Van Eck Plans Two New Int’l Equity Funds

May 13, 2010

Van Eck Global, the New York-based firm best known for its commodities ETFs, filed with the Securities and Exchange Commission to offer two new equity funds of non-U.S. companies, one with a developed market tilt and the other focused on the emerging markets.

Van Eck didn’t say when it would launch the two funds, The Market Vectors GDP International Equity Index ETF, and the Market Vectors GDP Emerging Markets Equity Index ETF. It also didn’t say how much they would cost.

The two funds will be based on indexes that weight countries by their gross domestic products (GDP), while the underlying stocks in each country that are part of each portfolio will be weighted by market capitalization, according to the May 11 filing.

There’s a possibility that some holdings may end up in both funds, according to the filing. The International Equity fund’s benchmark index, for instance, comprises stocks of foreign companies around the world, including emerging market countries. The funds’ holdings will include American depository receipts, European depository receipts and global depository receipts, in addition to regular shares.

Van Eck serves as the adviser to each fund, and Bank of New York Mellon will serve as the custodian and transfer agent. Both the International Equity ETF and the Emerging Markets ETF use indexes from 4asset-management GmbH, a Germany-based indexing firm.

The funds will both trade on the New York Stock Exchange, the filing said.

 

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