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Market Vectors-Agribusiness ETF launched on American Stock Exchange


New York-based asset manager Van Eck Global has launched Market Vectors-Agribusiness ETF (MOO), a new exchange-traded fund (ETF) listed on the American Stock Exchange (Amex).

New York-based asset manager Van Eck Global has launched Market Vectors-Agribusiness ETF (MOO), a new exchange-traded fund (ETF) listed on the American Stock Exchange (Amex). The fund is the first ETF listed in the US that enables US investors to gain exposure to a broad spectrum of companies involved in agribusiness. Options are expected to be available on MOO.

MOO seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Agribusiness Index (DXAG), a basket of the securities of 40 agribusinesses listed on global exchanges. As of August 31, 2007, DXAG returned approximately 40.3 per cent and 35.4 per cent over three- and five-years, respectively. Companies in DXAG predominantly derive at least 50% of their revenue from agribusiness.

MOO seeks to provide investors with a convenient, low cost means to gain diversified exposure to a basic industry that has good growth potential. DXAG currently includes Archer-Daniels-Midland Co, Associated British Foods PLC and other agriproduct operations as well as Monsanto, Potash Corp of Saskatchewan and other agricultural chemical companies (7.58%, 4.07%, 8.35% and 8.88% of the Index, respectively). Also currently represented in DXAG are companies engaged in providing or transporting agricultural equipment, livestock operations and providing or transporting ethanol/biodiesel. MOO’s total net expense ratio is 0.65%.

‘Agriculture is fundamental to the world economy and despite its long history the industry still has potentially good growth prospects for three reasons,’ says Jan van Eck, Principal at Van Eck Global. ‘First, basic demand is growing in line with population and higher personal incomes. Second, since the amount of arable land is relatively fixed, there is continued interest in increasing productivity through agricultural chemicals and equipment. Third, producers of biofuels from corn, sugar cane and potentially other agribusiness products may represent an increasing portion of crop demand.

‘All this could result in a growing interest among investors in agribusiness. As the first ETF listed in the US to target agribusiness, we believe that MOO will appeal to investors looking for a convenient means to access the agribusiness market. After all, agriculture is either completely absent from or is drastically underweighted in the most popular commodity-equity indices.’

Angelika Weinfurtner of the Deutsche Börse AG adds: ‘The DAXglobal Agribusiness Index was created to reflect the performance of the global agribusiness industry. We look forward to working with Van Eck to bring the index before a wider audience through the introduction of the Market Vectors-Agribusiness ETF.’

Founded in 1955, Van Eck Global was among the first US money managers helping investors achieve greater diversification through global investing. As of July 31, 2007, Van Eck Global managed over USD6 billion in assets for individuals, insurers and institutional investors. MOO is the seventh ETF introduced under Van Eck’s Market Vectors brand. The other six are: Environmental Services (Amex: EVX), Global Alternative Energy (NYSE: GEX), Gold Miners (Amex: GDX), Nuclear Energy (Amex: NLR), Russia (NYSE: RSX) and Steel (Amex: SLX). These ETFs have a total of over $1.0 billion in assets under management as of July 31, 2007.

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