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Wednesday, November 25, 2009

Van Eck Looks to Poland

Reported by Adam Kommel

Van Eck is investing in Poland with its newest fund. The Market Vectors Poland ETF, which follows the Market Vectors Poland Index, comes with an expense ratio of 76 basis points.

The launch brings the total number of Van Eck ETFs to 23. New York-based Van Eck has a total of about $10 billion in AUM.

Adam Phillips, managing director of ETFs at Van Eck, told The MFWire that the attraction of Poland lies in its potential for growth.

"Fifty percent of the population is under 35," Phillips said, calling it "an indication of a rapidly growing workforce."

"Long-term growth potential is in place," he said. "There's currently sound economic policies and direct foreign investment."
Company News Release NEW YORK - (Business Wire) New York-based asset manager Van Eck Global today launched Market Vectors Poland ETF (PLND) on NYSE Arca ®, expanding its family of emerging market country ETFs. PLND seeks to offer investors pure-play exposure to Poland, the world’s 18th largest economy in 2008 as measured by GDP. Poland has a growing consumer economy and strong domestic consumption which has fostered growth of domestic small- and mid-cap companies. In addition, its relatively sustained foreign direct investment, limited exposure to volatile foreign markets, and sound economic policies have helped the country emerge from the recent economic crisis in a stronger position than many of its neighbors.

“Poland is the largest and fastest growing economy in Central and Eastern Europe,” said Jan van Eck, principal of Van Eck Global. “Poland’s economy has recently surpassed Belgium and Sweden and is one of the only economies in the CEE region to show positive growth this year. While this nascent economy certainly comes with its share of risks, we are pleased to offer an ETF that seeks to reflect the Polish stock market structure.”

PLND seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Poland Index (Total Return: MVPLNDTR). The index had 26 constituents including Powszechna Kasa Oszczednosci Bank, Bank Polska Kasa Opieki and KGHM Polska Miedz, as of October 31, 2009. Its top component sectors were Financials (40.3 percent of the Index), Energy (13.6 percent) and Industrials (11.0 percent) and the Index had a 60% weighting in small- and mid-cap stocks, as of the same date.

PLND is the 23rd ETF offered under Van Eck’s Market Vectors brand and joins the firm’s growing international equity lineup, which includes Market Vectors ETFs focused on Africa (AFK), Brazil Small-Cap (BRF), the Gulf States (MES), Indonesia (IDX), Russia (RSX), and Vietnam (VNM). Van Eck also offers hard assets, specialty and fixed income ETFs and, as of the end of October 2009, was the sixth largest ETF provider in the U.S. with approximately $10 billion in ETF assets under management. Potential investors can get information on Market Vectors Poland ETF by visiting vaneck.com/plnd.

More About the Index

The Market Vectors Poland Index is intended to give investors a means of tracking the overall performance of companies that are domiciled and primarily listed in Poland, or that generate at least 50 percent of their revenues in Poland. Each eligible stock must have a full market capitalization of at least $150 million; a three-month average daily trading volume of at least $1 million and must have traded at least 250,000 shares per month over the last six months.

More About Van Eck Global

Founded in 1955, Van Eck Associates Corporation was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today the firm continues this 50+ year tradition by offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes.

Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 when the firm launched the nation’s first gold mining ETF. It also offers mutual funds, insurance trust funds, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global’s investment products are often categorized in asset classes having returns with lower correlations than to those of more traditional U.S. equity and fixed income investments.

Market Vectors Poland Index (the “Index”) is the exclusive property of 4asset-management GmbH, which has contracted with Structured Solutions AG to maintain and calculate the Index. Structured Solutions AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards 4asset-management GmbH, Structured Solutions AG has no obligation to point out errors in the Index to third parties.

4-asset management does not sponsor, endorse or promote Market Vectors Poland ETF and makes no representation regarding the advisability of investing in the Fund.

The Fund is subject to elevated risks, which include, among others, political and economic instability, inflation, confiscatory taxation, nationalization and expropriation, Polish securities market volatility, less reliable financial information, differences in accounting, auditing, and financial standards and requirements from those applicable to U.S. issuers, and uncertainty of implementation of existing Polish law. Investors should be willing to accept a high degree of volatility and the potential for significant loss. The Fund may loan its securities, which may subject it to additional credit and counterparty risk.

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 otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

Investing involves risk, including possible loss of principal. Investors may call 1.888.MKT.VCTR or visit vaneck.com/plnd for a free prospectus. They should consider the investment objective, risks, and charges and expenses of Market Vectors Poland ETF carefully before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing.


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