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Russia ETF to Change Underlying Index
1/6/2012 8:52:00 PM
The Market Vectors Russia ETF (NYSEArca: RSX) will be undergoing and index change. RSX will begin tracking a different index called the Market Vectors Russia Index (MVRSX).
MVRSX reflects the performance of the largest, most liquid publicly traded companies in Russia. Since its inception on July 14, 2010, the total return performance of the Market Vectors Russia Index is almost identical to that of the index it is replacing (-6.62%% for MVRSX versus -6.82% for the DAXglobal Russia+ Index.)
'We don't view this as a major change' said Jan van Eck, President of Market Vectors ETF Trust. 'RSX will continue to provide investors with a Russia focused ETF but will now include expanded exposure to Russia.'
The Market Vectors Index Methodology employs a pure-play approach that expands upon locally listed companies to include offshore companies that generate at least 50 percent of their revenues in Russia. A similar approach is shared by the benchmark indices of several other Market Vector ETFs, including the Brazil Small-Cap (NYSEArca: BRF), Colombia (NYSEArca: COLX), Indonesia (NYSEArca: IDX), Poland (NYSEArca: PLND) and Vietnam (NYSEArca: VNM).
According to its selection process, MVRSX is permitted to own American and global depository receipts of Russian companies. These securities can provide better exposure than their locally domiciled and listed counterparts as a result of their higher trading volumes and superior liquidity. It provides at least 90 percent coverage of the investable universe based on size and liquidity screens.
MVRSX was developed, and is owned and maintained by Market Vectors Index Solutions ( MVIS ) GmbH, a Germany-based company. MVIS develops, markets and licenses Market Vectors Indices, which currently underlie 21 Market Vectors exchange-traded funds.
Effective on or about March 16, 2012, RSX willbegin tracking the new benchmark.
The Van Eck Market Vector ETFs have around $23.6 billion in assets and are the sixth largest ETF provider in the U.S.