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 totaled $22.6 billion in assets under management, making it the seventh largest ETP family in the U.S. and tenth largest worldwide as of November 30, 2013.
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 managed approximately $31.4 billion in investor assets as of November 30, 2013.
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The Market Vectors ChinaAMC A-Share ETF (“the Fund”) may gain exposure to the China A-Share market by directly investing in China A-Shares and investing in swaps that are linked to the performance of China A-Shares. An investment in the Fund involves a significant degree of risk, including, but not limited to, the Adviser’s and Sub-adviser’s ability to manage the Fund, which depends upon the availability of China A-Shares and the willingness of swap counterparties to engage in swaps with the Fund linked to the performance of China A-Shares. The Fund may suffer significant losses if a swap counterparty fails to perform its obligations under the swap as a result of bankruptcy or otherwise. The Fund may enter into swap transactions with as few as one counterparty at any time. Swaps in which the Fund invests may need to be reset on a regular basis, which may increase the likelihood that the Fund will generate short-term capital gains and/or ordinary income. The Fund may also invest in shares of other funds, including exchange-traded funds (“ETFs”), and may absorb duplicate levels of fees with respect to investments in other funds. Investors should be willing to accept a high degree of volatility and the potential of significant loss.
The Fund is subject to elevated risks associated with investments in securities of Chinese securities, including A-Shares, which include, among others, political and economic instability, inflation, confiscatory taxation, nationalization, and expropriation, Chinese securities market volatility, less reliable financial information, differences in accounting, auditing, and financial standards and requirements from those applicable to U.S. issuers, and uncertainty of implementation of existing Chinese law. In addition, the Fund is also subject to liquidity and valuation risks, currency risk, non-diversification risk, and other risks associated with foreign and emerging markets investments. Please refer to the prospectus for more complete information on the risks of investing in the Fund.
CSI 300 Index and its logo are service marks of China Securities Index Co., Ltd. (“CSI”) and have been licensed for use by Van Eck Associates Corporation. The Market Vectors China ETF is not sponsored, endorsed, sold, or promoted by CSI, and CSI makes no representation regarding the advisability of investing in the Market Vectors China ETF.
Fund shares are not individually redeemable and will be issued and redeemed at their “Net Asset Value” (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. Please refer to the prospectus for complete risk information. 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.
Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017
Mike MacMillan/Chris Sullivan