Item 1. Report to Shareholders

ANNUAL REPORT
September 30, 2016

VANECK VECTORS^TM
INDUSTRY ETFs

The information contained in the management discussion represents the opinions of VanEck Vectors ETFs and may differ from other persons. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. The information contained herein regarding each index has been provided by the relevant index provider. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings and the Funds’ performance, and the views of VanEck Vectors ETFs are as of September 30, 2016, and are subject to change.

VANECK VECTORS INDUSTRY ETFs

(unaudited)

Dear Shareholder:

We are pleased to present this annual report for the seven industry exchange-traded funds (ETFs) of the VanEck Vectors ETF Trust for the 12-month period ended September 30, 2016.

The top performing fund in our suite of industry ETFs was the VanEck Vectors Semiconductor ETF (NYSE Arca: SMH) which returned 41.73% for the period under review. Much of its notable performance was attributable to the predominance of U.S. listed companies in its portfolio.

After returning 12.51% in the six months ended March 31, 2016, the second half of the period was when semiconductor stocks really took off. The performance of the industry in the second calendar quarter of the year was particularly encouraging with semiconductor earnings results 13.5% better than consensus estimates.¹ Industry performance in the quarter was underpinned by strength in mobile, data centers, and the Internet of Things (IoT).²

Going into the third quarter of the year, global semiconductor sales rebounded in July³ and, in August, posted the largest monthly increase in three years,⁴ up 3.5% over the previous month and up 0.5% over August 2015. While growth in the Americas were strong, according to the Semiconductor Industry Association, “China also stood out, posting by far the strongest year-to-year growth of all regions in August.”⁵

Semiconductors – Worldwide Market Billings: 3-Month Moving Averages ($bn)

Source: Semiconductor Industry Association. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.

Large-capitalization stocks were key drivers of SMH’s returns. Nvidia (4.8% of Fund net assets^†), for example, performed well with its GPUs (Graphics Processing Units). In addition to being involved in the development of driverless vehicles, the company is also firmly placed in the expanding AI (Artificial Intelligence) space and, in particular, in the development of neural networks. Not least, this is because of GPUs’ speed: An AI training algorithm can run 40 times faster on a GPU than on a CPU (Central Processing Unit).⁶

The single Taiwanese company Taiwan Semiconductor Manufacturing (14.8% of Fund net assets^†), with the second highest weighting after Intel (15.9% of Fund net assets^†), contributed more to the fund’s total returns during the 12-month period than any other individual fund holding. U.S. company Skyworks Solutions (3.0% of Fund net assets^†), was the single company in Fund’s portfolio to detract from performance.

VANECK VECTORS INDUSTRY ETFs

(unaudited)

We believe that SMH continues to provide interesting exposure not only to the expanding IoT space, but also to developments in mobile, autonomous vehicles, cloud computing, and AI. This is quite apart from potential opportunities for M&A, as evidenced by recent news that Qualcomm (9.2% of Fund net assets^†) was in talks to acquire NXP Semiconductors (5.1% of Fund net assets^†) in a deal valued at more than US$30 billion.⁷

We will, as always, continue to seek out and evaluate the most attractive opportunities for you as a shareholder. We encourage you to stay in touch with us through the videos, email subscriptions, and blogs available on our website, vaneck.com. And should you have any questions, please contact us at 800.826.2333 or visit vaneck.com.

Thank you for participating in the VanEck Vectors ETF Trust. On the following pages, you will find the performance record of each of the funds for the 12 months ended September 30, 2016. You will also find their financial statements. We value your continuing confidence in us and look forward to helping you meet your investment goals in future.

Jan F. van Eck
Trustee and President
VanEck Vectors ETF Trust

October 18, 2016

Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.

Management Discussion (unaudited)

Five of the six VanEck Vectors Industry ETFs realized positive performance in the 12 months ended September 30, 2016. VanEck Vectors Semiconductor ETF posted an impressive total return of 41.73%, with VanEck Vectors Gaming ETF and VanEck Vectors Environmental Services ETF not far behind, providing total returns of 26.23% and 20.75%, respectively. All three funds easily outperformed the S&P 500^® Index’s^‡ 15.42% gain over the same period.

	October 1, 2015 through September 30, 2016 VanEck Vectors Industry ETFs Total Return

Note: VanEck Vectors Generic Drugs ETF is not included above as it was launched on January 12, 2016.

Source: VanEck. Returns based on NAV. The performance data quoted represent past performance. Past performance is not a guarantee of future results. Performance information for the Funds reflects temporary waivers of expenses and/or fees. Had the Funds incurred all expenses, investment returns would have been reduced. Investment return and value of the shares of the Funds will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.

Biotech

Having risen erratically through the fourth quarter of 2015, biotech companies experienced a challenging first quarter 2016. In January and early February, biotech stocks fell precipitously, particularly those of clinical-stage biotechs.¹ However, by the end of the quarter, biotech stocks were more or less back to where they were at the end of January, but still down for the first six months of the period under review. The second quarter of 2016 saw biotech companies seesaw and, toward the end of the quarter, fall close to the depths they had plummeted in early February. From this nadir, biotech companies rose to peak at the beginning of August, reached a new high toward the end of September on the back of drug approvals² and deal making. They ended the month, and the 12-month period, slightly down from their August and September peaks, but very slightly up for the 12-month period. Positive contributions to the Fund’s performance came mainly from two companies: Amgen (12.4% of Fund net assets^†) and Medivation (sold by end of period). The company that detracted most from performance was Gilead Sciences (11.4% of Fund net assets^†).

VANECK VECTORS INDUSTRY ETFs

(unaudited)

Environmental Services

Historically, growth in the construction and home-building industries has benefitted environmental services companies. Due in part from upticks in both construction³ and home-building⁴ in the U.S. in the 12-month period under review, the Fund returned notable performance, gaining 20.75%. While U.S. stocks accounted for the vast majority of the Fund’s healthy positive total return, the single Canadian stock in the Fund (Waste Connections, 9.9% of Fund net assets^†) was the best performing company over the period. The next two best performing companies, and top two individual weightings in the Fund, were U.S. companies Waste Management (10.0% of Fund net assets^†) and Republic Services (9.9% of Fund net assets^†). However, another top individual weighting in the Fund, Stericycle (10.1% of Fund net assets^†), was by far the greatest detractor from performance.

Gaming

The Fund posted a very creditable rise of 26.23% for the 12-month period. Notwithstanding that in Macau, the world’s biggest gaming hub, the first ten months of the period under review were marked by year-over-year declines in revenues. The southern Chinese territory continued to be affected by both Beijing’s anticorruption campaign and the slowdown in economic growth in China.⁵ At the end of February, the monthly revenue figures from “Games of Fortune” (as the Macau authorities⁶ describe them) appeared to bring with them a glimmer of hope: they were down again, but the year-over-year decline was only 0.1%.⁷ The hope was soon extinguished when, in addition to showing another monthly decline, March revenues were down 16.3%, year-over-year considerably more than they were the previous month. As the year progressed, these declines at first stabilized and then in August turned a corner. Following 26 consecutive months of year-over-year declines, revenues for the month were 1.1%⁸ higher than they were in August 2015. In September they increased even further and were 7.4%⁹ higher than they were a year previously.

Following a bumper month in July (the state of Nevada’s revenue for the month was the highest recorded since December 2013 and for only the third time in the past 36 months exceeded $1 billion), over the calendar year Las Vegas’ “Strip” was doing better than it did last year.¹⁰ Then August brought a 5.2% drop in gaming revenues statewide, compared to the same month last year, and down 14.8% on the Las Vegas Strip.¹¹ Despite this, U.S.-operating gaming companies were the most significant contributors to the Fund’s overall performance, with those in Macau providing the next largest returns from any territory. The other major contributors were companies in Australia. The gaming businesses in Canada, Ireland, South Korea, and Sweden were the only detractors from the Fund’s overall positive performance.

Generic Drugs

Launched on January 12, 2016, the Fund had traded for only a little over eight and a half months by the end of the 12-month period under review. The Fund was launched into a challenging market environment with the controversies surrounding both Valeant Pharmaceuticals and Turing Pharmaceuticals (neither not owned by the Fund during the period) at the time having a generally negative impact on the generics sector. Life Science Tools & Services sector contributed the most to the Fund’s positive performance, while pharmaceuticals sector was the only detractor.

Pharmaceutical

Pharmaceutical stocks followed the same trajectory as biotechnology stocks during the 12-month period. Having also risen erratically through the fourth quarter 2015, pharmaceutical companies experienced a challenging first quarter in 2016, especially in January and early February. At the start of 2016, in addition to being affected by the general malaise in the market, the pharma industry as a whole was not helped by the woes of Valeant Pharmaceuticals (sold during period). As with biotech, the second quarter of 2016 saw pharmaceutical companies seesaw and, toward the end of the quarter, actually fall below the depths they plummeted in early February. At its lowest, pharmaceutical stocks rose through the beginning of August, but fell through September rather steeply on fears surrounding California’s referendum on drug prices.¹² Consequently, the Fund experienced a loss over the 12-month period. While companies in the U.K. and U.S. were positive contributors to the Fund’s overall performance, their contributions were too small to offset the negative performance of companies in all other countries, in particular, Canada-based Valeant, the company that detracted most from the performance of the Fund.

Retail

The Fund returned 8.42% for the 12-month period under review. The first three months of this period, the prelude to the holiday season, brought with them positive performance, with the Fund ending December up over the quarter. The retail sales over the first six months of 2016 proved to be solid. According to National Retail Federation calculations, excluding automobiles, gasoline stations, and restaurants, retail sales grew close to 4% over the period.¹³ Upping its forecast of earlier in the year, at the end of July, the Federation expected retail sales in 2016 to grow 3.4% over those in 2015.¹⁴ However, in August, retail sales dipped slightly (down 0.3% on the month) after a strong June and a somewhat flat July.¹⁵ While stores involved in internet and direct marketing retail contributed by far the most to the positive performance of the Fund, hypermarkets and super centers together with home improvement retail companies all also made useful contributions to performance. Department stores, healthcare distributors, and food retailers were the major detractors from performance.

Semiconductor

In 2015, global semiconductor sales in 2015 ($335.2 billion) were only slightly down (0.2%) from record sales of $335.8 billion achieved by the industry in 2014.¹⁶ The first two quarters of 2016 were difficult for the industry. Although March may have been the first time in five months that global semiconductor sales increased, for the quarter they were 5.8% lower than for the same period in 2015, “impeded”, according to John Neuffer, president and CEO of the Semiconductor Industry Association, by “soft demand, market cyclicality, and macroeconomic conditions.”¹⁷ Over the second quarter of the year, sales may have been up 1.1% on the previous quarter, but they were, once again, still 5.8% lower than for the same period in 2015.¹⁸ Although the third quarter started with sales in July down nearly 3% on the same month last year, the figure of $27.1 billion marked both a 2.6% increase over that for sales in June and the largest month-on-month increase for the global market since September 2013.¹⁹ Then, in August, not only was the increase in monthly sales the largest for three years, sales themselves were up 3.5% compared to July, a year-over-year increase for the first time in more than a year.²⁰ At the very end of the period under review, the industry received a boost in the form of news that Qualcomm (9.2% of Fund net assets^†) was in talks to acquire NXP Semiconductors (5.1% of Fund net assets^†) in a deal valued at more than US$30 billion.²¹ Companies in the U.S., followed by those in Taiwan, contributed the most to the Fund’s positive performance. While Taiwan Semiconductor Manufacturing (14.8% of Fund net assets^†) was the single largest positive contributor to performance, U.S. company Skyworks Solutions (3.0% of Fund net assets^†) was the single company in Fund’s portfolio to detract from performance.

VANECK VECTORS INDUSTRY ETFs

(unaudited)

VANECK VECTORS BIOTECH ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Commencement date for the VanEck Vectors Biotech ETF was 12/20/11.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 0.40% / Net Expense Ratio 0.35%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

VANECK VECTORS BIOTECH ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

MVBBHTR 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 third parties. VanEck Vectors Biotech ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com.

VANECK VECTORS ENVIRONMENTAL SERVICES ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Commencement date for the VanEck Vectors Environmental Services ETF was 10/10/06.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 0.93% / Net Expense Ratio 0.55%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.55% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

VANECK VECTORS ENVIRONMENTAL SERVICES ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

AXENVTR is a trademark of NYSE or its affiliates, is licensed for use by Van Eck Associates Corporation. NYSE neither sponsors nor endorses the VanEck Vectors Environmental Services ETF (the “Fund”) and makes no representation as to the accuracy and/or completeness of the Index or results to be obtained by any person from using the Index in connection with trading of the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com.

VANECK VECTORS GAMING ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Index data prior to September 24, 2012 reflects that of the S-Network Global Gaming Index (WAGRT). From September 24, 2012, forward, the index data reflects that of the Fund’s underlying index, MVIS Global Gaming Index (MVBJKTR). Index history which includes periods prior to September 24, 2012 reflects a blend of the performance of WAGRT and MVBJKTR and is not intended for third party use.

Commencement date for the VanEck Vectors Gaming ETF was 1/22/08.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 0.93% / Net Expense Ratio 0.67%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.65% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in cash. Shares may trade at a premium or discount to their NAV in the secondary market.

VANECK VECTORS GAMING ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

MVBJKTR 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 third parties. VanEck Vectors Gaming ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com.

VANECK VECTORS GENERIC DRUGS ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Commencement date for the VanEck Vectors Generic Drugs ETF was 1/12/16.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 5.70% / Net Expense Ratio 0.55%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.55% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in cash. Shares may trade at a premium or discount to their NAV in the secondary market.

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

VANECK VECTORS GENERIC DRUGS ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

IGNRXT is the exclusive property of Indxx, LLC, 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 Indxx, LLC, Solactive AG has no obligation to point out errors in the Index to third parties. VanEck Vectors Generic Drugs ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Indxx, LLC, and Indxx, LLC makes no representation regarding the advisability of investing in the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com

VANECK VECTORS PHARMACEUTICAL ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Commencement date for the VanEck Vectors Pharmaceutical ETF was 12/20/11.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 0.41% / Net Expense Ratio 0.35%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

VANECK VECTORS PHARMACEUTICAL ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

MVPPHTR 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 third parties. VanEck Vectors Pharmaceutical ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com.

VANECK VECTORS RETAIL ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Commencement date for the VanEck Vectors Retail ETF was 12/20/11.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 0.43% / Net Expense Ratio 0.35%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

VANECK VECTORS RETAIL ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

MVRTHTR 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 third parties. VanEck Vectors Retail ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com.

VANECK VECTORS SEMICONDUCTOR ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

		Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund at NAV and at Share Price over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with the Fund’s benchmark.

Commencement date for the VanEck Vectors Semiconductor ETF was 12/20/11.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.

Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.

Gross Expense Ratio 0.41% / Net Expense Ratio 0.36%

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2017. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

The “Net Asset Value” (NAV) of a VanEck Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.

VAN ECK SEMICONDUCTOR ETF

PERFORMANCE COMPARISON

September 30, 2016 (unaudited)

MVSMHTR 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 third parties. VanEck Vectors Semiconductor ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.

PREMIUM/DISCOUNT INFORMATION

(unaudited)

Information regarding how often the Shares of each Fund traded on NYSE Arca, Inc. or The NASDAQ Stock Market LLC as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund during the past four calendar quarters, as applicable, can be found at vaneck.com.

VANECK VECTORS ETF TRUST

EXPLANATION OF EXPENSES

(unaudited)

Hypothetical $1,000 investment at beginning of period

As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2016 to September 30, 2016.

Actual Expenses

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as program fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

VANECK VECTORS BIOTECH ETF

SCHEDULE OF INVESTMENTS

September 30, 2016

See Notes to Financial Statements

The summary of inputs used to value the Fund’s investments as of September 30, 2016 is as follows:

There were no transfers between levels during the year ended September 30, 2016.

See Notes to Financial Statements

VANECK VECTORS ENVIRONMENTAL SERVICES ETF

SCHEDULE OF INVESTMENTS

September 30, 2016

See Notes to Financial Statements

The summary of inputs used to value the Fund’s investments as of September 30, 2016 is as follows:

There were no transfers between levels during the year ended September 30, 2016.

See Notes to Financial Statements

VANECK VECTORS GAMING ETF

SCHEDULE OF INVESTMENTS

September 30, 2016

See Notes to Financial Statements

The summary of inputs used to value the Fund’s investments as of September 30, 2016 is as follows:

During the year ended September 30, 2016, transfers of securities from Level 2 to Level 1 were $122,658. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.

See Notes to Financial Statements

VANECK VECTORS GENERIC DRUGS ETF

SCHEDULE OF INVESTMENTS

September 30, 2016

See Notes to Financial Statements

See Notes to Financial Statements

VANECK VECTORS GENERIC DRUGS ETF

SCHEDULE OF INVESTMENTS

(continued)

The summary of inputs used to value the Fund’s investments as of September 30, 2016 is as follows:

There were no transfers between levels during the period ended September 30, 2016.

See Notes to Financial Statements

VANECK VECTORS PHARMACEUTICAL ETF

SCHEDULE OF INVESTMENTS

September 30, 2016

See Notes to Financial Statements

VANECK VECTORS PHARMACEUTICAL ETF

SCHEDULE OF INVESTMENTS

(continued)

The summary of inputs used to value the Fund’s investments as of September 30, 2016 is as follows:

There were no transfers between levels during the year ended September 30, 2016.

See Notes to Financial Statements

VANECK VECTORS RETAIL ETF

SCHEDULE OF INVESTMENTS

September 30, 2016

See Notes to Financial Statements

VANECK VECTORS RETAIL ETF

SCHEDULE OF INVESTMENTS

(continued)