New York-based asset manager Van Eck Global is marking the one-year anniversary of its Market Vectors Emerging Markets Local Currency Bond ETF (NYSE Arca: EMLC), the first U.S.-listed exchange-traded fund (ETF) which seeks to track an index designed to provide investors with exposure to bonds issued in local currencies by emerging market governments. The Fund, which launched on July 22, 2010, recently passed the $500 million assets under management (AUM) threshold. EMLC is up 6.22 percent from January 1 through June 30 of this year; 13.51 percent since inception (7/22/10 through 6/30/11). This compares favorably to both its ETF competitors and to many active fund managers covering the same space. “In the year since we launched EMLC, we’ve seen a tremendous amount of interest from the marketplace in adding transparent, cost-efficient exposure to emerging market debt,” said Ed Lopez, Marketing Director with Van Eck Global. “And as we head into the second year of the Fund’s existence, we believe investors and advisors will continue to explore the opportunities that a vehicle like EMLC can provide, not only from a yield perspective, but also with regard to the added potential benefits of U.S. Dollar diversification.” EMLC seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of J.P. Morgan Government Bond Index-Emerging Markets Global Core Index (ticker: GBIEMCOR ). J.P. Morgan is one of the major providers of innovative emerging market indexes, and had approximately $130 billion benchmarked to its GBI-EM index family as of 7/21/11. The Index currently tracks a selection of bonds issued in local currencies by the governments of fourteen emerging market countries representing Africa, Asia, Eastern Europe and Latin America: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Thailand, and Turkey. GBIEMCOR is market-cap weighted, with individual country exposures capped at 10 percent to provide more diversification among countries within the index.
“The debt ceiling debate has served as one more reminder that developed world debt is far from immune to negative fundamentals. Couple the issues in the U.S. with downgrades that have already taken place in developed Europe and contrast that with emerging market countries that have worked to strengthen their economic policies and improve their credit profiles, emerging market local currency bonds look potentially quite appealing,” said Jan van Eck, Principal at Van Eck Global.Mr. Van Eck also pointed to EMLC’s potential as an attractive proposition for investors seeking yield and as another potential reason why the Fund has been attracting investor attention. Since its launch, EMLC has paid monthly dividends and as of July 29, 2011 had a 30-day SEC yield of 6.1 percent. 1 EMLC is one of eight funds in Van Eck’s family of Market Vectors fixed-income ETFs, which span municipal, international and corporate bond categories — High-Yield Municipal Index ETF (HYD), Intermediate Municipal Index ETF (ITM), Long Municipal Index ETF (MLN), Pre-Refunded Municipal Index ETF (PRB), Short Municipal Index ETF (SMB), CEF Municipal Income ETF (XMPT) and Investment Grade Floating Rate ETF (FLTR). About Van Eck Global Founded in 1955, Van Eck Associates Corporation was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today the firm continues this 50+ year tradition by offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes. Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 when the firm launched the nation’s first gold mining ETF. Today, Market Vectors ETFs and ETNs span several asset classes, including equities, municipal bonds and currency markets. Van Eck Global also offers mutual funds, variable insurance products, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global’s investment products are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
About J.P. MorganJPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The Firm is a leader in investment banking, financial services for consumers, small-business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) is not sponsored, endorsed, sold or promoted by J.P. Morgan and J.P. Morgan makes no representation regarding the advisability of investing in EMLC. J.P. Morgan does not warrant the completeness or accuracy of the J.P. Morgan GBI-EMG Core Index. "J.P. Morgan" is a registered service mark of JPMorgan Chase & Co. © 2010. JPMorgan Chase & Co. All rights reserved. Past performance is no guarantee of future results. Indices mentioned are unmanaged and are not securities in which investments can be made. Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. Investments in emerging market securities are subject to elevated risks which include, among others, expropriation, confiscatory taxation, issues with repatriation of investment income, limitations of foreign ownership, political instability, armed conflict and social instability. As the Fund may invest in securities denominated in foreign currencies and some of the income received by the Fund will be in foreign currency, changes in currency exchange rates may negatively impact the Fund’s return. The Fund may also be subject to credit risk, interest rate risk, call risk, lease obligations, tax risk, and risks associated with non-investment grade securities. Investors should be willing to accept a high degree of volatility and the potential of significant loss. For a more complete description of these and other risks, please refer to each Fund’s prospectus The Fund may loan its securities, which may subject it to additional credit and counterparty risk.
Investing involves risk, including possible loss of principal. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. To obtain a prospectus, which contains this and other information, call 1.888.MKT.VCTR or visit our Web site at vaneck.com. Please read the prospectus carefully before investing.Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017 1 30-Day SEC Yield is a standard calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent 30-day period. This yield figure reflects the interest earned during the period after deducting the fund’s expenses for the period.