Products April 5, 2011

Van Eck Launches German ETF

Asset manager Van Eck Global launched what it says is the first exchange-traded fund (ETF) designed to give investors pure-play exposure to Europe’s largest economy.
Reported by

The Market Vectors Germany Small-Cap ETF (NYSE Arca: GERJ) seeks to replicate, before fees and expenses, the performance of the Market Vectors Germany Small-Cap Index (MVGERJTR). Market Vectors indexes are designed to more fully reflect the fundamental dynamics of investing in local market economies.  

Constituent requirements include liquidity based on minimum levels of market capitalization and daily trading volume; local market exposure, with at least 50% of revenues generated from a country, even if the company is listed, domiciled, or headquartered elsewhere; diversification based on a tiered weighting scheme; and transparency, with constituents and weights updated and published daily. As of March 8, 2011, the Market Vectors Germany Small-Cap Index was comprised of 95 companies with an average market capitalization of $1.2 billion.   

The largest sector weightings were Industrials (approximately 35%), IT (16%), and consumer discretionary (15%).

According to the announcement, GERJ carries a net expense ratio of 0.55% and a gross expense ratio of 0.63%. 

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