In early January, Van Eck Global announced that it was changing the indexes on two of its sector-focused equities ETFs to in-house benchmarks in a move the company says will improve liquidity and diversification.
The blockbuster Market Vectors Agribusiness ETF (NYSE Arca: MOO) now tracks the Market Vectors Global Agribusiness Index, replacing its previous benchmark, the DAXglobal Agribusiness Index. Similarly, the Market Vectors Solar Energy ETF (NYSE Arca: KWT) has switched to the Market Vectors Global Solar Energy Index, which replaced the Ardour Solar Energy Index. The new indexes cap the weights of individual constituents in the interests of diversification, while KWT’s new index methodology will also broaden its selection universe.
Twenty-five of Van Eck’s 35 equities ETFs now track in-house indexes. The firm’s Market Vectors Index Solutions is a wholly owned Germany-based subsidiary that develops and publishes all of Market Vectors’ indexes.