Market Vectors Looks to Expand Bond ETF Lineup

Van Eck, the fifth-largest U.S. ETF firm by assets, is looking to expand the bond offerings at the company's Market Vectors ETF family in a big way by filing with the Securities and Exchange Commission to possibly introduce six new ETFs. The Market Vectors International US$ High Yield Bond ETF will track an index comprised of dollar-denominated non-investment grade bonds. The fund will track corporate bonds issued on U.S. and Eurobond markets. The Emerging Markets US$ High Yield Bond ETF will track the BofA Merrill Lynch High Yield US Emerging Markets Liquid Corporate Plus Index, which is comprised of U.S. dollar denominated debt issued by non-sovereign emerging market issuers that are rated BB1 or lower, according to the filing. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest, subject to a 10% country of risk cap and a 2% issuer cap, the filing said. The Global High Yield Bond ETF.” The Market Vectors Global High Yield Bond ETF will track the BofA Merrill Lynch Global High Yield Constrained Index, which is comprised of non-investment grade corporate debt issued in U.S. and Canadian dollars, euros and British pounds. Qualifying securities must have at least one year remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of 100 million (Euros), 100 million (U.S. dollars), 50 million (pound sterling) or 100 million (Canadian dollars), according to the filing. The Market Vectors Global High Yield US$ Bond ETF.” The Market Vectors Global High Yield US$ Bond ETF will track the BofA Merrill Lynch US Dollar Global High Yield Index, which is comprised of U.S. dollar-denominated non-investment graded issues from all over the world. The Market Vectors Fallen Angel US$ Bond ETF will follow the BofA Merrill Lynch US Fallen Angel High Yield Index, which is comprised of dollar-denominated non-investment grade debt that was investment grade upon issuance. The index includes bonds issued by both U.S. and non-U.S. companies. The Market Vectors Global Fallen Angel Bond ETF will follow the BofA Merrill Lynch Global Fallen Angel High Yield Index, which is comprised of junk bonds issued in U.S. and Canadian dollars, euros and pounds. Qualifying securities must have at least one year remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of 100 million (Euros), 100 million (U.S. dollars), 50 million (pound sterling) or 100 million (Canadian dollars), according to the filing. Tickers and expense ratios were not disclosed for any of the new funds. The Market Vectors Web site shows the firm currently has 12 bond funds on the market, five of which offer international exposure. In other bond ETF filing news, last week, iShares filed plans for the iShares Emerging Markets Corporate Bond Fund. That ETF will track an index of dollar-denominated bonds from Brazil, Chile, China, Colombia, Hong Kong, India, Indonesia, Israel, Jamaica, Kazakhstan, Kuwait, Malaysia, Mexico, Peru, Philippines, Qatar, Russia, Saudi Arabia and South Korea. iShares, the world's largest ETF sponsor, also filed plans for the iShares Emerging Markets Corporate Bond Fund. That ETF will also follow dollar-denominated issues from razil, Chile, China, Colombia, Hong Kong, India, Indonesia, Israel, Jamaica, Kazakhstan, Kuwait, Malaysia, Mexico, Peru, Philippines, Qatar, Russia, Saudi Arabia and South Korea. Energy, financial services and industrial names make up the bulk of that ETF's index. Tickers and expense ratios for the iShares funds were not included in the filings.