Van Eck Files For Market Vectors Saudi Arabia Small-Cap ETF
Van Eck has filed paperwork with the SEC for a “Market Vectors Saudi Arabia Small-Cap ETF.” The Market Vectors Saudi Arabia 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 Saudi Arabia 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 publically traded companies that are domiciled and primarily listed on an exchange in Saudi Arabia or that generate at least 50% of their revenues in Saudi Arabia. In exceptional cases, companies with less than 50% of their revenues derived from Saudi Arabia may be eligible for inclusion in the Index.
The Index generally only includes Saudi Arabian companies ranking in the bottom 90-98% of the range of full free-float market capitalizations of all Saudi Arabian companies, but may also include companies whose market capitalization falls outside of this range but within the bottom 15% of companies ranked by market capitalization.
Constituent stocks of the Index must have a market capitalization of greater than $150 million on a rebalancing date to be eligible for the Index. Stocks whose market capitalizations fall below $75 million as of any rebalancing date will no longer be eligible for the Index. Stocks must have a three-month average daily trading volume value of at least $1 million to be eligible for the Index and issuers of such stocks must have traded at least 250,000 shares each month over the last six months. Only shares that trade on a recognized domestic or international stock exchange may qualify (e.g., stocks must be “reported securities” under Rule 11Aa3-1 of the Securities Exchange Act of 1934, as amended). Similar criteria and standards apply to stocks with foreign listings.
They did not specify a trading symbol or expense ratio in the initial filing.
Principal Investment Strategies
The Fund normally invests at least 80% of its total assets in securities that comprise the Fund’s benchmark index. The Index is comprised of securities of Saudi Arabian small-capitalization companies. A company is considered to be from Saudi Arabia if it is domiciled and primarily listed on an exchange in Saudi Arabia or generates at least 50% of its revenues in Saudi Arabia. In exceptional cases, companies with less than 50% of their revenues derived from Saudi Arabia may be eligible for inclusion in the Index. 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, participation notes and depositary receipts to seek performance that corresponds to the Index.
The Fund may 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. As of the date of this Prospectus, the Index is concentrated in the financial services and the basic materials sectors.
For the complete filing click: HERE