New York-based asset manager Van Eck Global is reducing the expense caps on three exchange-traded funds: Market Vectors Brazil Small-Cap ETF, Market Vectors Poland ETF and Market Vectors Vietnam ETF.
Van Eck expects that as a result of this, the net operating expenses of these funds will be reduced.
The expense cap of the Market Vectors Brazil Small-Cap ETF has been reduced from 0.71 per cent to 0.65 per cent, the Market Vectors Poland ETF from 0.76 per cent to 0.65 per cent, and the Market Vectors Vietnam ETF from 0.97 per cent to 0.76 per cent.
The adviser has agreed to waive fees and/or pay fund expenses to the extent necessary to prevent the operating expenses of each fund from exceeding 0.65 per cent with respect to Market Vectors Brazil Small-Cap ETF and Market Vectors Poland ETF and 0.76 per cent with respect to Market Vectors Vietnam ETF of its average daily net assets per year until at least 1 May 2011.
During such time, the expense limitation is expected to continue until the fund’s board of trustees acts to discontinue all or a portion of such expense limitation.
These reduced expense limitations are capped contractually until at least 1 May 2011. As is typically the case, interest expense and certain other expenses are excluded from the expense cap.
“International funds generally have higher net expense ratios than domestic funds but we try to pass on lower expenses to shareholders when we achieve economies of scale,” says Jan van Eck, principal at Van Eck Global.
The Market Vectors Brazil Small-Cap ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Brazil Small-Cap Index. The index provides exposure to publicly traded small capitalisation companies that are domiciled and primarily listed on an exchange in Brazil or that generate at least 50 per cent of their revenues in Brazil.
The Market Vectors Poland ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Poland Index. The ondex is a diversified index consisting of at least 25 companies either headquartered in Poland or deriving at least 50 percent of their revenues from the country.
The Market Vectors Vietnam ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Vietnam Index. The index provides exposure to publicly traded companies that, predominantly, are domiciled and primarily listed in Vietnam and which generate at least 50 per cent of their revenues from Vietnam. The index also includes non-Vietnamese companies that generate, or are expected to generate, at least 50 per cent of their revenues from Vietnam, or that demonstrate a significant and/or dominant position in the Vietnamese market and are expected to grow.
