VanEck Low Carbon Energy ETF

VanEck Low Carbon Energy ETF (SMOG) is an index fund that tracks the MVIS Global Low Carbon Energy Index. That index holds about 59 renewable power, electric vehicle and battery companies around the world. The fund is concentrated: its top 10 holdings, led by Tesla, Iberdrola and Bloom Energy, made up 56.7% of assets as of June 30, 2026. Its 0.64% expense ratio is higher than the 0.41% charged by iShares Global Clean Energy ETF (ICLN).

• Over the year to Oct 27, 2026, SMOG returned -1.1%, 1st of 5 among similar funds.
• Its 5-year annualized return was -3.9% and its 10-year +10.9%.
• In the 2020 COVID crash it fell 42.4% and regained its old high 3.9 months after the low.
• Its worst full calendar year was 2008 (-60.8%); its best was 2020 (+118.4%).
• The deepest fall in its price history was 84.4% (Dec 26, 2007 to Jul 24, 2012), recovered by Dec 31, 2020.

As of Jun 30, 2026, the fund held 58 securities; the ten largest made up 56.68% of assets, and 2.19% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors added a net $3.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +11.93%, -0.10%, -5.58%.

SMOG is passively managed. It tries to match the MVIS Global Low Carbon Energy Index, before fees, rather than beat it. It does this by holding a portfolio that generally mirrors the index. It normally invests at least 80% of its assets in the index's stocks and at least 80% in low carbon energy companies. The prospectus defines these as firms mainly in renewable energy: wind, solar, hydro, hydrogen, geothermal and biofuels such as ethanol. They also include electric vehicle makers, lithium-ion battery and fuel cell makers, and related building materials.

As of December 31, 2025, the index held 59 companies. Their market values ranged from about $1.88 billion to $1.5 trillion. The fund is "non-diversified," which means it can put more of its money into a single company than a typical fund. It may also concentrate in an industry when the index does. Consumer discretionary, industrials and utilities were large sectors at that date. As of June 30, 2026, Tesla was 8.5% of assets and Iberdrola was 8.3%. US stocks were 38.8%, followed by Spain at 10.7% and China at 7.8%.

The fund holds ordinary stocks and no derivatives. Portfolio turnover was 21%, a rough measure of how much of the portfolio is replaced each year. The fund does not move to cash in a downturn, so it falls along with its index.

• SMOG charges 0.64% a year, versus an average of 0.6% for the similar funds below (3rd of 5, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $65 in the first year and $798 over 10 years (assuming a 5% annual return).

SMOG is a concentrated, volatile bet on one theme, so it fits as a small add-on rather than a foundation.

SMOG adds exposure to renewable utilities, electric vehicles and batteries, which broad index funds hold only in small amounts. The cost of that exposure is steep swings. The fund lost 75.9% in the 2008 crisis. Its deepest drop, 84.4%, ran from December 2007 to July 2012, and it did not regain its old peak until December 31, 2020. It fell 42.4% in the 2020 COVID crash but recovered in about four months. In the 2022 bear market it dropped 35.3% and needed until April 30, 2026 to recover. A retiree forced to sell during stretches like these would lock in large losses. Income is small: the yield was 1.55% as of October 27, 2026, paid once a year. Fees total $798 over 10 years under the SEC's standard $10,000 example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.