Market Vectors Changing Underlying Index of Agribusiness ETF (MOO)
Effective on or about March 18, 2013, Market Vectors Agribusiness ETF (NYSEARCA:MOO), the largest U.S. listed agribusiness exchange-traded fund (ETF), will begin tracking the Market Vectors Global Agribusiness Index (MVMOOTR). MVMOOTR uses the Market Vectors index methodology that focuses on investability, diversification and pure-play exposure to the relative asset class. This methodology is shared by the benchmark indexes of several other Market Vector ETFs, including Brazil Small-Cap (BRF®), Indonesia (IDX), Junior Gold Miners (GDXJ®), Oil Services (OIH), Russia (RSX®), Semiconductor (SMH) and Vietnam (VNM).
“So, it is important for us have an index that best reflects the agribusiness industry and one that matches our philosophy of offering ETFs truly constructed for the asset class they are intended to track.”
MVMOOTR is a rules based, modified capitalization-weighted, float-adjusted index that seeks to track the performance of the global agribusiness industry. Similar to other Market Vectors indices, MVMOOTR is built specifically for ETFs. The Index employs stringent liquidity screens and constituent weighting caps that together are intended to enhance the tradability and diversification of the ETF. Additionally, to create an index representative of the industry, its rules require that constituents generate at least fifty percent of their revenues from the global agribusiness industry. The constituent names and weights of every Market Vectors index, including MVMOOTR, are provided daily on the Market Vectors Index Solutions website: www.marketvectorsindices.com.
“We expect that MOO will become more diversified as a result of these changes,” said Brandon Rakszawski, Marketing Product Manager at Market Vectors. “Constituent capping will continue to help avoid overconcentration in a few large holdings and the pure-play nature of the index will allow MOO to offer truly representative exposure to the agribusiness industry.”
“We believe that the business of food is a critical industry and one that’s growing in importance and potential opportunity for investors,” said Ed Lopez, Marketing Director at Market Vectors. “So, it is important for us have an index that best reflects the agribusiness industry and one that matches our philosophy of offering ETFs truly constructed for the asset class they are intended to track.”
MVMOOTR was developed, and is published by Market Vectors Index Solutions GmbH (MVIS), a Germany-based wholly owned subsidiary of Van Eck Associates Corporation. MVIS develops, markets and licenses Market Vectors branded indexes. In total, approximately $8.7 billion in assets under management are linked to exchange-traded products using Market Vectors indexes, as of September 30, 2012. Detailed information regarding MVIS is available at www.marketvectorsindices.com.
About Market Vectors
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 $27.9 billion in assets under management, making it the fifth largest ETF family in the U.S. and the eighth largest worldwide as of September 30, 2012.
Market Vectors ETFs are sponsored 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 $37.8 billion in investor assets as of September 30, 2012.
The Market Vectors Agribusiness ETF is subject to economic forces, including those affecting the agricultural commodity, energy and financial markets, as well as government policies and regulations affecting the agricultural sector and related industries. These forces could adversely affect the Fund’s portfolio companies and, thus, the Fund’s financial situation and profitability. Agricultural production and trade flows are significantly affected by government policies and regulations. In addition, the Fund’s portfolio companies must comply with a broad range of environmental laws and regulations which could adversely affect the Fund. Additional or more stringent environmental laws and regulations may be enacted in the future and such changes could have a material adverse effect on the business of the Fund’s portfolio companies. The Fund may loan its securities, which may subject it to additional credit and counterparty risk.
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 risk, including possible loss of principal. An investor should consider the investment objective, risks, and charges and expenses of the investment carefully before investing. To obtain a summary prospectus and prospectus, which contain this and other information, call 888.MKT.VCTR or visit vaneck.com/etf. Please read the summary prospectus and prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017
Mike MacMillan/Chris Sullivan