New York-based asset manager Van Eck Global today launched Market Vectors–Agribusiness ETF (MOO), a new exchange-traded fund (ETF) listed on the American Stock Exchange (Amex). The fund is the first ETF listed in the U.S. that enables U.S. investors to gain exposure to a broad spectrum of companies involved in agribusiness. Options are expected to be available on MOO.
MOO seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal® Agribusiness Index (DXAG), a basket of the securities of 40 agribusinesses listed on global exchanges. As of August 31, 2007, DXAG returned approximately 40.3 percent and 35.4 percent over three- and five-years, respectively*. Companies in DXAG predominantly derive at least 50% of their revenue from agribusiness.
MOO seeks to provide investors with a convenient, low cost means to gain diversified exposure to a basic industry that has good growth potential. DXAG currently includes Archer-Daniels-Midland Co., Associated British Foods PLC and other agriproduct operations as well as Monsanto, Potash Corp of Saskatchewan and other agricultural chemical companies (7.58%, 4.07%, 8.35% and 8.88% of the Index, respectively). Also currently represented in DXAG are companies engaged in providing or transporting agricultural equipment, livestock operations and providing or transporting ethanol/biodiesel. MOO’s total net expense ratio is 0.65%.
“Agriculture is fundamental to the world economy and despite its long history the industry still has potentially good growth prospects for three reasons. First, basic demand is growing in line with population and higher personal incomes. Second, since the amount of arable land is relatively fixed, there is continued interest in increasing productivity through agricultural chemicals and equipment. Third, producers of biofuels from corn, sugar cane and potentially other agribusiness products may represent an increasing portion of crop demand. All this could result in a growing interest among investors in agribusiness,” said Jan van Eck, Principal at Van Eck Global. “As the first ETF listed in the U.S. to target agribusiness, we believe that MOO will appeal to investors looking for a convenient means to access the agribusiness market. After all, agriculture is either completely absent from or is drastically underweighted in the most popular commodity-equity indices.”
“The DAXglobal® Agribusiness Index was created to reflect the performance of the global agribusiness industry,” said Angelika Weinfurtner of the Deutsche Börse AG. “We look forward to working with Van Eck to bring the Index before a wider audience through the introduction of the Market Vectors–Agribusiness ETF.”
Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. As of July 31, 2007, Van Eck Global managed over $6 billion in assets for individuals, insurers and institutional investors. MOO is the seventh ETF introduced under Van Eck’s Market Vectors brand. The other six are: Environmental Services (Amex: EVX), Global Alternative Energy (NYSE: GEX), Gold Miners (Amex: GDX), Nuclear Energy (Amex: NLR), Russia (NYSE: RSX) and Steel (Amex: SLX). These ETFs have a total of over $1.0 billion in assets under management as of July 31, 2007.
Past performance does not guarantee future results. The returns of DXAG or of any index do not represent the performance of any ETF. DXAG does not charge any fees, including management fees or brokerage expenses, and no such fees or expenses were deducted from the performance described. You cannot invest directly in an index.
*All performance information for DXAG covering the period prior to July 16, 2007 is based on hypothetical, back-tested data. Prior to that date, DXAG was not calculated in real time by an independent calculation agent. Hypothetical back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that any investment will achieve performance similar to that shown.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and other wise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind.
About Van Eck Global
The firm has a 50+ year tradition of offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes. Van Eck Global’s investment products are designed for investors seeking innovative choices for portfolio diversification. They are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
About Deutsche Börse AG
Deutsche Börse Group offers more than a marketplace for trading shares and other securities. It is a transaction services provider with advanced technology to afford companies and investors access to global capital markets.
Deutsche Börse has a broader basis than any of its competitors. Its product and services mix cover the entire process chain: securities and derivatives trading, transaction settlement, provision of market information as well as the development and operation of electronic trading systems. With its process-oriented business model, Deutsche Börse increases capital markets efficiency. Issuers benefit from low capital costs and investors enjoy the advantages of high liquidity and low transaction costs.
The DAXglobal® Agribusiness Index (DXAG) is a trademark of the Deutsche Börse AG which is licensed for use by Van Eck Associates Corporation in connection with MOO. Deutsche Börse neither sponsors nor endorses Market Vectors–Agribusiness ETF and makes no warranty or representation as to the accuracy and/or completeness of DXAG or the results to be obtained by any person from the use of DXAG in connection with the trading of MOO.
About the American Stock Exchange
The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 340 ETFs as of September 5, 2007. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
Investors may call 1.888.MKT.VCTR or visit www.vaneck.com/etf for a free prospectus or for the performance information current to the most recent month end for each Market Vectors ETF. Investors should consider the investment objective, risks and charges and expenses carefully before investing. Each Market Vectors ETF prospectus contains this and other information. Please read the relevant prospectus carefully before investing. There are risks associated with investing including the possible loss of principal.
Van Eck Securities Corporation, Distributor, 99 Park Avenue, New York, NY 10016