Market Vectors, the exchange-traded fund division of US asset manager Van Eck Global, has announced that 27 ETFs which the firm has cross-listed on Chile’s Santiago Stock Exchange will now trade in Chilean pesos.
The conversion of the ETFs to peso-denomination will reduce currency risk for Chilean investors.
The move by Market Vectors is significant in that it reduces currency risk for the local investor compared to the previously US dollar-denominated funds. In the past, performance would be negatively affected if the Chilean peso appreciated against the dollar during the term of holding.
The change to peso-denomination is also indicative of the development of the ETF industry as fund issuers seek to better tailor solutions to their clients’ needs.
The 27 ETFs that Market Vectors has changed to peso-denomination are:
Market Vectors Agribusiness ETF (MOO)
Market Vectors Biotech ETF (BBH)
Market Vectors Brazil Small-Cap ETF (BRF)
Market Vectors ChinaAMC A-Share ETF (PEK)
Market Vectors Coal ETF (KOL)
Market Vectors Egypt Index ETF (EGPT)
Market Vectors Emerging Markets Aggregate Bond ETF (EMAG)
Market Vectors Global Alternative Energy ETF (GEX)
Market Vectors Gold Miners ETF (GDX)
Market Vectors India Small-Cap Index ETF (SCIF)
Market Vectors Indonesia Index ETF (IDX)
Market Vectors J.P Morgan EM Local Currency Bond ETF (EMLC)
Market Vectors Junior Gold Miners ETF (GDXJ)
Market Vectors Morningstar Wide Moat ETF (MOAT)
Market Vectors Natural Resources ETF (HAP)
Market Vectors Oil Services ETF (OIH)
Market Vectors Pharmaceutical ETF (PPH)
Market Vectors Poland ETF (PLND)
Market Vectors Rare Earth/Strategic Metals ETF (REMX)
Market Vectors Retail ETF (RTH)
Market Vectors Russia ETF (RSX)
Market Vectors Russia Small-Cap ETF (RSXJ)
Market Vectors Semiconductor ETF (SMH)
Market Vectors Steel ETF (SLX)
Market Vectors Unconventional Oil & Gas ETF (FRAK)
Market Vectors Uranium+Nuclear Energy ETF (NLR)
Market Vectors Vietnam ETF (VNM)