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Market Vectors reduces expense cap for Emerging Markets Local Currency ETF


Van Eck Associates has lowered the expense cap for its Market Vectors Emerging Markets Local Currency ETF from 49 basis points to 47 basis points.

The expense cap is effective through 1 September 2013 and excludes certain expenses, such as interest.

EMLC seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the J.P. Morgan GBI-EMG Core Index , a rules-based, market capitalisation-weighted index that is designed to be investible and includes only those countries that are accessible by most of the international investor base.

“We’re pleased to lower EMLC’s expense cap, which already had the lowest net expense ratio among the EM local currency and dollar-denominated ETFs in the marketplace,” says Adam Phillips, chief operating officer of Market Vectors ETFs. “Wherever possible, we look to reduce fees and expenses and pass those savings along to investors.”

EMLC was the first US-listed ETF to focus on local currency-denominated bonds of emerging markets governments at the time of its launch, and currently has over USD791m in AUM. The fund was recently joined in the Market Vectors ETF line-up by another first-of-its-kind offering in emerging markets, Emerging Markets High Yield Bond ETF (HYEM), launched in May 2012 which seeks to track an index that focuses exclusively on dollar-denominated high-yield corporate bonds issued by companies from emerging markets countries. Together, EMLC and HYEM provide two different ways to invest in emerging markets debt.

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