Effective on or about March 18, 2013, Market Vectors Agribusiness ETF (NYSE Arca: MOO), the largest U.S. listed agribusiness exchange-traded fund (ETF), will begin tracking the Market Vectors Global Agribusiness Index (MVMOOTR). MVMOOTR uses the Market Vectors index methodology that focuses on investability, diversification and pure-play exposure to the relative asset class. This methodology is shared by the benchmark indexes of several other Market Vector ETFs, including Brazil Small-Cap (BRF
), Indonesia (IDX), Junior Gold Miners (GDXJ
), Oil Services (OIH), Russia (RSX
), Semiconductor (SMH) and Vietnam (VNM).
MVMOOTR is a rules based, modified capitalization-weighted, float-adjusted index that seeks to track the performance of the global agribusiness industry. Similar to other Market Vectors indices, MVMOOTR is built specifically for ETFs. The Index employs stringent liquidity screens and constituent weighting caps that together are intended to enhance the tradability and diversification of the ETF. Additionally, to create an index representative of the industry, its rules require that constituents generate at least fifty percent of their revenues from the global agribusiness industry. The constituent names and weights of every Market Vectors index, including MVMOOTR, are provided daily on the Market Vectors Index Solutions website:
“We expect that MOO will become more diversified as a result of these changes,” said Brandon Rakszawski, Marketing Product Manager at Market Vectors. “Constituent capping will continue to help avoid overconcentration in a few large holdings and the pure-play nature of the index will allow MOO to offer truly representative exposure to the agribusiness industry.”
“We believe that the business of food is a critical industry and one that’s growing in importance and potential opportunity for investors,” said Ed Lopez, Marketing Director at Market Vectors. “So, it is important for us have an index that best reflects the agribusiness industry and one that matches our philosophy of offering ETFs truly constructed for the asset class they are intended to track.”