Market Vectors plans high-yield ETF with interest rate fluctuations offset via Treasuries

By Toni Weeks

San Diego, Nov. 19 - Market Vectors ETF Trust announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a new fund that targets high-yield investments and also includes investments in Treasuries to remove the effect of interest-rate fluctuations.

The High-Yield/Treasury Bond ETF will seek to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors High-Yield/Treasury Bond index. It will normally invest at least 80% of its total assets in securities that comprise the index, which was designed to provide exposure to dollar-denominated, below-investment-grade corporate bonds and, through the use of Treasury notes and bonds, to hedge against the price sensitivity to interest-rate fluctuations of the high-yield bonds.

Qualifying securities in the index have a high-yield rating and may be issued by either U.S or non-U.S. issuers, who must be a member of the Group of Ten, a Western European nation or a United States territory. The fund, and consequently, the index, may concentrate its investments in a particular industry or group of industries. The index currently concentrates in the industrial sector.

Michael F. Mazier and Francis G. Rodilosso will serve as the portfolio managers.

Shares will be listed on the NYSE Arca. Ticker symbols have not yet been set.

There will be no shareholder fees. Management fees and total annual fund operating expenses have not yet been determined.

New York-based Van Eck Associates Corp. will serve as the fund's investment adviser.

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