New York-based asset manager Van Eck Global today launched Market Vectors–Gaming ETF (BJK), a new exchange-traded fund (ETF) listed on the American Stock Exchange® (Amex®). The Fund is the first ETF listed in the U.S. that enables U.S. investors to gain exposure to a broad spectrum of companies involved in gaming companies worldwide. Options are expected to be available on BJK.
BJK seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the S-Network Global Gaming IndexSM (WAGR), a basket of the securities of gaming companies listed on global exchanges. As of December 31, 2007, WAGR returned approximately 11.01 percent and 24.98 percent over three- and five-years, respectively*. Companies in WAGR predominantly derive at least 50% of their revenue from gaming.
BJK seeks to provide investors with a convenient, low cost means to gain diversified exposure to a dynamic industry with compelling growth potential. WAGR currently includes casinos and resorts such as MGM Mirage, Hong Kong’s Melco PBL Entertainment and Kuala Lumpur’s Resorts World, as well as equipment and technology companies such as International Game Technology (7.81%, 0.58%, 2.49% and 9.91% of the Index, respectively). Also currently represented in WAGR are companies engaged in sports and race books and online gaming. BJK’s total net expense ratio is 0.65%.
“Gaming has become an increasingly mainstream form of entertainment among the world’s growing middle class. In fact, there has been sharp expansion of the gaming industry in over 150 countries around the globe. In addition to consumer demand, technical developments and favorable legislation further underpin the potential growth of this industry,” said Jan van Eck, Principal at Van Eck Global. “As the first ETF to target this sector, we believe that BJK will appeal to investors looking for a convenient means to access the global gaming market. After all, betting with the house sometimes has its advantages.”
Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. The company managed over $9.3 billion in assets for individuals, insurers and institutional investors, as of December 31, 2007. BJK is the 11th ETF introduced under Van Eck’s Market Vectors brand which includes sector, single country and municipal bond ETFs. Market Vector ETFs had a total of over $3.6 billion in assets under management as of yearend 2007.
Potential investors can get information on this ETF and the underlying index by visiting www.vaneck.com/bjk.
The Fund is subject to various risks including those associated with making investments in companies engaged in the gaming business such as competitive pressures, changes in government regulation, world events and economic conditions. Additional risks include legislative changes, high correlation within the industry, changes in consumer taste and risks related to foreign investments.
Past performance does not guarantee future results. The returns of WAGR or of any index do not represent the performance of any ETF. WAGR does not charge any fees, including management fees or brokerage expenses, and no such fees or expenses were deducted from the performance described. You cannot invest directly in an index.
*All performance information for WAGR covering the period prior to December 10, 2007 is based on hypothetical, back-tested data. Prior to that date, WAGR was not calculated in real time by an independent calculation agent. Hypothetical back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that any investment will achieve performance similar to that shown.
The S-Network Global Gaming IndexSM (WAGR), a trademark of Stowe Global Indexes LLC, is licensed for use by Van Eck Associates Corporation in connection with Market Vectors-Gaming ETF (BJK). Stowe Global Indexes LLC neither sponsors or endorses BJK and makes no warranty or representation as to the accuracy and/or completeness of WAGR or results to be obtained by any person using WAGR in connection with trading BJK. WAGR is calculated and maintained by Standard & Poor’s Custom Indices, which neither sponsors nor endorses BJK.
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 other wise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind.
About Van Eck Global
The firm has a 50+ year tradition of offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes. Van Eck Global’s investment products are designed for investors seeking innovative choices for portfolio diversification. They are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
About the American Stock Exchange®
The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex® is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex® currently lists 383 ETFs. The Amex® is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
Investors may call 1.888.MKT.VCTR or visit www.vaneck.com/etf for a free prospectus or for the performance information current to the most recent month end for each Market Vectors ETF. Investors should consider the investment objective, risks and charges and expenses carefully before investing. Each Market Vectors ETF prospectus contains this and other information. Please read the relevant prospectus carefully before investing. There are risks associated with investing including the possible loss of principal.
Contacts:
Mike MacMillan/Andrew Schiff, 212-473-4442
mike@macmillancom.com
