NEW YORK--(BUSINESS WIRE)--
Market Vectors ETF Trust announced today that its Board of Trustees has approved reverse share splits of seven ETFs.
The effective date of the split will be at market open on July 1, 2013. The Funds will continue to trade on the NYSE Arca under their current ticker symbols, but their current CUSIP numbers will be discontinued and the Funds’ new CUSIP numbers will be as follows, effective July 1, 2013.
Market Vectors ETF
|Ticker||Old CUSIP||New CUSIP||Split Ratio|
|Market Vectors Global Alternative Energy ETF||GEX||57060U407||57061R593||1-for-3|
|Market Vectors Russia Small-Cap ETF||RSXJ||57060U399||57061R585||1-for-3|
|Market Vectors Uranium+Nuclear Energy ETF||NLR||57060U704||57061R577||1-for-3|
|Market Vectors Egypt Index ETF||EGPT||57060U548||57061R569||1-for-4|
|Market Vectors India Small-Cap Index ETF||SCIF||57060U563||57061R551||1-for-4|
|Market Vectors Junior Gold Miners ETF||GDXJ||57060U589||57061R544||1-for-4|
|Market Vectors Rare Earth/Strategic Metals ETF||REMX||57060U472||57061R536||1-for-4|
The Depository Trust Company (“DTC”), the registered owner of all Fund shares, has been notified of the reverse share splits and has been instructed to adjust each shareholder’s investment accordingly.
Shares of the Fund will be offered on a split-adjusted basis on July 1, 2013. The total market value of the shares outstanding will not be affected as a result of this reverse share split, except with respect to the redemption of fractional shares, as discussed below.
Redemption of Fractional Shares and Tax Consequences for Each Reverse Split
For shareholders who hold quantities of shares that are not exact multiples of the reverse share split ratios (for example: a multiple of 3 for a 1-for-3 split), the reverse share splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for holders of the Fund.
About Market Vectors ETFs
Market Vectors exchange-traded products (ETPs) 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 currently totals $26.1 billion in assets under management, making it the fifth largest ETP family in the U.S. and ninth largest worldwide, as of March 31, 2013.
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 manages approximately $35.0 billion in investor assets as of March 31, 2013.
Van Eck Securities Corporation does not provide tax, legal or accounting advice. Investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service.
The principal risks of investing in Market Vectors ETFs include sector, market, economic, political, foreign currency, world event, index tracking and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. Please see the prospectus and summary prospectus of each Fund for more complete information regarding its specific risks.
The “net asset value” (NAV) of an ETF is determined at the close of each business day, and represents the dollar value of one share of the ETF; it is calculated by taking the total assets of an ETF subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as an ETF's intraday trading value. Investors should not expect to buy or sell shares at NAV.
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. 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.
Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017
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Mike MacMillan/Chris Sullivan, 212-473-4442