also issued the first gold miners ETF (GDX) in 2006 Our approaches are tailored to meet investors needs and preferences, whether active or passive via gold mining or bullionVanEck Gold CapabilitiesGold-Related Assets 20.9 Billion (as of December 31, 2021)Gold StrategiesActively Managed Gold MiningPassively Managed Gold MiningPassively Managed Gold Bullion(with the option of physical delivery)Assets by Strategy (in Billion) 0.6B 19.3BVehicle Availability 1.0BU.S. Mutual FundsU.S. Insurance TrustsU.S. ETFsUCITS FundsSub-Advisory ServicesInstitutional Separate AccountsActively Managed Gold MiningPassively Managed Gold MiningPassively Managed Gold BullionSource: VanEck. Data as of December 31, 2021.30
VanEck’s Gold Investments – Gold Bullionvaneck.com/goldVanEck Merk Gold Trust provides investors with a convenient and cost-efficient way to buy and hold gold through an exchange-tradedproduct with the option to take physical delivery of gold.DeliverabilityFund DetailsTickerOUNZInception Date5/16/2014Expense Ratio (%)0.25Net Assets ( M)CustodianTrustee588.92JPMorgan Chase Bank, N.A.Bank of New York MellonVanEck Merk Gold Trust holds gold bullion in the form ofallocated London Bars. It differentiates itself by providinginvestors with the option to take physical delivery of goldbullion in exchange for their shares.ConvertibilityFor the purpose of facilitating delivery, Merk has developed apatented process for the conversion of London Bars into goldcoins and bars in denominations investors may desire.Tax EfficiencyTaking delivery of gold is not a taxable event as investorsmerely take possession of what they already own: the gold.Why Delivery Matters?Access: Investors have direct access to their goldEfficiency: OUNZ investors that choose to take delivery of physical gold avoid the tax liability associated with selling other gold ETF shares inorder to fund physical gold purchasesPeace of Mind: Gold has successfully been delved to OUNZ investors in exchange for their shares providing an extra layer of comfort toinvestors that their gold is in fact in OUNZ’s vaultSource: VanEck. Net assets as of December 2021. The request for redemption of shares for gold is subject to a number of risks including but not limited to the potential for the price of gold to declineduring the time between the submission of the request and delivery. Delivery may take a considerable amount of time depending on your location. It is expected that, if an Investor submits sharesto the Trust, the exchange for physical gold will generally not be a taxable event. See tax discussion in prospectus. Not tax advice; please consult with a tax professional for tax advice. Please seeimportant disclosures at the beginning of this presentation.31
VanEck’s Gold Investments – Gold Minersvaneck.com/goldGold miners offer indirect exposure to gold. Business heavily dependent on gold prices but other factorsalso impact performance.Actively Managed Mutual FundExchange Traded FundsInternational Investors Gold FundVan Eck Vectors Gold Miners ETFAn actively managed portfolio of gold mining equities with a 40 year track record. The fund is managed by a specialized investmentteam that conducts continuous on- and under-the-ground researchto access mining efficiencies and opportunities.TickersComprehensive portfolio of global gold minersTickerGDXBenchmark IndexNYSE Arca Gold Miners IndexInception Date5/16/2006Class AINIVXExpense Ratio Gross/Net (%)0.51/0.51Class CIIGCXNet Assets ( M)13,273.08Class IINIIXClass YINIYXInception Date2/10/1956Van Eck Vectors Junior Gold Miners ETFEarly stage and exploratory global gold minersTickerBen
An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
