Market Vectors to launch new ETF targeting defaulted, distressed bonds

By Toni Weeks

San Diego, Nov. 5 - Market Vectors ETF Trust announced plans for a new fund in an N-1A filed Friday with the Securities and Exchange Commission.

The Market Vectors-Altman Defaulted & Distressed Bond ETF will seek to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors-Altman Defaulted & Distressed Bond index.

The new exchange-traded fund will normally invest at least 80% of its total assets in securities that comprise the benchmark index, which consists of defaulted bonds and distressed bonds that trade at no less than a 10% spread, yield to worst, over a comparable Treasury security.

Qualifying securities must be rated below investment grade. The index includes issuers from Canada, the United Kingdom and the United States.

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

The fund will trade on the NYSE Arca. The ticker symbol has not yet been set.

Shareholder fees, management expenses and total annual fund operating expenses have not yet been determined.

New York-based Van Eck Associates Corp. will be the investment adviser.

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