Van Eck has filed paperwork with the SEC for a “Market Vectors Asia ex-Japan Aggregate Bond ETF.” Market Vectors Asia ex-Japan Aggregate Bond ETF (the “Fund”) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Asia ex-Japan Aggregate Bond Index. No trading symbol or expense rations were noted 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 is comprised of debt securities issued by issuers located in Asian countries (excluding Japan) and denominated in either U.S. dollars or the local currency of the issuer. Constituent securities include publicly issued government bonds and corporate bonds issued by issuers located in the following developed and emerging market countries: [China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand]. This 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 Asia ex-Japan Aggregate Bond ETF Index. The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Asia ex-Japan Aggregate Bond 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 Asia ex-Japan Aggregate Bond Index, the Fund does not purchase all of the securities in the Asia ex-Japan Aggregate Bond 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 Asia ex-Japan Aggregate Bond Index in an effort to hold a portfolio of bonds with generally the same risk and return characteristics of the Asia ex-Japan Aggregate Bond Index.
The Fund may also utilize convertible securities and depositary receipts to seek performance that corresponds to the Asia ex-Japan Aggregate Bond Index.
The Fund may concentrate its investments in a particular industry or group of industries to the extent that the Asia ex-Japan Aggregate Bond Index concentrates in an industry or group of industries.
For the full prospectus click: HERE