Market Vectors plans details for Morningstar Long/Short Commodity ETF

By Toni Weeks

San Diego, Feb. 8 - Market Vectors Commodity Trust has registered units of its planned Market Vectors Morningstar Long/Short Commodity ETF, according to an S-1 filing with the Securities and Exchange Commission.

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

The index is a rules-based commodity futures index that employs a momentum rule to determine if exposure to a particular commodity should be maintained with its prescribed "long" weighting or moved to a "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 short.

The registration was for 40,000 units offered at a price of $25.00 per unit for a maximum offering of $1 million.

The fund will issue shares representing units of fractional undivided beneficial interest in and ownership of the fund. The shares are expected to be listed for trading on the NYSE Arca. The ticker symbol has not yet been set.

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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