FRANKFURT, Germany--(BUSINESS WIRE)--MarketVector IndexesTM (“MarketVector”) announces the licensing of the MarketVectorTM Global Defense Industry Index (ticker: MVDEF) and the MarketVectorTM US Listed Oil Services 10% Capped Index (ticker: MVOIC) to underlie the VanEck Defense UCITS ETF and the VanEck Oil Services UCITS ETF.
The MarketVectorTM Global Defense Industry Index (ticker: MVDEF) tracks the performance of the companies which generate at least 50% of their revenues from the military or defense industries including related national/federal governmental departments. It is weighted by modified float-adjusted market capitalization and is calculated in USD as a price index and a total return net index. The MVDEF Index is reviewed on a quarterly basis.
“We’re proud to launch the MarketVectorTM Global Defense Industry Index. We developed this unique index to enable pure-play exposure to global companies operating in the defense industry,” said Jesse Nacht, Index Research Associate at MarketVector. “Investors’ geopolitical concerns have been exacerbated by recent international conflicts, but the opportunities to invest in companies supporting defense efforts are rising in importance.”
“The defense sector has traditionally been a sensitive topic in Europe. However, since the start of the war in Ukraine, the views on security and defense policy have started shifting, as the need for security policy has become more obvious,” explains Martijn Rozemuller, CEO at VanEck Europe. “Due to the Russian invasion of Ukraine, tensions in Asia, and global uncertainty, security, and defense are back on investors' minds after being shunned for several years.”
The MarketVectorTM US Listed Oil Services 10% Capped Index (ticker: MVOIC) tracks the performance of US-listed companies involved in oil services to the upstream oil sector. It is weighted by free-float market capitalization and is calculated in USD as a price index, a total return net index, and a total return gross index. The MVOIC Index is reviewed on a semi-annual basis and is the same as the MVIS® US Listed Oil Services 25 Index (ticker: MVOIH), with a different capping scheme.
“Ongoing geopolitical tensions are likely to continue moving oil prices, with higher oil prices likely to benefit oil service companies. Furthermore, long-term structural shifts can also benefit oil services companies, many of which are focused on returning cash flow to investors, reducing costs, and increasing efficiency,” said Steven Schoenfeld, CEO of MarketVector. “We believe that exposure to a pure-play oil services index can be an important allocation solution for investors, and we are proud to license the MVOIC to VanEck Europe for their Oil Services UCITS ETF.”
“With geopolitical tensions dominating the headlines since 2022, oil & gas supply has once again become an issue of critical importance to most countries around the world. As part of the conflict between Russia and Ukraine, for example, energy supplies were used as political leverage,” explains Martijn Rozemuller, CEO at VanEck Europe. “As a result, fossil fuels have become a matter of national security in many countries, and the importance of the security of energy supply and independence has become apparent. Due to higher commodity prices and supply shortages, investments in fossil fuels are making a comeback. Several countries have reconsidered their energy mix, placing increased emphasis back on traditional fossil fuels.”
Detailed information about the indexes, including methodology details and index data, is available on the MarketVector Indexes website.
Key Index Features
MarketVectorTM Global Defense Industry Index (ticker: MVDEF)
Number of Components: 31
Base Date: December 31, 2020
Base Value: 1000
Key Index Features
MarketVectorTM US Listed Oil Services 10% Capped Index (ticker: MVOIC)
Number of Components: 25
Base Date: December 30, 2011
Base Value: 1000
About MarketVector Indexes - www.marketvector.com
MarketVector IndexesTM (“MarketVector”) is a regulated Benchmark Administrator in Europe, incorporated in Germany and registered with the Federal Financial Supervisory Authority (BaFin). MarketVector maintains indexes under the MarketVectorTM, MVIS® and BlueStar® names. With a mission to accelerate index innovation globally, MarketVector is best known for its broad suite of Thematic indexes, a long-running expertise in Hard Asset-linked Equity indexes, and its pioneering Digital Asset index family. MarketVector is proud to be in partnership with more than 25 Exchange-Traded Product (ETP) issuers and index fund managers in markets throughout the world, with approximately USD28.01 billion in assets under management.