Market Vectors to Split Shares of Its Intermediate, Long and Short Municipal Bond ETFs
October 10 2008 - 4:45PM
Business Wire
Van Eck Global announced today that the Board of Trustees of the
Market Vectors ETF Trust has approved a split of the shares of:
Market Vectors-Lehman Brothers AMT-Free Intermediate Municipal
Index ETF (ticker: ITM), Market Vectors-Lehman Brothers AMT-Free
Long Municipal Index ETF (ticker: MLN), and Market Vectors-Lehman
Brothers AMT-Free Short Municipal Index ETF (ticker: SMB). These
splits will take place for shareholders of record as of the close
of business on October 21, 2008, and will be payable on October 23,
2008. Fund shares will begin trading on a split-adjusted basis on
October 24, 2008. Shareholders will see the change in their
holdings sometime after that date, depending upon their brokerage
firms� procedures. ITM closed yesterday at $95.87 and will split
five-for-one. MLN closed yesterday at $83.41 and will also split
five-for-one. SMB closed yesterday at $48.71 and will split
three-for-one. The splits will lower the share price of the Funds
by increasing the number of shares outstanding, but will not change
the total value of shares outstanding. The expected primary benefit
of this action is that lower share prices will make the Funds more
accessible to investors. Van Eck anticipates that the splits may
also create greater liquidity for the Funds and, by extension,
facilitate tighter bid-ask spreads. The Market Vectors family of
municipal bond ETFs offers a unique set of benefits for investors
seeking to access the tax advantages of the municipal market. With
a choice of short, intermediate and long durations, these national
municipal bond Funds allow investors to select the level of
interest rate risk they wish to undertake. Moreover, the Funds are
AMT-free, meaning that their yields are generally not subject to
the alternative minimum tax, and they are structured to potentially
provide superior yields relative to similar muni products because
their underlying indexes cover the full spectrum of
investment-grade credit ratings in each duration category. The ETF
format also provides investors with price transparency, portfolio
diversification, liquidity, tax efficiency and relatively low fees.
Founded in 1955, Van Eck Global was among the first U.S. money
managers helping investors achieve greater diversification through
global investing. Van Eck�s Market Vectors funds include hard
assets, international, specialty and municipal bond ETFs. Market
Vectors ETFs had a total of $4.8 billion in assets under management
as of September 30, 2008. 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 the 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,
insurance trust funds, 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. Municipal bonds are subject to risks related to
litigation, legislation, political changes, local business or
economic conditions, conditions in underlying sectors, bankruptcy
or other changes in the financial condition of the issuer, and/or
the discontinuance of the taxation supporting the project or assets
or the inability to collect revenues for the project or from the
assets. Municipal bonds are also subject to credit risk, interest
rate risk, call risk, lease obligations and tax risk. The market
for municipal bonds may be less liquid than for taxable bonds.
There is no guarantee that a Fund�s income will be exempt from
federal or state income taxes. Federal or state changes in income
or alternative minimum tax rates or in the tax treatment of
municipal bonds may make them less attractive as investments and
cause them to lose value. Capital gains, if any, are subject to
capital gains tax. For a more complete description of these and
other risks, please refer to the Funds� prospectus. The Lehman
Brothers AMT-Free Intermediate Continuous Municipal Index, AMT-Free
Long Continuous Municipal Index and AMT-Free Short Continuous
Municipal Index are trademarks of Lehman Brothers, Inc. and have
been licensed by Van Eck Associates Corporation for use in
connection with its family of municipal bond ETFs. Lehman Brothers
neither sponsors nor endorses this family of ETFs and makes no
warranty or representation as to the accuracy and/or completeness
of the indexes or the results to be obtained by any person from the
use of the indexes in connection with the trading the ETFs. Fund
shares are not individually redeemable and will be issued and
redeemed at their net asset value (�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. Investors may call
1.888.MKT.VCTR or visit www.vaneck.com/muni for a free prospectus.
They should consider the investment objective, risks and charges
and expenses of each Fund carefully before investing. The
prospectus contains this and other information about the Funds.
Please read the Funds� prospectus carefully before investing. Van
Eck Securities Corporation, Distributor, 99 Park Avenue, New York,
NY 10016
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