Market Vectors ETF Trust launches Indonesia Small-Cap ETF

By Toni Weeks

San Diego, March 22 - The Indonesia Small-Cap ETF began tracking its underlying index, the Market Vectors Indonesia Small-Cap index, on Monday, according to a press release from index creator Market Vectors Index Solutions GmbH.

The new exchange-traded fund now trades on the NYSE Arca under the symbol "IDXJ."

As previously reported, the fund seeks to replicate, before fees and expenses, the price and yield performance of its underlying index.

The fund invests at least 80% of its total assets in securities of the index, which is comprised of securities of Indonesian small-capitalization companies and includes offshore companies that generate at least 50% of their revenues from Indonesia to be classified as pure-play companies. Individual companies are capped at 8%, and the index is reviewed quarterly.

The fund may also invest in depositary receipts, and these will count toward the fund's 80% investment policy if issued by Indonesian companies.

Small-cap companies are primarily driven by local developments and provide solid exposure to the local economy, according to chief executive officer Lars Hamich.

"The Market Vectors Indonesia Small-Cap Index is the only index that provides pure-play exposure to the small-cap segment of this dynamic and growing economy in South East Asia, and we are delighted to announce that the index will underlie the first ETF of its kind," he said in the release.

Hao-Hung (Peter) Liao and George Cao are the portfolio managers.

The fund will not impose shareholder fees. The management fee will be 0.5%. New York-based Van Eck Associates Corp, the fund's investment adviser, will waive and/or pay fund fees and expenses as necessary to limit the total annual fund operating expenses to 0.61% until May 1, 2013.

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