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Market Vectors changing underlying indices of Africa Index ETF and Gulf States Index ETF


Effective on or about 21 June 2013, the Market Vectors Africa Index ETF (AFK) will begin tracking a new benchmark, the Market Vectors GDP Africa Index (MVAFKTR). At the same time, the Market Vectors Gulf States Index ETF (MES) will also begin tracking a new benchmark, the Market Vectors GDP GCC Index (MVMESTR).

Both indices employ a gross domestic product (GDP) weighted methodology to determine the country weighting within the index.

“GDP weighting is an economic-based approach which we expect will help AFK and MES offer a more current picture of the potential opportunities in each region,” says Ed Lopez, marketing director at Market Vectors. “Compared to market-capitalization weighted indices, GDP weighted indices tend to favour countries whose economic impact may be greater than their equity markets alone may imply.”
In addition to the GDP weighting feature of MVAFKTR and MVMESTR, both indices follow a similar methodology to other Market Vectors indices which are built with a focus on liquidity, pure-play revenue-based exposure, and diversification. The indices track the performance of the largest and most liquid companies in their respective regions and companies are included in the indices only if they generate at least 50 per cent of their revenues from the relevant region. Limits on constituent weights also help drive diversification within the index and avoid over concentration in a few large holdings.
MVAFKTR and MVMESTR were developed and are published by Market Vectors Index Solutions, a Germany-based wholly owned subsidiary of Van Eck Associates.

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