Key facts about the Market Vectors ETF Trust, an ETF in registration that will track the AMEX Gold Miners Index:
Excerpts are from the full prospectus (as of April 28th, 2006).
The AMEX Gold Miners Index
The AMEX Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The Index includes common stocks or ADRs of selected companies that are involved in mining for gold and silver and that are listed for trading on the New York Stock Exchange, Amex or quoted on the NASDAQ National Market. Only companies with market capitalization greater than $100 million that have traded an average daily volume of at least 50,000 shares over the past six months are eligible for inclusion in the Index.
... The Index is weighted based on the market capitalization of each of the component stocks, modified to conform to the following asset diversification requirements, which are applied in conjunction with the scheduled quarterly adjustments to the Index:
(1) the weight of any single component stock may not account for more than 20% of the total value of the Index;
(2) the component stocks are split into two subgroups -- large and small, which are ranked by market capitalization weight in the Index. Large stocks are defined as having an index weight greater than or equal to 5%. Small stocks are defined as having an index weight below 5%; and
(3) the aggregate weight of those component stocks which individually represent more than 4.5% of the total value of the Index may not account for more than 50% of the total Index value.
Index Components as of: 05/08/06 (Source: AMEX). Click on a ticker for more analysis of that stock:
|Company Name||Symbol||% Weighting|
|Anglogold Ashanti Ltd Ads||(NYSE:AU)||7.43%|
|Glamis Gold Ltd||(GLG)||6.51%|
|Freep't Mcmoran Copper&gold'b'||(NYSE:FCX)||6.35%|
|Gold Fields Ltd Adr||(NYSE:GFI)||5.98%|
|Harmony Gold Mining Adr||(NYSE:HMY)||4.12%|
|Agnico Eagle Mines||(NYSE:AEM)||3.59%|
|Comp de Minas Buenaventura Ads||(NYSE:BVN)||3.52%|
|Randgold Resources Ads||(NASDAQ:GOLD)||1.69%|
|Eldorado Gold Corp||(NYSE:EGO)||1.55%|
|Coeur d'alene Mines||(NYSE:CDE)||1.45%|
|Pan Amer Silver||(NASDAQ:PAAS)||1.42%|
|Gammon Lake Resources||(GRS)||1.11%|
|SILVER STANDARD RESOURCES||(NASDAQ:SSRI)||1.10%|
|Northern Orion Resources||(NTO)||0.87%|
|Apex Silver Mines Ord||(NYSEARCA:SIL)||0.80%|
|Royal Gold Inc||(NASDAQ:RGLD)||0.71%|
|Golden Star Resources||(NYSEMKT:GSS)||0.69%|
|TAN RANGE EXPLORATION CORP||(TRE)||0.66%|
|Rio Narcea Gold Mines Ltd.||(NYSE:RNO)||0.34%|
|Seabridge Gold Inc.||(NYSE:SA)||0.33%|
|Minefinders Corp. Ltd.||(MFN)||0.31%|
|NEVSUN RESOURCES LTD||(NYSEMKT:NSU)||0.30%|
|Aurizon Mines Ltd.||(AZK)||0.28%|
|Cumberland Resources Ltd.||(CLG)||0.21%|
|Entree Gold Inc.||(NYSEMKT:EGI)||0.15%|
Gold Stocks Versus Gold Bullion
The Index's beta against gold bullion during the period April 1, 1996 through March 31, 2006 was 2.145. The beta describes the sensitivity of the investment to gold bullion movement. The data suggests that for the period April 1, 1996 through March 31, 2006 for a one-percentage point movement in gold bullion, the Index would move approximately 2.15 percentage points.
(fees paid directly from your investment, but see "Creation
and Redemption of Creation Units" for a discussion of Creation and
Redemption Transaction Fees)............................................ 0.00%
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fee.......................................................... 0.50%
Other Operating Expenses(c)(d).......................................... 0.29%
Total Gross Annual Fund Operating Expenses(e)........................... 0.79%
Fee Waivers and Expenses Assumption(f).................................. 0.24%
Total Net Annual Fund Operating Expenses(f)............................. 0.55%
(a) When buying or selling shares through a broker, you will incur customary brokerage commissions and charges.
(b) If a Creation Unit is purchased or redeemed outside the usual process through the National Securities Clearing Corporation or for cash, a variable fee of up to four times the standard creation or redemption transaction fee will be charged.
(c) Other operating expenses are based on estimated amounts for the current fiscal year and calculated as a percentage of Fund assets.
(d) This fee covers fees for custody and transfer agency services.
(e) The Adviser has contractually agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding interest expense, brokerage commissions, offering costs and other trading expenses, taxes and extraordinary expenses) from exceeding 0.55% of average net assets per year at least until May 12, 2007.
(f) The offering costs excluded from the 0.55% expense cap are: (a) legal fees pertaining to the Fund's Shares offered for sale; (b) Securities and Exchange Commission ("SEC") and state registration fees; and (c) initial fees paid to be listed on an exchange.
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