Market Vectors licenses global gaming and coal indices to Van Eck ETFs

Sep 25th, 2012 | By | Category: ETF and Index News

Market Vectors Index Solutions has announced that its global gaming and coal indices have been licensed to Van Eck Global, the index provider’s parent company, to underlie existing exchange-traded funds (ETFs).

Market Vectors licenses global gaming and coal indices to Van Eck ETFs

The Market Vectors Global Gaming Index has replaced the S-Network Global Gaming Index to underlie the NYSE-listed Market Vectors Global Gaming ETF (BJK).

Effective 24 September 2012, the Market Vectors Global Gaming Index has replaced the S-Network Global Gaming Index to underlie the Market Vectors Global Gaming ETF (BJK), while the Market Vectors Global Coal Index has replaced the Stowe Coal Index to underlie the Market Vectors Global Coal ETF (KOL).

Lars Hamich, Chief Executive Officer at Market Vectors Index Solutions, said: “We are pleased to have licensed another sector and hard assets index to Van Eck. Market Vectors Global Coal Index and Market Vectors Global Gaming Index provide the basis for pure-play ETF exposure because the indices are entirely comprised of companies that generate at least 50% of their revenues from the global coal or global gaming segment.”

Hamich added: “Moreover, we are convinced that our indices are in particular suited to underlie ETFs because we have the most stringent liquidity rules amongst index providers, which makes the indices highly investable.”

The Market Vectors Global Gaming Index is a global sector index that tracks the performance of the largest and most liquid companies in the global gaming segment. The index provides 90% coverage of the investable universe based on strict size and liquidity requirements.

The index demands that companies must generate at least 50% of their revenues from Casino and Hotels, Sport Betting (including Internet Gambling and Racetracks) and Lottery Services as well as Gaming Services, Gaming Technology and Gaming Equipment. The result is a highly-targeted reflection of the global gaming segment.

The top five companies by weighting are Las Vegas Sands (8.1%), Wynn Resorts (7.4%), Sands China (7.3%), Genting Singapore (5.5%), Genting Berhard (5.2%). On a country basis, the top five weights are the US (28.3%), Australia (11.4%), Hong Kong (11.3%), Macao (10.5%) and Malaysia (9.6%).

Meanwhile, the Market Vectors Global Coal Index tracks the performance of the largest and most liquid companies in the global coal segment. The index provides 90% market coverage of the investable universe based on strict size and liquidity requirements.

This index requires that companies have to generate at least 50% of their revenues from coal operation (production and mining), transportation of coal, production of coal mining equipment as well as from coal storage. The result is a truly realistic representation of the global coal segment.

The top five companies by weighting are China Shenhua Energy (7.9%), Consol Energy (7.8%), Peabody Energy (6.9%), Joy Global (6.7%) and QR National (5.8%). On a country basis, the top five weights are the US (39.2%), China (17.8%), Canada (10.1%), Australia (10.0%) and Indonesia (10.0%).

Both the Market Vectors Global Gaming ETF and the Market Vectors Global Coal ETF are listed on the NYSE Arca and come with annual expense ratios of 0.65% and 0.59%, respectively.

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