Van Eck Global Introduces Two New Market Vectors(TM) Exchange-Traded Funds on The American Stock Exchange
16 Oktober 2006 - 4:30PM
PR Newswire (US)
NEW YORK, Oct. 16 /PRNewswire/ -- The American Stock Exchange(R)
(Amex(R)) together with New York-based investment adviser Van Eck
Global today introduced two new exchange-traded funds (ETFs), under
Van Eck's Market Vectors(TM) brand: the Market Vectors -
Environmental Services ETF (AMEX:EVX) and the Market Vectors -
Steel ETF (AMEX:SLX). The new ETFs are the first such products to
target these industries, both of which have significantly outpaced
the broader equity markets in recent years. Options on the new ETFs
are listed on the Amex. "The Amex is delighted to partner with Van
Eck Global to bring these exciting new ETFs to the marketplace,"
said Cliff Weber, Senior Vice President of the Amex's ETF
marketplace. "We are extremely pleased to have been selected by Van
Eck Global to list these ETFs, which are a welcome addition to our
family of innovative products." The Amex Specialist for the two new
ETFs and for the related options is Kellogg Capital Group, LLC. The
launches extend Van Eck's ETF product line, which was established
in May 2006 with the introduction of the Market Vectors - Gold
Miners ETF (AMEX: GDX), the nation's first and only ETF that seeks
to track, before fees and expenses, gold mining shares as
represented by the Amex Gold Miners Index (GDM). GDX volume has
averaged over approximately 600,000 shares a day and had assets of
approximately $260 million as of October 12, 2006. Market Vectors -
Environmental Services ETF (EVX) EVX seeks to track, before fees
and expenses, the newly created Amex Environmental Services Index
(AXENV), which is comprised primarily of companies engaged in waste
management and other environmental services. On a back-tested
basis, AXENV has delivered an annualized total return of
approximately 24.5 percent over the three years ending September
30, 2006 and approximately 15.4 percent over the five years ending
September 30, 2006. The companies that comprise the index have
shown an approximate 16.9 percent average revenue growth over the
past five years. The index is currently comprised of 24 companies
with a combined market capitalization of approximately $129
billion. The ADRs of two foreign firms are represented in the
index. Their combined weight in the index is approximately 20
percent. A complete EVX constituent list can be found at
http://www.vaneck.com/evx. The index includes dominant players in
the environmental services industry, such as Republic Services Inc.
and Waste Management, Inc., as well as more specialized companies
such as waste-to- energy provider Covanta Holding Corp., and
aluminum recycler Aleris International Inc. "The environmental
services industry has shown strong revenue growth in the past five
years as people worldwide have grown increasingly concerned about
environmental matters," said Adam Phillips, Director-ETF Sales, Van
Eck Global. "We also believe investors are becoming more familiar
with this relatively young industry and developing a greater
appreciation for its investment opportunities and potential."
Market Vectors - Steel ETF (SLX) SLX seeks to track, before fees
and expenses, the newly created Amex Steel Index (STEEL), which is
comprised primarily of companies involved in steel production and
fabrication, or the extraction and reduction of iron ore. On a
back-tested basis, STEEL has delivered an annualized total return
of approximately 40.5 percent and approximately 31.2 percent over
three and five years ending September 30, 2006, respectively. The
companies that currently comprise the index have shown an
approximate 20.5 percent average revenue growth over the past five
years. The 39 companies currently included in the index have a
combined market capitalization of approximately $268 billion.
Twenty-nine of the companies are based in North America; the
remaining ten are foreign firms with ADRs listed in the United
States. A complete SLX constituent list can be found at
http://www.vaneck.com/slx. SLX offers investors exposure to
important international steel producers, such as Mittal Steel Co.
NV and POSCO, as well as global iron ore mining firms, such as Rio
Tinto PLC. Currently, the combined weight of the non-U.S. or
Canadian firms in the index is approximately 64.1 percent. SLX also
offers exposure to domestic steel manufacturers, such as Allegheny
Technologies Inc., Nucor Corp. and United States Steel Corp.
"Today's global steel industry is vastly different from what it was
even just a few years ago," said Sam Halpert, Steel Analyst, Van
Eck Global. "It has an improved cost structure reflecting new labor
agreements and a more favorable mix of fixed and variable costs. In
addition, industry economics have benefited from a trend toward
consolidation and a strong demand environment with emerging
economies and infrastructure in the U.S. leading the way." About
the Amex Steel and Environmental Service Indices AXENV is a
modified equal-dollar-weighted index comprised of common stocks or
ADRs of selected companies that are involved in management, removal
and storage of consumer waste and industrial by-products and
related environmental services. STEEL is a modified market
capitalization-weighted index comprised of common stocks and ADRs
of selected companies that are primarily involved in a variety of
activities that are related to steel production. AXENV and STEEL
are trademarks of the American Stock Exchange LLC (Amex) that are
licensed for use by Van Eck Associates Corporation in connection
with the Environmental Services and Steel ETFs. The ETFs are not
sponsored, or endorsed by the Amex and the Amex makes no warranty
or representation as to the accuracy and/or completeness of each
index or the results to be obtained by any person from the use of
an index in connection with the trading of the ETFs. Past
performance does not guarantee future results. The returns of AXENV
and STEEL do not represent the performance of any ETF or fund.
Neither AXENV nor STEEL charge any fees, including management fees
or brokerage expenses, and no such fees or expenses were deducted
from the performance described. The performance of AXENV and STEEL
is based on a back test, i.e., calculations of how an index might
have performed in the past had it existed. Hypothetical,
back-tested performance has inherent limitations and is not
indicative of future results. You cannot invest directly in an
index. About Van Eck Global Founded in 1955, Van Eck Associates
Corporation was among the first U.S. money managers helping
investors achieve greater diversification through global investing.
Today, the firm continues its 50+ year tradition by offering global
investment choices in hard assets, emerging markets, precious
metals including gold, and other specialized asset classes. Van Eck
Global's investment products are designed for investors seeking
innovative choices for portfolio diversification; they are often
categorized in asset classes having returns with low correlations
to those of more traditional U.S. equity and fixed income
investments. As of September 30, 2006, the company managed over
$3.8 billion. About the American Stock Exchange The American Stock
Exchange(R) (Amex(R)) is the only primary exchange that offers
trading across a full range of equities, options and
exchange-traded funds (ETFs), including structured products and
HOLDRS(SM). In addition to its role as a national equities market,
the Amex is the pioneer of the ETF, responsible for bringing the
first domestic product to market in 1993. Leading the industry in
ETF listings, the Amex lists 208 ETFs. The Amex is also one of the
largest options exchanges in the United States, trading options on
broad- based and sector indexes as well as domestic and foreign
stocks. For more information, please visit http://www.amex.com/.
Both funds are subject to various principal risks including market
risk, index tracking risk, sector risk, replication management
risk, and risks related to being non-diversified, investing in
small or mid-cap companies, absence of a prior active market,
trading issues, fluctuation of net asset value and foreign
investments. In addition, SLX is subject to risks related to steel
prices. For a more complete description of these and other risks,
please refer to each Fund's prospectus. Investors may call
1.888.MKT.VCTR or visit http://www.vaneck.com/etf for a free
prospectus or for the performance information current to the most
recent month end for each Market Vectors ETF. Investors should
consider the investment objective, risks and charges and expenses
carefully before investing. The prospectus contains this and other
information about each Market Vector ETF. Please read the
prospectus carefully before investing. There are risks associated
with investing including the possible loss of principal.
DATASOURCE: Van Eck Global CONTACT: Mike MacMillan or Andrew
Schiff, both of MacMillan Communications, +1-212-473-4442, ; or
Mary Chung of American Stock Exchange, +1-212-306-1641, Web site:
http://www.vaneck.com/etf http://www.amex.com/
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