Market Vectors Unconventional Oil and Gas ETF launches

By Toni Weeks

San Diego, Feb. 16 - Van Eck Global announced in a press release the launch of the first unconventional oil and gas exchange-traded fund designed to provide investors with pure-play exposure to this segment of the energy sector.

The Market Vectors Unconventional Oil and Gas ETF, which trades on the NYSE Arca under the symbol "FRAK," began tracking its underlying index, the Market Vectors Unconventional Oil and Gas Index, on Wednesday. The index tracks the performance of the global oil and gas segment, which covers coal bed methane, coal seam gas, shale oil, shale gas, tight natural gas, tight oil and tight sands.

The index components must generate or must own properties with the potential to generate at least 50% of their revenues from unconventional oil and gas. The 43 individual index components are each capped at 8%. The index is reviewed quarterly.

"The Market Vectors Unconventional Oil and Gas Index is the only pure-play index that provides exposure to the unconventional oil and gas industry, a fast-growing segment of the energy sector that may have the potential to transform the global energy landscape as energy consumption rises and the need for additional supply pushes the development of new technologies for energy extraction," Lars Hamich, chief executive officer at Market Vectors Index Solutions, said in the release.

Market Vectors has licensed the index to Van Eck Global, the provider of the ETF, the release noted.

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