Market Vectors launches hedge fund beta indices

Nov 24th, 2012 | By | Category: ETF and Index News

Market Vectors Index Solutions, a boutique provider of financial market indices, has introduced the Market Vectors Hedge Fund Beta Indices, a set of four regional and two global indices offering exposure to hedge fund beta.

Market Vectors launches hedge fund beta indices

The Market Vectors Hedge Fund Beta Indices seeks to capture the systematic returns (beta) of hedge funds.

Each index seeks to capture the systematic returns, known in the industry as ‘beta’, of hedge funds with similar investment styles that invest in the same asset classes and same geographic markets.

The regional long/short equity indices cover Developed Asia, Emerging Markets, North America and Western Europe. The global indices cover global long/short equity and global event long/short equity.

The indices employ a patented rating and ranking system that filters out funds with low beta as compared to their hedge fund peer group, enhancing the indices’ risk-adjusted returns. Each index is constructed using transparent, liquid ETFs to produce hedge fund-style returns.

Market Vectors Index Solutions is headquartered in the Frankfurt, Germany, and is a wholly owned subsidiary of Van Eck Global, a leading US-based provider of exchange-traded funds (ETFs).

More than $8.5 billion is invested in investment products based on Market Vectors’ indices, most of it in Van Eck-sponsored ETFs. It seems likely, therefore, that these indices could one day form the basis of a suite of ETFs launched under the Van Eck Market Vectors brand.

Investors looking for immediate access to ETFs offering hedge fund exposure could consider one of a number of products issued by providers such as UBS, IndexIQ, AdvisorShares, Horizons and AlphaClone (see below for related links).

The six indices are:

Market Vectors Asia (Developed) Long/Short Equity Hedge Fund Beta Index (MVLSDA)
Number of components: 4
Top 3 components: SPDR Barclays Capital 1-3 Month T-Bill (59.83%), iShares MSCI Taiwan ETF (16.77%), iShares MSCI
Japan ETF (11.77).

Market Vectors EM Long/Short Equity Hedge Fund Beta Index (MVLSEM)
Number of components: 5
Top 3 components: SPDR Barclays Capital 1-3 Month T-Bill (57.54%), Vanguard MSCI EM ETF (33.00%), Vanguard MSCI
EAFE ETF (7.69%).

Market Vectors Global Event Long/Short Equity Hedge Fund Beta Index (MVEVEQ)
Number of components: 4
Top 3 components: SPDR Barclays Capital 1-3 Month T-Bill (74.46%), SPDR S&P 500 ETF (25.32%), Vanguard MSCI EM ETF (1.61%).

Market Vectors Global Long/Short Equity Hedge Fund Beta Index (MVLSGL)
Number of components: 5
Top 3 components: SPDR Barclays Capital 1-3 Month T-Bill (64.27%), SPDR S&P 500 ETF (32.84%), Vanguard MSCI EM ETF (6.23%).

Market Vectors North America Long/Short Equity Hedge Fund Beta Index (MVLSNA)
Number of components: 7
Top 3 components: SPDR Barclays Capital 1-3 Month T-Bill (62.78%), iShares S&P 500 Growth ETF (29.34%), iShares Russell 2000 Growth ETF (15.48%).

Market Vectors Western Europe Long/Short Equity Hedge Fund Beta Index (MVLSWE)
Number of components: 6
Top 3 components: SPDR Barclays 1-3 Month T-Bill (100.17%), iShares MSCI United Kingdom ETF (19.50%), iShares MSCI Germany ETF (16.72%).

(as of 21 November 2012)

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