ETF Research Center

VanEck Vectors Pharmaceutical ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the US Listed Pharmaceutical 25 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Van Eck Associates Corp
Website	www.vaneck.com
Inception date	Dec 21, 2011
Assets (mns)	$184
Currency	USD
Expense ratio	36 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Market Cap
Index replication	n/a
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	25
Wgt avg mkt cap (mns)	$103,106
Large cap (>$10bn)	78.1%
Mid cap ($2-10bn)	21.4%
Small cap (<$2bn)	0.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	52.1 %
ABBVIE INC	5.9 %
NOVO-NORDISK A/S-SPONS ADR	5.5 %
ASTRAZENECA PLC-SPONS ADR	5.3 %
GLAXOSMITHKLINE PLC-SPON ADR	5.3 %
BRISTOL-MYERS SQUIBB CO	5.1 %
SANOFI-AVENTIS-ADR	5.1 %
TAKEDA PHARMACEUTICAL CO. LTD. SPO	5.0 %
ELI LILLY & CO	4.9 %
JOHNSON & JOHNSON	4.9 %
MERCK & CO. INC.	4.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	48.6 %
	BRITAIN	15.3 %
	IRELAND	7.4 %
	DENMARK	5.5 %
	FRANCE	5.1 %
	JAPAN	5.0 %
	SWITZERLAND	4.8 %
	ISRAEL	4.2 %
	CANADA	4.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
10.0%	0.1%	0.7%	--	8.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.98	66%
MSCI EAFE	0.88	46%
MSCI Emg. Mkts.	0.54	29%

Technical Indicators
Recent close	$60.47
30d moving avg.	$57.85
Annualized volatility	14.5%
Short interest (ETF)	84.4%
Short interest (Underlying)	2.0%
Relative strength (RSI)	75

Liquidity measures
Avg. volume (thou.)	65
Turnover	2.1%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$6,292

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the VanEck Vectors Pharmaceuticals ETF based on the alternatives' overlap in portfolio holdings with PPH. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

PPH

Expense:

36 bp

ALTAR Score™:

9.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PPH
Ticker	Fund Name	Overlap¹ vs PPH (%)	Expense ratio (bp)	Savings vs PPH (bp)	ALTAR Score™ (%)	ALTAR vs PPH (%)
IHE	iShares DJ US Pharmaceuticals	41.0	42	-6	5.6	-4.0
FTXH	First Trust Nasdaq Pharmaceuticals	40.0	60	-24	5.6	-4.0
XPH	SPDR S&P Pharmaceuticals ETF	39.7	35	1	4.8	-4.8
PJP	Invesco Dynamic Pharmaceuticals	37.6	56	-20	9.9	+0.4
IEIH	iShares Evolved U.S. Innovative Healthcare	33.9	18	18	4.9	-4.7
XLV	Health Care Select Sector SPDR	26.6	13	23	7.5	-2.0
IYH	iShares US Healthcare	26.0	43	-7	6.6	-3.0
FHLC	Fidelity MSCI Health Care	25.6	8	28	6.1	-3.5
VHT	Vanguard Health Care	25.4	10	26	6.1	-3.5
JHMH	John Hancock Multifactor Health Care	24.3	40	-4	6.9	-2.6
IXJ	iShares S&P Global Healthcare	21.1	46	-10	6.6	-3.0
ADRU	BLDRs Europe 100 ADR	19.4	30	6	8.1	-1.5
ADRD	BLDRs Developed Markets 100 ADR	18.2	30	6	9.0	-0.5
DURA	VanEck Vectors Morningstar Durable Dividend	18.0	29	7	6.8	-2.8
RYH	Invesco S&P Equal Weight Healthcare	17.5	40	-4	7.3	-2.2
FXH	First Trust Health Care Alphadex	16.7	63	-27	7.4	-2.2
OUSA	O'Shares FTSE U.S. Quality Dividend	13.6	48	-12	5.9	-3.6
CNCR	Loncar Cancer Immunotherapy	13.5	79	-43	-3.9	-13.4
ACIO	Aptus Collared Income Opportunity	12.6	79	-43	6.8	-2.8
SPHQ	Invesco S&P High Quality Portfolio	12.5	15	21	5.6	-3.9

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	VanEck Vectors Pharmaceuticals
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	22.6	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	36	bp
Equals: ALTAR Score	9.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.49	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.