Market Vectors Index Solutions Enhances Selection Rules for Equity Indices

Additional Deletion Rules to Increase Index Liquidity

FRANKFURT, Germany--()--Market Vectors Index Solutions (MVIS) today announced an update of the index guide to extend enhanced selection rules to its Market Vectors equity indices. Starting with the next quarterly review in September, the following new index rules will be applied:

  • Current index components will be deleted from all equity indices except small-cap/junior and fixed component indices if they rank between the 98th and 100th percentile of the index selection list.
  • Current index components will be deleted from small-cap/junior indices if they rank between the 99th and 100th percentile of the index selection list.
  • Current index components will be removed from the investable universe if their average daily trading volume is less than USD 200,000 in at least two of the latest three reviews.
  • Indices with a fixed number of components will not be affected by the updated selection rules.

“We are committed to developing indices with the potential to serve as underlying for financial products. That is why we built an index concept based on pure-play exposure, liquidity, and diversification. The modifications of the selection rules were essential to ensuring that our indices continue to represent their respective markets while maintaining their high degree of investability. The enhanced selection rules are going to result in more liquid indices,” said Lars Hamich, CEO of MVIS.

The application of the enhanced selection rules commences with the forthcoming September review. Review results will be announced on 11 September and as a result of the new selection rules, MVIS expects to see a higher component turnover, specifically deletions. Indices will be rebalanced on 18 September and all changes will be effective on the following trading day.

MVIS develops and monitors the Market Vectors indices, a family of indices designed to be investable. Almost 60 percent of the Market Vectors indices are licensed to exchange-traded funds (ETFs) – many of which are the largest in their investment category – with approximately USD 11 billion in assets under management. The Market Vectors equity indices offer exposure to various asset classes including hard assets, emerging markets, and fixed income. For detailed information on the enhanced deletion rules see the index guide. More information on the Market Vectors Indices can be found on www.marketvectorsindices.com.

Note to Editors:

About Market Vectors Index Solutions

Market Vectors Index Solutions (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 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.

Contacts

Market Vectors Index Solutions
Lars Hamich, CEO, +49 (0)69 4056 695 10
Lars.Hamich@mvindices.com

Contacts

Market Vectors Index Solutions
Lars Hamich, CEO, +49 (0)69 4056 695 10
Lars.Hamich@mvindices.com