Market Vectors Index Solutions has expanded its index coverage to include key Australian sectors and market-cap segments.
Market Vectors has expanded its index line-up to include coverage of key Australian sectors and segments including A-REITS, banks, energy and mining, and small-caps.
The six new equity indices provide exposure to A-REITS, banks, energy and mining companies and small-caps.
Each index follows Market Vectors’ unique pure-play concept, which also expands local coverage to include offshore companies with a listing in Australia (ASX) that generate at least 50% of their revenues from the corresponding Australian sector or size segment.
Strict size, liquidity and free-float screens are built into the indices to ensure a high degree of investability, while company capitalisation factors and minimum component requirements guarantee diversified exposure and prevent index concentration.
The indices have been especially developed to underlie financial products such as exchange-traded funds (ETFs). Approximately US$8.5 billion in assets under management are already currently invested in ETFs based on exisiting Market Vectors Indices.
The new indices are:
Market Vectors Australia A-REITS Index (MVFIN)
The index tracks the performance of the largest and most liquid ASX-listed Australian Real Estate Investment Trusts (A-REITS). The index currently has 17 components with a combined market capitalisation of AUD 86 billion. Major constituents include Westfield Group (19.74%), Westfield Retail Trust (14.19%), Stockland (11.73%), Goodman Group (9.28%), and GPT Group (7.74%).
Market Vectors Australia Banks Index (MVFIX)
The index tracks the performance of the largest and most liquid ASX-listed companies that generate at least 50% of their revenues from the Australian banking sector. The index currently has 7 components with a combined market capitalisation of AUD 321 billion. Major constituents include National Australia Bank (19.98%), Commonwealth Bank of Australia (19.90%), Australia and New Zealand Banking Group (19.88%), Westpac Banking Corporation (19.86%), and Macquarie Group (13.90%).
Market Vectors Australia Energy Index (MVENY)
The index tracks the performance of the largest and most liquid ASX-listed companies that generate at least 50% of their revenues from the Australian energy sector. The index currently has 23 components with a combined market capitalisation of AUD 115 billion. Major constituents include Origin Petroleum (8.16%), Woodside Petroleum (7.65%), AGL Energy (6.66%), Santos (6.61%), and Oil Search (5.73%).
Market Vectors Australia Energy & Mining Index (MVRSR)
The index tracks the performance of ASX-listed companies that generate at least 50% of their revenues from the Australian energy and mining sector. Included are companies that focus on energy, renewable energy, coal and uranium, utilities and on mining, iron and steel, mining services, transportation and production of mining equipment and machinery. The index currently has 35 components with a combined market capitalisation of AUD 322 billion. Major constituents include Rio Tinto (8.38%), BHP Billiton (8.26%), Woodside Petroleum (6.82%), and Origin Energy (6.23%), Newcrest Mining (6.17%).
Market Vectors Australia Junior Energy & Mining Index (MVMAM)
The index tracks the performance of local junior energy and mining ASX-listed companies that generate at least 50% of their revenues in the Australian energy and mining sector. Companies in the index focus on energy, renewable energy, coal and uranium and utilities as well as on mining, iron and steel, mining services, transportation and production of mining equipment and machinery. The index currently has 64 components with a combined market capitalisation of AUD 43 billion. Major constituents include Beach Energy (Beach Petroleum) (5.74%), Duet Group (5.62%), Panaust (4.95%), Spark Infrastructure Group (4.49%), and Arrium (3.20%).
Market Vectors Australia Small-Cap Index (MVIDD)
The index tracks the performance of ASX-listed small-cap companies that generate at least 50% of their revenues in Australia. The index currently has 133 components with a combined market capitalisation of AUD 110 billion. Major constituents include Beach Energy (Beach Petroleum) (2.35%), Primary Health Care (2.28%), Australian Infrastructure (2.21%), FKP Property Group (2.00%), and Carsales.com (1.94%).
The indices are calculated in Australian Dollars (AUD) and come with historical data dating back to 29 December 2006.