Market Vectors preps for launch of Morningstar Long/Flat Commodity ETF

By Toni Weeks

San Diego, Feb. 9 - Market Vectors Commodity Trust has registered 40,000 units of its planned Market Vectors Morningstar Long/Flat Commodity ETF in an S-1 filing with the Securities and Exchange Commission.

The common units of beneficial interest, or shares, will be offered at $25 per unit for a maximum offering of $1 million. The shares will trade on the NYSE Arca. The ticker symbol has not yet been determined.

The exchange-traded fund will seek to track changes in the performance of the Morningstar Long/Flat Commodity Index by investing in exchange-traded futures contracts on commodities comprising the index.

The index is a fully collateralized commodity futures index that uses a momentum rule to determine if each commodity is held with its prescribed, or "long," weighting or moved to a cash, or "short," weighting. For each commodity in the index, Morningstar, Inc. calculates a linked price that incorporates both price changes and roll yield. At the monthly repositioning, the linked price of each commodity is compared to the 12-month moving average of the linked price to determine whether a position will be long or flat.

Management fees and other expenses have not yet been disclosed.

New York-based Van Eck Absolute Return Advisers Corp. will serve as the managing owner of the fund, as well as the commodity pool operator and commodity trading adviser.

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