Exchange Traded Concepts To Begin Trading The Sustainable North American Oil Sands ETF Tuesday, June 12, 2012
Exchange Traded Concepts has announced that they will begin trading The Sustainable North American Oil Sands ETF (NYSEARCA:SNDS) Tuesday, June 12, 2012. The Sustainable North American Oil Sands ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Sustainable North American Oil Sands Index.
Total Annual Fund Operating Expenses: 0.50%
Principal Investment Strategies
The Fund will normally invest at least 80% of its total assets in securities of the Index or in depositary receipts representing securities of the Index. The Index is designed to measure the performance of companies whose operations in the North American oil sands include oil exploration, production, refinement, marketing, storage, transportation, provision of equipment and/or provision of services (“Oil Sands Companies”). Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of Oil Sands Companies. This investment policy may be changed without shareholder approval, upon 60 days’ prior notice to shareholders.
The Fund employs a “passive management” investment strategy in seeking to achieve its investment objective. The Fund generally will use a replication methodology, meaning it will invest in all of the securities comprising the Index in proportion to the weightings in the Index. However, the Fund may utilize a sampling methodology under various circumstances where it may not be possible or practicable to purchase all of the securities in the Index.
The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Index concentrates in an industry or group of industries. As of the date of the Prospectus, the Index was concentrated in the energy sector.
The Index provider is Sustainable Wealth Management Ltd. (“Sustainable Wealth”), which is not affiliated with the Fund, the Adviser or Index Management Solutions, LLC (the “Sub-Adviser”). Sustainable Wealth developed the methodology for determining the securities to be included on the SNAOS Index and for the ongoing maintenance of the Index. To be eligible for the SNAOS Index, a security must be issued by an Oil Sands Company that has a market capitalization of at least $3 billion, be traded on a U.S. or Canadian exchange and have a 100-day average trading volume of at least $5 million. As of March 7, 2012 there were 31 securities on the Index. The SNAOS Index is rebalanced at the end of each calendar quarter such that each security in the Index will have, on the rebalancing date, a weighting equal to every other security in the Index. Individual security weightings will fluctuate after each rebalancing date as a result of market action or for other reasons. Sustainable Wealth also publishes information regarding the SNAOS Index. The Index is calculated by Structured Solutions AG (“Structured Solutions”)], which is not affiliated with the Fund, the Adviser or the Sub-Adviser.
For the complete prospectus click: HERE