Market Vectors Index Solutions Licenses Australia Small-Cap Dividend Payers Index to Underlie ETF

Market Vectors Index Solutions GmbH (MVIS) today announced the licensing of the Market Vectors Australia Small-Cap Dividend Payers Index (AUD) to Market Vectors Australia, the Australian exchange-traded fund (ETF) branch of Van Eck Global, a leading provider of exchange-traded products in the US and globally. As of today, the index will serve as the underlying for an ETF listed on the Australian Securities Exchange (ASX).

The Market Vectors Australia Small-Cap Dividend Payers Index had been launched on March 23, 2015 as the latest addition to the range of Market Vectors Australia Indices, most of them licensed to underlie ETFs with currently USD 73 million invested. The index tracks the performance of local Australian and offshore small-cap companies that did not omit their latest dividend payment and are listed on the ASX. Offshore companies need to have an ASX listing and must generate at least 50 percent of their revenues in Australia.

“Our first dividend-focused index captures a specific segment of the Australian small-cap sector and complements our range of Market Vectors Australia Indices. A comparison of the dividend yield of the MVMVS and the Market Vectors Australia Small-Cap Index (MVIDD) shows that shifting the focus of the index to dividend paying small cap companies can make a difference not only on a dividend yield basis but also on a performance level: MVIDD has a dividend yield of 3.41% while MVMVS had a higher dividend yield of 3.87% (as of 28.05.2015). Comparing the 3-year performance of the two indices, 28.21% for MVMVS and 3.17% for MVIDD, highlights the effects of index specification even more,” said Lars Hamich, CEO of Market Vectors Index Solutions.

Arian Neiron, Managing Director of Market Vectors Australia added: “We are excited to be offering another Australian first, this time a small company dividend paying ETF. The ETF is ideal for Australian clients who have been seeking a cost effective, liquid and transparent small company solution that outperforms the S&P/ASX Small Ordinaries Index. MVS fills that void. Using dividend paying as a filter has been proven to be a successful strategy for ETFs in the US and Europe, especially as investors seek alternative sources of income in low interest rate environments. Given there is not expected to be much more growth in Australian large companies we anticipate demand for this product to be strong.”

The Market Vectors Australia Small-Cap Dividend Payers Index is denominated in Australian Dollars and calculated in price, total return net and total return gross versions. The composition of the index is reviewed quarterly.

Key Index Features
Market Vectors Small-Cap Dividend Payers Index (MVMVS)
Year-To-Date Performance: 8.65%
Full Market Capitalisation (in AUD bn): 118.42
Component Count: 92
Base Date/Base Value: 31.12.2009/1000
Top 5 Companies by Weighting: IOOF (3.42%), Magellan Financial Group (3.16%), Perpetual (3.01%), Qube (2.81%), Orora (2.72%).
(Closing data 28 May 2015)

Detailed information about Market Vectors Australia Small-Cap Dividend Payers Index and all other Market Vectors Indices, including methodology details and comprehensive data is available on www.marketvectorsindices.com.

Note to Editors:

About Market Vectors Index Solutions GmbH

Market Vectors Index Solutions GmbH (MVIS) develops, monitors and licenses the Market Vectors Indices, a selection of focused, investable and diversified benchmark indices which are especially designed to underlie financial products. Market Vectors Indices cover several asset classes, including hard assets and international equity markets as well as fixed income markets and are licensed to serve as underlying indices for financial products.

Approximately USD 11 billion in assets under management are currently invested in financial products based on Market Vectors Indices. MVIS is a wholly owned subsidiary of Van Eck Associates Corporation.

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