Bringing you live news and features since 2006 

Van Eck Global launches Africa Index ETF

RELATED TOPICS​

New York-based asset manager Van Eck Global has launched Market Vectors-Africa Index ETF on NYSE Arca, offering access to a fast-growing, relatively untapped market that is increasingly so

New York-based asset manager Van Eck Global has launched Market Vectors-Africa Index ETF on NYSE Arca, offering access to a fast-growing, relatively untapped market that is increasingly sought after by investors looking beyond existing international investment opportunities.

The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Dow Jones Africa Titans 50 Index, which spans 11 countries from the more developed economies of South Africa, Egypt and Morocco to the frontier markets of Nigeria, Ghana and Zambia. It includes African companies as well as offshore companies that generate the majority of their revenues in Africa.

‘Africa may be turning a corner due to debt reduction, strong commodity prices and better economic management, but there are considerable risks and investors should take a long-term perspective,’ says Van Eck Global principal Jan van Eck.

‘The Market Vectors-Africa ETF provides access to 11 countries across the continent and encompasses a broad cross-section of industries. Currently, approximately 50 per cent of the index is weighted in markets outside South Africa, Egypt and Morocco.’

The largest country weightings are Nigeria, South Africa, and Egypt, and the largest sector weightings are banking, basic resources, and oil and gas. Country weights are capped at 25 per cent of the index.

The weight of individual components is capped at 8 per cent, with a maximum of 15 companies per country. The top three holdings as of July 9 were Mobile Telecommunications, Tullow Oil, and Sasol, with weightings of approximately 7.3 per cent, 6.2 per cent and 4.4 per cent respectively. The management fee is 0.50 per cent, while the total expense ratio is 0.83 per cent.

Founded in 1955, Van Eck Global managed more than USD13.6bn in assets for individuals, insurers and institutional investors at the end of June 30, including more than USD7bn in its Market Vectors vehicles, which include hard assets, international, and specialty equity exchange-traded funds as well as municipal bond ETFs.

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by