Market Vectors ETF Trust announced today that it has launched the Market
Vectors Israel ETF (NYSE Arca: ISRA), an exchange-traded fund (ETF)
designed to provide investors with broad exposure to Israel’s dynamic
equity market.
“Israel is uniquely positioned to offer investors emerging market growth
characteristics with a developed market approach to economic
management,” said Amrita Bagaria, ETF Product Manager with Market
Vectors. “The country has a vibrant economy with broad sector
representation. With that in mind, we have selected an index for ISRA
that best represents the Israeli market and captures the full spectrum
of economic growth potential.”
ISRA seeks to replicate as closely as possible, before fees and
expenses, the price and yield performance of the BlueStar Israel Global
Index (BLSTR), a rules-based index of Israeli and Israeli-linked
companies intended to track the overall performance of the largest and
most liquid companies, as well as mid-cap and small-cap companies that
display sufficient liquidity. To qualify for inclusion in BLSTR, a
company must be listed, domiciled, or founded in Israel, or it must
generate the majority of its revenues in Israel. Stocks in the index
generally trade on the Tel Aviv Stock Exchange but also include
Israeli-domiciled companies listed outside of the country.
“In designing the Index, we wanted to set a high bar for inclusion,”
said Steven Schoenfeld of BlueStar Global Investors LLC. “It was
important that each constituent have a deep involvement in Israel’s
growth. We believe we’ve been able to accomplish that, and we are
pleased to provide the underlying index for ISRA.”
As of June 24, 2013, the Index’s top three sectors were Information
Technology (representing 29.9 percent of the holdings), Health Care
(26.3 percent) and Financials (19.1 percent).
Market Vectors noted that an investment of this kind is not without
risks, including those associated with investments in foreign
securities, in particular Israeli issuers, which include, among others,
greater market volatility, the availability of less reliable financial
information, higher transactional and custody costs, taxation by foreign
governments, decreased market liquidity, and political instability,
including territorial disputes, historical animosities, or security
concerns, and heavy dependence upon trade relationships.
ISRA is the latest addition to Market Vectors’ family of international
equity ETFs, which also includes the Indonesia Index ETF (IDX),
Indonesia Small-Cap ETF (IDXJ),
Brazil Small-Cap ETF (BRF),
India Small-Cap ETF (SCIF),
Russia ETF (RSX),
Russia Small-Cap ETF (RSXJ),
Vietnam ETF (VNM),
and more.
ISRA, Market Vectors’ 53rd ETF, has a gross expense ratio of
0.73 percent and a net expense ratio of 0.59 percent, with the fund’s
expenses capped at 0.59 percent until May 1, 2015.
About Market Vectors ETFs
Market Vectors exchange-traded products have been offered since 2006 and
span many asset classes, including equities, fixed income (municipal and
international bonds) and currency markets. The Market Vectors family
totaled $23.7 billion in assets under management, making it the seventh
largest ETP family in the U.S. and tenth largest worldwide as of May 31,
2013.
Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955,
Van Eck Global was among the first U.S. money managers helping investors
achieve greater diversification through global investing. Today, the
firm continues this tradition by offering innovative, actively managed
investment choices in hard assets, emerging markets, precious metals
including gold, and other alternative asset classes. Van Eck Global has
offices around the world and managed approximately $32 billion in
investor assets as of May 31, 2013.
The Fund is subject to elevated risks, including those associated with
investments in foreign securities, in particular Israeli issuers, which
include, among others, greater market volatility, the availability of
less reliable financial information, higher transactional and custody
costs, taxation by foreign governments, decreased market liquidity and
political instability. Israel’s relations with the Palestinian Authority
and certain neighboring countries such as Lebanon, Syria and Iran, among
others, have at times been strained due to territorial disputes,
historical animosities or security concerns, which may cause uncertainty
in the Israeli markets and adversely affect the overall economy.
Furthermore, Israel’s economy is heavily dependent upon trade
relationships with key counter parties around the world. Any reduction
in these trade flows may have an adverse impact on the Fund’s
investments. In addition, companies with medium and small
capitalizations are subject to elevated risks, which include, among
others, greater volatility, lower trading volume and less liquidity than
larger companies and tend to have narrower product lines, fewer
financial resources, less management depth and experience and less
competitive strength. Investors should be willing to accept a high
degree of volatility and the potential of significant loss. The Fund may
loan its securities, which may subject it to additional credit and
counterparty risk.
The Fund’s assets may be concentrated in a particular sector or sectors
or industry or group of industries to the extent the Index concentrates
in a particular sector or sectors or industry or group of industries,
which include information technology, health care, and financials. To
the extent that the Fund’s investments are concentrated in a particular
sector or industry, the Fund will be susceptible to loss due to adverse
occurrences effecting that sector or industry.
The “BlueStar Israel Global IndexTM,” is the exclusive
property and a trademark of BlueStar Global Investors LLC and has been
licensed for use for certain purposes by Van Eck Associates Corporation
for Market Vectors Israel ETF (the “ETF”) based on the BlueStar Israel
Global IndexTM. The ETF is not sponsored, endorsed, sold or
promoted by BlueStar Global Investors LLC, and BlueStar Global Investors
LLC makes no representation regarding the advisability of trading in
such product(s).
The “Net Asset Value” (NAV) of a Market 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. Market Vectors
ETF investors should not expect to buy or sell shares at NAV.
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.
Investing involves substantial risk and high volatility, including
possible loss of principal. An investor should consider the investment
objective, risks, charges and expenses of the Fund carefully before
investing. Please refer to the prospectus for complete risk information.
To obtain a prospectus and summary prospectus, which contains this and
other information, call 888.MKT.VCTR or visit marketvectorsetfs.com.
Please read the prospectus and summary prospectus carefully before
investing.
Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New
York, NY 10017
Copyright Business Wire 2013