FRANKFURT, Germany--(BUSINESS WIRE)--Market Vectors Index Solutions (MVIS) today announced the licensing of the Market Vectors Australia Equal Weight Index (MVMVWTRG) to Market Vectors Australia, the Australian exchange-traded fund (ETF) branch of Van Eck Global, the 7th largest provider of exchange-traded products in the US and the 10th largest globally. The index serves as the underlying for the Market Vectors Australia Equal Weight ETF (ASX: MVW) which began tracking the index today.
“We are very pleased to have licensed our Australia Equal Weight Index to Market Vectors Australia and believe that its specific weighting characteristic will be attractive for an ETF tracking this index”, said Lars Hamich, Chief Executive Officer at MVIS. “Compared to a traditional Australian market cap-weighted index1, the Market Vectors Australia Equal Weight Index is less concentrated in large-cap companies. Its equal weighting scheme changes the large-, mid- and small-cap weighting from an 80% large- and 15% mid-cap to a balanced 55% large- and 45% mid-cap breakdown. Due to the increased weighting in mid-cap companies the equal weight index has outperformed the market cap weighted index in ten out of thirteen years”.
MV Australia Equal Weight Index currently contains 77 components. The Index is calculated as a price, total return net and total return gross index using AUD prices and is reviewed quarterly. Index history is available back to December 2002.
1 Containing the largest 200 Australian stocks
Full Market Capitalisation: (bn AUD): 1,283
Number of Components: 77
Base Date/Base Value: 31.12.2002/1000
Top 5 Companies by weighting:
Newcrest Mining (1.89%), Seek (1.66%), Incitec Pivot (1.63%), Ramsay Health Care (1.52%), Boral (1.52%).
(Closing data as per 5 March 2014)
Detailed information about Market Vectors Australia Equal Weight Index, including methodology details and comprehensive data is available on www.marketvectorsindices.com.
Note to Editors:
About Market Vectors Index Solutions GmbH
Market Vectors Index Solutions GmbH (MVIS) develops, monitors and licenses the Market Vectors Indices, a selection of focused, investable and diversified benchmark indices which are especially designed to underlie financial products. Market Vectors Indices cover several asset classes, including hard assets and international equity markets as well as fixed income markets and are licensed to serve as underlying indices for financial products.
Approximately USD 11.7 billion in assets under management are currently invested in financial products based on Market Vectors Indices. MVIS is a wholly owned subsidiary of Van Eck Associates Corporation (also known as Van Eck Global).