NEW YORK--(BUSINESS WIRE)--Van Eck Global last night received the “Best New ETF of 2014” award at ETF.com’s annual awards dinner for its Market Vectors ChinaAMC China Bond ETF (NYSE Arca: CBON). CBON, which launched on November 10, 2014, was the first U.S-listed ETF to provide investors with direct exposure to Renminbi-denominated bonds issued in mainland China.
“We are thrilled to receive this recognition,” said Ed Lopez, Marketing Director with Van Eck Global. “China’s onshore bond market historically has had low correlation to other bond markets and core asset classes, and has delivered attractive yields in recent years, but it had been inaccessible to foreign investors. CBON was created as a direct solution to that problem.”
According to ETF.com, the Best New ETF category is designed to recognize new funds that have opened new areas of the market, lowered costs, driven risk-adjusted performance and/or provided innovative exposures not previously available to most investors.
“CBON broke new ground by using China Asset Management (Hong Kong), Ltd.’s RQFII quota to tap into China's onshore bond market, currently the third largest in the world after the U.S. and Japan. We are delighted to see Van Eck Global recognized for its innovation in bringing high-quality and useful new products to market,” said Matt Hougan, President of ETF.com.
CBON joins Van Eck Global’s family of China-focused ETFs, including Market Vectors ChinaAMC A-Share ETF (NYSE Arca: PEK), which provides exposure to the China A-share market, and Market Vectors ChinaAMC SME-ChiNext ETF (NYSE Arca: CNXT), which provides exposure to innovative, primarily non-government owned companies in China.
About Van Eck Global
Founded in 1955, Van Eck Global was among the first U.S. money managers to help investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative investment choices in specialized asset classes such as hard assets, emerging markets, and precious metals including gold. Van Eck offers a broad array of Market Vectors ETFs spanning broad-based and specialized asset classes, and is one of the largest providers of ETPs in the U.S and worldwide. The Firm has offices around the world and managed approximately $32.1 billion in investor assets as of February 27, 2015.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. Debt securities carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health.
An investment in the Fund may be subject to risk which include, among others, risk of investing in RMB bonds, credit risk, interest rate risk, sovereign and quasi-sovereign defaults, adviser and subadviser risk, non-diversification risk, risks associated with non-investment grade securities and risk of the RQFII regime, all of which may adversely affect the Fund. Investments in mainland China may be subject to local customs, duties and rights of ownership, which might change at any time should policy makers deem them in China's best interest. As the Fund invests in securities denominated in Chinese Renminbi, changes in currency exchange rates may negatively impact the Fund's return. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Through the Renminbi Qualified Foreign Institutional Investor (RQFII) program or Qualified Foreign Institutional Investor (QFII) licenses, RMB Bonds are made available to certain foreign investors. The RQFII receives a specific aggregate dollar amount in which the RQFII or QFII can invest in RMB Bonds. The size of the Fund’s direct investment in RMB Bonds will be limited by the size of the RQFII quota, and should this quota be depleted, there is no guarantee more will be granted.
China Bond China High Quality Bond Index is compiled and calculated by China Central Depository & Clearing Co., Ltd. All copyright in the China Bond China High Quality Bond Index values and constituent list vests in China Central Depository & Clearing Co., Ltd.
Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds, in general, will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR or visit marketvectorsetfs.com. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor
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