Van Eck Global has launched the Market Vectors Brazil Small-Cap ETF on NYSE Arca, providing conce...
Van Eck Global has launched the Market Vectors Brazil Small-Cap ETF on NYSE Arca, providing concentrated exposure to domestic Brazilian investment themes.
The ETF replicates the price and yield performance of the Market Vectors Brazil Small-Cap Index (MVRIO), which comprises of publicly traded small-cap companies that are domiciled and primarily listed in Brazil, or produce at least 50% of their revenues in the country.
The rules-based, small-cap index avoids heavy weightings in commodities and materials, while focusing on companies with performances propelled by local trends.
Van Eck Global principal Jan van Eck comments: "Energy and materials accounted for more than 50% of the weighting in the typical Brazil-focused index as of April 30th of this year. By way of comparison, energy and materials made up just 16% of MVRIO at that same time."
He adds that this makes the ETF a unique product that will appeal to investors seeking a different type of exposure to Brazil's local economy.
At present, the top three industry weightings in the ETF's index are houeshold durables, food products and specialty retail, at 16%, 9% and 8% respectively.
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