Market Vectors to change index underlying uranium & nuclear energy ETF

Jan 13th, 2014 | By | Category: ETF and Index News

Market Vectors ETFs, a US-based provider of exchange-traded funds, has announced that the Market Vectors Uranium+Nuclear Energy ETF (NLR), a fund providing equity market exposure to the global uranium and nuclear industries, is to change its underlying index.

Market Vectors to change index underlying uranium and nuclear energy ETF

The Market Vectors Global Uranium & Nuclear Energy Index provides global pure-play exposure to companies operating in the uranium and nuclear energy industries.

The fund, which is listed on the NYSE Arca and has almost $80 million in assets, is currently linked to the DAXglobal Nuclear Energy Index (DXNE), an index developed and published by DAX Indices, a brand of the Deutsche Börse Group.

Effective on or about March 21, 2014, the fund will drop this index and instead begin tracking the Market Vectors Global Uranium & Nuclear Energy Index (MVNLRTR), an index developed and published by Market Vectors Index Solutions.

Market Vectors Index Solutions is a Germany-based wholly owned subsidiary of Van Eck Associates Corporation, the parent company of Market Vectors ETFs.

The methodology behind the new index, which has been specifically designed for ETFs, focuses on investability and diversification, and aims to deliver pure-play exposure to the relative asset class – in this case, the global uranium and nuclear energy segment.

The index is driven by a set of rules and weighted by float-adjusted modified market capitalization. Constituent weighting caps apply to help diversify the ETF among names in the global uranium and nuclear energy segment, while extensive liquidity screens are used to enhance the tradability of the ETF.

Additionally, to create an index that seeks to be representative of the industry, its rules require that constituents generate at least fifty percent of their revenues from (or, in certain circumstances, have at least fifty percent of their assets related to) uranium and nuclear energy, as defined by the index provider.

The fund has a net expense ratio of 0.60%.

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