Van Eck Global
   HOME

TheInfoList



OR:

VanEck is a global
investment management Investment management (sometimes referred to more generally as financial asset management) is the professional asset management of various Security (finance), securities, including shareholdings, Bond (finance), bonds, and other assets, such as r ...
firm headquartered in
New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
. The firm is primarily engaged in issuing
exchange-traded fund An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or comm ...
(ETF) products although it also deals with
mutual fund A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in ...
s and separately managed accounts for
institutional investor An institutional investor is an entity that pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked ...
s. It was a pioneer of investing in foreign growth stocks as well as gold investing. Outside the U.S., the firm has offices in
Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...
and
Asia–Pacific The Asia–Pacific (APAC) also Known as Indo-Pacific is the region of the world adjoining the western Pacific Ocean. The region's precise boundaries vary depending on context, but countries and territories in Australasia, East Asia, and Southea ...
.


Background


Van Eck Global (1955 to 2016)

In 1955, John van Eck founded Van Eck Global, an investment firm that capitalized on the growing international
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange a ...
after the opening of
Western Europe Western Europe is the western region of Europe. The region's extent varies depending on context. The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the Western half of the ancient Mediterranean ...
to US investors in the wake of the Marshall Plan. His father moved to the US from the Netherlands in the early 20th century as an employee of Shell plc to expand its international business. In 1968, the firm launched one of the first US gold funds, International Investors Gold Fund and moved most of its portfolio into shares of gold mining companies. During the 1970s and up to the mid-1980s, gold experienced a
bull market A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time ...
and the firm experienced significant success. The International Investors Gold Fund received large subscriptions and had more than $1 billion in
assets under management In finance, assets under management (AUM), sometimes called fund under management, refers to the total market value of all financial assets that a financial institution—such as a mutual fund, venture capital firm, or depository institutio ...
(AUM). However, after the mid-1980s, the gold market boom ended and the firm's business slowed down. By February 1998, the International Investors Gold Fund had dwindled to $250 million. In response to the decline of the gold market, the firm started developing its business of investing into emerging markets of Asia in the 1990s. In 1996, the firm signed a joint venture agreement with Shenyin & Wanguo to tap the fund market of mainland China. However the
1997 Asian financial crisis The 1997 Asian financial crisis gripped much of East Asia, East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide eco ...
had turned off demand for emerging market funds. One of its funds, the Van Eck Asia Dynasty Fund had its AUM decline from $46.3 million at the end of 1996 to $11.2 million at the end of 1997. From 1994 to 1998, the firm's AUM dropped 21% from $1.82 billion to $1.44 billion. The price of metal in 1997 had hit a 12-year low. Only its Global Hard Assets Fund had positive returns of 26% for the three years ended December 1997. As a result, the firm was hit by redemptions and its customer base shrunk. In 2006, the firm decided to enter the ETF business and launched its first ETF product, Market Vectors Gold Miners ETF. It helped investor bet on gold through the stock market rather than directly. It was compared to SPDR Gold Shares which was launched in November 2004 and although it was not as popular, its AUM rose to $5 billion making it one of the firm's biggest successes. By November 2009, the firm had issued more than 20 ETF products which in total reached an AUM of $9.7 billion. John van Eck died in 2014. He had two sons, Derek and Jan who both worked at VanEck. Derek who was the firm's chief investment officer died unexpectedly in 2010.


VanEck (2016 to present)

In March 2016, the firm announced that from May 2016 onwards, it would be using the brand name VanEck and all businesses and investment offerings would be all under the VanEck brand. In January 2018, VanEck acquired Think ETF Asset Management, a Dutch ETF issuer for an undisclosed sum. It was done to help expand the firm's business in Europe. In November 2020, VanEck applied for a China retail fund management licence. It had previously set up an office in
Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...
to provide consulting services. The China Securities Regulatory Commission stated in March 2021 that VanEck wasn't among the top firms when it came to AUM but requested for more information. In April 2023, VanEck terminated its application and let go of more than 10 employees who were supposed to be part of its planned China mutual fund team. However it retained a team of few than 10 to seek a private fund business. On March 2, 2021, VanEck launched Vectors Social Sentiment ETF on NYSE Arca under the ticker 'BUZZ'. The funds index composed of stocks that are popular on
social media Social media are interactive technologies that facilitate the Content creation, creation, information exchange, sharing and news aggregator, aggregation of Content (media), content (such as ideas, interests, and other forms of expression) amongs ...
. On its first day of trading it had $280 million of inflows making it one of the 12 best debuts on record. However commentators have stated that its top holdings were large companies such as
Twitter Twitter, officially known as X since 2023, is an American microblogging and social networking service. It is one of the world's largest social media platforms and one of the most-visited websites. Users can share short text messages, image ...
and
Facebook Facebook is a social media and social networking service owned by the American technology conglomerate Meta Platforms, Meta. Created in 2004 by Mark Zuckerberg with four other Harvard College students and roommates, Eduardo Saverin, Andre ...
making it similar to an
S&P 500 index The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and in ...
that focuses on technology. In addition the constituent members were only rebalanced on a monthly basis so companies such as
GameStop GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer, headquartered in Grapevine, Texas (a suburb of Dallas). The brand is the largest video game retailer worldwide. , the company operated 3,203 stor ...
, AMC and
BlackBerry BlackBerry is a discontinued brand of handheld devices and related mobile services, originally developed and maintained by the Canadian company Research In Motion (RIM, later known as BlackBerry Limited) until 2016. The first BlackBerry device ...
that had trading frenzies in January that year would not appear. The fund manager could also ignore the index if he saw fit. VanEck has made multiple attempts to launch VanEck Bitcoin Trust, a spot
Bitcoin Bitcoin (abbreviation: BTC; Currency symbol, sign: ₿) is the first Decentralized application, decentralized cryptocurrency. Based on a free-market ideology, bitcoin was invented in 2008 when an unknown entity published a white paper under ...
ETF that is exchange-listed. However, in November 2021, the U.S. Securities and Exchange Commission (SEC) rejected the application citing worries over the potential that fraud in the
cryptocurrency A cryptocurrency (colloquially crypto) is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Individual coin ownership record ...
market will reach regulated exchanges. In March 2023, its application was denied for a third time. On January 11, 2024, the SEC approved VanEck VanEck Bitcoin Trust and it started trading on the Chicago Board Options Exchange under the ticker 'HODL'. In December 2022, VanEck liquidated its Russia ETF products as a result of the
Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
. Sanctions had been imposed on Russian companies, meaning they could not be traded as single stocks or within ETFs in the west. Jan van Eck is currently the firm's
chief executive officer A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
and the firm is currently owned by him and his family.


References


External links

* {{authority control 1955 establishments in New York City Financial services companies established in 1955 Investment management companies of the United States Privately held companies based in New York City Exchange-traded funds Asset management companies