An SEC rule addressing funds of funds (such as BIZD) adopted in 2006, requires a fund of funds to report a total expense ratio in its prospectus fee table that accounts for both the expenses that a fund pays directly out of its assets (sometimes called “direct expenses”), as well as the expense ratios of the underlying funds (including BDCs) in which it invests (often called “acquired fund fees” or “indirect expenses”). The disclosure of the fund’s indirect expenses in the fund’s fee table is contained in the acquired fund fees and expenses (AFFE) line item. This disclosure is designed to provide investors with a better understanding of the actual costs of investing in a fund that invests in other funds, which have their own expenses that may be as high, or higher, than the acquiring fund’s expenses. Accordingly, the prospectus for BIZD discloses its AFFE which is expected to be 7.16%. However, because these fees are not borne directly by the Fund, they will not be reflected in the expense information in BIZD’s financial statements and the information presented in the prospectus table will differ from that presented in BIZD’s financial highlights included in BIZD’s reports to shareholders, when available. The direct expenses that will be borne by BIZD are anticipated to be 0.40%.BIZD is the latest addition to Market Vectors’ innovative equity income ETF offerings which include Mortgage REIT Income ETF (MORT) and Preferred Securities ex Financials ETF (PFXF). About Market Vectors ETFs Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family totals $27.6 billion in assets under management, making it the fifth largest ETP family in the U.S. and eighth largest worldwide as of December 31, 2012.
Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and managed approximately $36.6 billion in investor assets as of December 31, 2012.Expenses are capped contractually until at least 9/1/2014. Cap Excludes certain expenses, such as interest and Acquired Fund Fees and Expenses. Business Development Companies (BDC) invest in private companies and thinly traded securities of public companies including debt instruments of such companies. Generally, little public information exists for private and thinly traded companies and there is a risk that investors may not be able to make fully informed investment decisions. Less mature and smaller private companies involve greater risk than well-established and larger publicly-traded companies. Investing in debt involves risk that the issuer may default on its payments or declare bankruptcy and debt may not be rated by a credit rating agency. BDCs may not generate income at all times. Additionally, limitations on asset mix and leverage may prohibit the way that BDCs raise capital. The Fund and its affiliates may not own in excess of 25% of a BDC’s outstanding voting securities which may limit the Fund’s ability to fully replicate its index. The Fund is currently concentrated in the financial services sector and may depend to a greater extent on the overall condition of the sector. The Fund may loan its securities, which may subject it to additional credit and counterparty risk. 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.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 888.MKT.VCTR or visit vaneck.com/etf. Please read the prospectus and summary prospectus carefully before investing.Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 888.MKT.VCTR or visit marketvectorsetfs.com . Please read the prospectus and summary prospectus carefully before investing.