Van Eck To Begin Trading The Market Vectors Germany Small-Cap ETF (GERJ) Tuesday April 5th
Van Eck will begin trading its new “Market Vectors Germany Small-Cap ETF” (NYSE:GERJ) Tuesday April, 5 2011. Market Vectors Germany Small-Cap ETF (the “Fund”) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Germany Small-Cap Index. The Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of publicly traded mid-cap companies that are domiciled and primarily listed on an exchange in Germany or that generate at least 50% of their revenues in Germany. In exceptional cases, companies with less than 50% of their revenues derived from Germany may be eligible for inclusion in the Index.
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement: 0.55%
Principal Investment Strategies
The Fund normally invests at least 80% of its total assets in securities that comprise the Fund’s benchmark index. The Fund’s benchmark index is comprised of stocks and depositary receipts of publicly traded companies that are domiciled in Germany. For the purposes of this policy, “publicly traded companies that are domiciled in Germany” means (i) companies organized in, or for which the principal trading market is in, Germany, (ii) companies, alone or on a consolidated basis, that have 50% or more of their assets invested in Germany or (iii) companies that alone or on a consolidated basis derive 50% or more of their revenues primarily from either goods produced, sales made or services performed in Germany. The Fund’s benchmark index is currently comprised of small-capitalization companies selected by [ ] (the “Index Provider”) on the basis of their relative market capitalizations in Germany. The Fund will normally invest at least 80% of its total assets in securities of small-capitalization German companies. The Fund’s 80% investment policy is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.
The Fund, using a “passive” or indexing investment approach, attempts to approximate the investment performance of the Index by investing in a portfolio of securities that generally replicates the Index.. The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Index before fees and expenses will be 95% or better. A figure of 100% would indicate perfect correlation.
The Fund may also utilize convertible securities and derivative instruments, such as swaps, options, warrants, futures contracts, currency forwards, structured notes and participation notes to seek performance that corresponds to the Index. Investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities of the Index will count towards the 80% investment policy discussed above.
The Fund will concentrate its investments in a particular industry or group of industries to the extent that the Index concentrates in an industry or group of industries.
For the complete prospectus click: HERE