Market Vectors Index Solutions has licensed four of its Australia Indices to Market Vectors Australia, the Australian ETF business of Van Eck Global.
The Total Return Gross versions of the Market Vectors Australia A-REITs Index (MVMVA), Market Vectors Australia Banks Index (MVMVB), Market Vectors Australia Energy & Mining Index (MVMVR) and Market Vectors Australia Junior Energy & Mining Index (MVMVE) now underlie the following ETFs, all of them listed on the Australian Securities Exchange (ASX): Market Vectors Australian Property ETF (ASX: MVA), Market Vectors Australian Banks ETF (ASX: MVB), Market Vectors Australian Resources ETF (ASX: MVR) and Market Vectors Australian Emerging Resources ETF (ASX: MVE).
“We are very pleased to have signed a licensing agreement with Market Vectors Australia”, says Lars Hamich, Chief Executive Officer at MVIS. “We believe that the specific selection criteria of our Australia Indices can add value to the ETFs issued by our licensor. The unique combination of liquidity, diversification, pure-play index exposure and – last but not least – transparency, is a key feature of Market Vectors Indices. Most demanding liquidity screenings and the implementation of thought-out capping rules support ETF liquidity and balance. The pure-play focus ensures pure-play index, thus pure-play ETF exposure. Companies in a Market Vectors Australia Index have to generate at least 50% of their revenues from the target sector to qualify as ‘pure-play’ company. These features underpin our different approach to indexing and stand for an index concept that has been developed to respond to a changing investment landscape and to changing investor’s needs.”
Market Vectors Australia Indices are specifically developed to be investable and to serve as underlying for Australian ETFs. The indices are calculated as Price, Total Return and Total Return Gross indices in local currency (AUD) and are reviewed quarterly.