Important Tax Information for VanEck Vectors ETFs

Transcription

1 2017 VanEck Supplemental Tax Guide Important Tax Information for VanEck Vectors ETFs Section 1 - Information for Municipal ETFs Page Taxable vs. Tax-empt 2-4 State by State Information and Alternative Minimum Tax Information 5-6 Section 2 - Information for Equity ETFs Qualified for Individuals 7-9 Received Deduction for Corporations Section 3 - Long-Term Capital Gain Distributions 12 Section 4 - Information Regarding Funds with Source and Tax Credits Section 5 - Return of Capital / Nondividend Distributions This material must be accompanied or preceded by a prospectus and summary prospectus. This document does not constitute and should not be considered a substitute for professional legal or tax advice. We strongly urge shareholders to consult with their tax advisers regarding the tax consequences of this information. IRS Circular 230 Disclosure: VanEck does not provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Shareholders or potential shareholders of the VanEck Vectors ETFs should obtain their own independent tax advice based on their particular circumstances. For more complete information about the VanEck Vectors ETFs, contact your investment representative and request a prospectus or visit Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call or visit Please read the prospectus and summary prospectus carefully before investing. VanEck Vectors ETF shares trade like stocks, are subject to investment risk and will fluctuate in market value. The market price of the VanEck Vectors ETFs shares may be more or less than the net asset value. If you have any questions concerning this information or the VanEck Vectors ETFs in general, contact your investment representative, or please call between 9:00 a.m. and 5:30 p.m. EST, Monday through Friday. vaneck.com

2 SECTION 1 - MUNICIPAL INCOME ETFs TAXABLE VS. TAX-EXEMPT INCOME AND ALTERNATIVE MINIMUM TAX The per share amounts of taxable vs. tax-exempt income and alternative minimum tax (AMT) percentages for the VanEck Vectors Municipal ETFs are listed in the table below. If you received a Form 1099-DIV, you should use the amounts shown in Box 1a and Box 10 for your share of ordinary income and taxexempt income. If you did not receive a Form 1099-DIV, to determine your share of the Fund's taxable vs. tax-exempt income, multiply the per share amounts shown below times the number of shares you held on the record date of each distribution. To determine your share of the tax-exempt income that is subject to AMT, multiply the AMT percentage by the amount shown in Box 10 of Form 1099-DIV. If you did not receive a Form 1099-DIV, multiply the AMT percentage by the amount of tax-exempt interest you received for the calendar year. Taxable Per Share Tax-empt Interest Per Share Percentage of Tax-empt Interest that is Subject to AMT AMT-Free Intermediate Municipal Index ETF ITM 02/03/ /01/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 03/03/ /01/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 04/05/ /03/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 05/03/ /01/ /05/ AMT-Free Intermediate Municipal Index ETF ITM 06/05/ /01/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 07/06/ /03/ /10/ AMT-Free Intermediate Municipal Index ETF ITM 08/03/ /01/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 09/06/ /01/ /08/ AMT-Free Intermediate Municipal Index ETF ITM 10/03/ /02/ /06/ AMT-Free Intermediate Municipal Index ETF ITM 11/02/ /01/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 12/04/ /01/ /07/ AMT-Free Intermediate Municipal Index ETF ITM 12/28/ /27/ /03/ AMT-Free Intermediate Municipal Index ETF AMT-Free Long Municipal Index ETF MLN 02/03/ /01/ /07/ AMT-Free Long Municipal Index ETF MLN 03/03/ /01/ /07/ AMT-Free Long Municipal Index ETF MLN 04/05/ /03/ /07/ AMT-Free Long Municipal Index ETF MLN 05/03/ /01/ /05/ AMT-Free Long Municipal Index ETF MLN 06/05/ /01/ /07/ AMT-Free Long Municipal Index ETF MLN 07/06/ /03/ /10/ AMT-Free Long Municipal Index ETF MLN 08/03/ /01/ /07/ AMT-Free Long Municipal Index ETF MLN 09/06/ /01/ /08/ AMT-Free Long Municipal Index ETF MLN 10/03/ /02/ /06/ AMT-Free Long Municipal Index ETF MLN 11/02/ /01/ /07/ AMT-Free Long Municipal Index ETF MLN 12/04/ /01/ /07/ AMT-Free Long Municipal Index ETF MLN 12/28/ /27/ /03/ AMT-Free Long Municipal Index ETF AMT-Free Short Municipal Index ETF SMB 02/03/ /01/ /07/ AMT-Free Short Municipal Index ETF SMB 03/03/ /01/ /07/ AMT-Free Short Municipal Index ETF SMB 04/05/ /03/ /07/ AMT-Free Short Municipal Index ETF SMB 05/03/ /01/ /05/ AMT-Free Short Municipal Index ETF SMB 06/05/ /01/ /07/ AMT-Free Short Municipal Index ETF SMB 07/06/ /03/ /10/ AMT-Free Short Municipal Index ETF SMB 08/03/ /01/ /07/ AMT-Free Short Municipal Index ETF SMB 09/06/ /01/ /08/ AMT-Free Short Municipal Index ETF SMB 10/03/ /02/ /06/ AMT-Free Short Municipal Index ETF SMB 11/02/ /01/ /07/ AMT-Free Short Municipal Index ETF SMB 12/04/ /01/ /07/ AMT-Free Short Municipal Index ETF SMB 12/28/ /27/ /03/ AMT-Free Short Municipal Index ETF

3 SECTION 1 - MUNICIPAL INCOME ETFs TAXABLE VS. TAX-EXEMPT INCOME AND ALTERNATIVE MINIMUM TAX The per share amounts of taxable vs. tax-exempt income and alternative minimum tax (AMT) percentages for the VanEck Vectors Municipal ETFs are listed in the table below. If you received a Form 1099-DIV, you should use the amounts shown in Box 1a and Box 10 for your share of ordinary income and taxexempt income. If you did not receive a Form 1099-DIV, to determine your share of the Fund's taxable vs. tax-exempt income, multiply the per share amounts shown below times the number of shares you held on the record date of each distribution. To determine your share of the tax-exempt income that is subject to AMT, multiply the AMT percentage by the amount shown in Box 10 of Form 1099-DIV. If you did not receive a Form 1099-DIV, multiply the AMT percentage by the amount of tax-exempt interest you received for the calendar year. Taxable Per Share Tax-empt Interest Per Share Percentage of Tax-empt Interest that is Subject to AMT CEF Municipal ETF XMPT 02/03/ /01/ /07/ % CEF Municipal ETF XMPT 03/03/ /01/ /07/ % CEF Municipal ETF XMPT 04/05/ /03/ /07/ % CEF Municipal ETF XMPT 05/03/ /01/ /05/ % CEF Municipal ETF XMPT 06/05/ /01/ /07/ % CEF Municipal ETF XMPT 07/06/ /03/ /10/ % CEF Municipal ETF XMPT 08/03/ /01/ /07/ % CEF Municipal ETF XMPT 09/06/ /01/ /08/ % CEF Municipal ETF XMPT 10/03/ /02/ /06/ % CEF Municipal ETF XMPT 11/02/ /01/ /07/ % CEF Municipal ETF XMPT 12/04/ /01/ /07/ % CEF Municipal ETF XMPT 12/28/ /27/ /03/ % CEF Municipal ETF High-Yield Municipal Index ETF HYD 02/03/ /01/ /07/ % High-Yield Municipal Index ETF HYD 03/03/ /01/ /07/ % High-Yield Municipal Index ETF HYD 04/05/ /03/ /07/ % High-Yield Municipal Index ETF HYD 05/03/ /01/ /05/ % High-Yield Municipal Index ETF HYD 06/05/ /01/ /07/ % High-Yield Municipal Index ETF HYD 07/06/ /03/ /10/ % High-Yield Municipal Index ETF HYD 08/03/ /01/ /07/ % High-Yield Municipal Index ETF HYD 09/06/ /01/ /08/ % High-Yield Municipal Index ETF HYD 10/03/ /02/ /06/ % High-Yield Municipal Index ETF HYD 11/02/ /01/ /07/ % High-Yield Municipal Index ETF HYD 12/04/ /01/ /07/ % High-Yield Municipal Index ETF HYD 12/28/ /27/ /03/ % High-Yield Municipal Index ETF Pre-Refunded Municipal Index ETF PRB 02/03/ /01/ /07/ Pre-Refunded Municipal Index ETF PRB 03/03/ /01/ /07/ Pre-Refunded Municipal Index ETF PRB 04/05/ /03/ /07/ Pre-Refunded Municipal Index ETF PRB 05/03/ /01/ /05/ Pre-Refunded Municipal Index ETF PRB 06/05/ /01/ /07/ Pre-Refunded Municipal Index ETF PRB 07/06/ /03/ /10/ Pre-Refunded Municipal Index ETF PRB 08/03/ /01/ /07/ Pre-Refunded Municipal Index ETF PRB 09/06/ /01/ /08/ Pre-Refunded Municipal Index ETF PRB 10/03/ /02/ /06/ Pre-Refunded Municipal Index ETF PRB 11/02/ /01/ /07/ Pre-Refunded Municipal Index ETF PRB 12/04/ /01/ /07/ Pre-Refunded Municipal Index ETF PRB 12/28/ /27/ /03/ Pre-Refunded Municipal Index ETF

4 SECTION 1 - MUNICIPAL INCOME ETFs TAXABLE VS. TAX-EXEMPT INCOME AND ALTERNATIVE MINIMUM TAX The per share amounts of taxable vs. tax-exempt income and alternative minimum tax (AMT) percentages for the VanEck Vectors Municipal ETFs are listed in the table below. If you received a Form 1099-DIV, you should use the amounts shown in Box 1a and Box 10 for your share of ordinary income and taxexempt income. If you did not receive a Form 1099-DIV, to determine your share of the Fund's taxable vs. tax-exempt income, multiply the per share amounts shown below times the number of shares you held on the record date of each distribution. To determine your share of the tax-exempt income that is subject to AMT, multiply the AMT percentage by the amount shown in Box 10 of Form 1099-DIV. If you did not receive a Form 1099-DIV, multiply the AMT percentage by the amount of tax-exempt interest you received for the calendar year. Taxable Per Share Tax-empt Interest Per Share Percentage of Tax empt Interest that is Subject to AMT Short High-Yield Municipal Index ETF SHYD 02/03/ /01/ /07/ % Short High-Yield Municipal Index ETF SHYD 03/03/ /01/ /07/ % Short High-Yield Municipal Index ETF SHYD 04/05/ /03/ /07/ % Short High-Yield Municipal Index ETF SHYD 05/03/ /01/ /05/ % Short High-Yield Municipal Index ETF SHYD 06/05/ /01/ /07/ % Short High-Yield Municipal Index ETF SHYD 07/06/ /03/ /10/ % Short High-Yield Municipal Index ETF SHYD 08/03/ /01/ /07/ % Short High-Yield Municipal Index ETF SHYD 09/06/ /01/ /08/ % Short High-Yield Municipal Index ETF SHYD 10/03/ /02/ /06/ % Short High-Yield Municipal Index ETF SHYD 11/02/ /01/ /07/ % Short High-Yield Municipal Index ETF SHYD 12/04/ /01/ /07/ % Short High-Yield Municipal Index ETF SHYD 12/28/ /27/ /03/ % Short High-Yield Municipal Index ETF AMT-Free Year Intermediate Municipal Index ETF ITML 02/03/ /01/ /07/ AMT-Free Year Intermediate Municipal Index ETF ITML 03/03/ /01/ /07/ AMT-Free Year Intermediate Municipal Index ETF ITML 04/05/ /03/ /07/ AMT-Free Year Intermediate Municipal Index ETF ITML 05/03/ /01/ /05/ AMT-Free Year Intermediate Municipal Index ETF ITML 06/05/ /01/ /07/ AMT-Free Year Intermediate Municipal Index ETF ITML 07/06/ /03/ /10/ AMT-Free Year Intermediate Municipal Index ETF ITML 08/03/ /01/ /07/ AMT-Free Year Intermediate Municipal Index ETF ITML 09/06/ /01/ /08/ AMT-Free Year Intermediate Municipal Index ETF ITML 09/26/ /25/ /29/ AMT-Free Year Intermediate Municipal Index ETF (a) AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 02/03/ /01/ /07/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 03/03/ /01/ /07/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 04/05/ /03/ /07/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 05/03/ /01/ /05/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 06/05/ /01/ /07/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 07/06/ /03/ /10/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 08/03/ /01/ /07/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 09/06/ /01/ /08/ AMT-Free 6-8 Year Intermediate Municipal Index ETF ITMS 09/26/ /25/ /29/ AMT-Free 6-8 Year Intermediate Municipal Index ETF (a) (a) On October 9, 2017, ITML and ITMS redeemed all of their shareholders pursuant to a plan of liquidation. 4

5 SECTION 1 - MUNICIPAL INCOME ETFs STATE BY STATE The percentages of income earned by each of the VanEck Vectors Municipal ETFs from each state or U.S. Territory are listed in the table below. To determine your share of the Fund's income from a particular state or territory, multiply these percentages by the Tax- empt in Box 10 of your Form 1099-DIV. If you did not receive a Form 1099-DIV, multiply these percentages by the amount of tax-exempt interest you received for the calendar year. AMT-Free Intermediate Municipal Index ETF ITM AMT-Free Long Municipal Index ETF AMT-Free Short Municipal Index ETF CEF Municipal ETF High-Yield Municipal Index ETF MLN SMB XMPT HYD Alabama 1.22 % 1.77 % 0.98 % 1.39 % 1.49 % Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Guam Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas U.S. Virgin Islands Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Other U.S. Territories Other

6 SECTION 1 - MUNICIPAL INCOME ETFs STATE BY STATE The percentages of income earned by each of the VanEck Vectors Municipal ETFs from each state or U.S. Territory are listed in the table below. To determine your share of the Fund's income from a particular state or territory, multiply these percentages by the Tax- empt in Box 10 of your Form 1099-DIV. If you did not receive a Form 1099-DIV, multiply these percentages by the amount of tax-exempt interest you received for the calendar year. Pre-Refunded Municipal Short High-Yield Municipal AMT-Free Year Intermediate Index ETF Index ETF Municipal Index ETF Municipal Index ETF PRB SHYD ITML (a) ITMS (a) Alabama - % 0.54 % 0.34 % 0.67 % Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Guam Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas U.S. Virgin Islands Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Other U.S. Territories (a) On October 9, 2017, ITML and ITMS redeemed all of their shareholders pursuant to a plan of liquidation. AMT-Free 6-8 Year Intermediate 6

7 SECTION 2 - EQUITY ETFs QUALIFIED DIVIDEND INCOME FOR INDIVIDUALS All or a portion of a shareholder's ordinary income dividend from an exchange traded fund may be taxed at a reduced capital gains rate rather than the higher marginal tax rates applicable to ordinary income. The amount of a dividend subject to this lower rate is known as Qualified or QDI and is reported in Box 1b of the Form 1099-DIV. The list below provides a summary of the per share QDI amounts for calendar year 2017 for each of the VanEck ETFs that distributed QDI during This data is being provided for informational purposes only. If a fund paid more than one distribution during the year, the amount reported in Box 1b of a shareholder's Form 1099-DIV was based on the QDI percentage specific to each distribution. Shareholders who received Form 1099-DIV should use the amounts reported to them on Form 1099-DIV when preparing their tax return. To treat a dividend as qualifying for lower rates, shareholders must have held shares on which the dividend was paid for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of the distribution. This information does not apply to shareholders that are corporations for U.S. tax purposes. Corporate shareholders should use the information regarding the Received Deduction. Short-term Capital Gain Africa Index ETF AFK 12/19/ /18/ /22/ Tax Paid Form 1099-DIV Box 1a Qualified Box 1b Biotech ETF BBH 12/19/ /18/ /22/ BDC ETF BIZD 04/05/ /03/ /07/ BDC ETF BIZD 07/06/ /03/ /10/ BDC ETF BIZD 10/03/ /02/ /06/ BDC ETF BIZD 12/28/ /27/ /03/ BDC ETF Gaming ETF BJK 12/19/ /18/ /22/ Brazil Small-Cap ETF BRF 12/19/ /18/ /22/ ChinaAMC SME-ChiNext ETF CNXT 12/19/ /18/ /22/ Oil Refiners ETF CRAK 12/19/ /18/ /22/ Egypt Index ETF EGPT 12/19/ /18/ /22/ Environmental Services ETF EVX 12/19/ /18/ /22/ Unconventional Oil & Gas ETF FRAK 12/19/ /18/ /22/ Gold Miners ETF GDX 12/19/ /18/ /22/ Junior Gold Miners ETF GDXJ 12/19/ /18/ /22/ Global Alternative Energy ETF GEX 12/19/ /18/ /22/ Generic Drugs ETF GNRX 12/19/ /18/ /22/ Natural Resources ETF HAP 12/19/ /18/ /22/ Indonesia Index ETF IDX 12/19/ /18/ /22/ Israel ETF ISRA 12/19/ /18/ /22/ Coal ETF KOL 12/19/ /18/ /22/ Coal ETF KOL 12/28/ /27/ /03/ Coal ETF

8 SECTION 2 - EQUITY ETFs QUALIFIED DIVIDEND INCOME FOR INDIVIDUALS All or a portion of a shareholder's ordinary income dividend from an exchange traded fund may be taxed at a reduced capital gains rate rather than the higher marginal tax rates applicable to ordinary income. The amount of a dividend subject to this lower rate is known as Qualified or QDI and is reported in Box 1b of the Form 1099-DIV. The list below provides a summary of the per share QDI amounts for calendar year 2017 for each of the VanEck ETFs that distributed QDI during This data is being provided for informational purposes only. If a fund paid more than one distribution during the year, the amount reported in Box 1b of a shareholder's Form 1099-DIV was based on the QDI percentage specific to each distribution. Shareholders who received Form 1099-DIV should use the amounts reported to them on Form 1099-DIV when preparing their tax return. To treat a dividend as qualifying for lower rates, shareholders must have held shares on which the dividend was paid for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of the distribution. This information does not apply to shareholders that are corporations for U.S. tax purposes. Corporate shareholders should use the information regarding the Received Deduction. Short-term Capital Gain Tax Paid Form 1099-DIV Box 1a Qualified Box 1b NDR CMG Long/Flat Allocation ETF LFEQ 12/28/ /27/ /03/ Morningstar Wide Moat ETF MOAT 12/19/ /18/ /22/ Agribusiness ETF MOO 12/19/ /18/ /22/ Mortgage REIT ETF MORT 04/05/ /03/ /07/ Mortgage REIT ETF MORT 07/06/ /03/ /10/ Mortgage REIT ETF MORT 10/03/ /02/ /06/ Mortgage REIT ETF MORT 12/28/ /27/ /03/ Mortgage REIT ETF Morningstar International Moat ETF MOTI 12/19/ /18/ /22/ Uranium+Nuclear Energy ETF NLR 12/19/ /18/ /22/ Oil Services ETF OIH 12/19/ /18/ /22/ ChinaAMC CSI 300 ETF PEK 12/19/ /18/ /22/ Preferred Securities ex Financials ETF PFXF 02/03/ /01/ /07/ (b) Preferred Securities ex Financials ETF PFXF 03/03/ /01/ /07/ (b) Preferred Securities ex Financials ETF PFXF 04/05/ /03/ /07/ (b) Preferred Securities ex Financials ETF PFXF 05/03/ /01/ /05/ Preferred Securities ex Financials ETF PFXF 06/05/ /01/ /07/ Preferred Securities ex Financials ETF PFXF 07/06/ /03/ /10/ Preferred Securities ex Financials ETF PFXF 08/03/ /01/ /07/ Preferred Securities ex Financials ETF PFXF 09/06/ /01/ /08/ Preferred Securities ex Financials ETF PFXF 10/03/ /02/ /06/ Preferred Securities ex Financials ETF PFXF 11/02/ /01/ /07/ Preferred Securities ex Financials ETF PFXF 12/04/ /01/ /07/ Preferred Securities ex Financials ETF PFXF 12/28/ /27/ /03/ Preferred Securities ex Financials ETF Poland ETF PLND 12/19/ /18/ /22/ Pharmaceutical ETF PPH 04/05/ /03/ /07/ Pharmaceutical ETF PPH 07/06/ /03/ /10/ Pharmaceutical ETF PPH 10/03/ /02/ /06/ Pharmaceutical ETF PPH 12/28/ /27/ /03/ Pharmaceutical ETF Rare Earth/Strategic Metals ETF REMX 12/19/ /18/ /22/

9 SECTION 2 - EQUITY ETFs QUALIFIED DIVIDEND INCOME FOR INDIVIDUALS All or a portion of a shareholder's ordinary income dividend from an exchange traded fund may be taxed at a reduced capital gains rate rather than the higher marginal tax rates applicable to ordinary income. The amount of a dividend subject to this lower rate is known as Qualified or QDI and is reported in Box 1b of the Form 1099-DIV. The list below provides a summary of the per share QDI amounts for calendar year 2017 for each of the VanEck ETFs that distributed QDI during This data is being provided for informational purposes only. If a fund paid more than one distribution during the year, the amount reported in Box 1b of a shareholder's Form 1099-DIV was based on the QDI percentage specific to each distribution. Shareholders who received Form 1099-DIV should use the amounts reported to them on Form 1099-DIV when preparing their tax return. To treat a dividend as qualifying for lower rates, shareholders must have held shares on which the dividend was paid for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of the distribution. This information does not apply to shareholders that are corporations for U.S. tax purposes. Corporate shareholders should use the information regarding the Received Deduction. Short-term Capital Gain Tax Paid Form 1099-DIV Box 1a Qualified Box 1b Pharmaceutical ETF PPH 04/05/ /03/ /07/ Pharmaceutical ETF PPH 07/06/ /03/ /10/ Pharmaceutical ETF PPH 10/03/ /02/ /06/ Pharmaceutical ETF PPH 12/28/ /27/ /03/ Pharmaceutical ETF Rare Earth/Strategic Metals ETF REMX 12/19/ /18/ /22/ Russia ETF RSX 12/19/ /18/ /22/ Russia Small-Cap ETF RSXJ 12/19/ /18/ /22/ Retail ETF RTH 12/19/ /18/ /22/ India Small-Cap Index ETF SCIF 12/19/ /18/ /22/ Steel ETF SLX 12/19/ /18/ /22/ Steel ETF SLX 12/28/ /27/ /03/ Steel ETF Semiconductor ETF SMH 12/19/ /18/ /22/ Global Spin-Off ETF SPUN 12/19/ /18/ /22/ Vietnam ETF VNM 12/19/ /18/ /22/ (b) Vietnam ETF VNM 12/28/ /27/ /03/ (b) Vietnam ETF (b) (b) Amounts have been adjusted for a return of capital paid by the Fund. See page 12 for information regarding the return of capital distributions. 9

10 SECTION 2 - EQUITY ETFs DIVIDENDS RECEIVED DEDUCTION FOR CORPORATIONS The list below provides a summary of the percentage of total ordinary income qualifying for the dividends received deduction or DRD for calendar year 2017 for each of the VanEck ETFs that had DRD during This data is being provided to corporate shareholders in order for them to compute their share of dividends qualifying for the DRD for corporations. To treat a dividend as qualifying for the DRD, shareholders must have held shares on which the dividend was paid for at least 46 days during the 91-day period beginning 45 days before the ex-dividend date of the distribution. To determine your share of income eligible for the DRD, multiply the per share amounts shown below times DRD percentage indicated times the number of shares you held on the record date of each distribution. Short-term Capital Gain Biotech ETF BBH 12/19/ /18/ /22/ % Tax Paid Percent of Qualifying for the Received Deduction Gaming ETF BJK 12/19/ /18/ /22/ % Oil Refiners ETF CRAK 12/19/ /18/ /22/ % Environmental Services ETF EVX 12/19/ /18/ /22/ % Unconventional Oil & Gas ETF FRAK 12/19/ /18/ /22/ % Gold Miners ETF GDX 12/19/ /18/ /22/ % Junior Gold Miners ETF GDXJ 12/19/ /18/ /22/ % Global Alternative Energy ETF GEX 12/19/ /18/ /22/ % Generic Drugs ETF GNRX 12/19/ /18/ /22/ % Natural Resources ETF HAP 12/19/ /18/ /22/ % Israel ETF ISRA 12/19/ /18/ /22/ % Coal ETF KOL 12/19/ /18/ /22/ % Coal ETF KOL 12/28/ /27/ /03/ % Coal ETF % NDR CMG Long/Flat Allocation ETF LFEQ 12/28/ /27/ /03/ % Morningstar Wide Moat ETF MOAT 12/19/ /18/ /22/ % Agribusiness ETF MOO 12/19/ /18/ /22/ % Uranium+Nuclear Energy ETF NLR 12/19/ /18/ /22/ % Oil Services ETF OIH 12/19/ /18/ /22/ % 10

11 SECTION 2 - EQUITY ETFs DIVIDENDS RECEIVED DEDUCTION FOR CORPORATIONS The list below provides a summary of the percentage of total ordinary income qualifying for the dividends received deduction or DRD for calendar year 2017 for each of the VanEck ETFs that had DRD during This data is being provided to corporate shareholders in order for them to compute their share of dividends qualifying for the DRD for corporations. To treat a dividend as qualifying for the DRD, shareholders must have held shares on which the dividend was paid for at least 46 days during the 91-day period beginning 45 days before the ex-dividend date of the distribution. To determine your share of income eligible for the DRD, multiply the per share amounts shown below times DRD percentage indicated times the number of shares you held on the record date of each distribution. Short-term Capital Gain Tax Paid Percent of Qualifying for the Received Deduction Preferred Securities ex Financials ETF PFXF 02/03/ /01/ /07/ (b) % Preferred Securities ex Financials ETF PFXF 03/03/ /01/ /07/ (b) % Preferred Securities ex Financials ETF PFXF 04/05/ /03/ /07/ (b) % Preferred Securities ex Financials ETF PFXF 05/03/ /01/ /05/ % Preferred Securities ex Financials ETF PFXF 06/05/ /01/ /07/ % Preferred Securities ex Financials ETF PFXF 07/06/ /03/ /10/ % Preferred Securities ex Financials ETF PFXF 08/03/ /01/ /07/ % Preferred Securities ex Financials ETF PFXF 09/06/ /01/ /08/ % Preferred Securities ex Financials ETF PFXF 10/03/ /02/ /06/ % Preferred Securities ex Financials ETF PFXF 11/02/ /01/ /07/ % Preferred Securities ex Financials ETF PFXF 12/04/ /01/ /07/ % Preferred Securities ex Financials ETF PFXF 12/28/ /27/ /03/ % Preferred Securities ex Financials ETF % Pharmaceutical ETF PPH 04/05/ /03/ /07/ % Pharmaceutical ETF PPH 07/06/ /03/ /10/ % Pharmaceutical ETF PPH 10/03/ /02/ /06/ % Pharmaceutical ETF PPH 12/28/ /27/ /03/ % Pharmaceutical ETF % Retail ETF RTH 12/19/ /18/ /22/ % Steel ETF SLX 12/19/ /18/ /22/ % Steel ETF SLX 12/28/ /27/ /03/ % Steel ETF % Semiconductor ETF SMH 12/19/ /18/ /22/ % Global Spin-Off ETF SPUN 12/19/ /18/ /22/ % (b) Amounts have been adjusted for a return of capital paid by the Fund. See page 12 for information regarding the return of capital distributions. 11

12 SECTION 3 - LONG TERM CAPITAL GAINS The Funds listed below paid distributions during calendar year 2017 that were considered to be long-term capital gains. Long-Term Capital Gains Paid Per Share Fallen Angel High Yield Bond ETF ANGL 12/28/ /27/ /03/ Oil Refiners ETF CRAK 12/19/ /18/ /22/ Morningstar International Moat ETF MOTI 12/19/ /18/ /22/

13 SECTION 4 - FOREIGN SOURCE INCOME AND FOREIGN TAX CREDITS The percentage of income derived from foreign sources and foreign tax credits per share for certain VanEck ETFs are show in the table below. The foreign source income may have taxes associated with it that were paid by the Funds to various foreign jurisdictions. The Funds listed below have qualified to pass-through the foreign taxes and foreign source income to their shareholders. Accordingly, you may either deduct your portion of the taxes in computing your taxable income or take a credit for such taxes against your tax liability. These deductions or credits may be subject to limitations under the tax law. Your portion of the foreign taxes have been included on your Form 1099-DIV. The information below is provided to assist you in computing your foreign tax credit. Please consult your tax advisor regarding the appropriate treatment of foreign source income and foreign taxes. Short-term Capital Gain Tax Paid Form DIV Box 6 Form 1099-DIV Box 1a Source as a % of (1) Source Qualified as a % of (2) Africa Index ETF AFK 12/19/ /18/ /22/ % 44.12% Gaming ETF BJK 12/19/ /18/ /22/ % 63.95% Brazil Small-Cap ETF BRF 12/19/ /18/ /22/ % 0.74% ChinaAMC SME-ChiNext ETF CNXT 12/19/ /18/ /22/ % 78.22% Oil Refiners ETF CRAK 12/19/ /18/ /22/ % 65.94% Egypt Index ETF EGPT 12/19/ /18/ /22/ % % Gold Miners ETF GDX 12/19/ /18/ /22/ % 60.56% Junior Gold Miners ETF GDXJ 12/19/ /18/ /22/ % 89.17% Generic Drugs ETF GNRX 12/19/ /18/ /22/ % 29.77% Natural Resources ETF HAP 12/19/ /18/ /22/ % 52.07% Indonesia Index ETF IDX 12/19/ /18/ /22/ % % Israel ETF ISRA 12/19/ /18/ /22/ % 68.20% Coal ETF KOL 12/19/ /18/ /22/ % 75.82% Coal ETF KOL 12/28/ /27/ /03/ % 75.82% Coal ETF % 75.82% Morningstar International Moat ETF MOTI 12/19/ /18/ /22/ % 24.07% ChinaAMC CSI 300 ETF PEK 12/19/ /18/ /22/ % 95.30% Poland ETF PLND 12/19/ /18/ /22/ % 24.93% Rare Earth/Strategic Metals ETF REMX 12/19/ /18/ /22/ % 4.49% Russia ETF RSX 12/19/ /18/ /22/ % 99.25% Russia Small-Cap ETF RSXJ 12/19/ /18/ /22/ % 98.15% India Small-Cap Index ETF SCIF 12/19/ /18/ /22/ % 88.78% Vietnam ETF VNM 12/19/ /18/ /22/ (b) % 26.11% Vietnam ETF VNM 12/28/ /27/ /03/ (b) % 26.11% Vietnam ETF (b) % 26.11% (b) Amounts have been adjusted for a return of capital paid by the Fund. See page 15 for information regarding the return of capital distributions. (1) To determine your portion of foreign source qualified dividends, other foreign source income and total foreign source income, multiply the dollar amount of your ordinary dividends by the percentage indicated. (2) Represents the portion of your qualified dividends that was derived from foreign sources. As a result of the lower tax rates on qualified dividends, these amounts may be subject to certain adjustments before they are taken into account for purposes of computing your foreign tax credit. Please refer to the instructions for Form 1116 or consult your tax advisor for additional information. 13

14 SECTION 4 - FOREIGN SOURCE INCOME AND FOREIGN TAX CREDITS The percentage of income derived from foreign sources and foreign tax credits per share for certain VanEck ETFs are show in the table below. The foreign source income may have taxes associated with it that were paid by the Funds to various foreign jurisdictions. The Funds listed below have qualified to pass-through the foreign taxes and foreign source income to their shareholders. Accordingly, you may either deduct your portion of the taxes in computing your taxable income or take a credit for such taxes against your tax liability. These deductions or credits may be subject to limitations under the tax law. Your portion of the foreign taxes have been included on your Form 1099-DIV. The information below is provided to assist you in computing your foreign tax credit. Please consult your tax advisor regarding the appropriate treatment of foreign source income and foreign taxes. Short-term Capital Gain Tax Paid Form 1099-DIV Box 6 Form 1099-DIV Box 1a Source as a % of (1) Source Qualified as a % of (2) Emerging Markets Aggregate Bond ETF EMAG 02/03/ /01/ /07/ (b) Emerging Markets Aggregate Bond ETF EMAG 03/03/ /01/ /07/ (b) Emerging Markets Aggregate Bond ETF EMAG 04/05/ /03/ /07/ (b) Emerging Markets Aggregate Bond ETF EMAG 05/03/ /01/ /05/ % - Emerging Markets Aggregate Bond ETF EMAG 06/05/ /01/ /07/ % - Emerging Markets Aggregate Bond ETF EMAG 07/06/ /03/ /10/ % - Emerging Markets Aggregate Bond ETF EMAG 08/03/ /01/ /07/ % - Emerging Markets Aggregate Bond ETF EMAG 09/06/ /01/ /08/ % - Emerging Markets Aggregate Bond ETF EMAG 10/03/ /02/ /06/ % - Emerging Markets Aggregate Bond ETF EMAG 11/02/ /01/ /07/ % - Emerging Markets Aggregate Bond ETF EMAG 12/04/ /01/ /07/ % - Emerging Markets Aggregate Bond ETF EMAG 12/28/ /27/ /03/ % - Emerging Markets Aggregate Bond ETF % - International High Yield Bond ETF IHY 02/03/ /01/ /07/ (b) International High Yield Bond ETF IHY 03/03/ /01/ /07/ (b) International High Yield Bond ETF IHY 04/05/ /03/ /07/ (b) International High Yield Bond ETF IHY 05/03/ /01/ /05/ % - International High Yield Bond ETF IHY 06/05/ /01/ /07/ % - International High Yield Bond ETF IHY 07/06/ /03/ /10/ % - International High Yield Bond ETF IHY 08/03/ /01/ /07/ % - International High Yield Bond ETF IHY 09/06/ /01/ /08/ % - International High Yield Bond ETF IHY 10/03/ /02/ /06/ % - International High Yield Bond ETF IHY 11/02/ /01/ /07/ % - International High Yield Bond ETF IHY 12/04/ /01/ /07/ % - International High Yield Bond ETF IHY 12/28/ /27/ /03/ % - International High Yield Bond ETF % - J.P. Morgan EM Local Currency Bond ETF EMLC 02/03/ /01/ /07/ (b) J.P. Morgan EM Local Currency Bond ETF EMLC 03/03/ /01/ /07/ (b) J.P. Morgan EM Local Currency Bond ETF EMLC 04/05/ /03/ /07/ (b) J.P. Morgan EM Local Currency Bond ETF EMLC 05/03/ /01/ /05/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 06/05/ /01/ /07/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 07/06/ /03/ /10/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 08/03/ /01/ /07/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 09/06/ /01/ /08/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 10/03/ /02/ /06/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 11/02/ /01/ /07/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 12/04/ /01/ /07/ % - J.P. Morgan EM Local Currency Bond ETF EMLC 12/28/ /27/ /03/ % - J.P. Morgan EM Local Currency Bond ETF % - (b) Amounts have been adjusted for a return of capital paid by the Fund. See page 15 for information regarding the return of capital distributions. (1) To determine your portion of foreign source qualified dividends, other foreign source income and total foreign source income, multiply the dollar amount of your ordinary dividends by the percentage indicated. (2) Represents the portion of your qualified dividends that was derived from foreign sources. As a result of the lower tax rates on qualified dividends, these amounts may be subject to certain adjustments before they are taken into account for purposes of computing your foreign tax credit. Please refer to the instructions for Form 1116 or consult your tax advisor for additional information. 14

15 SECTION 5 - RETURN OF CAPITAL DISTRIBUTIONS The Funds listed below paid distributions during calendar year 2017 that were considered to be a return of capital. A return of capital is not considered taxable income to shareholders. Pursuant to IRC Section 301(c), the portion of a distribution which is a dividend (as defined under IRC Section 316) is includable in gross income while the portion of the distribution which is not a dividend shall be applied against and reduces the adjusted basis of the stock. Accordingly, shareholders who received these distributions should not include these amounts in taxable income, but instead pursuant to Internal Revenue Code Sections 301(c)(2) and 1016(a)(4), should treat them as a reduction of the cost basis of the applicable shares upon which these distributions were paid. In order to compute the required adjustment to cost basis, a shareholder should multiply the per share amount of each of the respective distributions by the number of shares held at each of the respective record dates. High Infrastructure MLP ETF YMLI 02/15/ /13/ /17/ High Infrastructure Van Eck MLP Securities ETF Corporation, Distributor YMLI 05/17/ /15/ /19/ High Infrastructure 666 Third MLP Avenue ETF New York, NY YMLI 08/16/ /14/ /18/ High Infrastructure MLP ETF YMLI 11/14/ /13/ /17/ Return of Capital (Non ) Distribution Distribution Per Share ChinaAMC China Bond ETF CBON 02/03/ /01/ /07/ ChinaAMC China Bond ETF CBON 03/03/ /01/ /07/ ChinaAMC China Bond ETF CBON 04/05/ /03/ /07/ ChinaAMC China Bond ETF CBON 05/03/ /01/ /05/ ChinaAMC China Bond ETF CBON 06/05/ /01/ /07/ ChinaAMC China Bond ETF CBON 07/06/ /03/ /10/ ChinaAMC China Bond ETF CBON 08/03/ /01/ /07/ ChinaAMC China Bond ETF CBON 09/06/ /01/ /08/ ChinaAMC China Bond ETF CBON 10/03/ /02/ /06/ ChinaAMC China Bond ETF CBON 11/02/ /01/ /07/ ChinaAMC China Bond ETF CBON 12/04/ /01/ /07/ ChinaAMC China Bond ETF CBON 12/28/ /27/ /03/ ChinaAMC China Bond ETF Emerging Markets Aggregate Bond ETF EMAG 02/03/ /01/ /07/ Emerging Markets Aggregate Bond ETF EMAG 03/03/ /01/ /07/ Emerging Markets Aggregate Bond ETF EMAG 04/05/ /03/ /07/ Emerging Markets Aggregate Bond ETF EMAG 05/03/ /01/ /05/ Emerging Markets Aggregate Bond ETF EMAG 06/05/ /01/ /07/ Emerging Markets Aggregate Bond ETF EMAG 07/06/ /03/ /10/ Emerging Markets Aggregate Bond ETF EMAG 08/03/ /01/ /07/ Emerging Markets Aggregate Bond ETF EMAG 09/06/ /01/ /08/ Emerging Markets Aggregate Bond ETF EMAG 10/03/ /02/ /06/ Emerging Markets Aggregate Bond ETF EMAG 11/02/ /01/ /07/ Emerging Markets Aggregate Bond ETF EMAG 12/04/ /01/ /07/ Emerging Markets Aggregate Bond ETF EMAG 12/28/ /27/ /03/ Emerging Markets Aggregate Bond ETF J.P. Morgan EM Local Currency Bond ETF EMLC 02/03/ /01/ /07/ J.P. Morgan EM Local Currency Bond ETF EMLC 03/03/ /01/ /07/ J.P. Morgan EM Local Currency Bond ETF EMLC 04/05/ /03/ /07/ J.P. Morgan EM Local Currency Bond ETF International High Yield Bond ETF IHY 02/03/ /01/ /07/ International High Yield Bond ETF IHY 03/03/ /01/ /07/ International High Yield Bond ETF IHY 04/05/ /03/ /07/ International High Yield Bond ETF Vietnam ETF VNM 12/20/ /18/ /22/ Vietnam ETF VNM 12/28/ /27/ /03/ Vietnam ETF Preferred Securities ex Financials ETF PFXF 02/03/ /01/ /07/ Preferred Securities ex Financials ETF PFXF 03/03/ /01/ /07/ Preferred Securities ex Financials ETF PFXF 04/05/ /03/ /07/ Preferred Securities ex Financials ETF High Infrastructure MLP ETF