Van Eck Global Launches Market Vectors® Russia Small-Cap ETF

New York-based asset manager Van Eck Global has launched Market Vectors Russia Small-Cap ETF (NYSE Arca: RSXJ), the first U.S.-based exchange-traded fund (ETF) designed to give investors pure-play exposure to the developing local Russian economy as measured by the country’s small-capitalization companies.

Russia is currently among the least expensive of the major emerging markets from a valuation perspective. Russia’s stock market price/earnings ratio is just 6.6 times^†, which represents a significant discount versus emerging markets stocks in general^‡. Recently, its economy has been boosted by strong commodity prices, with Gross Domestic Product (GDP) expected to expand by 4.3 percent in 2011. Before today’s launch of RSXJ, U.S.-listed Russia ETFs had focused primarily on large-cap companies; companies in the underlying index for the Market Vectors Russia ETF (NYSE Arca: RSX), for example, have an average market capitalization of $20.3 billion. Companies included in these large-cap focused indexes are generally global enterprises with significant exposure to sectors of the economy deemed strategic by the Russian government, particularly energy. This may make large-cap Russia exposure appealing as a commodity or energy component of a portfolio, but leaves the domestic Russian consumer story largely untouched.

"We are strong believers in Russia and many other emerging markets and think that large-cap exposure definitely has its place. However, we also believe the best way to gain pure-play exposure to a country’s domestic economy is through smaller companies that derive their revenue primarily from doing business locally,” said Ed Kuczma, Emerging Markets Analyst with Van Eck Global. "Other potential advantages with small caps generally include less political interference, relatively better corporate governance practices, and relatively better protection for minority shareholder interests.”

†As of March, 2011
‡As measured by the MSCI Emerging Markets Index

Fund to Track Market Vectors Index

RSXJ seeks to replicate, before fees and expenses, the performance of the Market Vectors Russia Small-Cap Index (MVRSXJTR). Market Vectors indexes are designed to more fully reflect the fundamental dynamics of investing in local market economies. Constituent requirements include liquidity based on minimum levels of market capitalization and daily trading volume; local market exposure, with at least 50 percent of revenues generated from a country, even if the company is listed, domiciled, or headquartered elsewhere; diversification¹ based on a tiered weighting scheme; and transparency, with constituents and weights updated and published daily.

As of April 13, 2011, the Market Vectors Russia Small-Cap Index was comprised of 35 companies with an average market capitalization of $US 2.3 billion. The largest sector weightings were Utilities (18 percent), Materials (18 percent), and Energy (17 percent). [Transparent, daily index information is available on the company’s website.]

Van Eck Global notes that investing in emerging markets is not without its risks, which can include economic and political instability, pricing concerns on local exchanges, low trading volume and more, all of which are issues that an investor must consider.

RSXJ carries a net expense ratio of 0.67 percent and a gross expense ratio of 0.75 percent and joins Van Eck’s family of international ETFs, which also includes funds focused on Africa (AFK), Brazil small caps (BRF), China (PEK), Colombia (COLX), Egypt (EGPT), German small caps (GERJ) the Gulf States (MES), India small caps (SCIF), Indonesia (IDX), Latin America small caps (LATM), Poland (PLND), Russian large caps (RSX) and Vietnam (VNM). RSX, the firm’s large-cap focused ETF, has approximately $4B in assets under management and has a three-month average daily trading volume of 4.3 million shares².

Van Eck’s Market Vectors family of ETFs, which also include funds focused on commodities, municipal bonds, and emerging market local currency bonds, had approximately $31.3 billion in assets under management (AUM) as of December 31, 2010, making it the sixth-largest provider of ETFs in the United States and ninth-largest in the world.

¹ The Fund is classified as a "non-diversified” investment company under the 1940 Act.
² As of 4/12/11

About 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 55+ year tradition by offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes.

Van Eck Global also offers mutual funds, insurance portfolios, 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.

In addition, 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. Market Vectors is currently the U.S.’s sixth largest provider of ETPs.

Investors should be willing to accept a high degree of volatility and the potential of significant loss. The Fund is subject to risks associated with investments in derivatives and foreign securities. In particular, Russian investments are subject to elevated risks, which include, among others, the absence of developed legal structures, national policies, expropriation, and relative illiquidity of the Russian market. In addition, companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies. The Fund may loan its securities, which may subject it to additional credit and counterparty risk.

The Market Vectors Russia Small-Cap Index (the "Index”) is the exclusive property of 4asset-management GmbH, which has contracted with Structured Solutions AG to maintain and calculate the Index. Structured Solutions AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards 4asset-management GmbH, Structured Solutions AG has no obligation to point out errors in the Index to third parties. Market Vectors Russia Small-Cap ETF (the "Fund”) is not sponsored, endorsed, sold or promoted by 4asset-management GmbH and 4asset-management GmbH makes no representation regarding the advisability of investing in the Fund.

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 partially for cash and partially in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

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 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.

Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017