Van Eck Files For “Market Vectors Mortgage REIT ETF”

Van Eck has filed paperwork with the SEC for a “Market Vectors Mortgage REIT ETF.” The Market Vectors Mortgage REIT ETF (the “Fund”) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Mortgage REIT 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 publicly traded mortgage REITs. 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 Fund’s benchmark index is comprised of stocks of publicly traded mortgage real estate investment trusts (“REITs”). A mortgage REIT makes loans to developers and owners of properties and invests primarily in mortgages and similar real estate interests. 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 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 real estate sector represents a significant portion of the Index.

For the complete filing click: HERE

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