Market Vectors ETF Trust today announced the launch of Market Vectors Indonesia Small-Cap ETF (NYSE Arca: IDXJ), the first U.S.-listed exchange-traded fund (ETF) designed to provide investors with pure play exposure to the small capitalization segment of Indonesia’s stock market.
IDXJ is the second ETF introduced by Market Vectors that focuses exclusively on Indonesia, joining Market Vectors Indonesia Index ETF (NYSE Arca: IDX), which focuses on the large-cap segment of the fast-growing Indonesia economy. IDX has earned a 5-star Morningstar rating on both a 3-year and overall basis (as of 2/29/12). +
Indonesia, home to roughly 240 million people, has Southeast Asia’s largest economy: $834 billion in 2011. Beginning in 1999, the country embarked on a path of sounder fiscal and monetary policies that allowed it to improve its financial condition dramatically. 1 As a result, the country has attracted substantial foreign direct investments and its sovereign debt rating has been upgraded to investment grade by both Fitch Ratings (as of December 15, 2011) and Moody’s Investors Services (as of January 18, 2012).
“Indonesia has grown rapidly over the past several years and we believe that it is well positioned to continue to prosper, with an economy supported by rising domestic consumption and higher levels of disposable income,” said Ed Lopez, Marketing Director at Market Vectors ETFs. “In our view, smaller cap companies that generate the majority of their revenues in the local market provide the best way for investors to gain exposure to the domestic growth story. In that regard, IDXJ provides a complement to our broader-based Indonesian ETF, IDX.”IDXJ seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of Market Vectors Indonesia Small-Cap Index (MVIDXJTR), a rules-based, modified market capitalization-weighted, float-adjusted index comprised of publicly traded small capitalization companies that are domiciled and primarily listed in Indonesia, or that generate the majority of their revenues in Indonesia. MVIDXJTR was created by Market Vectors Index Solutions GmbH which develops tailor-made, investable indices that seek to provide comprehensive exposure to a given country or region.