By Business Wire, October 02, 2013, 09:47:00 AM EDT
NEW YORK--(BUSINESS WIRE)--
Market Vectors ETFs today announced changes to its Market
Vectors® LatAm Aggregate Bond ETF (NYSE Arca:BONO®). On or about
December 10, 2013, BONO will change its ticker, fund name, and
investment strategy, and will be renamed the Market Vectors® Emerging
Markets Aggregate Bond ETF (NYSE Arca:EMAG) to reflect its new
investment objective which will be to seek to track, before fees and
expenses, the price and yield performance of the Market Vectors® EM
Aggregate Bond Index (MVEMAG). Fund shareholders are not required to
take any action with respect to the foregoing.
The MVEMAG index includes the four major categories of emerging markets
bonds: U.S. dollar and Euro denominated sovereigns, local currency
sovereigns, U.S. dollar and Euro denominated corporates, and local
currency corporates. Additionally, the index is expected to continue to
include Latin American debt as an important component, and will include
Asian, Eastern European, Middle Eastern, and African debt as well.
"By changing BONO to EMAG, we are seeking to introduce an efficient
means for investors to gain access to a broad exposure of emerging
markets bonds in a single ETF," said Ed Lopez, Marketing Director with
Market Vectors ETFs.
"A key feature of the MVEMAG index is that it has a relatively balanced
exposure to both local currency and hard currency debt," added Mr.
Lopez. "We expect that this will allow the ETF to maintain broadly
diversified exposure within the emerging markets debt universe,
presenting an attractive option to investors who are not able to devote
significant resources to researching currencies and credit ratings."
Van Eck's Market Vectors ETF family also includes Emerging
Markets High Yield Bond ETF (NYSE Arca:HYEM), Emerging
Markets Local Currency Bond ETF (NYSE Acra:EMLC), and Renminbi
Bond ETF (NYSE Arca:CHLC).
EMAG is expected to have a gross expense ratio of 1.26 percent and a net
expense ratio of 0.49 percent, which are the same expense ratios
currently associated with BONO. Van Eck Global, which sponsors the
Market Vectors family of ETFs, has agreed to waive fees and/or pay
EMAG's expenses to prevent the operating expenses of the Fund (excluding
certain expenses, such as interest) from exceeding 0.49 percent of the
fund's average daily net assets per year until at least September 1,
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 $22.3 billion in assets under management, making it the seventh
largest ETP family in the U.S. and 10th largest worldwide as
of August 31, 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.
There are risks involved with investing in ETFs, including possible loss
of money. Shares are not actively managed and are subject to risks
similar to those of stocks, including those regarding short selling and
margin maintenance requirements. Ordinary brokerage commissions apply.
Debt securities carry interest rate and credit risk. Interest rate risk
refers to the risk that bond prices generally fall as interest rates
rise and vice versa. Credit risk is the risk of loss on an investment
due to the deterioration of an issuer's financial health. The Fund's
underlying securities may be subject to call risk, which may result in
the Fund having to reinvest the proceeds at lower interest rates,
resulting in a decline in the Fund's income.
Market Vectors EM Aggregate Bond Index (the "Index") is the exclusive
property of Market Vectors Index Solutions GmbH (the "Index Provider"),
which has contracted with Solactive AG (the "Calculation Agent") to
calculate the Index. The Calculation Agent is not an adviser for or a
fiduciary to any account, fund or ETF managed by Van Eck Associates
Corporation. The Calculation Agent is not responsible for any direct,
indirect, or consequential damages associated with indicative optimized
portfolio values and/or indicative intraday values. Market Vectors
Emerging Markets Aggregate Bond ETF (the "Fund") is not sponsored,
endorsed, sold or promoted by the Index Provider, which makes no
representation regarding the advisability of investing in the Fund.
Investments in emerging market securities are subject to elevated risks
which include, among others, expropriation, confiscatory taxation,
issues with repatriation of investment income, limitations of foreign
ownership, political instability, armed conflict and social instability.
As the Fund invests some of its assets in securities denominated in
foreign currencies and some of the income received by the Fund will be
in foreign currencies, changes in currency exchange rates may negatively
impact the Fund's return. The Fund will generally invest a portion of
its assets in Rule 144A securities. Rule 144A securities are restricted
securities. They may be less liquid than other investments because, at
times, such securities cannot be readily sold in broad public markets
and the Fund might be unable to dispose of such securities promptly or
at reasonable prices. A restricted security that was liquid at the time
of purchase may subsequently become illiquid.
The "net asset value" (NAV) of an ETF is determined at the close of each
business day, and represents the dollar value of one share of the ETF;
it is calculated by taking the total assets of an ETF subtracting total
liabilities, and dividing by the total number of shares outstanding. The
NAV is not necessarily the same as an ETF's intraday trading value.
Investors should not expect to buy or sell shares at NAV. Total returns
are based upon closing "market price" (price) of the ETF on the dates
Fund shares are not individually redeemable and will be issued and
redeemed at their 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. Bonds and bond funds will decrease in value
as interest rates rise.An investor should consider the
investment objective, risks, charges and expenses of a Fund carefully
before investing. To obtain a prospectus and summary prospectus, which
contain this and other information, call 888.MKT.VCTR or visit
marketvectorsetfs.com. Please read the prospectus
prospectuscarefully before investing.
Van Eck Securities Corporation, Distributor
Avenue, New York, NY 10017
Source: Market Vectors ETFs