This exchange-traded fund (ETF) is designed to provide investors with exposure to the small capitalization segment of Indonesia’s stock market.
IDXJ seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of Market Vectors Indonesia Small-Cap Index, a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded small capitalization companies that are domiciled and primarily listed in Indonesia, or that generate the majority of their revenues in Indonesia.
IDXJ has a gross expense ratio of 0.70% and a net expense ratio of 0.61%, which is capped until at least May 1, 2013. During that time, the expense limitation is expected to continue until the fund’s board of trustees acts to discontinue all or a portion of such expense limitation.
“Indonesia has grown rapidly over the past several years, and we believe that it is well-positioned to continue to prosper, with an economy supported by rising domestic consumption and higher levels of disposable income,” said Ed Lopez, marketing director, Market Vectors ETFs. “In our view, smaller cap companies that generate a majority of their revenues in the local market provide the best way for investors to gain exposure to the domestic growth story.”