Van Eck To Begin Trading The Market Vectors Emerging Markets High Yield Bond ETF Wednesday, May 09, 2012
Van Eck has announced that they will begin trading The Market Vectors Emerging Markets High Yield Bond ETF (NYSEARCA:HYEM) Wednesday, May 09, 2012. Market Vectors Emerging Markets High Yield Bond ETF (the “Fund”) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of The BofA Merrill Lynch High Yield US Emerging Markets Liquid Corporate Plus Index.
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement: 0.40%
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 U.S. dollar denominated debt issued by non-sovereign emerging market issuers that are rated BB1 or lower (based on an average of Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Rating Services (“S&P”) and Fitch International Rating Agency (“Fitch”)) and that are issued in the major domestic and Eurobond markets. In order to qualify for inclusion in the Index, an issuer must have risk exposure to countries other than members of the Group of Ten, all Western European countries and territories of the United States and Western European countries. The Group of Ten includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States. As of the date of this Prospectus, the Index includes 261 below investment grade securities of 162 issuers, and approximately 86.2% of the Index is comprised of Rule 144A and Regulation S securities. 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. 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. Because of the practical difficulties and expense of purchasing all of the securities in the Index, the Fund does not purchase all of the securities in the Index. Instead, the Adviser utilizes a “sampling” methodology in seeking to achieve the Fund’s objective. As such, the Fund may purchase a subset of the bonds in the Index in an effort to hold a portfolio of bonds with generally the same risk and return characteristics of 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 industrials sector and each of the financial services and utilities sectors represents a significant portion of the Index.
For the complete prospectus click: HERE