Market Vectors Reduces Expense Cap for Indonesia Index ETF (IDX)
Van Eck Associates Corporation is lowering the expense cap for its Market Vectors Indonesia Index ETF (NYSEARCA:IDX) from 60 basis points (bps) to 57 bps, effective today. This marks the second time in IDX’s more than three-year history that its expense cap has been lowered.
IDX seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Indonesia Index (MVIDXTR), a rules-based, modified market capitalization-weighted, float-adjusted index intended to give investors exposure to Indonesia. As of March 31, the fund had approximately $537 million in assets under management.
“We are committed to building and maintaining a family of ETFs focused on providing investors with access to opportunities in emerging markets, hard assets, fixed income and more. Wherever possible, we look to reduce fees and expenses and pass those savings along to our investors,” said Adam Phillips, Chief Operating Officer of Market Vectors ETFs. “We’re pleased to lower IDX’s expense cap for the second time, and IDX currently has the lowest net expense ratio among the Indonesia-focused ETFs in the marketplace.”
IDX was the first U.S.-listed ETF to focus on Indonesian equities at the time of its launch and currently holds Morningstar 5-star ratings in both the 3-year and overall categories.+ The Fund was recently joined in the Market Vectors suite by another first-of-its-kind offering, Market Vectors Indonesia Small-Cap ETF (NYSEARCA:IDXJ), which launched in March 2012 and seeks to track an index that focuses exclusively on equities of small-cap companies that are domiciled and primarily listed in Indonesia or that generate the majority of their revenues in Indonesia. Together, IDX and IDXJ provide full coverage of the Indonesian equity market cap spectrum.
“Indonesia’s growth over the past several years has been impressive, and we believe the outlook remains bright, driven in part by rising domestic consumption and higher levels of disposable income,” said Ed Lopez, Marketing Director at Market Vectors ETFs. “By lowering the expense cap of IDX, we have made investing in the compelling Indonesian growth story even more affordable for our investors.”
IDX and IDXJ are part of the Market Vectors family of ETFs that also includes small- and all-cap emerging markets and international exchange-traded funds such as India Small-Cap Index (NYSEARCA:SCIF); Germany Small-Cap ETF (NYSEARCA:GERJ); Russia ETF (NYSEARCA:RSX); Russia Small-Cap ETF (NYSEARCA:RSXJ); Poland ETF (NYSEARCA:PLND); Vietnam ETF (NYSEARCA:VNM); and Brazil Small-Cap ETF (NYSEARCA:BRF), among others.
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 currently totals $25.1 billion in assets under management, making it the fifth largest ETP family in the U.S. and eighth largest worldwide as of March 31, 2012.
Market Vectors ETFs are distributed 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 manages approximately $34.8 billion in investor assets as of March 31, 2012.
+©2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star.
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. As of 3/31/12, of U.S. Exchange Traded Funds and U.S. Open-End Mutual Funds (as defined by Morningstar), IDX had an overall and three-year rating of 5 stars out of 65 funds in the Pacific/Asia ex-Japan Stock category. Past performance is no guarantee of future results.
The Fund is subject to elevated risks, including those associated with investments in foreign securities, in particular Indonesian issuers, which include, among others, expropriation, confiscatory taxation, political instability, armed conflict and social instability. In addition, companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies that 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. Please refer to the prospectus and summary prospectus for complete risk information.
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. In addition, the Fund’s assets will be concentrated in Indonesia. To the extent that the Fund’s investments are concentrated in a particular sector, industry or country, the Fund will be susceptible to loss due to adverse occurrences effecting that sector, industry or country.
Market Vectors Indonesia Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Structured Solutions AG to maintain and calculate the Index. Structured Solutions AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Structured Solutions AG has no obligation to point out errors in the Index to third parties.
Market Vectors Index Solutions GmbH does not sponsor, endorse or promote Market Vectors Indonesia ETF and makes no representation regarding the advisability of investing in the Fund.
Index returns are not Fund returns and do not reflect any management fees or brokerage expenses. Investors can not 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. Index returns assume that dividends have been reinvested.
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. 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.
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