The Market Vectors China ETF will NOT launch on Wednesday, June 23, 2010. The launch date is to be determined.
The Market Vectors China ETF will NOT launch on Wednesday, June 23, 2010. The launch date is to be determined. The Fund’s investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the [ ] Index (the “Index”). The Index (the “Index”) is a rules based index intended to give investors a means of tracking the overall performance of A-shares of Chinese companies. Securities eligible for inclusion in the Index include securities issued by companies incorporated in China, and listed in the form of A-shares. A-shares are listed on the Shanghai or Shenzhen Stock Exchanges and are denominated in RMB.
The Fund will normally invest at least 80% of its total assets in component securities that comprise its benchmark index and in investments that have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise its benchmark index. The Fund may invest its remaining assets in money market instruments, including repurchase agreements or other funds which invest exclusively in money market instruments, convertible securities, structured notes (notes on which the amount of principal repayment and interest payments are based on the movement of one or more specified factors, such as the movement of a particular stock or stock index) and in swaps, options, futures contracts and currency forwards. In addition, the Fund may invest its remaining assets in B-shares, which are shares of companies incorporated in mainland China that are traded in the mainland B-share markets; China H-shares, which are shares of companies incorporated in mainland China and listed on the Hong Kong Stock Exchange; securities of Red Chip Companies, which are companies with controlling Chinese shareholders that are incorporated outside mainland China and listed on the Hong Kong Stock Exchange; and securities of Chinese-related companies, which are companies listed on the Hong Kong Stock Exchange, the Singapore Stock Exchange or other exchanges. CAAPs, swaps, structured notes and other types of derivative instruments may be used by the Fund in seeking performance that corresponds to its Index, and in managing cash flows. The Fund will not invest in money market instruments as part of a temporary defensive strategy to protect against potential stock market declines.
The Fund may lend its portfolio securities to brokers, dealers and other financial institutions desiring to borrow securities to complete transactions and for other purposes. In connection with such loans, the Fund receives liquid collateral equal to at least 102% of the value of the portfolio securities being loaned. This collateral is marked-to-market on a daily basis. Although the Fund will receive collateral in connection with all loans of its securities holdings, the Fund would be exposed to a risk of loss should a borrower default on its obligation to return the borrowed securities (e.g., the loaned securities may have appreciated beyond the value of the collateral held by the Fund). In addition, the Fund will bear the risk of loss of any cash collateral that it invests.
For the full prospectus click: HERE