Market Vectors ChinaAMC China Bond ETF gives details

By Toni Weeks

San Luis Obispo, Calif., Nov. 7 – Market Vectors ETF Trust gave details about its new China-focused, fixed-income bond fund, according to an N-1A filing with the Securities and Exchange Commission.

The Market Vectors ChinaAMC China Bond ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ChinaBond China High Quality Bond index. The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index, which is comprised of fixed-rate, renminbi-denominated bonds issued in the People’s Republic of China by Chinese credit, governmental or quasi-governmental issuers. Chinese credit issuers are generally considered to be issuers of central and local enterprise bonds, medium-term notes, corporate bonds and railway debt. Credit RMB bonds must have at least one AAA rating by one of the Chinese local rating agencies.

David Lai and Jeffrey Wu of China Asset Management (Hong Kong) Ltd., the fund’s subadviser, and Michael F. Mazier and Francis G. Rodilosso of New York-based Van Eck Associates Corp., the fund’s investment adviser, will comprise the portfolio management team.

The fund will trade on the NYSE Arca, Inc. The ticker symbol is “CBON.”

There are no shareholder fees. Including a management fee of 0.4% and taking into account a fee waiver and expense reimbursement with the investment adviser, total annual fund operating expenses are expected to be 0.5%.

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