Van Eck Global, the New York-based money management firm known
mostly for its commodities strategies, filed with the Securities
and Exchange Commission to offer a small-cap equity ETF focused on
the developing world, another sign of the increasingly nuanced
approach to emerging markets investing.
The Market Vectors GDP Emerging Markets Small-Cap Equity ETF
will be based on the Market Vectors GDP - Emerging Markets
Small-Cap Equity Index. The benchmark weights its constituents by
the size of a given country's gross domestic product (
) relative to the GDPs of the other countries represented in the
index. The company didn't say in the filing which countries will be
included in the index, but noted that the fund's indexing
methodology tends to favor countries with larger economies, such as
Russia or China.
The fund is the latest example of increasingly nuanced emerging
markets strategies aimed at trying to profit from rapid rates of
growth in the developing world. While last year's most popular
U.S.-listed fund was the broad-based Vanguard MSCI Emerging Markets
ETF (NYSEArca:VWO), the space is now being sliced and diced around
size, style and single countries. The new fund will compete with
funds such as the SPDR S&P Emerging Markets Small Cap ETF
(NYSEArca:EWX), which has $620 million in assets.
In the filing, Van Eck didn't disclose the proposed fund's
ticker symbol or its annual expense ratio.
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